Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Starbucks strategy implementation
Starbucks strategy implementation
Pepsi strategic decisions over the last 20 years
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Starbucks strategy implementation
Starbucks is a major corporation that focus is on coffee beverages. In order to market effectively along with efficiently the right advertising method must be considered. A new advertisement will be presented and the means for its marketing will be examined. In order to keep the company profitable the pricing objective and strategy will be announced. Starbucks can use the strategy of integrate marketing communication to reach the maximum amount of consumers without spending the maximum amount of money.
Integrated Marketing Communication Integrated marking communication (IMC) is an essential tool of strategic marketing. The IMC is a blend of all of the firm’s promotion efforts to reach the target customer (Cannon et al., 2015, p. 347).
…show more content…
Price strategy are methods that companies use to price their products or service (Suttle, n.d., para. 1). One method that Starbucks cold benefit from is competitive-based pricing. Due to the popularity and demand for coffee and coffee shops there are many different competitors in the market. Starbucks might need to adjust its prices based on their competitor’s price and demand. Using competitors pricing as a reference keeps the company comparable to similar companies. This gives the consumer more options within a certain price range. Pricing based on consumer demand is essential strategy. This strategy runs off the basic foundations of supply and demand. If demand increases prices increase, well if demand decreases price decreases. This is effective because it allows the company to optimize prices based on statistical data (Frenz, n.d., para. 3). Also, Starbucks could use temporary discount pricing to increase sales volumes, increase short run profits and keep up with competitors. For example, Starbucks has created “Frappy Hour” for a certain length of time where consumers can enjoy half price Frappuccino’s from three p.m. to five p.m. (Starbucks, 2015, para. 1). This promotion will help to increase sales during the selected hours, which would be the hours that consumers where less likely to visit their stores. This price strategy is one that is commonly used in the food industry to increase sales during slow periods. It has been studied and proven that happy hour can generate additional traffic and revenues for restaurants (Crecca, n.d., para. 7). Starbucks just like a restaurant is offering consumers beverages along with snack type food and therefore could also benefit from some type of happy
In todays marketing world there are several types of traditional and non-traditional promotion mix tools to better accomplish your marketing objectives. DJ Jekyll & Mz Hyde, after careful consideration and review have implemented an integrated marketing communications strategy (IMC) to ensure the best possible return on investment (ROI).
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
Integrated Marketing Communication (IMC) is a communications process that entails the planning, creation, integration and implementation of diverse forms of marketing communications (advertisements, sales promotions, publicity releases, events, etc) that are delivered over time to a brands targeted customers and prospects. The goal of IMC is ultimately to influence or directly affect the behaviour of the targeted audience. IMC considers all sources of contact that a customer / prospect has with the brand as potential delivery channels for messages and makes use of all communications methods that are relevant to customers /prospects and to which they might be receptive. IMC requires that all of a brands communication media and messages deliver a consistent message. The IMC process further necessitates that the customer / prospect is the starting point for determining the types of messages and channels that will serve best to inform, persuade and induce action. (Shimp 2003)
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.
The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
Starbucks communication strategy is preferred through the public, advertising, media, sales promotions, social sponsoring, and launching offers. Starbucks approach will bring closeness to the customer or the public; these tactics will aid in the decision of the purchasing of the Starbucks products. Starbucks has a
The retail environment is filled with competition creating a need for each individual establishment to offer its customers more than just a product. The producers of the product have to provide an experience in addition to the product, an experience that creates loyal customers and encourages repeat visits. Stores, such as Starbucks, have capitalized on this idea and have expanded from 1 store in 1971 to over 11,784 locations as of July 2, 2006 (Starbucks Coffee, 2006). The coffee sold at Starbucks is perceived as a premium coffee and the price charged for this product is much greater than the price charged at other locations. The question is what warrants this price difference, and why are consumers willing to pay more for Starbucks coffee
This strategic capitalises on weaknesses since will decrease the cost of coffee beans/beverages but also Starbucks operating cost which they regularly ship across the world to various stores. Starbucks can capitalise on this weakness to improve their brand options. It adds value in the inbound logistics activities, operations and procurements. Starbucks should consider this option since it will decrease their operating cost and therefore will reduce the prices on their menu. The attractiveness is the exact same as mentioned in option 1.
Advertisements are the key to gain business and promote a company’s product or services to its consumers. Starbucks is no exception. The coffee giant is “out there;” from television ads to it own line of entertainment.
As it is demonstrated in the previous factor, the coffee purchasing strategy is quite important for the company’s development due to they must do big efforts in factors such as marketing with the objective to attract new customers, and the company must investigate carefully the market where it is operating to analyze their competitors and their different
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
Today’s business environment is highly dynamic and competitive. In order to become successful, companies must use advanced marketing techniques and branding strategies. The significance of Integrated Marketing Communication (IMC) is therefore, very critical. IMC sends out a single message through different media vehicles, which helps the company to target a wide variety of audience. According to Gerber (2008), Integrated Marketing Communication is the process of using a combination of different types of marketing communication to send the same message to consumers. The following report lays an IMC plan for N...
As a new product in a competitive market space, a well executed IMC will ensure that TAG provide a consistent and coordinated marketing message, to their key customers, across multiple media types. This approach will ensure the best chance of profitability and
Furthermore, there is lack of proof that supports the effectiveness of IMC and joint acceptance between professionals that IMC is a difficult phenomenon to define theoretically due to its complex nature and wide spectrum of functions (Barker, 2013). Similarly, it is argued that a cohesive message is not necessary, and a brand-centered approach is just as effective as IMC, the brand being the centre of all business dealings (Du Plessis, van Heerdeen and Gordon, 2010). Thus, there has been an alternate theory proposed by Rachel Barket: Strategic Integrated Communication (SIC). This theory involves the use of a structured guideline that includes strategic intent set out to achieve a company's goals, instead of only synergizing the communication