Marketing Plan

Starbucks aims to venture into new markets which means that will need a marketing plan. A marketing plan guides a company towards survival, growth, and prosperity in a competitive and ever-changing environment. The plan allows the company to master the environment and score over its competitors. Put differently, a marketing plan is similar to a route map and is strategic. By carefully utilizing the marketing plan Starbucks will create a better customer experience cementing its position in the market and giving it a lead. However, this will only be possible if Starbucks has a better understanding of its target market and committing to the plan.

Starbucks Target Market

Starbucks does not have a specific target market for its products. That is, no gender or age group is targeted by Starbucks. However, the consumers consist of the urban population with a higher income. This is evidenced by the premium pricing strategy. The company strives to accommodate all age groups ranging from young to older adults. 

The customer behavior that attracts international consumers to Starbucks includes the fact that the company is a global brand. Murat (2012),observed that the global branding of Starbucks was confidently and meaningfully associated with perceived brand prestige and perceived brand quality. The prestige arou

\]=]nd Starbucks means that the company has come to be associated with social class. This makes the upper and the middle-class groups likely consumers at Starbucks. This has a positive impact on a customer’s purchasing behavior in terms of returns. 

Starbucks consumers have created a habit of returning to the store since the company rewards frequency. Customer loyalty programs reward consumers who have a higher frequency of return visits. The stores also offer consumers a place to briefly relax and do their activities as they sip their coffee. These actions have greatly influenced consumer behavior in relation to return visits.

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Current Opportunities

The company has various opportunities that it can exploit to retain a huge market share and expand. The company has been in the retail coffee and snack industry since 1971 which indicates it has sufficient knowledge of the industry (Cole, 2008). Moreover, the company’s size allows it to keep its cost of production low. For example, the company consumers three percent of the world’s coffee beans. This means that the company can afford to invest a huge amount of capital into marketing compared to its competitors.

Starbucks has over the years created a culture of quality. This ranges from the quality of its coffee, quality of its consumer services and quality of its stores. The long focus on quality ensures that its marketing will not spend too much effort convincing consumers “what is best about their product.” The company has perfected different blends that are unique to Starbucks making it outstripping its competitor’s differentiation strategies. 

Starbucks Future Opportunities

The company venture in China offers the company an opportunity for growth. In the future, China offers an opportunity to become Starbucks ’ second-fastest market behind the US. The company’s well-known brand alongside its huge revenue makes it well-positioned to expand in the Chinese market. Moreover, the company has in the recent past been capitalizing on its tea products which is the Chinese favorite drink. Starbucks currently operates the Teavana tea brand and offers single-serve tea, brewed tea, and other related tea products that can appeal to the Chinese market. This makes Starbucks likely to satisfy Chinese tea and coffee segments.

The company has an opportunity to utilize technology in a bid to improve its consumer experience. Starbucks has an opportunity to create a more personal and seamless consumer experience in its coffee shops by employing advanced technology ranging from blockchain to cloud computing (Sokolowsky, 2019). For example, by utilizing data on customer’s interaction with Starbucks- such frequency of visits to the store and amount spend- the company can improve its loyalty program. Moreover, using artificial intelligence, they can give feedback and product recommendations to customers.

Current Threats

Starbucks faces several threats in the market. The company has to compete with big outlets that have ventured into the coffee and snack industry. For example, it faces aggressive competition from multinational restaurants such as Dunkin Donuts and McDonald’s which have the capability of investing huge resources into marketing. Moreover, these companies offer their coffee products at a low price which might attract Starbucks consumers unhappy with the premium prices. 

Starbucks also faces competition from independent coffeehouse movement. These coffeehouses are unique in that they appeal to a group of consumers who oppose the expansion of multinational chains. Moreover, their standalone nature also means that they are primarily focused on offering coffee and may not be concerned with loyalty programs. Other coffeehouses such as those with an Ethiopian background aim at creating a culture around coffee. Though individual stores may have no impact on a Starbucks, it is the combined impact of standalone coffee shops that pose a threat.

Overall, the marketing plan identified Starbucks ‘ target customers and their behavior. Moreover, it has looked at current and future opportunities as well as current threats. By sticking to the finding of the marketing plan, Starbucks will surely maintain a good position in the market. 

References

Cole, G. (2008). Grande Expectations: A Year in the Life of Starbucks’ Stock20081Karen Blumenthal. Grande Expectations: a Year in the Life of Starbucks’ Stock. Loughton: Piatkus 2007. Management Decision, 46(4), 673-675. https://doi.org/10.1108/00251740810865120

Murat, K., Metin, K., & Moslehpour, M. (2012). How perceived global brands influence consumers’ purchasing behavior of Starbucks. 6th World Conference for Graduate Research in Tourism, Hospitality and Leisure,.

Sokolowsky, J. (2019, July 1). Starbucks turns to technology to brew up a more personal connection with its customers. Transform. https://news.microsoft.com/transform/starbucks-turns-to-technology-to-brew-up-a-more-personal-connection-with-its-customers/