Global marketing

Starbucks brand overview

Starbucks Coffee

Starbucks In India
The first Starbucks location opened in
1971.
Starbucks original location in Seattle
Washington.
Starbucks has 20,400+ stores in 61
countries.
Starbucks has 50-50 joint venture with

Starbucks Coffee

Marketing Mix of Starbucks

Product
Price
place
Promotion

Starbucks Coffee

Marketing Mix of Starbucks

Product
Features

Variety

Brewed coffee

cappuccino, Caramel cappuccino,

tea

Quality

Design

Fresh product

Attractive ,descent, convenient

packaging

services

Attractive, easy to handle

Just in time ,ready to drink , fair

trade policy

Starbucks Coffee

Marketing Mix of Starbucks

price

List Of Price

Card

Rs. 95 Rs. 250

Payment card system

Starbucks Coffee

Marketing Mix of Starbucks

Promotion
Social media campaign
Starbucks iPhone app
QR Code scannerand start connecting the physical world
to your mobile device
Gift card to start a relationship

Starbucks Coffee

Marketing Mix of Starbucks

Place
Higher income group location place
Airports ,malls,wel known areas
Highly visiting areas
locations of Seattles Best or placement of the
brand within 30 miles, rebrand some locations as
a local shop.
Location Selection.

Starbucks Coffee

Marketing Mix of Starbucks

4 Ps

4 Cs

Product

Customer solution

Price

Customer cost

place

convenience

Promotion

communication

To be effective, marketing people have to consider the 4 Cs first

and then build the 4 ps based on requirements

Starbucks Coffee

Market segmentation
Urban
Age =18 to 40
Men women

6%

3% 2%

40%

High income group

49%

Occupation= college student office

employee
Technology= Smart Phone user.

CUSTOMER AGE
GROUP

13
17
18
24

Aida model of Starbucks

Stages
Cognitive stage

Affective stage

Behavior stage

Aida model

Hierarchy of
effects model

attention

awareness
knowledge
liking

interest
desire

preference

action

purchase

Starbucks Coffee

conviction

MARKET GROWTH RATE

Bcg matrix of Starbucks

International brand
Joint venture with
Tata alliance

Newly enter in the India

?

STAR

Customer loyalty
Brand loyalty

Less stores are currently

present
Huge number of competitor

COW

DOG

RELATIVE MARKET SHARE

Starbucks Coffee

Competitive Advantage
Starbucks maintain competitive advantage by creating for
New ideas. For example, in the beginning Starbucks didn't
provide free wi-fi facility. But today because of so many coffee
have free wi-fi facility so they make they coffee shop have that
facility too, so that the customers can feel more comfortable.
New products. For example, Starbucks make a coffee sachet. It
almost the same like coffee which Nescafe produced.
New experiences for guests. For example,Starbucks hires it's
own designers to make artwork for commuter mugs.

Swot analysis of Starbucks

Strengths
High quality of products
Extensive range of staff benefits
contributes to employee morale
Effective utilization of
information technology
Strategic relationships with
suppliers

Weaknesses
Tall management structure
Laissez Faire management style
Occasional lack of workforce on
the floor
High turnover rate among
employees
Over-saturation of markets

Opportunities
International market expansion
(especially Chinese and Indian
markets)
Innovate products and services
Increasing the product ranges

Threats
Frequent changes in the market
trends
Better value offered by local
cafes
organizations.
Joint-venture Model
Competitor intentions

Starbucks Coffee

Product market growth matrix of Starbucks

Existing
product

New
product

In Settled Market

Existing
markets

Market
Penetration
strategy

New
market

Market
Development
strategy

Starbucks Coffee

Product
development
strategy

diversification
strategy
In India

Porters 5
Bargaini
ng
Power of
suppliers
Suppliers

Potential Entrants
Threat of new
entrants

Industry
Competitor
s
Threat of Substitute
Substitute
Products

Starbucks Coffee

Buyers
Bargaini
ng
Power of
Buyers

Potential Entrants
Threat of Star Bucks
Pricing Strategies
And positioning of
Brand

Bargainin
g
Power of
suppliers

Industry
Threat of Substitute CCD

Suppliers

Such as Milk, Sugar,

Food etc

Substitute Products

Starbucks Coffee

Buyers
Bargaining
Power of Buyers
Will Get Good
ambience and
premium
product

International stability
The international economy must be brought into consideration
as it can affect Starbucks' salesand markets. The aftermath of
9/11 was an example of an economic downturn that affectedthe
world market. If the world market is in a slump it is not usually
the ideal time for abusiness to look at grand expansion.
Employment law
A reduction in licensing and permit costs in those countries
producing the coffee bean forStarbucks would lower production
costs for farmers. This saving would in turn be passed onto the
purchaser.

Starbucks products
Coffee: More than 30 blends and singleorigin premium
arabica coffees.
Handcrafted Beverages: Freshbrewed coffee, hot and iced
espresso beverages, coffee and noncoffee blended
beverages, Vivanno smoothies and Tazo teas.
Merchandise: Coffee and teabrewing equipment, mugs
and accessories, packaged goods, music, books and gift
items.
Fresh Food: Baked pastries, sandwiches, salads, oatmeal,
yogurt parfaits and fruit cups.

Why they go international?

Because of its high growth in major reason,

Starbucks initiate international expansion.
Starbucks adopted a strategy that
characterizing through low local responsiveness
and price considerisation. In the 1996 Starbucks
start to grown in Japan through joint venture,
and then it expand to Europe and the Middle
East using the same way.

International stability
The international economy must be brought into consideration
as it can affect Starbucks' salesand markets. The aftermath of
9/11 was an example of an economic downturn that affectedthe
world market. If the world market is in a slump it is not usually
the ideal time for abusiness to look at grand expansion.
Employment law
A reduction in licensing and permit costs in those countries
producing the coffee bean forStarbucks would lower production
costs for farmers. This saving would in turn be passed onto the
purchaser.

Political factor
Regional integration of markets (opportunity)
Improving governmental support for
infrastructure (opportunity)
Bureaucratic red tape in developing countries
(threat)

Economical factor
High growth of developing countries
(opportunity)
Declining unemployment rates (opportunity)
Rising labor cost in suppliers countries
(threat)

Social factor
Growing coffee culture (opportunity)
Increasing health consciousness (opportunity)
Growing middle class (opportunity)

Environmental factor
Business sustainability trend (opportunity)
Growing popular support for responsible
sourcing (opportunity)
Growing popular support for environmentally
friendly products (opportunity)

Legal factor
Product safety regulations (opportunity)
GMO regulations outside the United States
(opportunity)
Increasing employment regulation (threat)

Thanks
Submitte by- saumitra gupta
Submitted to Mr. Rajesh
choudhary