Starbucks is known for the qualitative variety of its products, the exclusive and friendly environment, the helpful and very polite personnel, the information and training on the products and the participation of management in building relationships with customers.
Starbucks offers more than 16 blends and types of coffee made of coffee beans Arabica, a large variety of beverages prepared instantly, teas, freshly baked pastries, chocolates, savoury delicacies, sandwiches, salads, etc. Also, at Starbucks a customer can buy coffee specialty products such as coffee machines espresso, coffee grinding machines, mugs and other items related to coffee and tea and CDs, which are original proposal gifts. Despite this wide array of products, Starbucks founder Howard Schultz, in February 2007, decided to close 600 Starbucks stores.
This paper examines several reasons that may be advanced for the company's decline, concluding that it would not have happened if Starbucks had stayed in their original form of combining the exclusive cafe with the friendly atmosphere and staff, and above all, good quality coffee.
The paper then goes on to explore the changes that the company has made in its marketing strategy since the decline in 2007 as well as the risks and potential benefits from competition, such as best practice examples of marketing in other countries, specifically in Greece.
Table of Contents
1. Situation analysis
2. Product line extension
2.1 Instant coffee data
3. Starbucks Via Market Strategy
4. Customer profile and SWOT analysis
5. Competition
6. Marketing Objectives
6.1 Financial Objectives
6.2 Target Marketing
6.3 Positioning
6.4 Customer Service
6.5 Advertising
7. Marketing Mix
8. Individual critical reflection
Objectives and Topics
This marketing plan aims to analyze the current market position of Starbucks and evaluate the strategic implementation of "Starbucks Via" as a product line extension. The primary research question focuses on how Starbucks can successfully integrate instant coffee products into its portfolio to reach new segments while maintaining its premium brand identity and addressing intense market competition.
- Strategic analysis of Starbucks' market decline and recovery measures.
- Evaluation of product line extension as a growth vehicle.
- Competitive benchmarking against major market players like Nescafe.
- Development of marketing objectives for the "Starbucks Via Ice Coffee" launch.
- Application of local marketing strategies to global brand operations.
Excerpt from the book
Situation analysis
Starbucks is known for the qualitative varieties of products, the exclusive and friendly environment, the helpful and very polite personnel, the information and training on the products and the participation of management in building relationships with customers.
Starbucks have more than 16 blends and types of coffee made of coffee beans Arabica, a large variety of beverages prepared instantly, tea Tazo ®, Starbucks DoubleShot ®, freshly baked pastries, chocolates, savoury delicacies, sandwiches, salads, etc. (Starbucks 2010)
Also, at Starbucks a customer can buy coffee specialty products such as coffee machines espresso, coffee grinding machines, mugs and other items related to coffee and tea and CDs, which are original proposal gifts.
Starbucks was a case study, for many businesses in the area of exclusive coffee shops. However, the founder of Starbucks Howard Schultz, in February 2007 decided to close 600 Starbucks stores.
Many researchers argue that the rapid growth of Starbucks has destroyed the value of the brand (Lynn 2008:41-43). In addition they provide the following reasons for the decline of Starbucks (Hoovers 2009):
First, the category of customers who have adopted the principle, supported and appreciated the atmosphere of an exclusive 'club', where they could relax and enjoy a quality coffee, felt as a 'minority' so they switched to other exclusive brands. And this happened, because from some point onwards, the new Starbucks stores gave priority to another customer group, those of - grub and go - which required speed to service (Briggs 2008:21).
Summary of Chapters
Situation analysis: Examines the core values and historical development of Starbucks, highlighting the reasons for its brand decline and the subsequent strategic changes under Howard Schultz.
Product line extension: Defines the conceptual framework for expanding the product range and justifies the launch of "Starbucks Via" as a response to economic trends and market opportunities.
Instant coffee data: Provides a quantitative overview of the global instant coffee market to identify consumer habits and potential areas for growth.
Starbucks Via Market Strategy: Details the operational plan for the worldwide introduction of Starbucks Via and potential adaptations for iced coffee variants.
Customer profile and SWOT analysis: Analyzes the target demographics for new products and assesses the internal strengths and weaknesses alongside external competitive threats.
Competition: Benchmarks Starbucks against rivals like Nescafe, comparing price points, market positioning, and service models.
Marketing Objectives: Establishes clear financial and strategic goals for the launch, including target customer personas and store atmosphere requirements.
Customer Service: Outlines the expectations for personnel behavior and store presentation to ensure a consistent customer experience.
Advertising: Proposes communication strategies, emphasizing social media usage and the importance of word-of-mouth marketing.
Marketing Mix: Discusses the implementation of research methodologies, such as mystery shopping, to ensure the successful execution of the campaign.
Individual critical reflection: Synthesizes the author’s views on Starbucks' ethical mission and provides a comparative analysis of successful case studies in the coffee industry.
Keywords
Starbucks, Starbucks Via, Instant Coffee, Marketing Strategy, Product Line Extension, SWOT Analysis, Competitive Benchmarking, Consumer Behavior, Brand Identity, Market Penetration, Nescafe Clasico, Local Adaptation, Premium Brand, Retail Management, Customer Experience.
Frequently Asked Questions
What is the core focus of this marketing plan?
The plan focuses on the strategic analysis of Starbucks and the introduction of its instant coffee product, "Starbucks Via," as a means to penetrate new market segments.
What are the central themes covered in this document?
The document covers brand revitalization, product line extension, competitive analysis, and the challenges of balancing global expansion with local market preferences.
What is the primary goal of the proposed Starbucks Via campaign?
The goal is to increase sales during summer months and attract consumers who prefer more affordable options without sacrificing the perceived quality of the Starbucks brand.
Which research methodologies are recommended by the author?
The author suggests using market research to gauge willingness for new product formats and implementing "mystery shopper" campaigns to ensure quality control across stores.
What does the main body of the work analyze?
The main body examines the history of Starbucks' decline, the specific mechanics of product line extensions, and how the company can leverage its brand power against competitors like Dunkin Donuts and Nescafe.
How are the key terms defining this work categorized?
The keywords highlight the intersection of retail strategy, brand management, competitive positioning, and consumer-focused marketing tactics.
How does the "yuppie paradise" phenomenon impact Starbucks' brand perception?
It refers to the rapid saturation of areas with Starbucks locations, which ironically led to a dilution of the brand's unique atmosphere and alienated some core customers.
What can Starbucks learn from the Greek "Nescafe Frappe" case study?
The study demonstrates the success of localizing a product that was globally identical but prepared and positioned differently to fit specific regional consumption habits.
- Quote paper
- Fotini Mastroianni (Author), 2010, Starbucks. Evolution of the Company's Marketing Plan, Munich, GRIN Verlag, https://www.grin.com/document/345121
