Company Starbucks Marketing Assignment

Company Starbucks Marketing Assignment


Starbucks is a famous coffee chain and leader in the coffee business over the world. It is a distinguished brand in hospitality industry and as a leader has set an example for the people and other companies to follow. Over the period of last 20 years company has entered into many countries and has done amazingly well. This is the reason it has been considered as a master piece of case study in Hospitality industry. They can then ensure that all messages globally take account of these characteristics, so that all cultures are respected. For example, when Starbucks entered China, it added green tea latte to its menu to tempt people in this tea-drinking country into its cafes so that they might then try its coffee. Starbucks now sells green tea latte in all its cafes worldwide (Welsh, 2008).

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Company Starbucks Marketing AssignmentThe “Wall Street Journal” reported that Starbucks gets about one-tenth the amount of traffic on its corporate site as on its Facebook page. Coca-Cola has about one-eightieth as much traffic. Starbucks, Coca-Cola and numerous other brands that expend enormous funds and energy to attract customers to and engage them on corporate sites have suddenly discovered that it’s no longer sufficient just to establish a website. On the new Web, they have to go where the users are (Marques, 2008).

Organizations unlike Coca-Cola and Starbucks might think that this lesson doesn’t apply to them. The impact of consumerization is, of course, pronounced for these consumer-oriented companies in the context of their consumer-facing presences (Marques, 2008). But every organization must devise a customer experience strategy that spans its website, as well as Facebook, Twitter and whatever channel of interaction will next capture the masses’ attention.

And the lessons go beyond external portal initiatives for consumer- or customer-oriented organizations. Enterprises in every industry have spent dozens of years and countless millions of dollars trying to engage users, whether they’re customers, partners, citizens or employees. They’ve enticed or bribed end users with rewards for using their portals. They’ve attempted to compel users to access critical business functions, like payroll and expense reporting, through portals. They’ve implemented functions like document sharing and collaboration while trying to wrest users’ habitual use of email and file servers. Lately, they’ve added social components like profiles and blogs in an attempt to emulate Facebook’s viral growth. These are all worthy efforts, but there’s little assurance they’ll work.

Problems arise when a competitor matches your incentive and restores the market share balance, reducing profits for both of you and setting up a price war (zero-sum game). Also, we know that consumers quickly figure out how to game such systems where offers are delivered based on past purchases. Retailer’s like Safeway and Kroger are using their loyalty program data to deliver personalized pricing to shoppers. For example, a savvy consumer figured out that she could get cheaper prices when she alternated buying Starbucks and Dunkin Donuts coffee versus just buying Starbucks exclusively (Welsh, 2008).

Company Starbucks Marketing AssignmentIs this just another way to deliver promotions more effectively? While discounts are an important part of what motivates shoppers, we see the broader opportunity to deliver many forms of content to a shopper in this scenario that would also constitute value and cannot be easily commoditized. Relevant content and services could be a music download, a recipe, a cleaning tip, a beauty tip or a partner offer. We project the value comes from relevant content that is delivered in a noncreepy way, in the right context, that generates long-term loyalty. In the short term, we expect personalized incentives like Me Marketing will create a first-mover advantage for retailers and manufacturers.

Five Forces Analysis.

Bargaining power of customers: It has generally increased over the period of time with huge changes in dynamics of the industry whole gamut of offerings.

Bargaining Power of Suppliers: Suppliers of Coffee beans are based out of Africa where political issues have hardened the climate.

Threat of New entrant: Although Starbucks as a brand is huge but localised offering and entry has become very easy in the market.

Threat of Substitute Product: if one considers whole beverage industry then yes the threat levels are high.

Competitive rivalry: Competitive rivalry is huge in the business.

Product life Cycle:

Product has crossed the growth stage for Starbucks and is now in mature stage for the company. This can be easily visible in revenue numbers which is not witnessing stupendous growth numbers now.

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