Company-Starbucks-Marketing-Report-星巴克市场营销分析英文版

1、PAGE PAGE 16Company Starbucks Marketing ReportProduced byNamesStudent Number:9 Name : GraceStudent Number:1 Name : AnnStudent Number:2 Name : TomStudent Number:8 Name : SerenaReport date : 2014/12/10Student Number:16 Name : AnnaGroup :Grace Date: December 10, 2014Executive summary The purpose of thi

2、s report was to identify a suitable for Startbucks to introduce into a target market. As part of this process a strategic analysis was conducted to the environment. Strategies that mitigated threats and weakness and ones that took of these strategies a suitable new product was then developed.The boo

3、ming of Chinese economy nourishes a broad coffee consumption market. Against this macroeconomic background, Starbucks puts the Chinese market into the first place of its overseas market except American market. Starbucks has made great business achievement in Chinese market, while it is also challeng

4、ed by the devaluation of Startbucks brand and the downgrade of its core competitiveness. based on the background, product and environment analysis and strategy making ,analyses on many related literatures, this paper researched on the Startbucks marketing strategies, analyses Startbucks operating en

5、vironment both internally and externally and summarizes the marketing strategies of Starbucks in china. The report was based on information from a range of data sources, including Starbucks websites and the magazines about this company Group: Grace Date :December 10, 2014Table of ContentsIntroductio

6、n5Company Background6About the company .6History .6 Mission.7 Values 72.2 Products.8Target Markets / Market Segments .8Market share.8 Major competitors .9Table 1: direct competitor to Starbucks.103. Environmental Analysis .11External.11 PEST/PESTL.11Competitive Forces.12External Opportunities and Th

7、reats14Internal Analysis.15Identification of SWOT elements.15Evaluation of SWOT elements17Analyze and Rank.18Strategies.19Strategies development.19Identify strategic fit20Table 2:SWOT/ Strategies Matrix.21Product Development.21Strategy Selection.21Product Selection.23Idea generation23Marketing Strat

8、egy25 Demographic.26Conclusion.26Reference.27Appendix28Idea generation .28Team Report.28 7.2.1 Individual Member Activity Report.28 1 IntroductionWe are not in the coffee business, serving people .we are in the people business, serving coffee. That is the philosophy of Howard Schultz, chairman and c

9、hief global strategies of Starbucks. It is a philosophy that has shapedand continues to shapethe company. With over 11000 outlets in more than 36 countries, Starbucks is the worlds number one specialty coffee retailer. In order to understand the company comprehensively, we are going to take an in-de

10、pth look at Starbucks through this topics. This report will discuss the marketing strategy being implemented by Starbucks, and will evaluate the companys current marketing plan, including the products, external and internal environmental, product development, strategies and various other factors tha

11、t affect its strategy.2 Company Background2.1. About the company2.1.1 HistoryFounded in 1971 with the opening of the 1st location in Seattles Pike Place Market selling coffee beans onlyHoward Schultz joined Starbucks in 1982 as director of retail operations and marketingSchultz purchased the company

12、 in 1987 and Starbucks Coffee Company opened the first store to sell brew coffee and espresso beveragesCompleted IPO on NASDAQ in 1992 under the trading symbol “SBUX”, thus opening a new chapter of growth for the companyCurrently operating in 39 countries around the world with more than 13,000 store

13、s and over 145,000 partners (employees)As of November 2014,Starbucks is present in 67 countries and territories2.1.2 Mission 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 busine

14、ss aspects to deliver fresh coffee, satisfying customers, and developing profitability for the companys successValuesStarbuckss net earnings in 2011 were $417.80 million, which is a significant increase from 124.570 million, Furthermore, its revenues grow from $10.383 billion in 2008 to $11.7 billio

15、n in 2011. The increase in revenue and sales was direct result of the numerous new stores that were opened. During this period Starbucks stores grow 508 percent from 8400 stores to over 12000 across 39 countries. Now, Starbucks have more than 13000 stores and 145000 employees. And until 2013, sales

16、had increase to $14.982 billion Product2.2.1 Target Market The target market of Starbuck in china is located in super-large city level, and economically developed coastal areas and relatively developed city of secondary cities with higher education, the upper middle class with higher income or rando

17、m consumer and coffee lovers, this part of the population belongs to the pursuit of quality social upper class and the pursuit of social fashion of social middle class. Starbucks target market is a middle class as the mainstream of social class. Starbucks is the implementation of differentiated mark

18、eting strategy; provide a great diversity of products and services for the different cub market. Starbucks implemented the strategy of these differences of target market for different market segments to customize different products and services, and to develop different marketing strategies, to meet

19、 different consumer needs, better to expand sales.2.2.2 Market ShareStarbuck is the fifth largest consumer food service brand in the world. Starbuck opens three new stores every single day. Now 15,269 outlets of Starbuck operated, As of November 2014, Starbucks is present in 67 countries and territo

20、ries. However, 61 of its 84 locations were closed in Australia 2008. Besides, the traffic volume and sales is continually decreasing recently. Therefore, it is vital to examine the reasons for declining market share, and to offer approach to improve the market performance and increase its market sha

21、re.2.2.3 Major CompetitorsStarbucks belongs to market follower, facing the competition can be divided into four categories.Coffee competition: such as, Dietrichs coffee, Petes coffee, and Caribou Coffee company. These companys product is similar to Starbuck and the price and qualities are also same.

22、 Convenience store competition: these type of coffee store are more attractive than Starbucks for the customers who are in college and office worker. Due to these store you can find in every corner of street and the cost for these stores to open is lower than Starbuck.Fast food restaurants sell coff

23、ee : such as McDonalds, KFC, Pizza Hut and Dunkin Donuts. These fast food company are more common in every city. In addition, these stores coffee are more cheaper than Starbuck and they can provide many kinds of food and drinks.Fixed coffee machine: this way to shell coffee can save cost of employee

24、s and store rent. For the customer, it is more convenient and quick, also the price is cheaper than the coffee are sold in coffee shop.2.2.4 Table 1: direct competitor to Starbucks FirmProduct line BreadthRevenues(2010) in Millions% of Total Group RevenuesStarbucksHigh10,70727%Dunkin DonutsModerate5

25、,50014%McDonaldsModerate2,4006%Green Mountain Coffee RoastersLow8032%Kraft Foods , Inc.Low3,1008%Nestle S.A.Low17,70044%3 Environmental Analysis 3.1.1 PEST Polity: The relationship between China and American has improved , thus the prospect of development between two countries is visible. The Chines

26、e policy also provide a wide market for Starbucks. Economic: the residences consumption level is increasing in China which provide a wide market for Starbucks. Also with the improve of citizens salary, Chinese purchasing power gradually increased , a cup of $3 coffee is not a luxury any more. Social

27、: Chinese culture affects Chinese action and thought. Moreover, the Starbucks core value is also emphasize kindness bring people a lot. So, it also advocate environment is the same important as coffee Technology : Starbucks hold advanced coffee bake skill which appealed Chinese attraction mode a sta

28、ble technology foundation. Besides, via the internet advertise its can spread their coffee culture.3.1.2 Competitive Forces Customs:Starbucks initially targeted young student, social classes and neighborhoods that would be most reparative to the idea of buying $3 a cup of coffee and spending time wi

29、th friends at their stores. With rapid growth and expansion, Starbucks target market expanded rapidly to include every individual of every age. Starbucks can provide customers a comfortable release place which they can reading, thinking, writing, or even a daze. The coffee giant achieved these using

30、 creature comforts, such as comfortable furniture, wireless internet relaxing music and common area for collaboration. While Starbucks stores are positioned as locations where customers can spend time in a comfortable setting, their product lines are positioned at the higher in regards to prices and

31、 quality Supplies The major suppliers to the industry are countries from Africa, South America, and Asia. This is due to the fact that tea leaves and coffee beans must be grow in a certain climate. As such, many of these supplying regions are lower economic countries. Coffee beans are a commodity pr

32、oduct and coffee prices are dictated by supply and demand. The power of supplies is also deemed to be moderate New Entrants Asforthethreatofnewentrants,itwillbediscussedfromthreeaspects.Firstly,differentiationandinnovationaretheimportantelementsinthespecialtycoffeeindustry.Inthissaturatedindustry,it

33、ishardfornewentrantsto differentiate from existing competitors by just providing better quality, customer services and different styles of the retail stores. It lowers the threat of new entreant. Additionally,brandloyaltyisalsoasignificantbarriertonewentrants.ManycompanieslikeStarbuckshasgainedmanyl

34、oyalcustomers byprovidingexcellentexperienceandservicesthroughtheseyears.Allthesepointshavemadeitdifficultfornewentrantstoenterinto thisindustry.Therefore,thethreatofnewentrantsismoderate. Substitution The major substitution of Starbucks must be milky tea, juice etc,However, Starbucks has its unique

35、 competitive advantages. Firstly, the comfortable environment that Starbucks supplies to customer is difficult for those juice or milky tea store to offer. These shop are usually narrow and capacity is small. Secondly, those juice or milky tea shop have a low awareness of product brand, and dont hav

36、e a complete brand system. While Starbucks are well-known all over the world and has a profound brand marketing. In nutshell the threat of substitutes is consider being very weak in this industry. RivalryIn China, the major competitors are Taiwan Shang Dao coffee, Japan really pot of coffee, Pacific

37、 Coffee and other coffee later into China, Starbucks coffee among all as its biggest competitor, “coffee wars” royalties have become inevitable.Starbucks mission statement is “Establish Starbucks as the premier purveyor of the finest coffee in the world.” The threat of substitutes is consider to be

38、very weak in this industry. Facing with the competition from the coffee industry, the convenience store, fast food restaurants and coffee machine, Starbucks have a long way to go in the future.3.1.3 External Opportunities and ThreatsOpportunities: Starbucks has previously occupy the Chinese coffee m

39、arkets, it is can assist company to extend their market easier, and Starbucks has set its sights on the one billion plus Chinese tea drinkers, and looks to change preferences to gourmet coffee beverages. The company has the opportunity to expand its global operation. New markets for coffee such as I

40、ndia and the Pacific Rim nations are beinginng to emergeC0-branding with other manufactures of food and drink, and brand franchising to manufactures of other goods and services both have potential.Threats1 Starbucks success has lead to the market entry many competitors and copycat brands that could

41、pose potential threats. How they combat these threats will determine their future.2 Starbuck is exposed to rise in the cost of coffee and dairy products3.2 Internal Analysis3.2.1 Identification of SWOT elements(1) Strength: 1: It is famous for high quality coffee beans and good taste 2: It cooperate

42、s with the tea culture and coffee culture 3: It provides a elegant environment, good service, and favorable price.(2) Weakness: 1 the organization structures efficiency is not enough.2 the pressures on supply chain 3 experience and service level is decrease 4 prices is high(3) Opportunity: 1 the vac

43、ancy of marketing entrance 2 the chances of this time background 3 the potential of coffee market in China is visional(4) Threat: 1 too many competitions 2 substitute goods are abundant and promote increasingly 3 the rise of material cost 4 regional developments imbalanced 5 the financial storm impa

44、ct(5) SO: 1 the expansion strategy of market occupancy 2 brand extension (6) ST: 1 differentiation strategy 2 public relations strategy 3 raise the price 4 flexible price systems(7) WO: 1 direct sales strategy 2 brand crises reverse strategy 3 differentiation strategy(8) WT: 1 product line shrinks s

45、trategy 2 turn down the unprofitable or deflect stone 3 looking for much lower prices supplier 3.2.2 Evaluation of SWOT elementThe SWOT analysis that Starbucks is a large company with a competitive advantage that is shrinking because of huge success. This is because Starbucks model has been copied s

46、uccessfully by its competitors and this poses serious threat to company.With majority of stores concentrated in USA, Starbucks is also limiting its growth and exposing itself to risk. If Starbucks can retain its strength and build on opportunities, while suppressing weakness and extinguish threats,

47、it will be able to grow throughout the world market.The SWOT analysis also gives a starting point for discussion on what Starbucks can do to reduce its weakness. Due to its large size, Starbucks sets trends for the industry that can be backed up by the volume of their delivery.The company has manage

48、d to maintain the competitive advantages because it has offered conveniences an atmosphere customers can enjoy. As long as Starbucks fulfils its customers wants and needs, Starbucks will continue to create more value at its stores.3.2.3 Analyze and RankThrough analyze the SWOT of Starbucks, we can f

49、ind that the strength of Starbucks are the special comfortable environment, the unique coffee, and the brand advantages. Also ,with the development of economy, the opportunities for Starbucks are increased, due to it has already be known by the whole world, it may be easier for Starbucks to open a n

50、ew market in all of worldIn terms of threat and weakness for Starbucks, the first thing need to be considered is the how to attract more customers. Starbucks target customers in China are the up-middle-classes, who are affluent and attach great important to quality of life. How to attract other clas

51、s people may become a problem for Starbucks development. In addition, expect coffee there are many other product which are sell in Starbucks, these product are not familiar with people, should Starbucks only fuscous on coffee? Or development all products they have. Thirdly, more and more coffee shop

52、 have emerged in current market, some of them have a similar business pattern with Starbucks, their coffee, environment, desert are all similar to Starbucks. How can Starbucks remain its status in coffee market must be a huge problem for it.3.3 Strategies3.3.1 Strategies developmentChina is the most

53、 important, and potentially the largest market for Starbucks outside North America. Taking a long-term vision in China, Starbucks remains confident in its success in the Chinese market, as it views in China exactly at the time when the Chinese people are looking for more leisure lifestyle and when t

54、he company ideals mesh perfectly with Chinas aspiration to develop a “harmonious society.” The fact that corporate social responsibility is at the heart of our companys value is greatly appreciated by Chinese people and society.In China, Starbucks maintains the unique character of serving the finest

55、 coffee in the world and high quality globally appreciated food. While continuing to offer the best coffee, it is also leading in China in spreading coffee knowledge and expertise, and creating a coffee culture in a traditional tea-drinking society. The Starbucks store atmosphere is one which is sim

56、ilar to the old teahouse of Chinaa gathering place and a gathering place and a community living room.Starbucks partners in China are as welcoming, genuine, considerate, knowledgeable, compassionate and involved as partners from around the world.3.3.2 Identify strategic fitSome of the methods Starbuc

57、ks has used to expand and maintain their dominant market position, including buying out competitors leases, intentionally operating at a loss, and clustering several locations in a small geographical area, have been labeled anti-competitive by critics. HYPERLINK /wiki/Starbucks l cite_note-Klein2009

58、-187 187For example, Starbucks fueled its initial expansion into the UK market with a buyout of Seattle Coffee Company, but then used its capital and influence to obtain prime locations, some of which operated at a financial loss. Critics claimed this was an unfair attempt to drive out small, indepe

59、ndent competitors, who could not afford to pay inflated prices for premium real estate. HYPERLINK /wiki/Starbucks l cite_note-188 188While relations with independent HYPERLINK /wiki/List_of_coffeehouse_chains o List of coffeehouse chains coffeehouse chainshave been strained, some owners have credite

60、d Starbucks with educating customers on coffee. HYPERLINK /wiki/Starbucks l cite_note-189 1893.3.3 Table 2: SWOT/Strategies MatrixInternalexternalstrengthsweaknessopportunitiesSO strategies1.)good quality and taste of coffee2.)comfortable environment3.)cooperate with the tea culture and coffee cultu