Starbucks - School Project

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Starbucks - School Project

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

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