This paper circulates around the core theme of a) You should ‘propose’ items such as macro and micro environmental factors, targeting strategy, positioning, buyer behavior and segmentation criteria from your own original ideas and explain the reasoning behind the decisions. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Task-2
a) You should ‘propose’ items such as macro
and micro environmental factors, targeting strategy, positioning, buyer
behavior and segmentation criteria from your own original ideas and explain the
reasoning behind the decisions.
In the present context marketing plan for
Starbucks company can be considered wherein macro and micro environmental
forces along with STP strategy of the organization would be presented in order
to understand the reasons behind decision making process.
Macro environmental factors Starbucks
§ Political & legal: Legal and political
factors concerning Starbucks would be related to the import of coffee beans
from African countries and any legal of political change in these countries
would affect the overall business for Starbucks.
§ Economic: Economic factors such as inflation
would reduce the spending power for consumers. Starbucks need to reduce the
employee cost by adopting the flexible workplace policies (Peter & Donnely,
2007).
§ Environmental and social: Starbucks does not
only offer a cup of coffee for the customers but also provide the pleasant
environment wherein customers can interact with each others.
§ Technological: Technology is helping
consumers to book their order online and information is provided by Starbucks
through online mediums.
Micro environmental factors at StarbucksCOMMUNICATING IN HEALTH AND SOCIAL CARE ORGANISATIONS
SWOT analysis can be carried out in order to
understand the internal environment in the organization and can be given as
under:
§ Strength: Starbucks is one of the most
popular brand in the coffee segment and have huge customer base which is loyal
to the products and services offered by the organization.
§ Weakness: Starbucks is facing stiff
competition and due to this it is losing its customer base as several branded
and non branded players have come to market so as to offer their products and
services to consumers.
§ Opportunities: Opportunities faced by
Starbucks are in terms of the global expansion and added number of food
categories depending upon the customer need assessment towards the newly
developed food categories.
§ Threats: Some of the key threats faced by
Starbucks to their present strategy would include stiff competition in the
marketplace, threat from alternative drinks and brand dilution due to offering
multiple food categories.
Hence micro and macro environmental factors
in organizational context to Starbucks are shaping the overall situation faced
by the organization (Gupta & Lehmann, 2012).
Segmentation, targeting, positioning and
consumer behavior for Starbucks can be given as under:
§ Segmentation: Starbucks target the consumers
which are looking for premium coffee and pleasant store environment to spend
quality time with their friends and family.
§ Targeting: Starbucks is targeting high end
consumers having high spending income, visiting Starbucks for official meeting
and having high spending income and lies in age range of 18 years to 35 years.
§ Positioning: Starbucks has premium pricing
wherein company look for high end consumers requiring pleasant environment and
space for spending quality time.
§ Consumer behavior: Consumers who are brand
loyal to Starbucks choose it over other brands as they are loyal customers.
Further consumers of Starbucks are not price sensitive.
b) You should also prepare a competitor
analysis and fully explain all aspects of the extended marketing mix like
distribution, pricing, promotional activity, as applied to the selected product
or service or range of products or services
Marketing mix elements for Starbucks have
been designed keeping in mind the consumer requirement for the particular
products & services. Further marketing mix elements of Starbucks are such
that they offer attractive product proposition to consumers so that consumers
are attracted towards them in comparison to other brands dealing into same
product segment.
Product offered by Starbucks mainly consist
of several variants of Coffee but now a day Starbucks has started maintaining
portfolio of food products which is sold along with coffee. The wide variety of
food products have been selected keeping in mind consumer requirement for the food
products. In terms of pricing Starbucks charges very high pricing wherein only
high end consumers are targeted by the company by charging very high prices for
its food products as compared to the prices charged by other coffee brands
(Homburg et al, 2012). Place of offering product for Starbucks is mainly the
physical stores but Starbucks is also offering home delivery for the online or
telephonic orders placed by the consumers. This is helping the organization to
expand its business model and provide competitive strength to Starbucks in
comparison to other organizations.
Promotional activities adopted by Starbucks
in order to promote their brand includes the integrated marketing campaign
designed for Starbucks wherein company makes use of the different means for
promotion such as the online marketing campaign, social media, outdoor media
and broadband medium for promoting their products. Further Starbucks makes use
of the personal selling tools in order to tie up with the bigger organizations
and sponsorship is used by the organization as Starbucks tries to collaborate
with several sports brand in order to improve their positioning.
Task-3
a) Marketing mix for two different segments
In the present context two different market
segments named A & B can be considered for Starbucks. Segment A consumers
would lie in range of 19 years to 29 years and having educational qualification
graduate to post graduate while these consumers are having low to moderate
spending power. Consumer B segment consist of mature consumers in age range of
20 years to 45 years, generally married and looking for pleasant experience
through coffee shop wherein they can spend time with their friends and family.
Marketing mix for segment A and Segment B can be given as under:
§ Product: Coffee, tea and CD would be major
offering for segment-A consumers and company should look at expanding the food
categories as per their taste. Segment B consumers would be looking for
traditional coffee with high quality and spending time with their loved ones.
§ Price: Pricing used for Segment A consumers
would be moderate and these consumers would be sensitive to price and may shift
with change in price. Segment B consumers would be having high income range and
would be ineffective for price change (Gregson, 2008).
§ Place: Segment A consumers would prefer
purchasing from physical stores as well as online ordering system. Segment B
consumers would be mostly looking for in store experience hence these consumers
should be offered experience of coffee store only.
§ Promotion: Promotion for segment ‘A’
consumers can be done through sponsorship, social media and tie up in colleges
etc. Promotion in Segment B consumers can be done through personal selling, tie
up with college or universities and broadband media.
b) Marketing products and services to
businesses rather than customers
Marketing of products and services to the
business users and retail consumers would be completely different in nature.
Example of McDonald’s can be taken in order to understand the different in marketing
products and service to the consumers and businesses. In terms of product there
is possibility that McDonald would offer gamut of products to the businesses
while to the individual customers there would be unique product offering made
(Chambell et al, 2002). In terms of distribution business customers would be
distributed through their premises or delivery to consumers while in case of
retail consumers’ service or product would be consumed at original business
place. Pricing for business consumers would be discounted due to bulk buying
while for individual consumers pricing would be premium in nature. In terms of
promotion, businesses would be targeted through advertisement made in business
magazines and personal selling tools while individual customers can be targeted
through mass media advertisement and outdoor promotion etc.
c) How and why international marketing
differs from domestic marketing
Considering the case of Starbucks it can be
said that international marketing is highly important as North America which is
the home only count for 20% of the overall sales for Starbucks. International
marketing issues faced for Starbucks would be highly different as compared to
the domestic issues. Starbucks would face issues such as marketing channels,
cultural issues and joint venture while advertising for the international
marketing of their products. Domestic marketing would be easy for Starbucks as
it is one of the reputed brands in domestic market and this offers competitive
advantage for the organization while in new markets consumer may or may not be
aware of the Starbucks brand (Kent, 2013). Competition faced in the
international market would be highly competitive as compared to the competition
which is faced in the domestic environment. Further in terms of the external
environmental forces international marketing offers key challenges for any
organization as compared to the internal or domestic marketing.