Starbucks Marketing Plan

Starbucks Marketing Plan

1. What is Starbucks Mission Statement?

Starbucks ‘ mission statement is focused on inspiring and nurturing the human spirit, one person, one cup, and one neighborhood at a time.

1. As of 2014, how many Starbucks stores are there in the United States?

Starbucks had approximately twelve thousand and five hundred coffee shops open in the United States by 2014.

1. List 5 Starbucks Products

Roughly thirty blends of premium coffees alongside whole bean and ground coffee

Fresh food including baked pastries, sandwiches and yogurt parfaits

Starbucks refreshers such as smoothies

Bottled ice and juice teas

Salads, grain bowls, and oatmeal

1. What Companies are Starbucks primary competitions?

Dunkin’ Donuts

McDonald’s

Caribou Coffee

1. Starbucks spent over $26,000,000 in media dollars. Where was the majority of the dollars spent?

The company launched a new slogan titled “You Kin Do It!” in a promotional campaign including radio and print advertising. The campaign included special events and sports marketing.

1. Which Social Media has the highest number of Impressions for Starbucks?

Facebook is the leading social media site with significant traffic regarding Starbucks content.

1. Create a SWOT analysis for Starbucks. What are the companies:

Strengths…. Weaknesses…… Opportunities…… Threats……

Starbucks has numerous strengths from being among the largest coffee shops in the United States. The company has an advantage over its competitors as it is associated with high-quality products and a potent customer experience. Starbucks has penetrated many locations, which assists them in attracting a more extensive market, especially in big cities. Drive-thru stores increase clientele exposure while enabling fast delivery of services. Moreover, the store is associated with a comfortable ambiance and provides customers with free ‘wifi’ connection. Starbucks creates a consistent and stimulating environment that provokes a customer’s passion. The company also maximizes training employees in the first months when they are hired to increase productivity. For instance, employees acquire skills in customer service, retail skills, drink preparation, and coffee knowledge. Overall, the company utilizes a unique strategy by ensuring that franchisees that fail to meet the required standards are closed down.

Starbucks primary weakness is its lack of diversification regarding products compared to its competitors, such as Dunkin Donuts, who have invested in several industries. The coffee store lacks a balanced portfolio, given its strong presence in the United States compared to other worldwide locations. Moreover, Starbucks premium and high prices place it at a disadvantage with low priced brands. The company continually refuses to guarantee whether there are genetically modified ingredients in its milk, beverages, or baked products. Regarding financials, Starbucks faces drawbacks from the high competition, increased purchase costs relative to high-quality milk and arabica coffee, among others, and high labor costs from health care to wages.

The coffee company can utilize its opportunities by exploring new market segments. It can also diversify into new products such as health drinks, energy drinks, and organic beverages, among others. Consequently, the company should form partnerships with other coffee companies to increase market penetration. However, the company faces an increased threat of new entry. For instance, McDonald’s is in direct competition with Starbucks, given its upgraded coffee package. Its privately-owned coffee houses also limit Starbucks. The coffee industry faces a threat from the high bargaining power of buyers alongside threats from anti-Starbucks groups such as the National Gun Victims Action Council.

1. What is the source of the company name? Why is it called “Starbucks”?

Starbucks is named after the first mate of a whale ship Pequod, a ship in Moby Dick. The founders of Starbucks include Bowker, who was a writer who, when looking at an old mining map, was fascinated by a town called Strabo. The name reminded him of the first Moby Dick mate.

1. Who are the stakeholders for Starbucks?

Starbucks stakeholders include employees who require better working conditions, job tenure, and higher wages. The coffee company significantly prioritizes its customers, evidenced by its provision of quality products and services. Starbucks suppliers are mainly wholesale supply and coffee farmers. Moreover, Starbucks social responsibility focuses on reducing environmental pollution signified by its high-quality shades in the coffee firms. Investors also play a significant role in improving the company’s financial performance. Lastly, the company has to address Government regulations based on its global presence.

1. Starbucks History. When and where was it founded?

Starbucks was founded in 1971 when it opened its first store in Seattle’s Pike Place Market.

1. What are three Starbucks Strategic Business Units? (SBUs)

Coffee

Different impulse items such as biscuits and ready to drink items to complement the coffee

Syrups and soups to increase beverage costs

1. List examples of the Four Ps of Starbucks

The product utilizes a premium pricing strategy by establishing the notion of high prices in exchange for high-quality products. To promote its products, the company uses word of mouth advertising to disseminate information about products. Sales promotions and public relations are an essential segment in the company’s advertising mix. The central places that Starbucks uses to serve target customers include cafes, retailers, and mobile applications. Overall, the company’s fundamental product categories include coffee, tea, baked goods, smoothies, and Frappuccino, among others.

1. What is Starbucks marketing challenge with pricing?

The primary issue is the high prices charged for Starbucks products in comparison to competitors such as McDonald’s. Customers are also continually shifting to lower-priced competitors. There is a recorded decline in the consumer demand for specialty coffee products.

1. Starbucks newest product for 2016 is Starbucks Rewards. Who is the target audience, and what is the value?

The target audience for the program is aged 18-34. Starbucks reward members gain stars daily from the time they join, which increases customer value. The reward program provides more options for customers’ increasing value.

1. Starbucks Media Objective states: “Develop a media strategy that involves advertising Starbucks specialty coffees in both traditional and non-traditional media outlets” What media would you recommend to carry the Starbucks message?

Facebook is arguably the ideal platform to promote products based on the significant traffic regarding Starbucks offerings. Alternatively, Twitter would create interesting postings and hashtags based on vital promotions and products.

1. Slide #4 has Starbucks’ Seven Strategies for Growth. Pick one and explain how you would implement it.

The company has untapped potential in its international segment. For instance, Starbucks should explore the emerging markets of Brazil, China, Mexico, India, and South Africa, among others. The company should increase its relevance in these markets by allowing the management teams to customize products, lifestyles, and tastes based on the specific community and individual market. Overall, the company should integrate its competencies and values in all its stores regardless of location.