Marketing on Starbucks

Topics: Starbucks, Coffee, Coffeehouse Pages: 5 (1649 words) Published: March 5, 2012

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. Then, I would look at the information search and alternatives evaluation. Are there alternative ways of solving my thirst for the Frappuccino? Maybe a bottle of coke from Tesco can substitute my demand for ‘cold drinks’ or do I need something more than a coke? Well, if I have only a pound in my pocket I’ll probably just go for the coke, clearly there is an economic constraint that keeps me from being able to consume the product. On the other hand if I have 100 pounds then I would have thought that a cup of Frappuccino would be affordable. By bringing in theories from Microeconomics, as I have a lower budget constraint due to greater income, my demand for luxury good will be greater. So then I would choose towards a more expensive product, the Frap. Another internal influence that I would look at is the motivation. How can this Frap satisfy me and to what extend? Apparently it can satisfy my psychological needs, my thirst and addiction to it. But when it comes to choosing which coffee shop to visit, another layer would be added to it. To my colleagues and my mind a cup of Frap from Starbucks would be surely superior to one from Café Aroma. And if I have a lesson to attend shortly after the purchase, surely showing off the Starbucks logo on side of the frap would be preferred. In turn I would be recognized for being able to afford more and my colleagues would perceive my as a wealthier student. Starbucks can then also satisfy my Esteem needs. In which case I would choose Starbucks to others. Somehow the point that I just made is linked to Social class in Social influence as well. I would gain higher social status by purchasing Starbucks so choosing Starbucks would bring stratification of me in the culture through income. Due to that I am more likely to choose a coffee shop with the highest cost, Starbucks. Last but not least concerning the situational influence. It is quite hard to have easy access to a Starbucks coffee shop as the nearest one is in Middlesbrough,...

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,
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