Essay On Starbucks Marketing Plan
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Its mission is very clear: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. (Struck Company, 2013) Besides from providing its costumers with a wide variety of the most exclusive and finest coffee in the world, Struck principal objective is to “connect with, laugh with, and uplift the lives of our customers. Its all about human connection” (Struck Company, 2013) the company seeks keeping costumer loyalty, continue with innovation and expand to other geographic markets.
Moreover, a crucial objective at this point is the creation of partnerships with other impasses, considering the fact that this is a multinational spread all over the world and there is and undeniable need of working with different providers of food, technology, etc. As a matter of fact, this aspect is absolutely complex. Struck Company must create links and maintain relations with other companies in every single country in which they are settle, and similarly they must be guided and govern by the government laws and policies of every nation where they have a store.
Its competitive advantage is that they provide the most broad and premium coffee Han any other coffee house company in the world: “We’ve always believed in serving the best coffee possible. It’s our goal for all of our coffee to be grown under the highest standards of quality, using ethical sourcing practices. Our coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality Arabica beans” (Struck Company, 2013) Furthermore, Struck satisfies the local preferences through localization strategy.
The sore ambiance and Struck Marketing Plan By Supernumeraries durability makes this company the preferred choice to the PU lice . Struck products are on the maturity stage of the product life cycle. This is the longest period, where sales peak, and therefore the company maintains the maturity phase as long as possible. Nowadays Struck is experiencing a slow down on its profits and therefore as an strategy, the company has been introducing a large variety of products not only including beverages (tee, flavored water, yogurts, natural Juices, etc. And a wide assortment of food (patisserie, breads, desserts, sandwich, salads, etc. ), but also souvenirs with the enterprise logo, which have potentially increase and maintain the sales of the company. Even though Struck is leading the coffee industry, its strongest global competitors are Dunking’ Donuts and Mac Dona’s; and its strongest regional competitors are Nero Cafe and Costa Coffee (both based in Europe). Dunking Donuts The first Dunking Donuts was opened in 1950 in Quince, Massachusetts by William Rosenberg.
Today, there are over 13,000 Dunking Donuts located in 50 countries worldwide with sales of $6. 4 billion in 2006. Dunk’s headquarters is located in Canton, Massachusetts. Dunking Donuts is known for their doughnuts and coffee. Over the years, Dunking has introduced new products such as bagels, muffins, and breakfast sandwiches. In order to compete with the lunch crowd, Dunking expanded their product menu to include pizzas and sandwiches. In order to compete with the specialty coffeehouses, Dunking expanded their coffee offerings to include flavored coffees, lattes, coolants, flavored hot chocolate and teas.
While Struck appeals to the high-end market, Donning Donuts cater to a more simple audience, which does no require the hip spaces, or the special treatment, provided by Struck, but still providing high quality coffee. McDonald’s Two brothers named Dick and Mac McDonald opened the first McDonald’s restaurant in 1940 in San Bernardino, California. As of December 31, 2007, there were 31,377 McDonald’s restaurants in 118 countries serving 54 million people each day. McDonald’s is the world’s largest fast-food chain restaurant.
While Struck is the leader in the specialty coffeehouse market, McDonald’s is becoming an emerging competitor when it first upgraded its coffee in 2006. McDonald’s coffee sales increased 15% in 2006, and plan to grow coffee sales with the plan to install coffee bars in all 14,000 U. S. Locations. The McDonald’s new specialty drinks, which are now in about half of the company’s nearly 14,000 US stores, already, have a following among some former Struck customers. McDonald’s has a larger customer demographic than Struck.
Struck coffee is considered to be a luxury for the affluent, while McDonald’s caters to families with children, teenagers, adults, and senior citizens with it well-established menu offerings. Like Struck, McDonald’s has a strong brand recognition and loyal customer base. The advantage McDonald’s has over Struck is that is has a considerably larger volume of traffic compared to Struck. While customers are stopping for a quick breakfast, lunch or dinner, they may get a specialty coffee to go too. PEST Analysts Political Struck political aspects are extremely complex.
Although nowadays globalization has integrated economies, societies, and cultures, a company like Struck must be aware of the political environment of every country where a shop is operating and consider the industry specific regulations, government policies, trading agreements, tax laws, legislation and all the cultural issues that concern to every nation. Economical Having in mind that Struck operates in a large number of nations, the company just deal with economical aspects such as wages, unemployment rates, inflation, rent, local currency exchange rate, pricing, etc.
Social Struck seeks to generate a positive impact on every individual by integrating the community and creating the social responsibility of being a ‘good neighbor’ in every individual. It also contributes with social causes that fights against the poverty and hunger around the world. “We are committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of our customers, partners and neighbors. We call this Struck Shared Planet – our commitment to doing business spoonbill’.
Technological Nowadays technological advances provide innumerable opportunities for business world including communication facilities, social media, globalization etc. Struck take advantage of these opportunities for advertisement, trading, promotion, etc. Additionally the company uses ultimate technology not only in stores but in the production and treatment of the coffee beans as well. Environmental As an important objective, Struck aims to make all its cups recyclable by the year 2015.
Some of Struck most important environmental projects are: Building Renee stores, recycling and reducing wastes, gas emissions and protecting the environment. One of its most important competitive advantages is that the company is completely compromised with the environment. According to Struck, the company has implemented a climate strategy based on renewable energy and energy conservation. Certainly the company is specially concerned about the impact of climate change mostly in areas where the coffee is laid.
Strengths: Strong Profitability growth: Struck profitability has risen over the last few years until 14%, positioning it 24. 5% return on investment and 29. % return on equity over its nearest competitors. #1 brand in coffeehouse segment: It holds a strong brand reputation associated with excellent costumer service and high quality coffee, making of Struck the most valuable brand in the segment. Struck experience: It delivers to the costumer a whole experience based on perfectly blend coffee, premium music, warm atmosphere and friendly staff, making of it a incomparable costumer service.
Largest coffeehouse in the world: With more then 20000 coffee shops around the globe, distributed on over 60 countries. Employee management: It otters employees an extensive range o t benefits and tit competitors. Weaknesses: a higher pay-rate in comparison Coffee beans price strongly influences the firm’s profit: Struck profitability relies strongly on the coffee beans price, which is a commodity they purchase, but can’t control price.
Pricing: Delivering such an experience to its costumers has a high value, and so pricing at Struck is high as well. Competitors such as McDonald’s and Donning Donuts, are priced lower, an often rank higher on surveys. Negative publicity: Struck continuously receives negative publicity over poor efforts on “going green”, tax evasions, and bad treatment of suppliers. Downward turn in economy: As economy worldwide isn’t at is best moment, people are becoming aware of reducing they’re spending habits, and are taking less expensive options.
Opportunities: To extend its supplier network: As Struck utilizes various suppliers, such as those providing the coffee beans, which are mainly located in South America, Arabia or Africa, its operations in places like Asia is limited by the shipping of the goods, opening an opportunity to widen the supplier network. Emerging economies, such as India, or China, provide great opportunities to Struck to expand its store’s network, as at the moment it’s very limited on those places. Increase product offerings, could include beers, wines, or adding new products in order to reach a broader costumer group.
Expansion of retail operations, such as merging, or seeking partnerships with supermarkets, for instance, in order to sell some of it’s products through other retailers. Threats: Rising prices of commodities, such as coffee beans and dairy products. Struck strongly depends on supplies prices, and makes it UN-controllable to Struck, and impossible to estimate. Struck its also frequently involved in trademarks illegal cases, rising costs to Struck. Increased competition. Local cafes, can offer a much rower price, and provide costumers high quality coffee beans, at a lower price, and a better suited menu for the costumers.
In addition, other specialized coffee houses specialize in order to avoid direct competition with Struck, but anyways Struck experience high competition and market share loss. Saturated markets in developed economies: Coffee markets in developed economies have reached the saturation point, and with intensifying competition, Struck will have trouble gaining market share. Supply disruptions, due to political, economic, or weather conditions, which add significant cost to the firm.
Segmentation: Struck uses demographic segmentation, which includes categories such as age, income, gender, ethnic background or family life cycle, as well as geographic segmentation, which include markets by region of a country or the world, market size, market density, or climate, and cryptographic segmentation, which basically link the demographics. Targeting: Struck holds around 33%of the market share for the coffee in the US alone, and has being able to accomplish this by catering to a specific market.
Struck main target market is men and women between the ages 25-40, which represents almost half of its total business. Customers within this range usually have a high income and a professional career. The group rate tends to grow around 3% annually. The next target market for Struck are those young adults, between the ranges of 18-24. They bring to Struck around 40% of the sales, and we need to keep in mind that Struck positions itself as “a place college students can hang out, study, write papers and meet people. Struck, 2013). The group grows by 4. 6% annually. The last of the markets that Struck appeal to, is those kids and teens In the range 13-17. The group makes up 2% of Struck sales, but lots of items are bought by the arenas to those kids. Struck also offers this group a product that can appeal to them. As of geographic segmentation, Struck is located all around the globe, compromising more than 2000 shops in around 60 countries, but specifically in upscale locations, near offices and college campuses.
Positioning: Struck has positioned themselves as a highly respected brand. With their high quality products, unique tastes, friendly environment and conveniences, Struck has positioned in a way that it can distinguish their products from the competition, providing the company a competitive advantage. As the company states on their mission statement: ” To inspire and nurture the human spirit, – one person, one cup, and one neighborhood at a time. Their positioning strategy can be defined as a consumer based strategy, allowing the company to give the best costumer service, and by doing so, the keep holding their sustainable competitive advantage in terms of costumer satisfaction as well as employee satisfaction.
Product Struck prides itself on being a very versatile and highly customizable consumer experience.
In addition to offering specialty coffees such as mocha lattes, Franciscans and specialty teas, Struck also produces fruit drinks and smoothies to appeal to those who may not enjoy a coffee or other hot beverage.
Struck boasts a very precise and high level of customization where the consumer can substitute regular milk for skimpily, have a preference for how many flavor shots are included in the beverage among many other customizable features. They offer different sizes: tall, Grandee, and event, which equate to the typical “small, medium, large”. Food items have gradually become a must at Struck locations, as well. These include: cookies/baked goods, pastries, boxed meals and breakfast sandwiches mongo other. Furthermore, retail merchandise including thermoses, mugs, packaged ground coffee and hot chocolate, are also products sold at Struck.
Price: Price and quality determines the overall value of any given product. Struck has pr deed themselves on creating a truly unique coyote experience whereby customers enjoy top-notch service, customizable and personalized beverages, as well as the ultimate relaxed atmosphere necessary to enjoy their purchased products. The perceived upscale atmosphere, coupled with the luxurious, yet affordable allure of their products, has enabled Struck to have higher prices than their competitors ND still remain profitable.
Furthermore, their perpetual emphasis on the quality of their product, as well as the quality and competence of their employees is another way in which Struck is able to Justify their seemingly expensive menu prices. As the price of raw materials strongly influences the firm, the commitment to the highest quality for their products means that prices will continually be susceptible to fluctuations based on a “market-by-market, product-by-product basis. ” Place: Struck uses multiple (hybrid) distribution channels when delivering its product.
First, Struck uses a direct supply channel, whereby their products are sold within company-owned retail stores. Second, Struck products are also packaged, licensed and sold in other retailers including shopping centers and grocery stores. And finally, Struck also has distribution agreements with “office buildings… Cafes and carts in hospitals… Banks… ” The use of multiple distribution channels has undoubtedly enabled Struck to reach a wider market. Promotion: Struck’ marketing strategy and promotion are providing customers with incentives that build customer retention and loyalty.
These incentives are designed to boost company sales and promote buyer action. Some of these include free weekly song or app downloads from tunes, free Wi-If Internet usage, 10% discount when using your own reusable container. More impressive, however, is the introduction of the “My Rewards” program at Struck. Struck social media presence is another form of how the brand markets itself. Struck has also designed a website, www. Miscalculated. Com, where members can post ideas they have about all aspects of the Struck brand including ideas about promotions, menu ideas, even ideas about the design and location of their stores.