Marketing Plan Project Final

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University of Hawaii, West Oahu *

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BUSA 300

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Marketing

Date

Feb 20, 2024

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docx

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14

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Running head: STARBUCKS CORPORATION 1 Starbucks Corporation Marketing Plan Project (Final) UH West Oahu
STARBUCKS CORPORATION 2 Table of Contents 1.0 Executive Summary ................................................................................................................... 3 2.0 Company Description ................................................................................................................ 4 3.0 Situation Analysis ...................................................................................................................... 4 3.1 Environmental Scanning ........................................................................................................ 4 3.2 SWOT Analysis ..................................................................................................................... 6 3.2.1 Starbucks ......................................................................................................................... 6 3.2.2 Dunkin Donuts SWOT Analysis ..................................................................................... 7 3.2.3 McDonalds SWOT Analysis ........................................................................................... 8 4.0 Consumer Behavior Research .................................................................................................... 8 4.1 Purchase Decision Process ..................................................................................................... 9 5.0 Critical Issues ............................................................................................................................. 9 5.1 Changing Trends .................................................................................................................... 9 5.2 Recession and Increasing Production Costs ......................................................................... 10 5.3 Increased Competition ......................................................................................................... 10 6.0 Marketing Objectives ............................................................................................................... 10 6.1 Financial Objectives ............................................................................................................. 11 7.0 Target Market .......................................................................................................................... 11 8.0 Positioning strategy ................................................................................................................. 12 9. 0 Marketing Mix ........................................................................................................................ 12 10. 0 References ............................................................................................................................. 14
STARBUCKS CORPORATION 3 Starbucks Corporation Marketing Plan Project (Final) 1.0 Executive Summary Starbucks has been the largest coffeehouse globally for decades. The corporation's mission statement indicates that it values both customers and stakeholders by creating a welcoming and warm culture. Thus, the corporation plans to seize the opportunity presented by shifting consumer behavior to enhance its growth. Through innovation, new technologies, new products, and new markets, Starbucks plans to increase its revenue and shareholder value while ensuring high customer satisfaction levels and practicing corporate social responsibility.
STARBUCKS CORPORATION 4 2.0 Company Description Starbucks corporation was founded in November 1985 by Howard Schultz and Jerry Baldwin, and its headquarters are in Seattle, WA. The company’s target markets are coffee and snacks lovers in the United States, Asia and the Pacific region, Africa, and the Middle East. The corporation’s core competencies include its strong human resource, as its employees are not only qualified but are also knowledgeable and accomplished (Geereddy, n.d.). Additionally, it is the first company in the U.S. to give full health coverage to its employees. Starbucks’ competitive advantage lies in its product differentiation, continuous innovation, quality products, and technology integration as it seeks to reach customers. This set of features has ensured it stands out from its competitors through enhanced consumer experiences. Starbucks’ mission is to inspire and nurture the human spirit through its “one person, one cup, and one neighborhood at a time” slogan. Markedly, at the heart of the company’s operations are its partners, its coffee, and its customers (Starbucks, 2022). The firm seeks to create a culture of warmth and belonging where everyone is welcome, act with courage in challenging the status quo to grow both company and other stakeholders, be present through dignified, transparent, and respectful connections, and achieve heights of industrial performance. 3.0 Situation Analysis 3.1 Environmental Scanning Social forces. Over the years, both developing and developed countries have seen a rise in coffee drinking culture. Unlike Russia, Japan, Germany, and other 35 Western countries, Africa, Asia, India, and China are expected to have an increase in population by 2050 (Dimitrakaki, 2021). In response, Starbucks has started expansion plans in these countries and adopted a multicultural marketing program to react to the increase in ethnic and racial diversity.
STARBUCKS CORPORATION 5 Lastly, Starbucks supports the development of urban cities as consumers are increasingly identifying with brands linked to social actions. Economic forces. Having positioned itself as a high-end coffee shop, Starbucks charges high prices for its products. As a result, it witnessed decreased sales in 2020 as households’ disposable income reduced as they were impacted by the economic effects of the COVID-19 pandemic. The cost of production also increased due to the rise in cost of labor. These economic forces have reduced sales at Starbucks. Technological forces. With increasing innovation and technology, companies and products face the threat of being replaced. Thus, Starbuck has incorporated technology and artificial intelligence to collect purchase data and use it to recommend orders to its customers. Starbucks has also responded to e-commerce by introducing a smartphone order and paying later strategy for its customers. These measures have enabled the company to remain relevant in the modern market. Competitive forces. Starbucks faces stiff pure competition from McDonald’s, Dunkin’s Donut, and Costa Coffee. The competitors are becoming more innovative, with lower price positioning to gain access to Starbucks’ market share. Thus, the company needs to formulate new strategies to keep its wide pool of customers. Regulatory forces. The business world and consumer market are becoming more complicated with the introduction of new laws. Some of these laws are consumer protection laws, company protection laws, and promotion, distribution, and pricing laws. Hence, Starbucks needs to ensure it adheres to the laws of every country it operates in since they vary from one region to another.
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