CompanyStarbucksMarketingReport星巴克市场营销分析英文版

Company Starbucks Marketing Report Produced byNames1.Student Number:9 Name : Grace2.Student Number:1 Name : Ann3.Student Number:2 Name : Tom4.Student Number:8 Name : Serena5.Student Number:16 Name : AnnaReport date : 2014/12/10Group :Grace Date: December 10, 2014 Executive summaryThe purpose of this report was to identify a suitable for Startbucks to introduce into a target market. As part of this process a strategic analysis was conducted to the environment. Strategies that mitigated threats and weakness and ones that took of these strategies a suitable new product was then developed.The booming of Chinese economy nourishes a broad coffee consumption market. Against this macroeconomic background, Starbucks puts the Chinese market into the first place of its overseas market except American market. Starbucks has made great business achievement in Chinese market, while it is also challenged by the devaluation of Startbucks’ brand and the downgrade of its core competitiveness. based on the background, product and environment analysis and strategy making ,analyses on many related literatures, this paper researched on the Startbucks’marketing strategies, analyses Startbucks’operating environment both internally and externally and summarizes the marketing strategies of Starbucks in china.The report was based on information from a range of data sources, including Star bucks’ websites and the magazines about this companyGroup: Grace Date :December 10, 2014 Table of Contents1.Introduction (5)pany Background (6)2.1About the company (6)2.1.1History (6)2.1.2Mission (7)2.1.3Values (7)2.2 Products (8)2.1.4Target Markets / Market Segments (8)2.1.5Market share (8)Major competitors (9)2.1.6Table 1: direct competitor to Starbucks (10)3. Environmental Analysis (11)3.1External (11)3.1.1PEST/PESTL (11)3.1.2Competitive Forces (12)3.1.3External Opportunities and Threats (14)3.2Internal Analysis (15)3.2.1Identification of SWOT elements (15)3.2.2Evaluation of SWOT elements (17)3.2.3Analyze and Rank (18)3.3Strategies (19)3.3.1Strategies development (19)3.3.2Identify strategic fit (20)3.3.3Table 2:SWOT/ Strategies Matrix (21)4Product Development (21)4.1Strategy Selection (21)4.2Product Selection (23)4.2.1Idea generation (23)4.2.2Marketing Strategy (25)4.2.2.1 Demographic (26)5Conclusion (26)6Reference (27)7Appendix (28)7.1Idea generation (28)7.2Team Report (28)7.2.1 Individual Member Activity Report (28)1 Introduction‘W e are not in the coffee business, serving people .we are in the people business, serving coffee’’. That is the philosophy of Howard Schultz, chairman and chief global strategies of Starbucks. It is a philosophy that has shaped—and continues to shape—the company. With over 11000 outlets in more than 36 countries, Starbucks is the world’s number one specialty coffee retailer. In order to understand the company comprehensively, we are going to take an in-depth look at Starbucks through this topics.This report will discuss the marketing strategy being implemented by Starbucks, and will evaluate the company’s current marketing plan, including the products, external and internal environmental, product development, strategies and various other factors that affect its strategy.2 Company Background2.1. About the company2.1.1 History•Founded in 1971 with the opening of the 1st location in Seattle’s Pike Place Market selling coffee beans only•Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing•Schultz purchased the company in 1987 and Starbucks Coffee Company opened the first store to sell brew coffee and espresso beverages•Completed IPO on NASDAQ in 1992 under the trading symbol “SBUX”, thus opening a new chapter of growth for the company•Currently operating in 39 countries around the world with more than 13,000 stores and over 145,000 partners (employees) •As of November 2014,Starbucks is present in 67 countries and territories•2.1.2 MissionStarbucks has a mission statement of structuring a pleasant work environment in which employees are treated with respect and dignity, incorporating diversity in all its business aspects to deliver fresh coffee, satisfying customers, and developing profitability for the company’s success2.1.3ValuesStarbucks’s net earnings in 2011 were $417.80 million, which is a significant increase from 124.570 million, Furthermore, its revenues grow from $10.383 billion in 2008 to $11.7 billion in 2011. The increase in revenue and sales was direct result of the numerous new stores that were opened. During this period Starbucks stores grow 508 percent from 8400 stores to over 12000 across 39 countries. Now, Starbucks have more than 13000 stores and 145000 employees. And until 2013, sales had increase to $14.982 billion2.2 Product2.2.1 Target MarketThe target market of Starbuck in china is located in super-large city level, and economically developed coastal areas and relatively developed city of secondary cities with higher education, the upper middle class with higher income or random consumer and coffee lovers, this part of the population belongs to the pursuit of quality social upper class and the pursuit of social fashion of social middle class. Starbucks target market is a middle class as the mainstream of social class. Starbucks is the implementation of differentiated marketing strategy; provide a great diversity of products and services for the different cub market. Starbucks implemented the strategy of these differences of target market for different market segments to customize different products and services, and to develop different marketing strategies, to meet different consumer needs, better to expand sales.2.2.2 Market ShareStarbuck is the fifth largest consumer food service brand in the world. Starbuck opens three new stores every single day. Now15,269 outlets of Starbuck operated, As of November 2014, Starbucks is present in 67 countries and territories. However, 61 of its 84 locations were closed in Australia 2008. Besides, the traffic volume and sales is continually decreasing recently. Therefore, it is vital to examine the reasons for declining market share, and to offer approach to improve the market performance and increase its market share.2.2.3 Major CompetitorsStarbucks belongs to market follower, facing the competition can be divided into four categories.a)Coffee competition: such as, Dietrich’s coffee, Pete’s coffee, andCaribou Coffee company. These company’s product is similar to Starbuck and the price and qualities are also same.b)Convenience store competition: these type of coffee store aremore attractive than Starbucks for the customers who are in college and office worker. Due to these store you can find in every corner of street and the cost for these stores to open is lower than Starbuck.c)Fast food restaurants sell coffee : such as McDonalds, KFC,Pizza Hut and Dunkin Donuts. These fast food company aremore common in every city. In addition, these store s’ coffee are more cheaper than Starbuck and they can provide many kinds of food and drinks.d)Fixed coffee machine: this way to shell coffee can save cost ofemployees and store rent. For the customer, it is more convenient and quick, also the price is cheaper than the coffee are sold in coffee shop.2.2.4 Table 1: direct competitor to Starbucks3 Environmental Analysis3.1.1 PEST● 3.1.1.1 Polity: The relationship between China and American hasimproved , thus the prospect of development between two countries is visible. The Chinese policy also provide a wide market for Starbucks.● 3.1.1.2 Economic:the residences consumption level isincreasing in China which provide a wide market for Starbucks.Also with the improve of citizens salary, Chinese purchasing power gradually increased , a cup of $3 coffee is not a luxury any more.● 3.1.1.3 Social:Chinese culture affects Chinese action andthought. Moreover, the Starbucks core value is also emphasize kindness bring people a lot. So, it also advocate environment is the same important as coffee● 3.1.1.4 Technology : Starbucks hold advanced coffee bake skillwhich appealed Chinese attraction mode a stable technology foundation. Besides, via the internet advertise its can spread their coffee culture.3.1.2 Competitive Forces3.1.2.1 Customs:Starbucks initially targeted young student, social classes and neighborhoods that would be most reparative to the idea of buying $3 a cup of coffee and spending time with friends at their stores. With rapid growth and expansion, Starbucks target market expanded rapidly to include every individual of every age. Starbucks can provide customers’ a comfortable release place which they can reading, thinking, writing, or even a daze. The coffee giant achieved these using creature comforts, such as comfortable furniture, wireless internet relaxing music and common area for collaboration. While Starbucks stores are positioned as locations where customers can spend time in a comfortable setting, their product lines are positioned at the higher in regards to prices and quality3.1.2.2 SuppliesThe major suppliers to the industry are countries from Africa, South America, and Asia. This is due to the fact that tea leaves and coffee beans must be grow in a certain climate. As such, many of these supplying regions are lower economic countries. Coffee beans are acommodity product and coffee prices are dictated by supply and demand. The power of supplies is also deemed to be moderate3.1.2.3 New EntrantsAs for the threat of new entrants, it will be discussed from three aspe cts. Firstly, differentiation and innovation are the important elements in the specialty coffee industry. In this saturated industry, it is hard for new entrants to differentiate from existing competitors by just providing better quality, customer services and different styles of the retail stores. It lowers the threat of new entreant.Additionally, brand loyalty is also a significant barrier to new entrants . Many companies like Starbucks has gained many loyal customers by providing excellent experience and services through these years. All these points have made it difficult for new entrants to enter into this industry. Therefore, the threat of new entrants is moderate.3.1.2.4 SubstitutionThe major substitution of Starbucks must be milky tea, juice etc, However, Starbucks has its’ unique competitive advantages. Firstly, the comfortable environment that Starbucks supplies to customer isdifficult for those juice or milky tea store to offer. These shop are usually narrow and capacity is small. Secondly, those juice or milky tea shop have a low awareness of product brand, and don’t have a complete brand system. While Starbucks are well-known all over the world and has a profound brand marketing. In nutshell the threat of substitutes is consider being very weak in this industry.3.1.2.5 RivalryIn China, the major competitors are Taiwan Shang Dao coffee, Japan really pot of coffee, Pacific Coffee and other coffee later into China, Starbucks coffee among all as its biggest competitor, “coffee wars”royalties have become inevitable.Starbucks mission statement is “Establish Starbucks as the premier purveyor of the finest coffee in the world.” The threat of substitutes is consider to be very weak in this industry. Facing with the competition from the coffee industry, the convenience store, fast food restaurants and coffee machine, Starbucks have a long way to go in the future.3.1.3 External Opportunities and ThreatsOpportunities:1.Starbucks has previously occupy the Chinese coffee markets, it iscan assist company to extend their market easier, and Starbucks has set its sights on the one billion plus Chinese tea drinkers, and looks to change preferences to gourmet coffee beverages.2.The company has the opportunity to expand its global operation.New markets for coffee such as India and the Pacific Rim nations are beinginng to emerge3.C0-branding with other manufactures of food and drink, andbrand franchising to manufactures of other goods and services both have potential.Threats1 Starbucks’ success has lead to the market entry many competitors and copycat brands that could pose potential threats. How they combat these threats will determine their future.2 Starbuck is exposed to rise in the cost of coffee and dairy products3.2 Internal Analysis3.2.1 Identification of SWOT elements(1) Strength: 1: It is famous for high quality coffee beans and goodtaste2: It cooperates with the tea culture and coffee culture3: It provides a elegant environment, good service, andfavorable price.(2) Weakness: 1 the organization structure’s efficiency is not enough.2 the pressures on supply chain3 experience and service level is decrease4 prices is high(3) Opportunity: 1 the vacancy of marketing entrance2 the chances of this time background3 the potential of coffee market in China is visional(4) Threat: 1 too many competitions2 substitute goods are abundant and promote increasingly3 the rise of material cost4 regional developments imbalanced5 the financial storm impact(5) SO: 1 the expansion strategy of market occupancy2 brand extension(6) ST: 1 differentiation strategy2 public relations strategy3 raise the price4 flexible price systems(7) WO: 1 direct sales strategy2 brand crises reverse strategy3 differentiation strategy(8) WT: 1 product line shrinks strategy2 turn down the unprofitable or deflect stone3 looking for much lower prices supplier3.2.2 Evaluation of SWOT elementThe SWOT analysis that Starbucks is a large company with a competitive advantage that is shrinking because of huge success. This is because Starbucks model has been copied successfully by its competitors and this poses serious threat to company.With majority of stores concentrated in USA, Starbucks is also limiting its growth and exposing itself to risk. If Starbucks can retain its strength and build on opportunities, while suppressing weakness and extinguish threats, it will be able to grow throughout the world market.The SWOT analysis also gives a starting point for discussion on what Starbucks can do to reduce its weakness. Due to its large size, Starbucks sets trends for the industry that can be backed up by the volume of their delivery.The company has managed to maintain the competitive advantages because it has offered conveniences an atmosphere customers can enjoy. As long as Starbucks fulfils its customer’s wants and needs, Starbucks will continue to create more value at its stores.3.2.3 Analyze and RankThrough analyze the SWOT of Starbucks, we can find that the strength of Starbucks are the special comfortable environment, the unique coffee, and the brand advantages. Also ,with the development of economy, the opportunities for Starbucks are increased, due to it has already be known by the whole world, it may be easier for Starbucks to open a new market in all of worldIn terms of threat and weakness for Starbucks, the first thing need to be considered is the how to attract more customers. Starbucks’ target customers in China are the up-middle-classes, who are affluent and attach great important to quality of life. How to attract other class people may become a problem for Starbucks’ development.In addition, expect coffee there are many other product which are sell in Starbucks, these product are not familiar with people, should Starbucks only fuscous on coffee? Or development all products theyhave.Thirdly, more and more coffee shop have emerged in current market, some of them have a similar business pattern with Starbucks, their coffee, environment, desert are all similar to Starbucks. How can Starbucks remain its status in coffee market must be a huge problem for it.3.3 Strategies3.3.1 Strategies developmentChina is the most important, and potentially the largest market for Starbucks outside North America. Taking a long-term vision in China, Starbucks remains confident in its success in the Chinese market, as it views in China exactly at the time when the Chinese people are looking for more leisure lifestyle and when the company ideals mesh perfectly with China’s aspiration to develop a “harmonious society.” The fact that corporate social responsibility is at the heart of our company‘s value is greatly appreciated by Chinese people and society.In China, Starbucks maintains the unique character of serving the finest coffee in the world and high quality globally appreciated food. While continuing to offer the best coffee, it is also leading in China in spreading coffee knowledge and expertise, and creating a coffeeculture in a traditional tea-drinking society. The Starbucks store atmosphere is one which is similar to the old teahouse of China—a gathering place and a gathering place and a community living room. Starbucks partners in China are as welcoming, genuine, considerate, knowledgeable, compassionate and involved as partners from around the world.3.3.2 Identify strategic fitSome of the methods Starbucks has used to expand and maintain their dominant market position, including buying out competitors' leases, intentionally operating at a loss, and clustering several locations in a small geographical area, have been labeled anti-competitive by critics.[187]For example, Starbucks fueled its initial expansion into the UK market with a buyout of Seattle Coffee Company, but then used its capital and influence to obtain prime locations, some of which operated at a financial loss. Critics claimed this was an unfair attempt to drive out small, independent competitors, who could not afford to pay inflated prices for premium real estate.[188]While relations with independent coffeehouse chains have been strained, some owners have credited Starbucks with educating customers on coffee.[189]3.3.3 Table 2: SWOT/Strategies Matrix4 Product Development4.1 Strategy Selection1.Differentiation strategyThe difference was Starbucks competition weapon. Through the Coffee drinks industry to provide differentiated products andservices, the company received a far highe1QAr than other Coffee shop profit rate, However, differentiation strategy has risks. It includes: Customers to buy not only depends on the degree of product differentiation, the relative purchasing power level also depends on the customer. And the impact of the economic environment. When the latter force is large enough to make the customers no longer willing to experience more of the bill, the enterprise will face the risk. No doubt, the impact of financial crisis on Starbucks is direct and obvious.2 Diversification strategiesIn order to meet the challenge, which broke the story.. Starbucks began to diversification strategy as a powerful weapon .In USA native Coffee shop The installation can produce their own CD personal music appreciation and Taiwan, the film industry etc In such a way for cross industry development In Chinese Starbucks also have found another way to expand the business .such as sell gift. Variety of gifts from brewing devices of various Coffee, to all kinds of Coffee cup Notepad etc. This Starbucks printed ink mark green goods have been put on the shelf.3. Competitive strategyThe camp according to affinityHold you with musicSell something more than Coffee4 Brand alliancesStarbucks promote a strategic brand by brand alliance is the rapid expansion of the brand advantage ., Look for strategic partners to provide their own brand equity in the process of development, To expand sales channels, An alliance with a strong partner, The expansion of marketing network.5. Overseas market expansionStarbucks selects the first station in Asia as a market expansion,is because:Asia has a lot of help to Starbucks expand market shareAsia can become a source of Starbucks quality Arabia Coffee beans Starbucks in Asia is easy with the advantages of public relations4.2 Product Selection4.2.1 Idea generationStarbucks can quickly come up with new ideas, the introduction of new products; it is also the very favorable competitive advantage. Strict System innovation let Starbucks each branch can alwaysmaintain high sales. Starbucks trying to launch new products, at the same time ensure its core product to maintain the stability of the competitive advantage. The internal sources mainly come from the employees and customers. Any advice, no matter how not worth mentioning, there are going to be great or small effect on the company. Starbuck Corp often polls within the company. Employee survey system by phone or write comment cards on the issue of speak one's mind freely. Relevant management personnel in two weeks will respond to their attention. Starbuck Corp still set up internal forum. Starbucks through employee incentive system, to strengthen their culture and values. And became one of the do not rely on advertising to build brand enterprises.Whenever and wherever struck tend to provide the most satisfactory service for the customer. Starbucks tried to do not let any one customer had an unpleasant experience. Therefore, many companies - strategy from concentrated set up shop, to get off from the service in some areas are designed to process let customers waiting in line more quickly, so as to avoid the customer waiting impatiently. They also get advices from the distributors, competitors, and suppliers. Under the consideration of external factors, Starbucks trying to launch new products, at the same time ensure its core product to maintain the stability of the competitive advantageThe company plans to launch new kinds of food such as hot breakfast sandwich and the new beverage such as Coffee liqueur, even Coffee pumpkin flavor.4.2.2 Marketing Strategy1 target market: have a certain social status, high income, have a certain life style of people.2 the planned value proposition: Starbucks coffee not implement low-cost strategy, but not the sale price, in order to protect Starbucks unique feeling coffee bring customer. Starbucks do article on added value, let the customer feel value for money. First ,increase the value culture ,when coffee beans as ordinary coffee sales, a dollar a pound; the processing for the sales instant coffee packaging, a cup of 5 to 2.5 cents; coffee shop increased personnel and environmental services, a cup of premium for 50 cents to a dollar. second, let the customer feel value. First select the coffee varieties, such as mocha coffee 18, Italian coffee 22, and cappuccino 25. Then, the choice of additives, need to pay extra. Such as juice, hazelnut, vanilla, caramel increase four Yuan. Finally, also choose ordinary cup, mug, three kinds of specifications is four Yuan. Then, according to the customer feel value for money4.2.2.1: DemographicStarbucks are able to address a wide demographic of customers in different backgrounds and ages. The high quality coffee drinks, harmonious environment with good music, comfortable sofa and chairs, and warm services all attract consumers to pay far a cup of coffee. Starbucks mainly targeted at customers who are not price-sensitive and desire for an experience. Furthermore, Starbucks has developed a strong brand to retain a large group of loyalty. In addition, Starbucks take into account the cultural differences within different countries thereby modifying its products and services to attract new customers as well as maintain customer loyalty.5 Conclusion:Consequently, the Starbucks has many problems when it comes into China, like the high import tariff rate in China, and also the province and local government control. There also have barging power of suppliers and consumers to impede, and rivalry among competitors. Therefore on the other side, Starbucks get a five year plan, they plan to add new stores, encourage new groups, enter smaller cities andintroduce new product. The company’s strategies include insist on suiting the local taste, and localization is also very important. The company tries to get involved into the China society. The Starbucks do well until now, but there still has the profit problem. The Starbucks want to get the huge success in China, there primary mission is to expand Chinese market, use strategies which have advantageous to let Starbucks get huge profit in China6 References/wiki/Starbucks.docin./p-834565933.html.docin./p-106937248.html.docin./p-486402350.htmlwenku.baidu./link?url=CNQFYFG5l8RNBWGDHm258awGInBUm iblaPuEB7F6jizDm7SsEWD_o0ZKzBrB5FeesFmTRFQHOKUAW OckxM6RD6QQzCP87s--o1Y0b8X8LWu7 Appendix7.1 Idea generation: all group members 7.2 Team report7.2.1 Individual Members Activity Reports1.Ann:2. Company background2.Tom:3.3 Strategies3.Serena: 3.1 External3.2 Internal analysis4.Grace: Executive summary1 Introduction5 Conclusion5.Anna :4 Product Developmenta)Executive summary。