Starbucks Coffee
Marketing Plan
Industry Overview
Competitive Landscape
Target Markets
Product
Price
Promotion
Marketing Strategy
Starbucks is a global coffee powerhouse that has had a success record that nearly any company would die for. It has never undertaken much a traditional route in regards to marketing and advertising. Starbucks specialty is using word of mouth, tribal, and viral social formats to promote its products and services. It is recommended in the wake of global populist movements that Starbucks further refine its CSR initiatives internally, and then use this to leverage new consumer segments. If Starbucks takes this approach it will position itself to be more sustainable in terms of the triple bottom line in the wake of a shift in public consciousness.
Industry Overview
The coffee retail industry is one of the most multifaceted industries possible. This industry generally relies on the reliance on marketing to drive sales. Marketing undoubtedly isn't restricted to just advertising, and one of the primary responsibilities of marketing is to keep pace with the ever evolving set of consumer preferences. Consumer preferences can either be consist of individuals existing preferences or the inherent predisposition by which preferences can be trained. For example, one opportunity for marketers is to build demand by teaching the consumer to appreciate the characteristics of any particular product they are trying to sell. In this manner marketing campaigns can train a consumer to demand a product. Thus teaching consumers to appreciate the differences provide by product differentiation can serve a major role in building a loyal consumer base.
Competitive Landscape
There are many barriers that prevent other firms from competing with Starbucks on the global coffee market. One example would include the issues related to developing economies of scale. When new firms enter the market they will have to contend with the competition in regards to the product prices and production costs. Starbuck has established a well-managed global supply chain that can deliver excellent coffee to fifty million customers in fifty one countries each and every week (Cooke, 2010). Starbucks has industrialized its supply chain so systematically that it serves as an exemplary system for other firms in different industries to try to aspire to (Locke, 2011). Thus for any entrant to attempt to compete on the scale in which Starbucks does it would take either an enormous investment in capital which few other firms are even capable of.
Any new entrant would have to be at least fairly price competitive. Therefore they would either have to build comparable quantities of scales or accept a reduced margin. Starbucks comprehensive supply chain would most probably mean that any potential competitor would have higher production costs for raw materials with would result in a disadvantage. Such disadvantages would not only affect the supply chain costs but they would subsequently affect production, marketing, research and development and many other business functions. Basically, any firm wishing to try to compete with Starbucks on a global scale would have to try to develop a market from a significantly disadvantage position.
The only potential competition for Starbucks would be limited to local markets or markets that Starbucks has not entered. For example, in some markets local coffee shops may have a certain home territory advantage that Starbucks might find it difficult to break through. Having to compete with this level of localism would require high levels of customization and thus would be difficult for Starbucks compete on that level. Starbucks must operate on a more standardized model so that there is only flexibility to make only moderate changes to suite local markets. However competitors within local markets are generally highly fragmented and relatively unorganized. Therefore they do not necessarily pose any type of significant threat to Starbucks on a global level.
Target Markets
Starbucks target markets are positioned mostly in proximity to their retail locations. These locations are consequently chosen by areas that are likely to have significant numbers of consumers who have above average disposable incomes. There are often Starbucks that are positioned around office centers which attract repeat clientele given their proximity to the coffee chain. Malls are another popular target market for Starbucks as shoppers generally stop at a retail outlet or sometime a Starbucks kiosk to recharge while they are fatigued from walking around. In some locations there is drive through Starbucks however most have large lounges that can serve as their target markets "third place." In the big box stores where Starbucks competes directly against lower...
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