Marketing Report Development for Starbucks Company- myassignmenthelp

Question: Discuss about theMarketing Report Development for Starbucks Company. Answer: Introduction Starbucks is a coffee company based in Seattle, America, with the mission of inspiring and nurturing the human kind. From the very tome of its inception, Starbucks has been a company of one of a kind. It had created a unique brand identity and image for being more successful within the global market. The company has been capable of differentiating itself in the competitive environment through different strategies. The company has always been priding itself for the assurance of quality of its products along with a distinct brand marketing strategy (Armstrong et al., 2015). The organization has always made their fine quality products speaking for themselves. This marketing report will do and internal and environmental analysis for the organization to find out the strategic intent of Starbucks. Environmental Analysis Considering the global environment of Starbucks, political factors can be very much significant for Starbucks as the rules and regulations of the countries they business with for the raw materials. The continuing international economic recession is also another factor that can affect the business of Starbucks that the company always has to deal with the rising operational and labor costs on a global level (Strauss, 2016). The rising frequency of startups can also be a huge social threat for the company. The changing patterns of work, food preferences and family patterns can also affect the business environment. However, the emerging mobile waves have helped the company to attract more customers. SWOT Analysis Strength As stated by Harrington et al. (2017) as a brand, Starbucks tends to occupy majority of the coffee industry. The brand image is quite strong due to its innovative marketing strategy such as their prominent logo and rigorous advertising campaign. It should be noted that the company mostly spends a little amount of money for their media promotions and they tend to focus on expanding the numbers of stores. Therefore it is nearly difficult for the customers to look for any substitutions. The brand is nearly present at every corner. Starbucks also utilizes their customers promoting for them while holding a drink in their hand. Weakness According to Palmer, Simmons Mason (2014) a major weakness of the brand is that it does not really have many products other than coffee. Starbucks is trying quite hard, but it has not been much successful yet. Another major weakness of the brand is the high price. There are a large section of consumers who may not opt for the brand for saving money. Starbucks also has huge lines in the peak hours. Also, Starbucks is mostly dependent on the U.S market other than any other country. Opportunities Starbucks has expanded the product lines in recent times. As indicated by Atwal Williams (2017) they are also opting for more products other than the tea and coffee. Starbucks has started promoting the food items such as brunch or breakfast foods other than the strict stereotypical coffees. Starbucks also offers happy hour facilities as money saving options for the customers. The organization should extend such deals more, so that they can attract more customers while they expand to different countries other than the European vicinity. Threats One of the major threats of Starbucks is the competitors in the market. There are several organizations such as Dunkin Donuts, Tim Hortons, Keurig give tough competition to the brand in the global market (Schlegelmilch, 2016). There is another issue that can be a significant threat to the brand is that the heath precautions that the doctors say regarding caffeine addition. The cost of coffee beans is also rising to a great extent which can make their products more expensive with the course of time. Strategic Intent: From the above analysis, it can be found out that Starbucks has to deal with the customer knowledge more. The brand should be more consumer-centric and provide more customized products. Consumer Behavior The alternative marketing strategy will target the behavior of the customers on the basis of their emotional connection, functionality which have a huge impact on the brand decision of the customers. As indicated by Vsquez Escamilla (2014) there are several times while people decide on brands on the basis of their social status and personality. As the products of Starbucks are quite expensive, it tends to provide a sense of higher social status to the consumers. Therefore, Starbucks can come up with cheaper products that are for all the customer segments. STP Strategy Starbucks tend to divide their customer base in different segments, where now the brand will focus more on the behavioral and demographic segments. According to Hsu (2014) the demographic segment is quite important to the brand as it can drive the consumers to a specific life style. Most of the times are consumers are the ones from higher income groups and come from an enjoyable environment. The brand also provides a social status to the customers. Therefore Starbucks can provide a positive attitude to the customers. Considering the targeting strategy, the brand can use undifferentiated marketing strategy by ignoring the primary differences of the market segments and target the entire market with their offers. Therefore this strategy can be applicable to all segments and will be easier to promote the brand (Tuan, 2014). Therefore, Starbucks can also position the brand as a life style brand in the global market. However, they can also provide cheaper products and pull off their new marketing strategy based on the needs and taste of people. Marketing Mix Products The Starbucks products are already considered to be good quality ones, yet expensive. However the brand can initiate few products that come under the budget (Taecharungroj, 2016). They can offer more variations in their convenience products. Price The existing pricing strategy of the brand is a combination of pricing based on competition and cost. However the brand can initiate a new pricing strategy which is comparatively cheaper, therefore more products can be sold to a larger market segment. Place Starbucks should promote their products out of the European and American countries. More stores in such countries can be very helpful for the brand (Vsquez Escamilla, 2014). The brand is mostly dependent on the American customers, however they should move out of the vicinity. Promotion Starbucks already has rigorous promotional strategies, but with a new product line, they should spend more money on the media consumption. The organization should use both the online and print media for advertising their brand and creating an identity (Strauss, 2016). During specific time of the year, the company should also come up with large discounts which will bring more customers to the brand. Such promotional strategies can bring Starbucks closer to their target customers. Metrics For the new marketing strategy, the brand should also be monitoring the particular outcomes. Starbucks should monitor the sales growth of the year after they implement the strategy to different stores across the world. The brand could also utilize its social media metrics to overview the reaction of the customers after they implement the new marketing strategy and their product line. Conclusion Starbucks has already implemented great marketing strategies; however the brand should now extend their product lines to target a greater customer segment. Starbucks can also bring up some promotional events and offer more discounts in their stores so that they can also attract customers from middle income group. Other than that, they can also stretch their product lines by putting more seasonal flavors in their product line. Therefore this marketing report has detailed the marketing strategy and recommended potential strategies for the brand. By expanding their product line and numbers of store, the brand can reach to a larger number of customers as well. Reference list Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Atwal, G., Williams, A. (2017). Luxury brand marketingthe experience is everything!. InAdvances in Luxury Brand Management (pp. 43-57). Palgrave Macmillan, Cham. Harrington, R. J., Harrington, R. J., Ottenbacher, M. C., Ottenbacher, M. C., Fauser, S., Fauser, S. (2017). QSR brand value: Marketing mix dimensions among McDonalds, KFC, Burger King, Subway and Starbucks.International Journal of Contemporary Hospitality Management,29(1), 551-570. Hsu, I. L. (2014). The Impacts of Social Commerce Design Model on Purchase Intention-A Case of Facebook President Starbucks Fan Page. Palmer, M., Simmons, G., Mason, K. (2014). Web-based social movements contesting marketing strategy: The mobilisation of multiple actors and rhetorical strategies.Journal of Marketing Management,30(3-4), 383-408. Schlegelmilch, B. B. (2016). The Future of Global Marketing Strategy. InGlobal Marketing Strategy(pp. 221-249). Springer International Publishing. Strauss, J. (2016).E-marketing. Routledge. Taecharungroj, V. (2016). Starbucks marketing communications strategy on Twitter.Journal of Marketing Communications, 1-19. Tuan, T. (2014). Taiwanese College Students Views on Starbucks Brand Loyalty Strategy and What Other Coffee Shops can Learn from it. Vsquez, G. A. N., Escamilla, E. M. (2014). Best practice in the use of social networks marketing strategy as in SMEs.Procedia-Social and Behavioral Sciences,148, 533-542.