Strategy and Positing Paper Team C
MKT/421
April 22, 2015
Doctor Geraldine Goodstone
Strategy and Positioning Paper
Introduction
Starbucks is preparing to launch the new Frizzo hand crafted soda. This paper will include an overview of Starbucks and their products. It will also include a SWOT analysis and a competitive analysis of the organization and offering using the Porter’s five competitive forces model. It will include the criteria used to segment the market and select a target market that will include geographic, demographic, and psychographic, and behavioral factors. Next it will include a description of the targeted market and the needs that cause the target market to buy. Finally, it will include a
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They are a special summer treat to any customer who wants to enjoy a refreshing soda any day of the week. The new Fizzo cold drink is available at all local Starbucks locations.
SWOT Analysis
Strengths
Operating efficiencies and strong growth lead to superior financial performance 2014 was just considered one of the best financial years for Starbucks. Starbucks revenue increased by 10%, approximately 1599 additional stores were opened, profit and operational margins have grew and their cash flow continued robust despite the vast growth. In China, Starbucks has the rapidest growing store network as opposed to their competition In the year 2011 they were only 570 Starbucks locations in China, now there are currently 1,367. There are more Starbucks locations than Costa Coffee and Dunkin’ Donuts combined; However, McDonalds still leads with over 2000 locations. Leading brand in the coffee market, valued at $5.2 billion Starbucks has a leading brand reputation because of their excellent coffee and outstanding customer service. Its brand is the most valuable brand the in coffee market and is valued at $5.2 billion. The great Starbucks experience One of Starbucks’s strongest advantages is the experience a customer experiences when visiting Starbucks. They cater to their customers with impeccable blended coffee, first-class music, welcoming staff and just and all around warm atmosphere, which results in incomparable customer service. The effective
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey contains one matrix/rating scale question ( Appendix I, Question 5) based on how important qualities are when choosing a coffee shop. Lastly, there were two demographic questions. The demographic questions are for a general understanding on consumers behavior based on age group and gender. For an overview of the survey, see appendix I.
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
B. With so many stores it’s also not surprising to see Starbucks on many college campuses and in
People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.
This assignment is based on the Starbucks case study; Trouble Brews at Starbucks written by Lauranne Buchanan and Carolyn Simmons (2009). The aim of this paper will be to discuss the the changing consumer experience, competitive landscape and external circumstances affecting marketing opportunities for Starbucks, while determining how Howard Schultz can provide Starbuck’s customers a greater long-term value.
Starbucks. About half of the 1300 stores opened during fiscal year 13 will be opened in China. Starbucks
gourmet coffee quality. They have less than six months to launch the product, and very limited
In this paper, I will talk about Starbucks Company. I will define the influence of the vision, and mission of the company and primary stakeholders along with their overall success. An examination will be conducted to categorize five forces of struggle and their effect on the corporation. I will carry out a SWOT analysis to determine the opportunities, threats, strengths, and weaknesses. Founded on the SWOT analysis, a technique of opportunities and advantages will be exploited while threats and weaknesses will be diminished. Several types and levels of techniques will be talked over to operate the profitability and competitiveness. I will outline a plan of communication to make approaches known to all investors. Two corporate authorities will be designated to assess the efficiency of the regulating managers. I will also assess the effectiveness of management within the Company and come up with sanctions for upgrading.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to pay for your drinks and earn rewards for your purchase (Starbucks Coffee Company, 2011). Furthermore, in‐store promotions accompanied by new products and amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).
Another highlighting thing is the quality offered by Starbucks. This is one of the main strategies they use to compete in the market. When considering about the business strategy of Starbucks, it is mainly the product differentiation concept is used by the management. Because of this premium quality, they have been able to charge a premium price for their products. One of the major aspects in the quality covers the excellent customer service that is offered by Starbucks (Verbeke,
Starbucks’ product is a casual experience in a comfortable atmosphere where the customer can enjoy a premium cup of coffee and a newspaper or relaxing conversation with friends.