Strategic Marketing Starbucks

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Strategic Marketing Starbucks

Strategic Marketing Plan

for the

Starbucks Coffee Company

Table of Contents

Introduction and background 3

Company mission, company objectives 3

Market definition and product or brand background 4

Evaluation of results and conclusion about problem 5

Situational Analysis 5

Internal analysis 5

Customer analysis 7

Industry analysis 8

Competitor analysis 11

Distribution and supplier analysis 11

SWOT analysis – Confrontation Matrix 12

Choice of option 13

Marketing objectives/ expected results 13

Marketing strategy 13

Target audiences 14

Brand and product position 14

Decisions regarding marketing mix elements 15

Objectives for marketing mix elements 15

Strategies and tactics for marketing mix elements 15

Financial indicators and budges 16

Evaluation criteria 16

Sources 16

Introduction and background

Company mission, company objectives

The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees.

The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders.

Starbucks chairman, president and chief executive officer, Howard Schultz, walked in 1981 into the first Starbucks café and was so enthusiastic about the coffee and the company that he joined the company a year later.

Schultz travelled a couple of years later to Italy and when he came back he was inspired by the Italian coffee bars and the romance of the coffee experience. He wanted to create this atmosphere is the US too. The cafe should be a third place between home and work.

Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.

Worldwide there are at the moment 16,706 stores of which 8,850 are company-operated stores and 7,856 are licensed stores. These nearly 17,000 stores are located in more than 50 countries.

Value strategy

Starbucks is operating under the value strategy of product leadership. Innovation plays an important role in the corporate culture of the company. Starbucks is listening carefully to its customers and tries to recognize trends early in order to use them in its advantage.

Objectives

In the process of formulating objectives it is important to keep in mind, that objectives need to be SMART (specific, measurable, ambitious, realistic, and timed).

* In the long term, the company strives for 30,000 selling points which will bring Starbucks near close to the size of McDonald’s.

* By 2015, all of our coffee will be grown using ethical trading and responsible growing practices

* It is Starbucks goal that by 2015, 100% of its cups will be reusable or recyclable. It will also work to significantly reduce its environmental footprint through energy and water conservation, recycling and green construction.

* By 2015, we plan to contribute one million volunteer hours each year to our communities.

All these goals are SMART and can be evaluated properly.

Market definition and product or brand background

The market definition should be contained in the mission statement. The mission statement of Starbucks is: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.

The mission is rather broad and does not give any information about the market definition.

Starbucks’ core business consists of coffee and tea products in all sorts and sizes, but the company also provides special services for its customers, like wireless internet access (in cooperation with T-mobile).

Products range:

* Whole bean...
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