Starbucks Coffee

Starbucks Coffee

•The first Starbucks location opened in 1971.

•Starbucks original location in Seattle Washington.

•Starbucks has 20,400+ stores in 61 countries.

•Starbucks has 50-50 joint venture with

TATA alliances.

Starbucks In India

Starbucks Coffee

Marketing Mix

MarketingSWOT PLC BCG Matrix

Porters 5

Strategy canvas

Aida modelProduct market growth matrixProduct market fit strategy

Business buyer-seller

Porters 6

Market segmentation

Starbucks Coffee

ProductPriceplace

Promotion

Marketing Mix of Starbucks

Starbucks Coffee

Marketing Mix of StarbucksProduct

Variety

Quality Design

FeaturesBrewed coffee

Attractive ,descent, convenient Fresh product

cappuccino, Caramel cappuccino, tea

packaging servicesAttractive, easy to handle Just in time ,ready to drink , fair trade policy

Starbucks Coffee

List Of PriceRs. 95 – Rs. 250

Card Payment card system

Marketing Mix of Starbucksprice

Starbucks Coffee

•Social media campaign

•Starbucks iPhone app

•  QR Code scanner and start connecting the physical world to your mobile device

•Gift card to start a relationship

Marketing Mix of StarbucksPromotion

Starbucks Coffee

•Higher income group location place

•Airports ,malls,wel known areas

•Highly visiting areas

• locations of Seattle’s Best or placement of the brand within 30 miles, rebrand some locations as a

local shop.

•Location Selection.

Marketing Mix of StarbucksPlace

Starbucks Coffee

Marketing Mix of Starbucks

ProductPriceplace

Promotion

Customer solutionCustomer costconvenience

communication

4 P’s 4 C’s

To be effective, marketing people have to consider the 4 C’s first and then build the 4 p’s based on requirements

2%

40%

49%

6%3%

13-1718-2425-40

CUSTOMER AGE GROUP

•Urban

•Age =18 to 40 •Men women

•High income group

• Occupation= college student office employee • Technology= Smart Phone user.

Market segmentation

Starbucks Coffee

Aida model of Starbucks

Cognitive stage

Affective stage

Behavior stage

attention

interestdesire

action

Stages Aida model Hierarchy of effects model

awarenessknowledge

likingpreferenceconviction

purchase

Starbucks Coffee

Bcg matrix of Starbucks

•International brand• Joint venture with

Tata alliance

•Customer loyalty•Brand loyalty

• Less stores are currently present

•Huge number of competitor

RELATIVE MARKET SHARE

MAR

KET

GRO

WTH

RAT

E•Newly enter in the India

STAR

COW DOG

?

Starbucks Coffee

Swot analysis of StarbucksStrengths

• High quality of products•Extensive range of staff benefits contributes to

employee morale• Effective utilization of information technology

• Strategic relationships with suppliers

Weaknesses• Tall management structure

• Laissez Faire management style• Occasional lack of workforce on the floor• High turnover rate among employees

• Over-saturation of markets

Opportunities• International market expansion (especially

Chinese and Indian markets)• Innovate products and services• Increasing the product ranges

Threats• Frequent changes in the market trends• Better value offered by local cafes

• organizations.• Joint-venture Model• Competitor intentions

Starbucks Coffee

Product market growth matrix of Starbucks

Market Penetration

strategy

Market Development

strategydiversification

strategy

Productdevelopment

strategy

Existingmarkets

Newmarket

Existing product

New product

In India

In Settled Market

Existing Customers New Customers

a)Repositionb)Broaden

Product Horizons

c) New Situations

Starbucks Coffee

New

Use

sEx

isti

ng U

ses

Product market fit strategy of Starbucks

Penetration Througha) Distribution

b) Extensive Coverage

• Internationalization

• Repositioning

• Concept Marketing

• Market DevelopmentIn India

In Settled Market

COMPATIBLE STYLE

Starbucks Coffee

COM

PATI

BLE

CON

TEN

T

Business buyer-seller of Starbucks

IDEAL TRANSACTION

INEFFICIENTTRANSACTION

NOTRANSACTION

INEFFICIENTTRANSACTION

INCO

MPA

TIBL

E CO

NTE

NT

INCOMPATIBLE STYLE

In India

In Settled Market In India

In India

Starbucks Coffee

Industry Competitor

s

Potential Entrants

Substitute Products

BuyersSuppliers

Threat of new entrantsBargaining Power of suppliers

Threat of Substitute

Bargaining Power of Buyers

Porters 5

Starbucks Coffee

Industry CCD

Potential Entrants

Substitute Products

BuyersSuppliers

Threat of Star Bucks“Pricing Strategies”

And “positioning of Brand”

Bargaining Power of suppliers

Threat of Substitute Such as Milk, Sugar, Food etc

Bargaining Power of Buyers Will Get Good ambience and

premium product

Starbucks Coffee

Threads of new entrants

industries competitor Less

number of Target

customer

Compete to settled coffee brand in India

HIGHMEDIUM

LOW

Threads of new

entrants industries competitor

Less number of

Target customer

Compete to settled coffee brand in India

Porters 6

Starbucks Coffee

Intro

duct

ion Growth Maturity Decline

Product Life Cycle

Sale

s

Time

Starbucks Coffee

In IN

DIAGrowt

h

Settled CountryDecline

Product Life Cycle

Sale

s

Time

Starbucks Coffee

Strategy canvas

Starbucks Coffeeprice BrandQuality Convenience location Variety Reputation Customization Online user

low

High