The present paper develops a marketing plan for Starbucks. The author begins this task by performing a marketing analysis including a Porters Five Forces-analysis of the retail coffee and snacks industry. He then proceeds with an external and internal analysis, examining competitors and social, economic and environmental trends as well as the companies own resources and current position.
Following a SWOT-Analysis, different aspects of strategic and operational marketing are highlighted, among them the product itself, price, place, promotion, targeting and segmentation. Finally, implementation and control of the strategy are discussed and a conclusion is drawn.
Table of Contents
1. Executive Summary
2. Marketing Analysis
2.1. Starbucks Market Profile
2.2. Industry Overview and Analysis
2.2.1. Industry Life Cycle and Market Share Concentration
2.2.2. Industry Demand Determinants and Profitability Drivers
2.3. Porters Five Forces Analysis of the Retail Coffee and Snacks Industry
2.3.1. Threat of New Entrants
2.3.2. Threat of Substitutes: High
2.3.3. Bargaining Power of Buyers: Moderate to Low Pressure
2.3.4. Bargaining Power of Suppliers: Low to Moderate Pressure
2.3.5. Competitive Rivalry: High to Moderate
3. External Analysis
3.1 Competitive analysis
3.1.1. Costa Coffee:
3.1.2. McDonald’s
3.1.3. Dunkin Donuts
3.2. Economic Trends
3.3. Environmental Trends
3.3.1. Coffee production and deforestation
3.3.2. Coffee production and soil degradation
3.3.3. Coffee production and water and air pollution
3.3.4. Encouragement of good agricultural practices
3.4. Social Trends
3.5. Legal and political factors
3.6. Technological factors
4. Internal Analysis
4.1 Audit Company’s Resources
4.2. Historical behavior over the past five years
4.3. Current position against competition
4.4. Market position in relation with last year’s objectives
5. SWOT-Analysis
6. Mission, Vision & Objectives
7. Strategic Marketing
7.1. Marketing Strategy
7.1.1. The Perfect Cup of Coffee
7.1.2. Getting Personal
7.1.3. Customer Satisfaction
7.1.4. The 3rd Place
7.1.5. The Starbucks Community
7.1.6. Innovation
7.1.7. Brand Marketing & Word-of-Mouth
7.2. Segmentation
7.3. Targeting
7.3.1. Adults
7.3.2. Young Adults
7.4. Positioning
8. Operational Marketing
8.1. Product
8.2. Price
8.3. Place
8.4. Promotion
8.5. Strategy for specific product
8.6. Strategy for a specific market
9. Implementation & Control
9.1. Short-term level
9.2. Profitability control
9.3. Strategic control
9.4. Effectiveness
10. Conclusion
Objectives and Core Themes
The primary objective of this work is to analyze Starbucks' market position, internal resources, and strategic marketing approach within the global retail coffee and snack industry. The research aims to evaluate how Starbucks maintains its market leadership through differentiation and the 'Starbucks Experience,' despite increasing competition and economic pressures.
- Analysis of Starbucks' competitive environment and major rivals (Costa Coffee, McDonald’s, Dunkin Donuts).
- Evaluation of external PESTEL factors influencing the coffee industry.
- Deep dive into Starbucks' internal resources, core competencies, and strategic marketing mix.
- Examination of Starbucks' corporate mission, vision, and sustainability efforts (CSR).
- Assessment of implementation and control mechanisms used to sustain growth and operational efficiency.
Excerpt from the Book
4.1 Audit Company’s Resources
In the internal analysis of Starbucks it is important to consider the unique (e.g.: valuable, inimitable, rare, no substitutable) resources and capabilities, which are needed to give the company a competitive advantage.
One of the resources of Starbucks is the location of the stores. The stores could be often found in areas, which might appeal more expensive and exclusive. On the other hand, many of them are located in malls, airports, grocery stores, universities or office buildings. For the company it is important to be located in high-traffic, high-visible places like retail centers. Furthermore, it continues to expand internationally (e.g.: Japan and China) and domestically.
Another resource of Starbucks is its reputation. The brand is associated with a mix of high-quality beverages and snacks one can get in comfortable and relaxed environment in its effective designed coffee shops.
Summary of Chapters
Executive Summary: Provides an overview of Starbucks' growth history, financial performance, and its successful reputation as a global coffee brand.
Marketing Analysis: Examines Starbucks' target market profile and provides an overview of the retail coffee and snack industry, including demand determinants.
External Analysis: Details the competitive landscape with a focus on rivals and assesses PESTEL factors including economic, environmental, social, legal, and technological trends.
Internal Analysis: Audits Starbucks' internal resources, historical business behavior, and its current competitive position.
SWOT-Analysis: Presents a matrix identifying Starbucks' Strengths, Weaknesses, Opportunities, and Threats.
Mission, Vision & Objectives: Outlines the core values that shape Starbucks' identity and the strategic goals guiding its corporate responsibility initiatives.
Strategic Marketing: Investigates the specific marketing strategies including segmentation, targeting, and positioning that sustain Starbucks' growth.
Operational Marketing: Analyzes the four P's (Product, Price, Place, Promotion) and specific strategies for products like Frappuccino and the Korean market.
Implementation & Control: Discusses the mechanisms and management levels, such as hierarchy and financial control, used to track results and maintain quality.
Conclusion: Summarizes the work, emphasizing the necessity for Starbucks to continue evolving its strategies and communication methods to maintain its pioneer role.
Keywords
Starbucks, Coffee Industry, Marketing Strategy, Competitive Analysis, SWOT, CSR, Starbucks Experience, Retail, Brand Identity, Market Share, Strategic Control, Differentiation, Positioning, Consumer Loyalty, Sustainability.
Frequently Asked Questions
What is the primary focus of this work?
The work provides a comprehensive strategic marketing analysis of Starbucks, evaluating how it maintains its dominant position in the global coffee retail market.
What are the central thematic fields?
The central themes include competitive rivalry, internal resource auditing, the application of the 4Ps marketing mix, and the role of corporate social responsibility (CSR).
What is the primary research objective?
The objective is to analyze how Starbucks leverages its internal resources and "Starbucks Experience" to differentiate itself and ensure long-term profitability amidst competitors.
Which scientific methodology is utilized?
The work utilizes a combination of PESTEL analysis for external environmental factors, Porter’s Five Forces for industry rivalry assessment, and a SWOT analysis for organizational evaluation.
What topics are covered in the main body?
The main body treats market segmentation, the positioning strategy, operational marketing tactics, and the various levels of management control used by the company.
Which keywords characterize this analysis?
The most characterizing keywords are Starbucks, marketing strategy, competitive advantage, CSR, and industry analysis.
How does Starbucks manage its competitive pressure?
Starbucks manages pressure through a differentiation strategy, emphasizing high-quality experiences, innovative products like Frappuccino, and strong brand loyalty rather than just competing on price.
Why is the "Third Place" concept significant for Starbucks?
The "Third Place" concept, serving as a social hub between home and work, is a core strategic pillar that attracts customers and reinforces brand loyalty through a specific, relaxing store atmosphere.
What role does C.A.F.E. play in Starbucks' business?
C.A.F.E. (Coffee and Farmer Equity) is Starbucks' sustainability program that ensures ethical sourcing, building stable relationships with farmers to guarantee quality and fair partnership status.
- Quote paper
- Katharina Reinhard (Author), 2015, Differentiation as the key to success. A marketing plan for Starbucks, Munich, GRIN Verlag, https://www.grin.com/document/317847
