Executive Summary 3
Part 1:Current Situational Analysis 6
1.1 Macro Environmental Analysis 6
1.2 Micro Environmental Analysis 8
1.3 Internal Analysis 9
1.4 SWOT Analysis 12
Part 2: Recommendations 14
2.1 Mission 14 2.2 Objectives (SMART) 14 2.3 Segmentation, Targeting & Positioning (STP) 14 2.4 Marketing Mix (7P’s) 16 Implementation & Control 17
This report provides an analysis and evaluation of the current situation and prospective profitability of Starbucks. It also looks at the threats and weakness of Starbucks and how they can be dealt with by taking advantage of their strengths and opportunities. Starbucks, a leading specialty coffee retailer in the world has been selected because of its strategic approach in responding to external pressures as well as their strong capabilities in sustaining themselves in a highly competitive environment. Their approach to product development, technological advancement and in providing a unique experience would lend to them establishing themselves in Trinidad and Tobago. As the foundation for investigation, PESTEL analysis, Porter’s 5-forces Model and Value Chain have been applied. They were used to analyze the macro, micro and internal factors with the given limitations for each model. The report found that the major areas of threats are dependency on suppliers, price sensitivity that is affected by the global economic recession and competition. Despite the threats, the report focuses on Starbucks competencies in product innovation, set distribution channels, providing quality service and experience and technological advancements to enter into Trinidad and Tobago’s market through Market Development Strategy (Ansoff 1968). This will allow for Starbucks to expand and build its brand while increasing its position.
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world operating in the specialty eatery industry. It was founded in Seattle, Washington in 1971. Starbucks has 18,066 stores in 60 countries around the world and has 160,000 employees. (www.nasdaq.com). They sell freshly brewed coffee (over 60 blends), a selection of premium teas (over 20 blends), Italian styled espresso beverages (over 30 blends), Frappuccino blended beverages (over 30 blends) inclusive of both hot and cold blended beverages and a variety of complementary food items. They have also diversified into the bottled water industry and the music retailing industry (www.starbucks.com).
The purpose of this report is to evaluate and analyse the marketing strategy of Starbucks and the internal and external factors that influence it. The SWOT framework would be utilised to summarise these factors to identify ascending and inner environments respectfully. (Part 1) The second part of the report analyses Starbucks’ objectives, marketing mix, STP and recommendations based on these fundamental results have been proposed to improve performance. (Part 2)
Part 1:Current Situational Analysis
This section is devoted to analyse Starbucks position as it seeks to enter the Trinidad and Tobago market from the evaluation of macro, micro and internal factors that would influence its performance. 1.1 Macro Environmental Analysis
The PESTLE will be used to analyse the macro environment of Starbucks as it looks at the potential impact on which it would operate and to build on the vision for the future. It allows...