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Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
Starbucks - School Project
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Starbucks - School Project


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School Project

School Project

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  • 1. Principal of MarketingStarbucks
  • 2. Introduction
    Why did we choose Starbucks?
    • Well-known in Singapore
    • 3. Variety of beverages for targeted segment
    • 4. Prominent locations all over Singapore
    • 5. Found in almost all shopping malls
    • 6. Known for high quality coffee.
    • 7. History of more than 39 years
    • 8. Mission: To be premier purveyor of coffee in the world
  • Background Information
    Established by 3 friends who opened small shop in 1971
    Sold fresh-roasted, gourmet coffee beans and brewing/roasting accessories
    More than 17,133 retail stores in 49 countries now
  • 9. Targeted customer segments
    Starbucks divides market into smaller groups of buyers with distinct needs, characteristics, or behaviors requiring separate products or marketing mixes
    Mainly demographic and geographic segmentation used
  • 10. Survey Research Objectives
    What consumers think about Starbucks
    How consumers feel about Starbucks by asking 4 ‘P’s of marketing
    E.g. We ask about affordability of Starbucks to find out consumers perception on pricing of Starbucks products
  • 11. 4 ‘P’s: Price
    Pricing approaches
    • Value-Based Pricing (good service, quality); NOT Cost-Based Pricing (mark-up too high)
    • 12. Competition-based pricing e.g. The Coffee Connoisseur
    Comparing with competitors
    • Similar price ranges
    • 13. More benefits to impress consumers
    Product mix pricing strategies
    • Product-Line Pricing (Coffees, Teas, Ice-blended drinks)
    • 14. Different prices due to different cost prices
    Price adjustment strategy
    • Psychological Pricing (higher-priced products = higher quality)
    Consumer responses on Starbucks’ Pricing
    • Affordability of Starbucks
    • 15. Paying for Quality or Quantity
    • 16. Whether Starbucks is value-for-money
  • 4 ‘P’s: Promotion
    Marketing communications (promotion) mix
    • Reminder e.g. location of new outlet
    • 17. Informative e.g. new flavors of beverage
    • 18. Persuasive e.g. guaranteed satisfaction for consumers
    Sales promotion
    • Advertisement specialties, contests, premiums and coupons
    Public Relations
    • Community relationship e.g. Salvation Army donation
    • 19. Invited celebrities
    Direct Marketing
    • Facebook
    Marketing Communication Objectives
    Consumer responses on Starbucks’ Promotion
    • Whether more promotion is needed
    • 20. Type of promotion
    • 21. Type of advertising tool
  • 4 ‘P’s: Place
    Number of Channel levels
    • Uses direct marketing channel: Starbucks outlets
    • 22. Also uses indirect marketing channel: Bottled frappuccino
    Channel Intensity
    • Selective distribution: Kraft, Pepsi
    Number of outlets, locations, etc.
    Consumer responses on Starbucks’ Place
    • Convenience of Starbucks
    • 23. Whether ambience of location of Starbucks affects patronage
    • 24. Starbucks to be intensive or selective distribution
  • 4 ‘P’s: Product
    Levels of Product
    • Core benefit, Actual product, Augmented product
    Classification of Consumer Product
    • Shopping products (SQPS)
    • 25. Limited extensive advertising; available in limited number of stores
    Brand Positioning
    • Product attribute: Organic coffee
    • 26. Product Benefit: Caffeine
    Brand Sponsorship
    • Licensed brand
    Brand Development
    • Line extension: Short, Tall, Grande and Venti
    • 27. Brand extension: Merchandises e.g. tumblers, bottles and mugs
    Consumer Responses on Starbucks’ Product
    • Starbucks is the preferred brand
    • 28. Quality of Starbucks products: 8/10
    • 29. Packaging of Starbucks products: 6/10
  • Conclusions & Recommendations
    Starbucks coffee is a premium coffeehouse that focuses on quality in the way that it position itself.
    More advertising
    Update packaging
    Stronger branding needed
    • Create distinctive product benefit
    • 30. Or expand brand extension line / Go into multibranding