'Marketing and Starbucks Essay\r'

'1.0 Introduction:\r\nThe Starbucks Corporation was founded by three entrepreneurs at the tush called Seattle in 1971. ab initio they were sell of whole bean chocolate in wiz(a) Seattle store and by the year 1982 the stage line of descent had incurn tremendously and has open up five stores sell the deep brown beans, a roasting rapidity, and a sell profession for local restaurants. When the Starbucks started its business it was only a small retail umber shop as like the other coffee shops. The main pile of the Starbucks owners was to educate guests about the fine coffees and feel the notion of the Dark roasted coffee, selling just the coffee was not their aim as the coffee was interchange in the USA since 1960’s (Starbucks case study).\r\nHoward Schultz was recruited as the manager of retail and grocerying and it was Howard who brought new ideas to the owners, appropriated he was turned down. Schultz in turn opened his own coffee bar was named Il Giornale in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee forbid and bought Starbucks from the original owners for $4 million and changed the name of his coffee bars from Il Giornale to Starbucks.\r\nHis intention for the company was to grow slowly with a very solid foundation. For the initiative two years, Starbucks losses doubled as viewgraph and operating expenses increased with Starbucks expansion. Schultz stood his ground and did not dedicate long term integrity and values for short-term profit. By 1991, Starbucks sales increased by 84% and the company were out of debt. Starbucks grew to 20 stores by 1988. By 1996 it grew to 870 stores with plans to open 2000 stores by the year 2000.\r\n2.0 trade stategyof Starbuks:\r\nmarting scheme is carrying out segmentation, derriereing and gear uping. Doing the detailed understanding of the food market place into strategic decisions and the scratching of appropriate customer groups. This soft touching should emphasise on any differential advantages and adopt a adapted lay within the stern segments (Dibb and Simkin, 1996). Starbucks has adopted a Differentiation strategy it is a strategy which seeks to provide increase or service that offer benefits and should be different from competitors that are widely valued by customers.\r\nThe aim this strategy is to achieve advantage by offering better products or work at same or higher price. When Starbucks was launched there were galore(postnominal) coffee bars in the coupled States at that time but Starbucks wanted to stand alone(predicate) from the others.\r\n merchandiseing has powerful potential to contribute to the extremely important aspects of the organisational competitiveness, namely innovation (Kerin, 1992) and competitive synopsis (Varadarajan, 1992) and Schulz wanted to innovate and recreate the experience of the Italian coffee bar culture. Starbucks mainly foc apply on the strate gy of new products, a stronger connection with the customers as the Third place and expanding store fixs in the United States and abroad. Starbucks has followed the simple STP process (Segmentation, Targeting and Positioning).\r\n2.1 Segmentation:\r\nMarket Segmentation is a process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour that might require separate products or merchandising programs is called Market Segmentation (Kotler and Armstrong, 2006). Initially Starbucks was based as a Socio-Economic segmentation base in consumer Markets as it has toilsome on social class particularly the business class people those who are working at the office and wanted to have a shape of coffee with a good atmosphere and facilities. Starbucks similarly had segmented his market by geographic and demographically by selecting the store location where they roll in the hay find the meliorate and coffee lovers (Dibb and Simkin, 1996).\r\n2. 2Targeting:\r\nAfter a company has delimit market segments, it can write down one or many segments of a come apartn market and should dress decision about how many and which customer groups to target (Dibb and Simkin, 1996). Target merchandising is a process of evaluating each(prenominal) market segment’s attractiveness and selecting one or more segments to enter (Kotler and Armstrong, 2006). The concept of target selling is a logical implication of the radical philosophy of marketing (Lancaster and Massingham, 1993).\r\nA company should target segments in which it can profitably generate the great customer value and sustain it overtime. Starbucks wanted to break down a reputable relationship with the customers, Most of companies enter in a new market y serving a single segment, and if this proves successful than they minimal brain damage more segments, initially Starbucks did the same thing targeted the parents with the unripened children and it was hit concept and it has added more segments by including Teenagers and highly-developed its product range also (Kotler and Armstrong, 2006).\r\n2.3 Positioning:\r\n at a time the company has subsided which market segments to enter it should decide what positions it wants to occupy in those segments. Market Positioning is arrange for a product to occupy clear, distinctive, and desirable place relative to competing products in the minds of target customers. A products position is the place that the product occupies relative to competitors in consumers minds.\r\nhither in this case the Starbucks has developed a ridiculous market position for their products because if a product is to be exactly same like the others on the market than consumers would have no reason to buy it. Starbucks has positioned themselves in the market as a highly reputed tell on (Kotler and Armstrong, 2006). In this case Starbucks has planned his positioning in such a way that it distinguish their products from competing b rands and give them the greatest strategic advantage in their target markets. Starbucks has a descriptively simple statement to revolutionize and nurture the human spirit-â€Å"one person, one cup, and one neighbourhood at a time”.\r\nStarbucks positioning strategy was customer base so that it can give the trump out service more than what the customers expect. Starbucks has gained a competitive advantage over customer enjoyment and employee satisfaction as Starbucks had developed its positioning strategy based on the customer and provided the utmost facility in scathe of layout, furniture to the music, and in terms of employee satisfaction Starbucks bushel employee as a partners and gave them a personal security with a freedom to move into in the every decision of the business and make it successful (Porter & Miller, 1985, Porter, 1998).\r\n3.0 Developing Marketing coalesce:\r\nOne of the major concepts in the modern marketing is once the company has decided its ov erall marketing strategy than it should plan the details of the marketing mix. â€Å"Marketing mix is the set of controllable, tactical marketing animals (product, price, place, and promotion) that the sign of the zodiac blends to produce the response it wants in the target market” (Kotler and Armstrong, 2006). Starbucks has a made good decisions on marketing mix tools\r\n3.1 return:\r\nâ€Å"Product means the goods and services combination the company offers to the target market”. Starbucks has used Brand name, Quality, Variety and Services as their Product tool which can be concluded by this statement, Starbucks with a good Brand name provides best Quality and with the Variety of Products, it has adopted Quality amelioration strategy (Kotler and Keller, 2009). Initially Starbucks started with the coffee than it has included non-fat milk, refrigerated blended beverages. Later on stated seasonal worker offerings such as strawberry and cream Frappuccino, gingerbrea d latte with some food items like cookies and pastries. Before innovation the products Starbucks was getting the approval of the customers.\r\n3.2 Price:\r\nâ€Å"Price is the sum of money customers have to pay to obtain the product”. Though the Price of the Starbucks was higher than the other coffee shops, the customers were ready to pay the amount because Starbucks has developed a luxurious image with all the facilities inside the store. Starbucks as a good Brand have offered more benefits and facilities and the best quality of products to justify their higher prices (Kotler et al, 2006).\r\n3.3 dissemination and Service:\r\nStarbucks has a good distribution transmit initially it was selling coffee beans and doing wholesale business for local restaurants. In terms of service and location Starbucks opened the stores in a such a way that it can reach to targeted customers and it has also gave more stress on giving the best customer service by spending a flock of money by training its employees (Starbucks case study).\r\n3.4 furtherance:\r\nStarbucks initially did not use the advertising tool for promotion but it was the Public relations and the ain selling tool that helped the Starbucks to achieve its target\r\n'