Starbucks Marketing Strategies - Case Study Example

Your Name Professor’s Name Class Name Date Starbuck’s marketing plan Introduction Starbuck was once an ordinary coffee shop, but it has expanded to a big coffee retailer specialty. Children are acknowledged as part of the company’s market base; however, proper product exposure to this group of people has not been given much thought in the previous years. Presently, the company is revising its stance on kids so as to be able to maintain the market trend. The sweet sugary drinks, and baked goods may be improvised, new drinks added or sizes changed in order to meet customer needs. Starbuck intends to develop its operating strategies by launching new products in order to satisfy the current target market and the rising product needs of the contemporary society. Market plan illustrates our market segments and an assortment of strategies we intend to employ to acquire more customers and further create a concrete revenue stream. We have a unique focus on creating a new twist targeting needs of children and young people in particular. This will give us preference over our competitors by giving customers a new outlet to enjoy our services. We look forward to fund the development of new products within our array and a variety of products for the purpose of promotion. We shall rely on advertising sponsorship relationships that will assist us in establishing our own brands. In the first two years of the plan, we expect to acquire a good customer base comprising of children and young people since we already have a reasonable proportion of customers from the stated age group. Our target market, therefore, is between ages 5-30 years who enjoy our present products. We hope that the achievement shall be worth noting, and it will constitute a large portion of our revenue stream. Organizational marketing objectives The company is aiming at establishing the overlay renowned and the most reputable brand in the world. In order to achieve this vision, the organizational marketing objectives are consistently laid down. They include; i) Create customer loyalty for Starbuck’s brands around all beverages. ii) Create an image unique to other coffee chains around the world iii) To establish effective communication channels to relay information to customers in regards to values and commitment of the company. iv) Carry out effectual target marketing in reference to high quality of the finest testing coffee. v) Establish appropriate customer linkage particularly attention accrued to new customers. vi) Maintain a market research pattern that may lead to greater innovation and the power to attempt superior risks. vii) Venture more into the international market. Approaches to attainment of set objectives The company will concentrate on high quality products which are suitable for all age groups. A variety of drinks will be availed. The drinks and snacks should be fresh and rich. For children, color mix will be of great significance for products may be garnished with appetizing confections that are equally appealing to the eye. The products may also be displayed in supermarkets such that parents may acquire them for their children with ease. Young people need attention more than any other group. Welcoming and customer friendly employees may be effective in accord to the category of targeted customers. Moreover, promotions such as free cups with fun pictures and cartoons may be appealing to children. Besides, new customers are known for their negative attitude than the existing customers. They should be given personal attention and treatment so as to work on their change of attitude. Store expansion is expected to take place in areas with a good portion of the target market, that is; children, and youth. Favorable places may include university campuses and colleges for the youth studying. For children, busy shopping areas will be appropriate since they do not have own income and thus parents and guardians are majorly aimed at. High visibility areas for schooling children may be school canteens. The physical layout of the store has much impact on customers. It should be made socially appealing. Toys, fun pictures and materials will be placed in strategic positions where children can see them. In addition, in big stores with enough space, play swings can be constructed to grant children more fun after buying a product. Lounging and partying for teenagers could be appropriate. There will be no other smell apart from the sweet aroma of food. This entails an extensive cleanliness strategy to ensure the environment is serene. Live music will be appropriate to offer some form of entertainment. Advertising strategies will completely take a new bearing since the company currently looks down upon the role of formal advertising and product promotion to the children and youth. It is prudent to employ a social angle in advertising through extensive community involvement. Since the market targets children and teenagers around the society, social groups will be involved such as peer teaching and awareness, drama and art in the church regarding the products of the company, school management involvement to open selling points within the institutions. The company management will take part in literacy improvement through study scholarships targeting the groups in schools and higher institutions of learning. Charity work may also publicize the company a great deal such as children homes support. Every store will look forward to encouraging childhood experience activities dedicated to building up hope, encouraging discovery and opportunity. Company capability analysis Starbuck is an already economically established company with many assets and investments worldwide. This makes it capable to take advantage of upcoming opportunities and face new adventures in this type of business. Therefore, Starbuck Company can venture into the new opportunity without much financial strain. Presently, the company is internationally recognized and thus assured of marketing its products even if the local market in inefficient. This shows that it has a clearly good reputation due to the product quality and brand preferences. Besides, it is easy to obtain customer loyalty due to respected employees, strong ethical values and customer service quality. Additionally, the company is a disciplined innovator and derives its ideas from current market issues. In this sense, the company will invest in the changes appropriately. The company is in a position to command public support due to the sensitivity of the issues regarding the environment. We intend to produce environment friendly products and provide a suitable solution that steer change. This shows a collective responsibility towards environmental well being. Besides, a cluster company unit allows the company to attain market dominance in a particular area leading to high financial rewards. The company further gains great market share and easy market accessibility to the targeted customers. However, there is a big risky in the company’s reliance on beverage innovation. The innovations may waver over time leading to extreme downfall. There could be limited expansion since any growth is driven by beverage innovation. Either, diminishing market and demand for beverage products may yield adverse effects to the company. Additionally, complex international expansion operations may be difficult or impossible due to the nature of products and stiff competition from similar business companies. Marketing mix The company effectively plans to employ the major concepts of market mix such as price, product, distribution and promotion. In reference to product, the products will result from the adaptation of recipes from immediately available ingredients and invention of new products. Further, tools and data are available to consumers so as they can easily find out the food content. This include house blends with smooth and balanced flavor, caramel iced coffee, which is easily packed and delicious and breakfast blends that are bright and lively. After production, pricing is done in accordance with the various sizes such as the tall size, Grande and Vento. For children, smaller sizes are appropriate to avoid wastage. Besides, supply channels are important since the products are highly perishable, and therefore, need to be consumed immediately. Short distribution channels are suitable as in the case of direct from the producer to the consumer. Promotion of product advantage over similar companies is important. Product promotion can be done through advertising, gifts, free samples and promotional products and services. All the market mix factors should be effectively blended to satisfy customer needs. Besides, other components of market mix include planning, branding, packaging, display, personal selling and physical handling. The company looks forward to using market mix to achieve the set objectives. Rationale Market plan will be implemented after appropriate product reviews in the quest to prove that the intended product is made. This may be done market research which will reveal, consumer needs in terms of accessibility, competitive pricing, selection and variety. It is sensible to consider similar products from other companies. In this regard, market demographics and distribution is necessary to be able to establish which areas need more stores or which areas have, the highest proportions of the target market, in this case, children and youth. This will assist in designing suitable distribution trends. It is important to analyze market needs of the target consumers. For instance, children being the target of this particular plan, suitable features of the products that children prefer are considerable and it applies to the entire consumer body. Starbuck’s rationale for implementation of market plan needs a close observation of SWOT factors since it enables prior knowledge of the company’s capabilities and thus adopts timely adjustments in case of need. Moreover, the analysis of these factors gives limelight of possible opportunities for expansion. This consequently impacts market forecasting on expectable market trends. Implementation plan Implementation turns the market plans into action. The company focuses on whom, where, when and how the plans will be put to work and remain operational until the intended outcomes are felt. The major market goal is to reach out to children and youths as target consumers with an improved product. Market strategy entails appropriate distribution channels and positioning to ensure market penetration. The market develops as consumers continue utilizing the products and creating new customers due to established customer loyalty. At this level, the company checks out the progress and builds new programs on what is already existing but working programs. Diversification of products and markets take place after successful market analysis and program development. It is prudent to employ promotional tools during implementation. For this particular plan, promotional tools include; free samples, entertainment through music and simple games, price control methods that favor customers and appealing associative tools like toys for kids. Nevertheless, customer loyalty may be achieved through special recognition of loyal customers through offers and other relevant benefits. The implementation plan may be incomplete without a progress report on outcome measurement. As a stakeholder, one needs to establish profitability of the operations of the company. As a result, constant progress reports allow managers to make proper decisions to solve the situations at hand through necessary emergency action plans. This further may encourage product ventures into new places. Performance analysis Starbuck Company has shown positive trends of improvement over years. This is due to introduction of new products that appeal to customer needs and implementation of techniques that would lead to standardization of its stores. Either, the company might be at risk to brand devaluation due to the competitor companies such as McDonald. What the company deals in is available in numerous places and thus to perform well unique experience is necessary. The company has shown an aggressive adoption of new products to ensure that new and marginalized customers are brought into the market thus increased profitability. The market mix principles ensure the creation of value to customers and in return avoidance of the risk of losing its market share. The company has established a favorably strong competitive advantage within the industry. The corporate strategy is an invaluable characteristic since the company sets its own product prices thus a good opportunity to establish strong brands and a moderate amount of brand loyalty which focuses on profitability, consumer value and high return on investment. Moreover, the unique strategy and policy acquisition techniques make the company be able to purchase the competitors and attain market dominance. This will enable it to maximize its market share. Works Cited Bangs, J, and David, H. The Market Planning Guide: Creating A market Plan to Successfully Market Your Business Products or Services. New York: Kaplan publishing, 2001.print. Joshi, R. International Marketing. New York: Oxford University Press, 2005.print. Kevin, L.A. Framework for Marketing Management. Grange Park: Prentice Hall, 2009.print. Company, The Starbucks. 2006. Web.08 Oct.2011. Read More