Overall, there is little evidence that Starbucks can be anything other than a coffee company.
Despite the weaknesses, there are a number of great opportunities in the market. The best is the opportunity that Starbucks is already pursuing in emerging markets. There is a strong focus on Asia and the Middle East. The company is weaker in Europe, has a small presence in large markets like Brazil, and is a non-factor in other emerging markets like South Africa. Thus, there is a lot of room for growth internationally.
Another opportunity that has presented itself is for Starbucks to apply its operational excellence to other businesses. Starbucks isn't a success because it brews the world's best coffee, it succeeds because it runs its stores very effectively. This is something that it hopes to apply to other businesses, and to this point the jury is out. However, there is the possibility that other opportunities will emerge in quick service especially that the company can take advantage of.
Beyond these opportunities Starbucks can also set strategy to eliminate any threats that it might. These threats could include the state of the economy. Starbucks is a premium product, something that means that people will trade own in times of economic uncertainty. Whether the company has insulated itself against downturn is not known at this time. There are other threats as well. Around the world, there are many coffee chains that emulate the Starbucks model. Should nay emerge as either a superior performer or with branding superiority, then Starbucks could find it difficult to maintain market share.
Another threat is somewhat more existential in nature, relating to the supply of coffee beans as the result of global warming. Coffee is grown in relatively sensitive bioregions, close to the equator and are subject to pests and erosion issues in addition to climate change. Starbucks has responded in part to this threat already, becoming a major lobbying entity for action to curb climate change (Starbucks, 2013). The best case scenario has 2/3 of suitable coffee-growing habitat unable to support the plant in the future, hence the urgency of action for Starbucks (Fiegl, 2012).
Overall, the company has a lot of opportunity around that world and that outweighs any pessimism about the business that might come from such analysis. Starbucks is well-positioned to manage problems that might arise, especially if it is flush with cash from successful launches in high-growth foreign locations.
Marketing Objectives
A strong marketing plan has clear-cut objectives that can lead the company to take specific actions. For Starbucks, there are two focal points to the marketing plan -- each of the most important markets. In the United States, the company is focused on defending market share and improving same store sales. Brand recognition is not particularly important -- it's a household name. It is important that the objectives are operationalized. In this case, defending market share is just that -- the company is aware of its share of the U.S. coffee retail market, and needs to ensure that its share does not fall beyond that point. Because the coffee retail market is highly-fragmented, Starbucks can probably set an objective of growing market share by one or two points, since that share is likely there for the taking. The company can even focus on specific states or metro areas for its growth -- for example one or two large metros and one or two fast-growing metros. This is an efficient way of target marketing, by reducing the amount of money needed to achieve the objectives, by narrowing down the geographic target market for the marketing program
In China, the objectives are different. Starbucks is not a household name, and there is significant room for growth. The company should focus on building the brand recognition, as well as the market share. Operationally, market penetration is a key objective and the marketing plan should support that. Operationalized, there are generic objectives like market share and revenue, but for marketing specifically the brand recognition is important as is same store sales, which can serve as a proxy for brand...
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