Marketing on Starbucks

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Formative Assignment
Ryan Yung

This essay aims to tackle the questions in reference to Jobber’s case study 7, the cappuccino wars.
1, The reason for it being so popular is perhaps firstly that the branding effect. Starbucks have a great reputation in the USA and therefore when it comes to UK it has seen great perceptions from the public. Similarly for Nero and Costa. What’s more to that is they bring the US culture into UK. Before there were only Seattle Coffee with 49 shops in 1997, after the inception of the Starbucks followed by Costa, Nero and Coffee Republic the coffee shops has increased greatly.
Secondly is that the coffee shops has opened a new market for people to consume coffee. People can enjoy a great aroma and a ‘free from pressure’ atmosphere, the important bit is that it provides a ‘little bit of heaven’ and oasis of calm for people between homes and school& office.
Thirdly, and most of the part where people miss out is because of the product itself. Coffee brings a great deal of benefits to people; it calms the nerves, heats up the body, being a good after-meal fare and keeps you awake. And by promoting this product by the starting up of many coffee shops the consumers will be more than happy to buy it.

2, If Starbucks and other coffee bars were to serve coffee only, there’s no way I would go there. I hate coffee, personally. I prefer tea and other cold drinks. But because of the hundreds of other products that they offer such as a Frappuccino, which is my favourite drink, I would consider going to a coffee bar to get it. Before moving on to the next stage I would think about whether this is really a need, because personally I would prefer to satisfy needs to wants. I think having a cold drink is quite important to me as it refreshes myself, I shall say I am addicted to cold drinks just like others being addicted to coffee. So my need is recognized, effectively the first process of my decision-making.



References: Peter Doyle & Philip Stern, 2006, Marketing Management and Strategy David Jobber, 2010, Principles and Practice of Marketing Philip Kotler&Gary Armstrong, 2009, Outlines& Highlights of Principles of Marketing Hall, W.K. (1980) Survival Strategies in a Hostile Environment, Harvard Business Review 58, Sept.-Oct., 75-85 Coffee Shops-UK-February 2011, oxygen.mintel.com http://www.cosycoffeeshops.co.uk/top-10-coffee-shops-2010.html http://www.gourmetcoffeeonline.info/coffee-articles/coffee/reasons-why-people-love-coffee.html http://www.starbucks.com/aboutus/Company_Factsheet.pdf http://ivythesis.typepad.com/term_paper_topics/costa_coffee_shop/ www.oppositecafe.co.uk

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