Developing Marketing Plan of Starbucks - Assignment Example

Marketing plan Table of Contents 1.0 1.0 Organizational Objectives 2 2.0 SWOT Analysis 3 3.0 Marketing opportunities options 5 4.0 Marketing strategies 5 5.0 Resources and capabilities 5 6.0 Marketing mix 6 6.1 Product 6 6.2 Price 7 6.3 Promotion 7 6.4 Place 7 7.0 Implementation or action plan 8 8.0 Marketing performance review strategy and monitoring 8 9.0 Justification of marketing strategies 8 10.0 Potential stakeholders 9 11.0 Selection of stakeholder 9 12.0 Feedback on stakeholder 9 References: 10 Marketing plan 1.0 Organizational Objectives Starbuck company many objectives that want to achieve. The objectives guide the operations of the company as it plans to introduce new product in the market targeting children who are under 18. The objectives include: To manufacture and distribute new product known as Babteen Coffee that targets the children (Cohen, 2006, p. 32). To manufacture a high-quality Babteen Coffee and distribute in its 17, 009 stores in over 50 countries so that it can avoid or reduce shortages in the market. These stores include over 1000 in Canada, more than 11000 in the United States of America (USA), and over 750 in the United Kingdom (UK) (Gareth & Charles, 2007, p. 972). To improve customer care and public relations with all stakeholders such as suppliers, shareholders, government, and employees (Michelli, 2007, p. 132). To increase profits margins by 8% annually by expanding its operations to new markets. To expand the market share by 10% annually. This will lead to 16% increase in the sales volume in all the markets globally (Pahl, 2009, 43). To open new stores in all the countries especially in the bigger towns and cities. To expand its operations to countries that does not have our new products especially in the Middle East and African countries (Sara, 2008, p. 34). To reduce the expenses by 15% and participate in social responsibilities especially by helping the bright but needy students from poor families. To conduct continuous market research and analysis so that we get to know what our new customers (children) want (Cohen, 2006, p. 34). To employ sales and marketing officers to advertise and promote the new product (Babteen coffee) in all the markets. The sales and marketing officers will develop adverts to be used in all media channels such as TV, Website, Radio, and business magazines in all countries (Gareth & Charles, 2007, p. 974). To introduce 4 other new products for children by December 2011 so that it can compete favorably with others offered by the competitors in the market (Michelli, 2007, p. 134). 2.0 SWOT Analysis SWOT analysis is one of the effective and efficient tools for identifying firm’s weaknesses and strengths. Furthermore, it is essential in determining the threats and opportunities facing the company in the market (Pahl, 2009, 44). Strengths The high quality products and services is its main strength compared to its rivals. The new product is unique because it has many nutrients that will help the children improve their health conditions because it will meet customer’s needs and expectations. The employees of the company are dedicated, committed, hardworking, experienced, and qualified; hence, improving the quality of new product in the market. The company has the new technology that will ensure new product for children is of high standard compared to those offered by the competitors in the market (Cohen, 2006, p. 36). In addition, the company provides variety of products in more then 50 countries in the world; hence, a strength to Stuck company. The price of the new product is lower than those of the competitors; hence, attracting many customers in the market. The strategies formulated by the company are strengths to the company because they are implemented in order to meet the objectives and goals of the company. The reputation and image of the company has improved in all markets because of the quality products and its engagement in social responsibility (Gareth & Charles, 2007, p. 975). Weaknesses Even though the firm is highly respected and reputed in the whole world, there are a few weaknesses that the company needs to address. In some markets, customers have been complaining of the delay in supplying the products in the market due to poor distribution. Some employees are not committed in their work; hence customers do not get the required attention. These employees in some countries do no work with professionalism and due diligence. The company has been reputed and rated poorly in some markets due to employees who do not address the needs of the customers as they are expected (Michelli, 2007, p. 135). Opportunities There are many opportunities in the market. The new product in the market is the only one. Most companies have not been manufacturing products for children but, Stuck Company has utilized that opportunity (Sara, 2008, p. 36). This will lead to increased sales and profitability of the company. There is ready market both locally and internationally because there is no other company that manufactures Babteen coffee or substitutes in the market. The newly identified markets in Africa, Asia, and Middle East are an opportunity to the company’s new products because it will maximally reap from the market. There are more than 2 million children in this new market; hence, opportunities fully utilize (Cohen, 2006, p. 37). Threats If threats are not addressed effectively, it can affect the performance and productivity of the firm. The major threat is the coming up of new firms in the industry. These new entrants and the existing competitors have been manufacturing substitute products and selling them at a lower price than those of Stuck Company (Sara, 2008, p. 37). The competitors are penetrating into the markets Stuck Company used to dominate; hence, a threat to the company. The profit margins and sales will reduce significantly and may affect the expansion and growth program the company had started. If they are not addressed with cautiousness and appropriate strategies, the firm can collapse. Despite the negative effects of threats to the firm, it can lead to improved performance if they are positively taken by the company (Gareth & Charles, 2007, p. 976). 3.0 Marketing opportunities options Market opportunities options will be decided depending on the advantages and benefits of the opportunities. Starbuck Company can decide to introduce products of teenagers only or school students depending on the income it will generate and sales volumes. 4.0 Marketing strategies There many marketing strategies Starbuck company has been using to maintain and expand its operations in the market both locally and internationally. It has been able to dominate the market by buying competitor’s leases and merging and acquiring major competitors so that competition reduces (Sara, 2008, p. 38). In addition, it clusters several small geographical locations so that it reduces on the costs of operation. It acquired the Seattle Coffee Company in UK, which was a major competitor so that it can dominate and win all the customers of the company. It conducts market research and analysis so that it determines what the customers want in terms of the price, quality, ingredients, branding, and packaging. Furthermore, it opens its stores and chains in places where customers are concentrated so that products reach them on time; hence, become reliable and efficient (Cohen, 2006, p. 38). 5.0 Resources and capabilities The major resources of the Starbuck Company are the many chain stores in more than fifty countries, improved image and reputation that have led to the company gaining competitive advantage, and committed and dedicated employees. This has attracted and maintained many customers or clients, which has led to increased profits and sales volume. In addition, competitors cannot replicate the products of the company because of its uniqueness. The brand equity and wide customer base are important resources that make the firm’s products attractive and unique in the market (Gareth & Charles, 2007, p. 977). The human resources that implement the policies and strategies of the company are the capabilities. They determine or dictate the failure or success of the firm. These capabilities of the company are concern with the utilization of the resources effectively in order to avoid wastages and misuse of the scarce resources. The well coordinated processes and procedures ensure the products reach the market on time to enhance its reliability and effectiveness (Michelli, 2007, p. 137). 6.0 Marketing mix To attain the goals and objectives, the company uses the 4p’s of marketing mix to determine whether the goals and objectives will be attained within the specified or not (Pahl, 2009, 45). 6.1 Product Experts or professionals manufacture the products in the company; hence, they are of high quality. It has all the ingredients required making them attractive to the children (our new customers for the Babteen coffee). There are varieties of products offered by the company in all markets; hence, increase market share by 10% can be achieved (Sara, 2008, p. 39). These products include espresso-based hot drinks, drip brewed coffee, tumblers, snacks, pastries, mugs, Panini, cold and hot sandwiches, salads, and coffee beans. With the new product in the market, profit margins of 8% and 16% sales increase can be achieved. The customers can get the products in the chain stores that are available in all major centers, cities, and towns in most countries. The products are made according to the customer’s specifications (Cohen, 2006, p. 39). 6.2 Price Customers are sensitive to the price therefore; the company should charge reasonable prices to the products. Affordable prices will attract more customers; hence, increasing sales and profitability. The prices should cater for customers especially those who earn low income. Pricing is arrived at after deducting the expenses and adding profit margin. In addition, discount will be allowed for those who will be buying in large quantities (Michelli, 2007, p. 138). 6.3 Promotion To create awareness of the existence of the products to customers and potential customers in all the markets, it will be achieved through advertising and promotion. Programs can fit the children but the major media are magazines, TV, and radio. These media vary in different countries; hence, marketing managers in different countries will determine the best media that will reach majority of the customers and potential customers. Road shows and the website of the company are also used because there are people who cannot access radio, TV, or magazine. Promotion is a tool used to explain to customers availability of the products; hence, increasing profits and sales volume (Cohen, 2006, p. 40). 6.4 Place Distribution is essential in marketing because it will ensure products reach all customers in the target markets without delay. This will help reduce shortages and inconveniences in the market. Distribution channels are efficient because of the availability of company’s trucks, vans, ships, and airplanes. If delays are experienced more often, the existing and potential customers will shy away from the company’s products (Gareth & Charles, 2007, p. 978). 7.0 Implementation or action plan To achieve the goals and objectives of the company, implementation of the strategies is essential. Promotion and advertising will be done by the sales and marketing manager and the staffs in different nations. The Chief Financial Officer will be in charge of opening new stores and branches both locally and international (Sara, 2008, p. 43). He will be assisted by the CEO and marketing manager. In addition, the CFO will allocate the available funds and borrowing incase of deficit. This will be necessary if the profits generated are not adequate. The CEO will be negotiating terms and conditions of borrowing loans together with the CFO. Research and development will be the responsibility of the research and development manager. He will be in charge of developing new products in the company (Pahl, 2009, 47). 8.0 Marketing performance review strategy and monitoring Marketing review strategy, evaluation, and monitoring will be done after every 4 months to determine whether goals and objectives are being achieved or not. The appraisal team will be in charge of monitoring reviewing of performance. Monitoring of performance will be closely reviewed so that incase of deviations, it can be corrected (Pahl, 2009, 48). 9.0 Justification of marketing strategies Marketing strategies are justified because they are formulated having in view with the objectives of the organization. Marketing strategies will determine the success or failure of the organization depending on how it is formulated and implemented (Cohen, 2006, p. 41). 10.0 Potential stakeholders The potential stakeholders of Starbuck Company are shareholders, customers, government, and employees. Shareholders will be concern about the money they invested in the company because they want to earn high returns (dividends and capital gain). Employees are concern about the profitability of the company (Pahl, 2009, 49). The higher the level of profits, employees will receive increased salary and allowances. The government wants the rules and regulations to be complied with and the payment of taxation on time. Customers are the major stakeholders because they want the company to provide high quality products. In addition, the customers are sensitive to the prices of the products. The customers want the prices to be low than the others for the competitors in the market (Gareth & Charles, 2007, p. 979). 11.0 Selection of stakeholder The selected stakeholder is the customers. Customers determine the success or failure of the company. If the customers decide not to buy the products, the government will not get taxes, shareholders will not get their dividends, and no salary for employees. Other stakeholders depend on the performance of the customers (Cohen, 2006, p. 43). 12.0 Feedback on stakeholder Feedback of the stakeholder (customer) will be known through the sales. If the sales are low, then, it shows the company is not performing well. Customers can decide to buy the products of the competitors; hence, customers can explain why they prefer other company’s products. Market analysis about customers will provide the feedback (Michelli, 2007, p. 139). References: Cohen, W. 2006. The Marketing Plan. New Jersey: John Wiley & Sons Inc. pp. 32-43. Gareth. R. J. & Charles W. L. H. 2007. Strategic management: an integrated approach. New York: Cengage Learning. Pp, 972-979. Michelli, J. A. 2007. The Starbucks experience: 5 principles for turning ordinary into extraordinary. New York: McGraw-Hill Professional. Pp. 132-139. Pahl, N. 2009. The Idea Behind the Starbucks Experience: The Main Elements of Starbucks' Strategic Diamond. New York: GRIN Verlag. Pp. 43-49. Sara, G. 2008. The Story of Starbucks: Built for Success. Kansas: The Creative Company. Pp. 34-43. Read More