Cloud Based Customer Relationship Management Marketing plan of Starbucks coffee shop

Cloud Based Customer Relationship Management Marketing plan of Starbucks cocoa ratEXECUTIVE SUMMARYThis report looks at the Marketing plan of Starbucks coffee tree keep going, and its contrisolelyion to the success of company. Formation of successful marketing plan is the key doom for a company to gain the war-ridden advantage over its competitors. The marketing plan evaluates the strategies currently adopting by the company. But the main theme of this report is to focus in the main on company marketing strategies, such(prenominal) as SWOT Analysis, Ansoff Growth Matrix, capital of Massachusetts Consulting Group Matrix, 4s, company short term goals, objectives, and how it can be successful in the future.COMPANYS INTRODUCTIONStarbucks plenty is a dominant multinational coffee and coffeehouse chain company based in the United States. Starbucks is the largest coffeehouse company in the world with 8,505 company-owned and 6,505 accredited stores in 42 countries, making a total o f 15,011 stores ecumenic. Starbucks sells drip brewed coffee, espresso-based hot drink, fruit bottled, coupled with sandwiches, pastries, snacks, salads, soups, separate(a) hot and cold drink.Core competency of sensation bucks To summarize, Starbucks has a high reputation for bore because of the pastimeThe company goes to extreme lengths to profane the rattling finest Arabica coffees available on world markets, regardless of legal injury.The companys freshness and part be legendary. Beans that are held in bins for more(prenominal) than a hebdomad are donated to charity.Every piece of coffee-brewing equipment that is sold has been tested and evaluated.Each Starbucks employee is extensively trained to check out that nodes receive knowledgeable service.Mission StatementTo establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The sustaining sextette Guideline Principles will help us measu re the appropriateness of our decisions return a great work environment and treat each other with wish and dignity.Embrace diversity as an essential component in the centering we do art.Apply the highest standard of excellence to the purchasing roasting and fresh slant of our customer.Develop enthusiastically satisfied customer all of the time.Contribute positively to our communities and our environment.Recognize that utilityability is essential to our future success.Starbucks has the following core valuesProvide a great work environment and treat each other with respect and dignity.Embrace diversity as an essential component in the way we do business.Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.Develop enthusiastically satisfied customers all of the time.Contribute positively to our communities and our environment.Market DemographicsThe profile for the starbucks customer consists of the following geographic, demographic , and behavior f deedorsGeographic The geographic survey may include the identification of total number of population, in society and total number of tail end customer in which you are operating (Lanchester, Massingham, Ashford 2002).The immediate geographic target market for starbucks is the total population of the UK which is 60,776,238 approximately.The specific targeted market of Starbucks is mostly the students of schools, colleges, and universities.DemographicsMale and female. term below 40. This age range draws off a combination of university students and locals within the society.Have (or are getting) a college education and some with graduate degrees.An income over 457 per week (except the students who earn far less but have a decent amount of disposable income).Non-conventional customers.PsychographicThe people who compliments to enjoy a totally different coffee experience, they go to starbucks as it is positioned a completely different coffee shop.MARKET NEEDSStarbuck s is providing with a wide range of high quality coffee and snacks options to their customer. Starbucks seeks to fulfill the following benefits that are important to their customersSelectionA wide range of coffee and snacks options that is unavailable at the larger, dominant coffee chains.Accessibility or so all types of coffee are available from starbucks centrally located storefront.Customer serviceThe patron will be impressed with the level of attention that they receive. combative pricingPrices of all range of coffee and other stuff will be priced competitively relative to the competition.SITUATION ANALYSIS OF STARBUCKSThe company situation analysis is used at the business level to determine the strategic issues and problems that need to be addressed through the next three steps of the strategic homework process.Starbucks has own very expert different kinds of strength to dominant in this industry bring forth it to differentiate to others one in this market. This are the str ength, those help starbucks to get through their targets and desire goals. These are the stratbucks some important characteristics or strengths.STRENGHTSStrong Brand RecognitionLarge retail distribution systemQuality product bulky product list inviolable supplier relationshipStrong financial historyStrong human resourcesWEAKNESSESEven though starbucks posses a number of strengths but it also has some weakness too. starbucks needs to overcome on and deal them for remaining the top position in this competitive market.These are the s following list of starbucks weaknessesDependence on single source of business incomePrices high relative to competitionStrong dependence on suppliersMerchandise sales in storesSWOT ANALYSIS FRAMEWORKOPPORTUNITIESIt is a fact that every company who enter in the market mustiness has different kind of opportunities prevail in market. This is the important, how to recognize and make to strategy to acquire them, acquiring these opportunities is called success of company .Starbucks can more successes in market if they will be able to act upon theses opportunities accordingly.The following modern opportunities can help starbucks to success more in the future in the way of their business.Expansion into overseas marketsExpansion into untapped U.K and worldwide marketsExpansion of brand name into new products or business linesTHREATSNobody knows about tomorrow. Especially for nowadays circumstances, world is changing dramatically. Some new threats are prevailing in the market with full swing of their effectiveness. Despite the fact of strong position of strabucks in the market, he still need to keep tenderness on these threat get strong positioning and branding.These are the list of some very common internally and externally threats.Economic conditions may make consumers unwilling to pay high pricesPolitical conditions abroad may limit expansionIncreasing competition in coffee marketMay be reaching saturation point in some U.S marketsIncre ase prices of raw material for coffee and other stuffBOSTON CONSULTING GROUP (BCG) MATRIXThe Boston consulting Groups growth- persona matrix, developed in the early 1970s, probably became the most popular management technique ever.The vertical dimension is th growth rate of the market, which is used by the BCG as a proxy variable for market attractiveness. High-Growth markets are assumed to be more attractive because, be competitively non zero sum, market share gains are often more easily obtained. Also market share gains in a growth market will be worth more in the future as the market develops. The midpoint between high and low market gtowth isIn the BCG matrix, star quadrant is the most dominant calculate where the companies enjoy the high market growth and high market share. Thats why every company wants to stay in star quadrant. As STARBUCKS coffee shop is the renowned coffee chain in the world, thats why it clearly lies in the (STAR QUADRANT High Growth + High Share) because the annual sales of the company in last financial year 2007 are US $ 9.411 Million, moreover the coffee shop enjoying the highest market share as well in the coffee industry.ANSOFFS proceeds MATRIXThe product-market matrix proposed by ANSOFF, earmarks a useful framework for considering the relationship between strategic direction, and marketing strategy (Brassington Pettitt 2006).The four-cell matrix shown in the figure considering confused combinations of product-market options. Each cell in the Ansoff Matrix presents distinct opportunities, threats, resources, requirements, return and risks.Market expansions means selling more of the existing products to new markets, which could be based on new geographic segments or could be created by opening up other new segments such as age, product, usage, lifestyle or any other segmentation variables (Brassington Pettitt 2006 p 955).In the ANSOFF growth matrix, the STARBUCKS coffee shop lies in the (MARKET EXPENSION Existing Product + New Market), because company is making very close profit in almost every coffee shop in different location of the world. Expending its coffee market in fondness East, and Asia could be very helpful for the companys profit because there is huge potential difference for the coffee market as there is no famous coffee shops in that part of the world. fitting exchangeable recently they have opened their two coffee shops, one in China and other is in Kuwait.MARKETING MIX STRATEGY FOR STARBUCKS In order to make appropriate strategies for gaining customers preferences and their loyalty, we need to understand as to how STARBUCKS Marketing Mix or 4 Ps have enabled the company to achieve weapons-grade customer satisfaction, and also in building a long-term relationship with its customers. The issue is not whether there should be four, six, or ten Ps so much as what framework is most helpful in designing marketing strategy. on the nose as economics use two principals concepts for their f ramework of analysis, videlicet Demand, and Supply. The marketers see the four Ps as a filing cabinet of tools that could guide their marketing planning (Philip Kotler, 1999 p 96).Following are the some recommendations for STARBUCKS in relation with marketing undulateFrame Work of marketing Mix returnTypically, the marketing mix stars with product p. the heart of the marketing mix, the starting point is the product offering and product strategy. It is hard to design a place strategy, decide on a promotion campaign, or set a price without knowing the product to be marketed.The product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image value, and many other factors. A Starbucks coffee has many product elements the chocolate itself, a fancy gold wrapper, a customer satisfaction guarantee, and the prestige of the Starbucks coffee brand name. We profane things not only for what they do (benefits) but also for what they mea n to us (status, quality, or reputation).Products can be tangible goods such as computers, ideas like those offered by a consultant, or services such as medical care. Products should also offer customer value.Decision that address the new product development process(innovation management), licensing strategies with potential partners, intellectual property rights, services provided to augment the revenue stream from base products product name/brand decisions ,development of complementary products by partners, creation of industry standards, packaging, and so forth, the critical need is to develop a stream of products with the right set of features to satisfy customer needs in a compelling yet unbiased fashion.( jakki j. Mohr, Sanjit Sengupta, Stanley Slater,2000, p7)In Starbucks they made purely their products to satisfying the needs of the customer, and they made coffee with the finest coffee ingredients of the world. The different range of coffee and snacks offered by STARBUCKS a re as followESPRESSO cocoa LatteCappuccinoVanilla LatteCoffee AmericanoEspressoCOFFEE HOUSE FAVOURITES lover angry ChocolateCoffee MistoClassic Hot Chocolatesignature tune Hot ChocolateFreshly Brewed coffeeFRAPPUCCINOCinnamon DolceJava ChipEspressoCoffeeCaramelSPRING FAVOURITESCinnamon Dolce LatteCaramel MacchiatoPRICE decisions that establish price points for the company products, and address issues related cost to produce/manufacturer the good, margins along the distribution channel, competitors prices (pricing relative to a specific business firm market position), customer value, total cost of ownership for the customer, price for product bundles, and profitability.( .( jakki j. Mohr, Sanjit Sengupta, Stanley Slater,2000, p8 ).Price is the only element of the marketing mix that produces revenue, As such it serves a tactical as well as an economic role for an organization 9Holloway and Robison 1995). The price charged sends many signals about the likely value of the product bein g offered and, as such, must be commensurate with the quality of experience,Starbuckss product prices are relative high than others, because they target those people of society who give the preference on quantity. Following are the some prices of STARBUCKS famous productsESPRESSO Tall Grande VentCoffee Latte 2.05p 2.40p 2.65pCappuccino 2.05p 2.40p 2.65pVanilla Latte 2.35 2.70p 2.95pCoffee Americano 1.75p 1.90p 2.05pEspresso 1.20p 1.40p 1.55pCOFFEE HOUSE FAVOURITESCaramel Hot Chocolate 2.90p 3.25p 3.50pCoffee Misto 1.95p 2.35p 2.55pClassic Hot Chocolate 2.20p 2.50p 2.80pSignature Hot Chocolate 2.65p 3.00p 3.25pFreshly Brewed coffee 1.65p 1.75p 1.90pFRAPPUCCINOCinnamon Dolce 3.05p 3.25p 3.45pJava Chip 3.05p 3.25p 3.45pEspresso 2.65p 2.85p 3.05pCoffee 2.50p 2.70p 2.90pCaramel 3.05p 3.25p 3.45pSPRING FAVOURITESCinnamon Dolce Latte 2.70p 3.05P 3.30PCaramel Macchiato 2.70P 3.05P 3.30PPLACEPlace, or distribution, strategies are relate with making products available when and where customer s want them. Would you rather buy a kiwi fruit at the 24-hour grocery store within walking distance or fly to Australia to pick your own, which involves all the business activates concerned with storing and transporting raw material or finished product. The goal is to make sure products arrive in usable condition at designated places when needed.For consumer goods the most visible imposter in the channel of distribution is retailer. Manufacturers and consumer alike have to put a lot of trust in the retailer to do justice to the product, to maintain stock, and to provide a satisfying purchasing experience. Retailer face the many of the same marketing decisions as other type of organization, and use the same marketing mix tools, but with a slightly different respective. They also face unique marketing problems for examples, store location, layout and the creation of store image and atmosphere. Every seller must decide deeply that how to make its products available to the target marke t with an easy access (Philip Kotler, 1999 p 103).Now in case of Starbucks they mainly build their stores in the prime location of the city where they can easily attracts their desired customers who really want to enjoy the taste of coffee. Just like in UK they build their stores mainly in the shopping malls and town centers. Now it is the need of the time that they should be concentrate to open their stores in Middle East and Asia.PROMOTION Promotion includes advertising, existence relations, sales promotion, and personal selling. Promotions role in the marketing mix is to bring about mutually satisfying exchanges with target markets by in digiting, education, persuading, and reminding them of the benefits of an organization or a product. A good promotion strategy, like using the Dilbert character in national promotion strategy for office Depot, can dramatically increase sales. Good promotion strategies do not guarantee success, however, despite massive promotional campaigns, the movies, The Alamo and The Lady-killers had disappointing box-office return. Each element of the promotion p is coordinated and managed with the others to create coordinated and managed with others to create a promotional blend or mix. TheseStarbucks nearly spends 4.7 million every year for promotions. It is include the cost of print media, electronic media, indoor, outdoor media and so forthThe companys latest stunning plan is the Starbucks Card. You buy a re-chargeable tease apart in the UK which can be used at coffee bars in the US, Canada, Australia and Thailand. The card will enhance the Starbucks experience for customers allowing them to buy their daily cup of coffee quickly and easily, even when they are not carrying cash.Recently company through an placement between Starbucks, and T-Mobile the two companies have come up with a way to provide internet access at Starbucks location and high speed broadband for Starbucks customers as well. In addition, T-Mobile hot spot custo mers get to use the Starbucks stores as they do now. Moreover Starbucks spends millions of dollars internationally to protect the environment and global warming.DIVERCIFICATION The major reason for a business adopting a strategy of diversification is therefore to allow it to reduce its dependence upon a single market area (W. Stewart Howe 1986 p 153). At a general strategic level Ansoff suggests three reasons why firms diversify. First, their objectives cannot be achieved by continuing to operate in their existing markets. Thus, since continued operation in these markets is not able to diversify the profit, risk or growth objectives of the business, achievement of these must be sought in new market areas. Second, where a business has excess financial resources beyond those necessary to satisfy its expansion plan in its existing markets, then rather than retain these resources in liquid form of business may invest them in new markets areas. Third, if greater opportunities are presen ted to the firm in new market areas than accrue from its existing activities. Then a diversification program may be undertaken to benefit from these. There are two types of diversificationsRELATED DIVERSIFICATIONUN-RELATED DIVERSICATIONRELATED DIVERSIFICATION Expending combining with firms in different, but related industry that are Strategic Fits.UNRELATED DIVERSIFICATION Growing by combining with firms in un-related industries, where higher financial returns are possible.Now, if Starbucks want to diversify its business outside the industry, then the company should start a totally new business that is not from the same industry. For example Starbucks is a coffee shop, if they enter in the manufacturing business and start making cars, bikes etc that will be the perfect example of diversification. But the main focus of the Starbucks should be on their strategic business unit which is coffee shop. If they want to diversify their business within the same industry i.e. related diversifi cation, then the Starbucks should combine their business with their competitors to launch new products.INTERNATIONAL BUSINESS DEVELOPMENT STRATEGIESThe franchiser/licenser remembers to provide a standard package of components, or ingredients together with management and marketing services, and advice. Since franchising involves the transfer of tangible, it can enable greater control of the operation for the originating manufacturer than licensing (Lancaster Massingham Ashford 2002 p 437). Starbucks currently use three strategies for business in overseas. These strategies are as follow1 Joint ventures2 Licenses3 Company-Owned Operations.Mainly the company uses the company-owned shops for the business in other countries.RECOMMENDATION FOR FUTURE MARKETING PLAN OF STARBUCKS (3 YEARS)By analyzing the above whole information such as Swot analysis, Ansoff analysis, BCG matrix, marketing mix, following should be the primary objectives of the marketing plan of Starbucks coffee shop for ne xt 3 yearsGOALS OR OBJECTIVES gross sales should be increased by 15 to 20% at least.In order to get increased sales, they should increase Gross Profit margin by 25%.Find more new markets especially in Middle East, and Asia.More strengthen their position as a worldwide coffee shop leader.Increase marketing budget by 15%In order to achieve the above future objectives, the Starbucks coffee shop should follow instructions adjudge SUSTAINABLE COMPETITIVE ADVANTAGEThe Starbucks coffee shop should maintain the competitive advantage that it has got over other coffee shops. In order to maintain conduct position in the coffee market, the Starbucks should introduce innovative products after good intervals.NEW TARGER MARKETSTo maintain the top position in the coffee market, Starbucks should go and look some new coffee potential market. Just like there is great potential of new coffee shop especially in Asia, and Middle East, as there is no famous coffee shop. Where they can capture in new mar ket, and got some handsome profit as well. familiarise rough NEW PROMOTIONSAs Starbucks introduced a stunning promotion plan that is Starbucks re-chargeable card for purchasing coffee whether you have money or not at that time. Just like that company should develop a membership card especially for the students. Some discount should be offer to regular customer, and student to increase the retainment.INTRODUCE SOME INNOVATIVE PRODUCTSTo maintain the dominant position in the coffee market, it is necessary for the Starbucks that, they should introduce some really innovative products after good intervals. The instalment of new products creates the brand loyalty among the customers.INCREASE MARKETING BUDGETMarketing department is the one of the most important part of every company. This department is accountable for increasing sales. So in order to get more revenues, the company should increase the budget of marketing. Moreover they should include some world famous celebrities, conduc ting promotions events, seminars things like that for promotions their products.DIVERCIFY THE BUSINESSTo maintain the leading position in the coffee market, the Starbucks should go for diversification. Diversify the business in product-related items, or unrelated items to increase their revenues.IMPROVE THE PRODUCT QUALITYTo maintain the superb quality and taste of different products in Starbucks, the company should adopt the Total Quality Management tool, which means improve the products quality until the perfection, and there is no defect on product or zero defect products.EMPLOYEES MOTIVATIONSEmployees motivation is very important for every organization to get good profit, and in order to maintain its position in the market. Good pay, and reward system is the best tool to motivate the employees. So Starbucks should try to give good pay and benefits to their employees during the job.EMPLOYEES TRAINING AND DEVELOPMENTTraining and development of employees is an important task for th e management in order to enhance the progress of company, and increase the sales, and produce the shift free services.