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PAGE
PAGE
4
CompanyStarbucksMarketingReport
Producedby
Names
StudentNumber:9Name:Grace
StudentNumber:1Name:Ann
StudentNumber:2Name:Tom
StudentNumber:8Name:Serena
Reportdate:2014/12/10
StudentNumber:16Name:Anna
Group:GraceDate:December10,2014
Executivesummary
ThepurposeofthisreportwastoidentifyasuitableforStartbuckstointrodoatargetmarket.Aspartofthisprocessastrategicanalysiswasconductedtotheenvironment.Strategiesthatmitigatedthreatsandweaknessandonesthattookofthesestrategiesasuitablenewproduct
wasthendeveloped.
TheboomingofChineseeconomynourishesabroadcoffeeconsumptionmarket.Againstthismacroeconomicbackground,StarbucksputstheChinesemarketintothefirstplaceofitsoverseasmarketexceptAmericanmarket.StarbuckshasmadegreatbusinessachievementinChinesemarket,whileitisalsochallengedbythedevaluationofStartbucks’brandandthedowngradeofitscorecompetitiveness。basedonthebackground,productandenvironmentanalysisandstrategymaking,analysesonmanyrelatedliteratures,thispaperresearchedontheStartbucks’marketingstrategies,analysesStartbucks’operatingenvironmentbothinternallyandexternallyandsummarizesthemarketingstrategiesofStarbucksinchina。
Thereportwasbasedoninformationfromarangeofdatasources,includingStarbucks’websitesandthemagazinesaboutthiscompany
Group:GraceDate:December10,2014
TableofContents
Introduction……………………5
CompanyBackground…………6
Aboutthecompany………..6
History…………………。6
Mission…………………..7
Values……………………7
2。2Products………。8
TargetMarkets/MarketSegments……。.。8
Marketshare……………。.8Majorcompetitors………。9
Table1:directcompetitortoStarbucks…。.10
3.EnvironmentalAnalysis………。..11
External.…………………11
PEST/PESTL……….。.11
CompetitiveForces…………………。12
ExternalOpportunitiesandThreats…14
InternalAnalysis………。..15
IdentificationofSWOTelements…。。.15
EvaluationofSWOTelements………17
AnalyzeandRank………。..…………18
Strategies……………….。19
Strategiesdevelopment……………。.19
Identifystrategicfit…………………20
Table2:SWOT/StrategiesMatrix….。21
ProductDevelopment…………。21
StrategySelection……….21
ProductSelection……..…23
Ideageneration………23
MarketingStrategy……………。...。..。。.25
4.2。2.1Demographic…………….。.…。26
Conclusion……………。。………26
Reference……………….。.……。27
Appendix………28
Ideageneration…………。28
TeamReport…………….28
7.2。1IndividualMemberActivityReport…。……………。28
1Introduction
‘Wearenotinthecoffeebusiness,servingpeople。weareinthepeoplebusiness,servingcoffee’’.ThatisthephilosophyofHowardSchultz,chairmanandchiefglobalstrategiesofStarbucks.Itisaphilosophythathasshaped—andcontinuestoshape—thecompany。Withover11000outletsinmorethan36countries,Starbucksistheworld’snumberonespecialtycoffeeretailer.Inordertounderstandthecompanycomprehensively,wearegoingtotakeanin—depthlookatStarbucksthroughthistopics。
ThisreportwilldiscussthemarketingstrategybeingimplementedbyStarbucks,andwillevaluatethecompany’scurrentmarketingplan,includingtheproducts,externalandinternalenvironmental,productdevelopment,strategiesandvariousotherfactorsthataffectitsstrategy.
2CompanyBackground
2。1.Aboutthecompany
2.1。1History
Foundedin1971withtheopeningofthe1stlocationinSeattle'sPikePlaceMarketsellingcoffeebeansonly
HowardSchultzjoinedStarbucksin1982asdirectorofretailoperationsandmarketing
Schultzpurchasedthecompanyin1987andStarbucksCoffeeCompanyopenedthefirststoretosellbrewcoffeeandespressobeverages
CompletedIPOonNASDAQin1992underthetradingsymbol“SBUX”,thusopeninganewchapterofgrowthforthecompany
Currentlyoperatingin39countriesaroundtheworldwithmorethan13,000storesandover145,000partners(employees)
AsofNovember2014,Starbucksispresentin67countriesandterritories
2.1.2Mission
Starbuckshasamissionstatementofstructuringapleasantworkenvironmentinwhichemployeesaretreatedwithrespectanddignity,incorporatingdiversityinallitsbusinessaspectstodeliverfreshcoffee,satisfyingcustomers,anddevelopingprofitabilityforthecompany’ssuccess
Values
Starbucks’snetearningsin2011were$417。80million,whichisasignificantincreasefrom124.570million,Furthermore,itsrevenuesgrowfrom$10。383billionin2008to$11.7billionin2011.Theincreasei
nrevenueandsaleswasdirectresultofthenumerousnewstoresthatwereopened.DuringthisperiodStarbucksstoresgrow508percentfrom8400storestoover12000across39countries。Now,Starbuckshavemorethan13000storesand145000employees。Anduntil2013,saleshadincreaseto$14。982billion
Product
2.2.1TargetMarket
ThetargetmarketofStarbuckinchinaislocatedinsuper-largecitylevel,andeconomicallydevelopedcoastalareasandrelativelydevelopedcityofsecondarycitieswithhighecation,theuppermiddleclasswithhigherincomeorrandomconsumerandcoffeelovers,thispartofthepopulationbelongstothepursuitofqualitysocialupperclassandthepursuitofsocialfashionofsocialmiddleclass。Starbuckstargetmarketisamiddleclassasthemainstreamofsocialclass.Starbucksistheimplementationofdifferentiatedmarketingstrategy;provideagreatdiversityofproductsandservicesforthedifferentcubmarket.Starbucksimplementedthestrategyofthesedifferencesoftargetmarketfordifferentmarketsegmentstocustomizedifferentproductsandservices,andtodevelopdifferentmarketingstrategies,tomeetdifferentconsumerneeds,bettertoexpandsales。
2。2.2MarketShare
Starbuckisthefifthlargestconsumerfoodservicebrandintheworld。Starbuckopensthreenewstoreseverysingleday。Now15,269outletsofStarbuckoperated,AsofNovember2014,Starbucksispresentin67countriesandterritories.However,61ofits84locationswereclosedinAustralia2008.Besides,thetrafficvolumeandsalesiscontinuallydecreasingrecently.Therefore,itisvitaltoexaminethereasonsfordecliningmarketshare,andtoofferapproachtoimprovethemarketperformanceandincreaseitsmarketshare.
2.2。3MajorCompetitors
Starbucksbelongstomarketfollower,facingthecompetitioncanbedividedintofourcategories.
Coffeecompetition:suchas,Dietrich’scoffee,Pete’scoffee,andCaribouCoffeecompany。Thepany'sproductissimilartoStarbuckandthepriceandqualitiesarealsosame。
Conveniencestorecompetition:thesetypeofcoffeestorearemoreattractivethanStarbucksforthecustomerswhoareincollegeandofficeworker。DuetothesestoreyoucanfindineverycornerofstreetandthecostforthesestorestoopenislowerthanStarbuck.
Fastfoodrestaurantssellcoffee:suchasMcDonalds,KFC,PizzaHutandDunkinDonuts.Thesefastfoodcompanyaremorecommonineverycity。Inaddition,thesestores’coffeearemorecheaperthanStarbuckandtheycanprovidemanykindsoffoodanddrinks.
Fixedcoffeemachine:thiswaytoshellcoffeecansavecostofemployeesandstorerent.Forthecustomer,itismoreconvenientandquick,alsothepriceischeaperthanthecoffeearesoldincoffeeshop。
2。2.4Table1:directcompetitortoStarbucks
Firm
Productline
Breadth
Revenues(2010)
inMillions
%ofTotalGroup
Revenues
Starbucks
High
10,707
27%
DunkinDonuts
Moderate
5,500
14%
McDonald’s
Moderate
2,400
6%
GreenMountainCoffeeRoasters
Low
803
2%
KraftFoods,Inc.
Low
3,100
8%
NestleS.A.
Low
17,700
44%
3EnvironmentalAnalysis
3.1.1PEST
3。1.1.1Polity:TherelationshipbetweenChinaandAmericanhasimproved,thustheprospectofdevelopmentbetweentwocountriesisvisible.TheChinesepolicyalsoprovideawidemarketforStarbucks.
3.1。1。2Economic:theresidencesconsumptionlevelisincreasinginChinawhichprovideawidemarketforStarbucks。Alsowiththeimproveofcitizenssalary,Chinesepurchasingpowergraduallyincreased,acupof$3coffeeisnotaluxuryanymore。
3.1。1。3Social:ChinesecultureaffectsChineseactionandthought.Moreover,theStarbuckscorevalueisalsoemphasizekindnessbringpeoplealot。So,italsoadvocateenvironmentisthesameimportantascoffee
3.1.1。4Technology:StarbucksholdadvancedcoffeebakeskillwhichappealedChineseattractionmodeastabletechnologyfoundation。Besides,viatheinternetadvertiseitscanspreadtheircoffeeculture.
3.1。2CompetitiveForces
3。1。2.1Customs:
Starbucksinitiallytargetedyoungstudent,socialclassesandneighborhoodsthatwouldbemostreparativetotheideaofbuying$3acupofcoffeeandspendingtimewithfriendsattheirstores。Withrapidgrowthandexpansion,Starbuckstargetmarketexpandedrapidlytoincludeeveryindividualofeveryage.Starbuckscanprovidecustomers'acomfortablereleaseplacewhichtheycanreading,thinking,writing,orevenadaze。Thecoffeegiantachievedtheseusingcreaturecomforts,suchascomfortablefurniture,wirelessinternetrelaxingmusicandcommonareaforcollaboration。WhileStarbucksstoresarepositionedaslocationswherecustomerscanspendtimeinacomfortablesetting,theirproductlinesarepositionedatthehigherinregardstopricesandquality
3。1.2。2Supplies
ThemajorsupplierstotheindustryarecountriesfromAfrica,SouthAmerica,andAsia。Thisisduetothefactthattealeavesandcoffeebeansmustbegrowinacertainclimate。Assuch,manyofthesesupplyingregionsarelowereconomiccountries.Coffeebeansareacommodityproductandcoffeepricesaredictatedbysupplyanddemand。Thepowerofsuppliesisalsodeemedtobemoderate
3.1.2。3NewEntrants
As
for
the
threat
of
new
entrants,
it
will
be
discussed
from
three
aspects。
Firstly,
differentiation
and
innovation
are
the
important
elements
in
the
specialty
coffee
industry。
In
this
saturated
industry,
it
is
hard
for
new
entrants
todifferentiatefromexistingcompetitorsbyjustprovidingbetterquality,customerservicesanddifferentstylesoftheretailstores.Itlowersthethreatofnewentreant.Additionally,
brand
loyalty
is
also
a
significant
barrier
to
new
entrants.
Many
companies
like
Starbucks
has
gained
many
loyal
customersby
providing
excellent
experience
and
services
through
these
years。
All
these
points
have
made
it
difficult
for
new
entrants
to
enter
into
this
industry。
Therefore,
the
threat
of
new
entrants
is
moderate.
3.1.2.4Substitution
ThemajorsubstitutionofStarbucksmustbemilkytea,juiceetc,
However,Starbuckshasits’uniquecompetitiveadvantages.Firstly,thecomfortableenvironmentthatStarbuckssuppliestocustomerisdifficultforthosejuiceormilkyteastoretooffer.Theseshopareusuallynarrowandcapacityissmall.Secondly,thosejuicekyteashophavealowawarenessofproductbrand,anddon’thaveacompletebrandsystem.WhileStarbucksarewell—knownallovertheworldandhasaprofoundbrandmarketing.Innutshellthethreatofsubstitutesisconsiderbeingveryweakinthisindustry.
3。1.2。5Rivalry
InChina,themajorcompetitorsareTaiwanShangDaocoffee,Japanreallypotofcoffee,PacificCoffeeandothercoffeelaterintoChina,Starbuckscoffeeamongallasitsbiggestcompetitor,“coffeewars”royaltieshavebecomeinevitable.
Starbucksmissionstatementis“EstablishStarbucksasthepremierpurveyorofthefinestcoffeeintheworld。”Thethreatofsubstitutesisconsidertobeveryweakinthisindustry。Facingwiththecompetitionfromthecoffeeindustry,theconveniencestore,fastfoodrestaurantsandcoffeemachine,Starbuckshavealongwaytogointhefuture.
3。1。3ExternalOpportunitiesandThreats
Opportunities:
StarbuckshaspreviouslyoccupytheChinesecoffeemarkets,itiscanassistcompanytoextendtheirmarketeasier,andStarbuckshassetitssightsontheonebillionplusChineseteadrinkers,andlookstochangepreferencestogourmetcoffeebeverages.
Thecompanyhastheopportunitytoexpanditsglobaloperation.NewmarketsforcoffeesuchasIndiaandthePacificRimnationsarebeinginngtoemerge
C0-brandingwithothermanufacturesoffoodanddrink,andbrandfranchisingtomanufacturesofothergoodsandservicesbothhavepotential.
Threats
1Starbucks’successhasleadtothemarketentrymanpetitorsandcopycatbrandsthatcouldposepotentialthreats.Howtheycombatthesethreatswilldeterminetheirfuture.
2Starbuckisexposedtoriseinthecostofcoffeeanddairyproducts
3.2InternalAnalysis
3。2.1IdentificationofSWOTelements
(1)Strength:1:Itisfamousforhighqualitycoffeebeansandgoodtaste
2:Itcooperateswiththeteacultureandcoffeeculture
3:Itprovidesaelegantenvironment,goodservice,andfavorableprice。
(2)Weakness:1theorganizationstructure’sefficiencyisnotenough。
2thepressuresonsupplychain
3experienceandservicelevelisdecrease
4pricesishigh
(3)Opportunity:1thevacancyofmarketingentrance
2thechancesofthistimebackground
3thepotentialofcoffeemarketinChinaisvisional
(4)Threat:1toomanycompetitions
2substitutegoodsareabundantandpromoteincreasingly
3theriseofmaterialcost
4regionaldevelopmentsimbalanced
5thefinancialstormimpact
(5)SO:1theexpansionstrategyofmarketoccupancy
2brandextension
(6)ST:1differentiationstrategy
2publicrelationsstrategy
3raisetheprice
4flexiblepricesystems
(7)WO:1directsalesstrategy
2brandcrisesreversestrategy
3differentiationstrategy
(8)WT:1productlineshrinksstrategy
2turndowntheunprofitableordeflectstone
3lookingformuchlowerpricessupplier
3.2.2EvaluationofSWOTelement
TheSWOTanalysisthatStarbucksisapanywithacompetitiveadvantagethatisshrinkingbecauseofhugesuccess.ThisisbecauseStarbucksmodelhasbeencopiedsuccessfullybyitscompetitorsandthisposesseriousthreattocompany。
WithmajorityofstoresconcentratedinUSA,Starbucksisalsolimitingitsgrowthandexposingitselftorisk。IfStarbuckscanretainitsstrengthandbuildonopportunities,whilesuppressingweaknessandextinguishthreats,itwillbeabletogrowthroughouttheworldmarket。
TheSWOTanalysisalsogivesastartingpointfordiscussiononwhatStarbuckscandotoreduceitsweakness.Duetoitslargesize,Starbuckssetstrendsfortheindustrythatcanbebackedupbythevolumeoftheirdelivery。
Thecompanyhasmanagedtomaintainthpetitiveadvantagesbecauseithasofferedconveniencesanatmospherecustomerscanenjoy。AslongasStarbucksfulfilsitscustomer'swantsandneeds,Starbuckswillcontinuetocreatemorevalueatitsstores.
3。2.3AnalyzeandRank
ThroughanalyzetheSWOTofStarbucks,wecanfindthatthestrengthofStarbucksarethespecialcomfortableenvironment,theuniquecoffee,andthebrandadvantages。Also,withthedevelopmentofeconomy,theopportunitiesforStarbucksareincreased,duetoithasalreadybeknownbythewholeworld,itmaybeeasierforStarbuckstoopenanewmarketinallofworld
IntermsofthreatandweaknessforStarbucks,thefirstthingneedtobeconsideredisthehowtoattractmorecustomers。Starbucks’targetcustomersinChinaaretheup-middle-classes,whoareaffluentandattachgreatimportanttoqualityoflife.HowtoattractotherclasspeoplemaybecomeaproblemforStarbucks’development。
Inaddition,expectcoffeetherearemanyotductwhicharesellinStarbucks,theseproductarenotfamiliarwithpeople,shouldStarbucksonlyfuscousoncoffee?Ordevelopmentallproductstheyhave.
Thirdly,moreandmorecoffeeshophaveemergedincurrentmarket,someofthemhaveasimilarbusinesspatternwithStarbucks,theircoffee,environment,desertareallsimilartoStarbucks.HowcanStarbucksremainitsstatusincoffeemarketmustbeahugeproblemforit。
3。3Strategies
3.3。1Strategiesdevelopment
Chinaisthemostimportant,andpotentiallythelargestmarketforStarbucksoutsideNorthAmerica。Takingalong-termvisioninChina,StarbucksremainsconfidentinitssuccessintheChinesemarket,asitviewsinChinaexactlyatthetimewhentheChinesepeoplearelookingformoreleisurelifestyleandwhenthecompanyidealsmeshperfectlywithChina’saspirationtodevelopa“harmonioussociety.”Thefactthatcorporatesocialresponsibilityisattheheartofourcompany‘svalueisgreatlyappreciatedbyChinesepeopleandsociety。
InChina,Starbucksmaintainstheuniquecharacterofservingthefinestcoffeeintheworldandhighqualitygloballyappreciatedfood.Whilecontinuingtoofferthebestcoffee,itisalsoleadinginChinainspreadingcoffeeknowledgeandexpertise,andcreatingacoffeecultureinatraditionaltea—drinkingsociety。TheStarbucksstoreatmosphereisonewhichissimilartotheoldteahouseofChina-agatheringplaceandagatheringplaceandacommunitylivingroom.
StarbuckspartnersinChinaareaswelcoming,genuine,considerate,knowledgeable,compassionateandinvolvedaspartnersfromaroundtheworld。
3。3.2Identifystrategicfit
SomeofthemethodsStarbuckshasusedtoexpandandmaintaintheirdominantmarketposition,includingbuyingoutcompetitors’leases,intentionallyoperatingataloss,andclusteringseverallocationsinasmallgeographicalarea,havebeenlabeledanti—competitivebycritics.
HYPERLINK”http://en.wikipedia。org/wiki/Starbucks"\l”cite_note—Klein2009—187"
[187]
Forexample,StarbucksfueleditsinitialexpansionintotheUKmarketwithabuyoutofSeattleCoffeeCompany,butthenuseditscapitalandinfluencetoobtainprimelocations,someofwhichoperatedatafinancialloss。Criticsclaimedthiswasanunfairattempttodriveoutsmall,independentcompetitors,whocouldnotaffordtopayinflatedpricesforpremiumrealestate。
HYPERLINK"http://en.wikipedia.org/wiki/Starbucks”\l"cite_note—188”
[188]
Whilerelationswithindependent
HYPERLINK”http://en.wikipedia。org/wiki/List_of_coffeehouse_chains"\o"Listofcoffeehousechains"
coffeehousechains
havebeenstrained,someownershavecreditedStarbuckswitheducatingcustomersoncoffee.
HYPERLINK”http://en。wik/wiki/Starbucks”\l”cite_note—189”
[189]
3。3.3Table2:SWOT/StrategiesMatrix
Internal
external
strengths
weakness
opportunities
SOstrategies
1。)goodqualityandtasteofcoffee
2。)comfortableenvironment
3。)cooperatewiththeteacultureandcoffeeculture
4.)profitableorganization
WOstrategies
1.)directsalesstrategy
2.)brandcrisesreversestrategy
3。)differentiationstrategy
threat
STstrategies
1。)goodreputation
2.)theorganizationhasstrongethicalvalues
WTstrategies
1.)productlineshrinksstrategy
2。)turndowntheunprofitableordeflectstone
4ProductDevelopment
4。1StrategySelection
1。Differentiationstrategy
ThedifferencewasStarbuckscompetitionweapon.ThroughtheCoffeedrinksindustrytoprovidedifferentiatedproductsandservices,thecompanyreceivedafarhighe1QArthanotherCoffeeshopprofitrate,However,differentiationstrategyhasrisks。Itincludes:Customerstobuynotonlydependsonthedegreductdifferentiation,therelativepurchasingpowerlevelalsodependsonthecustomer。Andtheimpactoftheeconomicenvironment。Whenthelatterforceislargeenoughtomakethecustomersnolongerwillingtoexperiencemoreofthebill,theenterprisewillfacetherisk.Nodoubt,theimpactoffinancialcrisisonStarbucksisdirectandobvious.
2Diversificationstrategies
Inordertomeetthechallenge,whichbrokethestory。.Starbucksbegantodiversificationstrategyasapowerfulweapon.InUSAnativeCoffeeshopTheinstallationcanproducetheirownCDpersonalmusicappreciationandTaiwan,thefilmindustryetcInsuchawayforcrossindustrydevelopmentInChineseStarbucksalsohavefoundanotherwaytoexpandthebusiness。suchassellgift。VarietyofgiftsfrombrewingdevicesofvariousCoffee,toallkindsofCoffeecupNotepadetc。ThisStarbucksprintedinkmarkgreengoodshavebeenputontheshelf.
3.Competitivestrategy
Thecampaccordingtoaffinity
Holdyouwithmusic
SellsomethingmorethanCoffee
4Brandalliances
Starbuckspromoteastrategicbrandbybrandallianceistherapidexpansionofthebrandadvantage。,Lookforstrategicpartnerstoprovidetheirownbrandequityintheprocessofdevelopment,Toexpandsaleschannels,Analliancewithastrongpartner,Theexpansionofmarketingnetwork。
5.Overseasmarketexpansion
StarbucksselectsthefirststationinAsiaasamarketexpansion,isbecause:
AsiahasalotofhelptoStarbucksexpandmarketshare
AsiacanbecomeasourceofStarbucksqualityArabiaCoffeebeans
StarbucksinAsiaiseasywiththeadvantagesofpublicrelations
4。2ProductSelection
4.2.1Ideageneration
Starbuckscanquicklycomeupwithnewideas,theintroductionofducts;itisalsotheveryfavorablecompetitiveadvantage。StrictSysteminnovationletStarbuckseachbranchcanalwaysmaintainhighsales.Starbuckstryingtolaunchducts,atthesametimeensureitscoreproducttomaintainthestabilityofthecompetitiveadvantage。Theinternalsourcesmainlycomefromtheemployeesandcustomers。Anyadvice,nomatterhownotworthmentioning,therearegoingtobegreatorsmalleffectonthecompany.StarbuckCorpoftenpollswithinthecompany.Employeesurveysystembyphoneorwritecommentcardsontheissueofspeakone’smindfreely。Relevantmanagementpersonnelintwoweekswillrespondtotheirattention.StarbuckCorpstillsetupinternalforum。Starbucksthroughemployeeincentivesystem,tostrengthentheircultureandvalues.Andbecameoneofthedonotrelyonadvertisingtobuildbrandenterprises.
Wheneverandwhereverstrucktendtoprovidethemostsatisfactoryserviceforthecustomer.Starbuckstriedtodonotletanyonecustomerhadanunpleasantexperience。Therefore,manycompanies-strategyfromconcentratedsetupshop,togetofffromtheserviceinsomeareasaredesignedtoprocessletcustomerswaitinginlinemorequickly,soastoavoidthecustomerwaitingimpatiently。Theyalsogetadvicesfromthedistributors,competitors,andsuppliers。Undertheconsiderationofexternalfactors,Starbuckstryingtoladucts,atthesametimeensureitscoreproducttomaintainthestabilityofthecompetitiveadvantage
TpanyplanstolaunchnewkindsoffoodsuchashotbreakfastsandwichandthenewbeveragesuchasCoffeeliqueur,evenCoffeepumpkinflavor。
4.2.2MarketingStrategy
1targetmarket:haveacertainsocialstatus,highincome,haveacertainlifestyleofpeople.
2theplannedvalueproposition:Starbuckscoffeenotimplementlow-coststrategy,butnotthesaleprice,inordertoprotectStarbucksuniquefeelingcoffeebringcustomer.Starbucksdoarticleonaddedvalue,letthecustomerfeelvalueformoney.First,increasethevalueculture,whencoffeebeansasordinarycoffeesales,adollarapound;theprocessingforthesalesinstantcoffeepackaging,acupof5to2.5cents;coffee
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