starbucks.doc

english for marketing marketing plan for starbucks company “we arent in the coffee business, serving people,we are in the people business, serving coffee- howard schultz ceotutor: 游 娟name:屈斯维class :商英1034班student no:1127023427date: 2013. 1. 2table of contents 1. executive summary-12. situational analysis-13. market objective-24. market research-35. swot analysis-36. marketing mix strategy-47. recommendation-6bibliography-661. executive summarystarbucks corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 15,000 company-operated and licensed locations in north america, latin america, europe, the middle east, africa and asia pacific. starbuck is one of the fastest growing retailers in the world as it has built its market position with a linkage to its customers by providing a place for them beside work and home, where people could relax and enjoy themselves. it has over 7000 stores located worldwide. starbucks has a mission statement of structuring a pleasant work environment in which employees are treated with respect and dignity incorporating diversity in all its business aspects to deliver fresh coffee, satisfying customers, and developing profitability for the companys success.providing excellent customers service is not an easy task. this service experience report emphasizes on the aspects of improving customer service through analysis and evaluation of the critical service point in the service encounter and formulating a market plan. i will briefly summarize problems that starbuck facing and suggest what actions should be taken to keep it in continuing improve customer satisfactions and strengthen its market position.2. situational analysis2.1 companystarbucks has become one of the leading coffee retailers in the world with more than 13000 coffee outlets across 35 countries. the core business of starbucks is selling high quality and various types of coffee drinks, and it also has two brands of bottle selling coffee drinks, frappoccino and starbucks doubleshot. the research shows that the revenue of starbucks is growing by 20% per year and it is opening 3 stores per day over the world approximately. starbucks has achieved a net increase in revenue of 2.4 billion us dollars and it has expanded the business with opening 668 stores located in different countries. starbucks is successfully managing its operations through franchising in order to achieve steady market growth in retail industry. additionally, starbucks has achieve a competitive advantages by reducing delivery and management costs, shortening customer lines at individual outlets and increasing foot traffic for all the stores in an area.2.2 target customerstarbucks are able to address a wide demographic of customers in differentbackgrounds and ages. the high quality coffee drinks, harmonious environment with good music, comfortable sofa and chairs, and warm services all attract consumers to pay for a cup of coffee. starbucks mainly targeted at customers who are not price-sensitive and desire for an experience. furthermore, starbucks has developed a strong brand to retain a large group of loyal customers and it creates a specific “starbucks experience” to build brand loyalty. in addition, starbucks take into account the cultural differences within different countries thereby modifying its products and services to attract new customers as well as maintain customer loyalty.2.3 competitors analysismcdonald cafe introduced its espresso beverage products in 2001, and the price is relatively low than starbucks. it affected starbucks market share through providing various fast foods at a low price. although starbucks still can maintain its dominant position in retailing industry, there was a 20% decrease in its value. the cost of ducking donuts coffee drinks is about 20% lower than starbucks. by selling donuts as its main product to draw customers, dukin donuts provide coffee products as a complementary product for value-adding. the coffee bean is another close competitor of starbucks. it is national chain to serve fresh coffee, cappuccino, latte and other coffee drinks that similar to starbucks provided. other competitors are local small coffeehouse, and other new product lines.3. market objectivestarbucks has many categories of loyal customers who can be classified into different segments. as the research shows that women customer tend to drink starbucks coffee than men about 40%, who will buy a cup of coffee from starbucks in the morning before work, or meet up with friends to chat over a cup of coffee, and most of them will bring the child to get some beverage. a majority of target customers are between 18 to 30 years old. additionally, starbucks appealed more to students and younger kids recently, so under 18 age set can be considered as a new customer base that starbucks has never targeted before.4. marketing research4.1target marketfour age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up.high school and college aged people will demonstrate social uses.the 25-45 years group will be used to determine business application and social/personal use. the 45 years and above will give us a plan to market to more senior well-refined group. 5. swot analysis strengthstarbucks corporation is a very profitable organization, the company generated revenue of more than $5000 million in the same year. it is a global coffee brand built upon a reputation for fine products and services. it has almost 9000 cafes in almost 40 countries. starbucks was one of the fortune top 100 companies to work for in 2005. the company is a respected employer that values its workforce. the organization has strong ethical values and an ethical mission statement as follows, starbucks is committed to a role of environmental leadership in all facets of our businessweaknessstarbucks has a reputation for new product development and creativity. however, they remain vulnerable to the possibility that their innovation may falter over time. the organization has a strong presence in the united states of america with more than three quarters of their cafes located in the home market. it is often argued that they need to look for a portfolio of countries, in order to spread business risk. the organization is dependent on a main competitive advantage, the retail of coffee. this could make them slow to diversify into other sectors should the need arise.opportunitystarbucks are very good at taking advantage of opportunities. in 2004 the company created a cd-burning service in their santa monica (california usa) cafe with hewlett packard, where customers create their own music cd. new products and services that can be retailed in their cafes, such as fair trade products. the company has the opportunity to expand its global operations. new markets for coffee such as india and the pacific rim nations are beginning to emerge. co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.threatwho knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future? starbucks are exposed to rises in the cost of coffee and dairy products. since its conception in pike place market, seattle in 1971, starbucks success has lead to the market entry of many competitors and copy cat brands that pose potential threats.6.marketing mix strategyproductstarbucks try to become a “third place” in peoples lives after home and work, the habitat of spirit with coffee culture and relaxing atmosphere.the actual productcoffee: the best coffee bean and more than 30 blends and singleorigin premium arabica coffees.handcrafted beverages: freshbrewed coffee, hot and iced espresso, beverages, frappuccino coffee and non-coffee blended beverages.fresh food: baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups.the augmented productcoffee and tea brewing equipments mugs books and gift items.pricestarbucks coffee products are priced higher than its competitors by about 20%. the reason of selling at a higher price is that starbucks differentiate it from competitors by selling high quality and experience. although a large group of consumers demonstrate that they are willing to pay a higher price for a higher quality and specialty coffee experience, its market segment is relatively narrow compared to its competitors. approximately 28% of starbucks believe that a better price will be an incentive for frequent visits. launching a new business line should bring more new customer to starbucks and it can be achieved by brand extension. in order to combat the current economic downturn, starbucks has to make changes on prices for maintaining its sales volume and its premium brand values.placethe relax and comfort atmosphere at starbucks stores encourage customers to stay and enjoy their coffee drink. many customers work on their computers, read books, study or chat with friends for several hours so that many coming customers cannot find a seat. many regular consumers complained that the seats are filling so fast and they have to wait a long time or take away their drinks. it is urgent to expand the store area and add more seats in the main retails locating in shopping centers, airports and libraries to prevent loss of customers.promotionour shop is the best advertising,1、starbucks believes the branch store itself is the most important, high quality products and reputation are more important than advertising. 2、 starbucks has never spent a penny in the mass media to advertise its products. however, they are still very good at marketing.3、advertising try for free / supply coffee coupons / buy one get one free drinks .7. recommendationsetting up an internal strategic marketing team will allow starbucks to have proactive feedbacks of customer satisfaction and identify the room for improvement. it is an effective way for employe