Starbucks

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This presentation seek an insight of various tools of marketing

Text of Starbucks

  • 1. Starbucks:DeliveringCustomer ServiceMARKETING MANAGEMENTGROUPSYEDA AREEBA TARIQ

2. OVERVIEWo Starbucks corporation is an international coffee housechain 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 inthe United States, while the licenses and frenchises operatemore than 7,800 units worldwide( primarily in shoppingcentre and airports)o Product line- Beverages ( coffee, tazo tea, soda, juices)- Pastries- Whole coffee beans- Merchandise (cups, mugs) 3. o Through the Starbucks Entertainment division and hearmusic band, the company also market the books, musicand film.o Many of the companys products are seasonal or specificto the locality of the store in various countries.o From a small store that opened in 1971 to its status as a21st-century Gourmet coffee giant Starbucks has led acoffee revolution in the united states and beyond. 4. STARBUCKS national culture toglobal vision.Starbucks Establish Starbucks as the most recognizedand respected brand in the world. 5. TAKE HOME AN EXPERIENCEMission Statement- to inspire and nurture thehuman spirit- one person, one cup and oneneighborhood at a time.The Starbucks VALUE PROPOSITIONo To create an experience around theconsumption of coffee, an experience thatpeople would weave into their liveso To create an uplifting experience inCustomer intimacyo To create an ambience based on humanspirit, sense of community, and the need forpeople to come together everything matters 6. CUSTOMER DRIVENMARKETING STRATEGY.SEGMENTATION: Initially Starbucks concentrated on social classparticularly the business class people those who areworking at the office and wanted to have a cup of coffeewith a good atmosphere and facilities. Starbucks also had segmented his market bygeographic and demographically by selecting the storelocation where they can find the educated and coffeelovers . 7. TARGETING:o Office workers- middle to high incomeo The parents with young kidso Teenagers 8. 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 giftcertificateo The rollout of Starbucks DoubleShot espressodrinkso High-speed Internet access 9. Ques#1: How has Starbucks positionitself?POSITIONING:o Starbucks has positioned themselves in themarket as a highly reputed brand.o Starbucks has positioned themselves as apremium product in the coffee industryby creating a high standard, introducinginnovative products and providing excellentservice.o Starbucks offers distinguish products. 10. Ques#2: Apply the concept ofholistic marketing?Definition:Holistic marketing concept is based on thedevelopment, design, and implementationof marketing programs, processes, andactivities that recognizes their breadthand inter-dependencies. 11. SUB-ORIENTATION:1) Internal marketing orientation:All star bucks employees are calledpartners and the waiters at Starbucks arecalled baristas to make them feelexceptional and proud about theirworkplace, not to feel just simple serviceworkers. 12. CONT.2) Relationship marketing orientationSatisfying the customers has always been the firstpriority of star bucks. The chairman of StarbucksHoward Schultz explains, that a person gets morethan just coffee when he/she visits Starbucks hegets great people, first-rate music and acomfortable and upbeat meeting place. 13. CONT.3) Integrated marketing orientation:integrated marketing includes the 4 Ps ofmarketing mix which are product, price,promotion and place.o Product: coffeeo Price: stableo Place: hotels, airlines, university campuses,office buildingso Promotion: environmental friendly 14. CONT4) Performance marketing: Starbucks announces its corporatesocial responsibility They started to use cups from recycled paperor biodegradable plastic. Social responsibility is also emphasized in theircoffee-bars design, posters and variouspromotional campaigns. 15. Ques#3: Apply the concept of valuechain? The value chain is a tool for identifying waysto create more customer value because everyfirm is a synthesis of primary and supportactivities performed to design, produce,market, deliver, and support its product.AIM: Profit margin due to Value > Cost Value Created and Captured less Cost of Creatingthat Value = Margin 16. VVaalluuee CChhaaiinn ooff FFiirrmm AAccttiivviittiieess Primary Value Chain Activities and Support ActivitiesFirm InfrastructureHuman Resource ManagementTechnological DevelopmentProcurementInboundLogisticsOperationsOutboundLogisticsMarketing& SalesMARGINService 17. Marketing MixProduct: Whole bean coffees, cappuccino, coffeemakers, and other Starbuck paraphernalia.Also pastries, oatmeal, smoothies, seasonalofferings and wraps. Plus books, music andfilms.Price: Premium prices due to high quality andvariety of beverages offered.Place: Own retail stores in high traffic andhighly visible areas. Grocery stores,convenience stores and around the globe.Promotion: Minimal advertising, Use ofphilanthropy and Starbucks Card. 18. Ques#4: How starbucks creates,delivers and communicates value?o Starbucks creates value for its valuedcustomers by:- Providing them with their best quality claimedcoffees- Providing them personalized and customizedcoffees-Providing them with a wide variety of coffee- Training their staff on both hard and soft skills- Understanding the human need of socializationand creating a third ideal place for theircustomers 19. CONT..o Starbucks communicates value for itscustomers by:-Easily accessible and visible stores-Local marketing and good locations- Word of mouth-No advertising 20. CONT..o Starbucks delivers value to its customersby:- Friendly staff-Customized offerings and a wide range ofproducts-Good alliances-Product innovation 21. SWOTSTRENGTHEstablished logo, developed brand,trademarks, patents and websites.High visible locations to attractcustomersMotivated employeesGlobalizedGood relations with suppliersStrong financial foundationWEAKNESSSizeToo much focus on expansionSelf cannibalizationProduct pricing(expensive)OPPORTUNITYTechnological advancementNew distribution channels(delivery)New productsBrand extensionTHREATCompetitionCultural and political issues inforeign countriesConsumer trends towards morehealthy ways and away from caffeine 22. COMPETITORSo 7- eleveno Caribou Coffeeo Dunkin Donutso Second Cupo Mcdonaldso Krafto Green Mountain Coffee Roasterso Procter & Gambleo Coffee Beans And Tea Leafo Nestleo Costa Coffee 23. CONCLUSIONFirst comes thought; then organization of that thought,into ideas and plans; then transformation of those plansinto reality. The beginning, as you will observe, is in yourimagination. Nepoleon Hill.. 24. QUESTIONS?? 25. THANKYOU...