Starbucks Coffee Marketing Plan - Research Paper Example

This paper will delve into the discussion and analysis of a marketing plan of Starbucks Coffee, which is a service-oriented business. Although the description of a service-oriented business appears to be those businesses that deal in services only, its actual definition encompasses firms that focus on the needs of the consumer when delivering a particular product. Service industries include banks, restaurants, the media, and even the retail stores. A marketing plan entails the outline of the marketing operations of a particular company. The marketing plan includes a marketing mix, which includes the four Ps- product, promotion, pricing, and place. This essay will look at the marketing plan for Starbucks Coffee Company. Starbucks is a leading coffee maker and seller located in the US. Its core aim is to manufacture and sell coffee products. This firm has several outlets in the US and other countries. Although the company provides products as opposed to services, its marketing strategy is service oriented (Stevens, David and William 122). The company aspires to provide an extraordinary service. The company has used several strategies, including increasing the size of its workforce so that it can increase the speed of serving its clientele. Although many view, the focus on the quality of service delivery may ruin the business because the company may end up producing low-quality products. However, this is a shallow analysis of the operations underlying service orientation. This is because, apart from focusing on methods of how to present the service better to the clientele, the concept includes ways of making a satisfactory product. In essence, the service-oriented operations at Starbucks equate the operations and components of a working marketing strategy. The following is Starbucks Coffee marketing plan. Starbucks Target Market The main target market for Starbucks is people of all genders aged between 18-40 years. The fact that Starbucks products are relatively expensive means that most of its clientele are people of medium to upper class although the company has tried to bring down its prices. Starbucks Coffee is a brand that is synonymous with higher status social groups. This was the focus of the company for many years. This implies that the company targeted the young people who cared about their image and status (Kotler and Gary 27). Although this supposition is still present when one utters the name of Starbucks, the company marketing strategy is changing. These are the main target markets for Starbucks Coffee. Adults As said earlier, Starbucks main market is the group aged between18-40 years old. However, this group, which forms nearly fifty percent of Starbucks clientele, is aged 25-40 years. This means that the principal target for this company is the middle-aged working group. The company uses modern designs in most of its products, consistent advertising methods, and decor to attract this group of clients. The company puts into consideration the nature of their activities because most of the people in this group are working. All these methods also present an image that the products manufactured by the company act as status symbols. Most of the clients in this group live in urban centres where most if not all of the Starbucks outlets are located. The company is well placed in this segment because the numbers in this group are growing at three percent per annum. This is because more young people are accessing working opportunities while others have turned into busy entrepreneurs. Young Adults This is a group aged 18-24 years, who form forty percent of the firm’s clientele and sales. Starbucks outlets outside many learning institutions evidence this. Most of these youth have a fetish for hanging out, which means that Starbucks strategic positioning favours the youth as well as the company. Moreover, most of these youth like being associated with status that Starbucks provides. Most of Starbuck’s outlets are designed in a way to attract the youth with the use of current technologies. Indeed, most of these outlets have free wireless internet connections, which enable the youth to surf the internet with their smart phones while taking their coffee and snacks. The service is enhanced such that the company augments the preferences of the youth with a fast service. The company is also well placed in this segment since the number of these youths is growing as each day passes. This is because the number of students attending colleges is increasing owing to the rise in economic status for many people and the increasing recognition of the importance of higher education. The segment grows at the rate of 4.7 percent per annum (Cravens and Nigel 209). Moreover, the company has begun focusing on this market because of the huge growth this segment is experiencing. Kids and Teens Although Starbucks Coffee is known to focus its attention on the middle aged, the company has diversified and now more attention is being given to other market segments such as the teens and the kids. However, it is just a small fraction of the company’s sales accounts for this segment. This is mainly due to the needs of this group. The adults control most of the client’s needs in this segment (Schultz and Joanne 70). Moreover, Kids and teens have different preferences than those of the adults. Starbucks has tried to attract the attention of this group by designing products such as the “babyccinos,” whipped creams as well as topped coffee drinks that are synonymous with this group. However, the small number of the clients in this group that have access to Starbucks outlets means that the company depends on adults bringing the kids to the shops or buying take –away for them. The teens are the ones who use Starbucks more because it is a place of study and hang out with friends. Although Starbucks has done a lot in trying to woo the clients in this segment, a lot needs to be done to augment the numbers attending the outlets. For instance, the company can start a home delivery service where the kid’s products are ordered and delivered at home. This is due to the increasing number of career women, who either employ babysitters or leave their children with the day-care centres. This means that few parents walk with their parents, a fact that lowers the number of these kids accessing Starbucks facilities. In a bid to appeal more to these clients, Starbucks is trying to make child-friendly products. These products have fewer calories as compared with the products meant for the other generation (Kerin, Steven and William 172). Starbucks current marketing strategy has focused on widening its target market by introducing products other than specialty coffee, which is its main product. Moreover, the company has started reviewing down its prices so that the people of all social backgrounds can enjoy its products. This was advised by the fact that a huge number of people fall into the lower and middle economic status. This is also a strategy to beat the competition, whose strategy is to focus on the clients from the lower part of the socio-economic status such as Dunkin Donuts coffee. Starbucks Marketing Mix (4Ps) Product Starbucks has heeded the demand and the competition and diversified its products beyond specialty coffee. For instance, Starbucks acquired Tazo Tea to enable it offer products such as tea in its tea-only stores. Moreover, Starbucks offers cookies and other similar products in its stores and outlets. However, a proper analysis of the company indicates that the main product in Starbucks is the quality of service. Many people prefer Starbucks because of its focus on the customers. The company plans to augment the quality of service by employing qualified employees in most of its establishments (Cateora, Mary, and John 120). Pricing Although Starbucks has always focused on the affluent and urban part of the society, the company has realized the value of offering different products varying in price. This is essential for the widening target market and the prices of its competition. Although the economy is thriving, the company must focus on the competitions marketing strategies, including the price in order to remain at the top of the coffee business. The pricing should also mirror the quality and the objectives of the company such as profit –making. Promotion The increasing use of the internet among people is an advantage to Starbucks since the company has an extensive online network. Starbucks is trying to focus on this advertisement platform instead of the other conventional methods. This platform offers a fast approach to advertising, fewer costs and can reach millions of consumers. Placement Although the company should maintain its conventional methods of distribution, new methods should be established. Deliveries have proved to work for many companies; therefore, Starbucks should consider starting its delivery network so that it can reach clients located in a remote place. This is because most of its distributor networks are located in urban centres. Moreover, the company is designing new methods of penetrating retail stores such as groceries. This is in line with the desire to reach home coffee drinkers. Starbuck’s Competition Starbucks is located in an industry with very many competitors, both small scale and large scale coffee shops. Starbucks traditional method of availing its product using outlets is under threat from small-scale coffee shops with dedicated staff and personalized services. However, competitors that are more potent include those that have a comparable number of stores in the US and other parts of the world. These competitors include Dunkin Donuts, Panera Bread, Krispy Kreme and McDonalds. The element of competition used by Starbucks competition is their pricing strategy. However, these companies do not match the value of service and the quality of Starbucks offerings yet. However, persistence may wear down Starbucks, and this is the reason the company should alter its pricing strategy to ward off this competition. Moreover, the company should devise methods of adapting to the economic and social changes because they are the points that the competition is exploiting (Cravens and Nigel 189). Conclusion Although there are several competitors vying for the position as a leading coffee manufacturer and seller among coffee lovers, Starbucks is above the rest. This is because of its strategy of focusing on the quality of service (Schultz and Joanne 66). However, the company needs more analysis and focus on its market so that it can develop an impeccable marketing and operational strategy for the future because of the increasing competition and alternatives to coffee. The company should also devise new ways of improving the quality of service using fewer resources. Works Cited Cateora, Philip R, Mary C. Gilly, and John L. Graham. International Marketing. New York: McGraw-Hill Irwin, 2013. Print. Cravens, David W, and Nigel Piercy. Strategic Marketing. Boston (Mass.: McGraw-Hill, 2006. Print. Finn, Nielsen E. E, and Mortensen T. Holm. The Story of Starbucks. Frederiksberg, 2008. Internet resource. Hollensen, Svend. Global Marketing. , 2013. Internet resource. Kerin, Roger A, Steven W. Hartley, and William Rudelius. Marketing. Boston: McGraw-Hill/Irwin, 2009. Print. Kotler, Philip, and Gary Armstrong. Principles of Marketing. Boston: Pearson Prentice Hall, 2012. Print. Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York, NY: Rodale, 2011. Print. Stevens, Robert E, David L. Loudon, and William E. Warren. Marketing Planning Guide. New York: Haworth Press, 1991. Print. Read More