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This presentation seek an insight of various tools of marketing
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OVERVIEW…o Starbucks corporation is an international coffee house
chain based in Seattle- United Stateso Starbucks is the largest coffee house company in the worldo Operates 16,635 stores in 50 countries, including 11,068 in
the United States, while the licenses and frenchises operate more than 7,800 units worldwide( primarily in shopping centre and airports)
o Product line
- Beverages ( coffee, tazo tea, soda, juices)
- Pastries
- Whole coffee beans
- Merchandise (cups, mugs)
o Through the Starbucks Entertainment division and hear music band, the company also market the books, music and film.
o Many of the company’s products are seasonal or specific to the locality of the store in various countries.
o From a small store that opened in 1971 to its status as a 21st-century Gourmet coffee giant Starbucks has led a coffee revolution in the united states and beyond.
STARBUCKS –national culture to global vision….
Starbucks –
“Establish Starbucks as the most recognized and respected brand in the world.”
TAKE HOME AN EXPERIENCE…Mission Statement- “to inspire and nurture the
human spirit- one person, one cup and one neighborhood at a time.”
The Starbucks VALUE PROPOSITIONo To create an “experience” around the
consumption of coffee, an experience that people would weave into their lives
o To create an uplifting experience in “Customer intimacy”
o To create an “ambience” based on human spirit, sense of community, and the need for people to come together ‘ everything matters’
CUSTOMER DRIVEN MARKETING STRATEGY….
SEGMENTATION:• Initially Starbucks concentrated on social class
particularly the business class people those who are working at the office and wanted to have a cup of coffee with a good atmosphere and facilities.
• Starbucks also had segmented his market by geographic and demographically by selecting the store location where they can find the educated and coffee lovers .
DIFFERENTIATION:
o Trained chefs and food scientistso Introduction of its Creme Frappuccino lineo The infusion of Tazo tea drinkso The Starbucks Card, a sort of “fancy gift
certificate”o The rollout of Starbucks DoubleShot espresso
drinkso High-speed Internet access
Ques#1: How has Starbucks position itself?
POSITIONING:o Starbucks has positioned themselves in the
market as a highly reputed brand.o Starbucks has positioned themselves as a
premium product in the coffee industry
by creating a high standard, introducing
innovative products and providing excellent
service.o Starbucks offers distinguish products.
Ques#2: Apply the concept of holistic marketing?
Definition:Holistic marketing concept is based on the
development, design, and implementation
of marketing programs, processes, and
activities that recognizes their breadth
and inter-dependencies.
SUB-ORIENTATION:
1) Internal marketing orientation:All star bucks employees are called
partners and the waiters at Starbucks are
called baristas to make them feel
exceptional and proud about their
workplace, not to feel just simple service
workers.
CONT….
2) Relationship marketing orientationSatisfying the customers has always been the first
priority of star bucks. The chairman of Starbucks
Howard Schultz explains, that a person gets more
than just coffee when he/she visits Starbucks –he
gets great people, first-rate music and a
comfortable and upbeat meeting place.
CONT….
3) Integrated marketing orientation:integrated marketing includes the 4 Ps of
marketing mix which are product, price,
promotion and place.o Product: coffeeo Price: stableo Place: hotels, airlines, university campuses,
office buildingso Promotion: environmental friendly
CONT…
4) Performance marketing:• Starbucks announces its corporate
social responsibility• They started to use cups from recycled paper
or biodegradable plastic. • Social responsibility is also emphasized in their
coffee-bars’ design, posters and various promotional campaigns.
Ques#3: Apply the concept of value chain?
• The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.
AIM:
• Profit margin due to Value > Cost• Value Created and Captured less Cost of Creating
that Value = Margin
•Technological Development
•Human Resource Management
•Firm Infrastructure
•Procurement
• In
bo
un
d
• Lo
gis
tics
• Op
erat
ion
s
• Ou
tbo
un
d• L
og
isti
cs
• Mar
keti
ng
• &
Sal
es
• Ser
vice
•MARGIN
Value Chain of Firm ActivitiesValue Chain of Firm Activities Value Chain of Firm ActivitiesValue Chain of Firm ActivitiesPrimary Value Chain Activities and Support Activities
Marketing MixProduct: Whole bean coffees, cappuccino, coffee
makers, and other Starbuck paraphernalia. Also pastries, oatmeal, smoothies, seasonal offerings and wraps. Plus books, music and films.
Price: Premium prices due to high quality and variety of beverages offered.
Place: Own retail stores in high traffic and highly visible areas. Grocery stores, convenience stores and around the globe.
Promotion: Minimal advertising, Use of philanthropy and Starbucks Card.
Ques#4: How starbucks creates, delivers and communicates value?o Starbucks creates value for its valued
customers by:
- Providing them with their best quality claimed coffees
- Providing them personalized and customized coffees
-Providing them with a wide variety of coffee
- Training their staff on both hard and soft skills
- Understanding the human need of socialization and creating a third ideal place for their customers
CONT…..o Starbucks communicates value for its
customers by:
-Easily accessible and visible stores
-Local marketing and good locations
- Word of mouth
-No advertising
CONT…..o Starbucks delivers value to its customers
by:- Friendly staff
-Customized offerings and a wide range of products
-Good alliances
-Product innovation
SWOT…STRENGTH
•Established logo, developed brand, trademarks, patents and websites.•High visible locations to attract customers •Motivated employees•Globalized•Good relations with suppliers •Strong financial foundation
WEAKNESS•Size •Too much focus on expansion•Self cannibalization•Product pricing(expensive)
OPPORTUNITY•Technological advancement•New distribution channels(delivery)•New products•Brand extension
THREAT•Competition•Cultural and political issues in foreign countries•Consumer trends towards more healthy ways and away from caffeine
COMPETITORS…
o 7- eleven o Caribou Coffeeo Dunkin Donuts o Second Cupo Mcdonalds o Krafto Green Mountain Coffee Roasters o Procter & Gambleo Coffee Beans And Tea Leaf o Nestleo Costa Coffee
CONCLUSION…“First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans
into reality. The beginning, as you will observe, is in your imagination.” – Nepoleon Hill..