Starbucks - School Project

Starbucks - School Project

• 1.
  Principal of MarketingStarbucks
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  IntroductionWhy did wechoose Starbucks? Well-known in Singapore
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  Variety of beveragesfor targeted segment
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  Prominent locations allover Singapore
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  Found inalmost all shopping malls
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  Known forhigh quality coffee.
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  History of morethan 39 years
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  Mission: To bepremier purveyor of coffee in the worldBackground InformationEstablished by 3 friends who opened small shop in 1971Sold fresh-roasted, gourmet coffee beans and brewing/roasting accessoriesMore than 17,133 retail stores in 49 countries now
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  Targeted customer segmentsStarbucksdivides market into smaller groups of buyers with distinct needs, characteristics, or behaviors requiring separate products or marketing mixesMainly demographic and geographic segmentation used
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  Survey Research ObjectivesWhatconsumers think about StarbucksHow consumers feel about Starbucks by asking 4 ‘P’s of marketingE.g. We ask about affordability of Starbucks to find out consumers perception on pricing of Starbucks products
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  4 ‘P’s: PricePricingapproaches Value-Based Pricing (good service, quality); NOT Cost-Based Pricing (mark-up too high)
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  Competition-based pricing e.g.The Coffee Connoisseur Comparing with competitorsSimilar price ranges
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  More benefits toimpress consumersProduct mix pricing strategiesProduct-Line Pricing (Coffees, Teas, Ice-blended drinks)
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  Different prices dueto different cost pricesPrice adjustment strategyPsychological Pricing (higher-priced products = higher quality) Consumer responses on Starbucks’ PricingAffordability of Starbucks
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  Paying for Qualityor Quantity
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  Whether Starbucks isvalue-for-money4 ‘P’s: PromotionMarketing communications (promotion) mixAdvertisingReminder e.g. location of new outlet
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  Informative e.g. newflavors of beverage
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  Persuasive e.g. guaranteedsatisfaction for consumers Sales promotionAdvertisement specialties, contests, premiums and couponsPublic RelationsCommunity relationship e.g. Salvation Army donation
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  Invited celebritiesDirect MarketingFacebookMarketingCommunication ObjectivesConsumer responses on Starbucks’ PromotionWhether more promotion is needed
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  Type of promotion
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  Type of advertisingtool4 ‘P’s: PlaceNumber of Channel levelsUses direct marketing channel: Starbucks outlets
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  Also uses indirectmarketing channel: Bottled frappuccinoChannel IntensitySelective distribution: Kraft, PepsiNumber of outlets, locations, etc.Consumer responses on Starbucks’ PlaceConvenience of Starbucks
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  Whether ambience oflocation of Starbucks affects patronage
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  Starbucks to beintensive or selective distribution4 ‘P’s: ProductLevels of ProductCore benefit, Actual product, Augmented productClassification of Consumer ProductShopping products (SQPS)
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  Limited extensive advertising;available in limited number of stores Brand PositioningProduct attribute: Organic coffee
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  Product Benefit: CaffeineBrandSponsorshipLicensed brandBrand DevelopmentLine extension: Short, Tall, Grande and Venti
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  Brand extension: Merchandisese.g. tumblers, bottles and mugsConsumer Responses on Starbucks’ ProductStarbucks is the preferred brand
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  Quality of Starbucksproducts: 8/10
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  Packaging of Starbucksproducts: 6/10Conclusions & RecommendationsStarbucks coffee is a premium coffeehouse that focuses on quality in the way that it position itself.More advertisingUpdate packagingStronger branding neededCreate distinctive product benefit
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  Or expand brandextension line / Go into multibranding