IntroductionStarbucks which started their business in 1971 has grown and with continuous innovation and changes has developed the coffee industry. This has provided an opportunity for other provides to look into and has increased the opportunities of higher profits. The increasing demand for coffee and the change in the attitude of customers towards this provides an opportunity for the different players to market their services (Starbucks, 2012). Starbucks has thereby ensured that they are able to target a large audience and ensure better opportunityMarket AnalysisStarbucks initiative to shape the coffee market through continuous service improvement, product innovation, expanding globally and ensuring proper location has helped Starbucks to reduce the effect of external analysis on their working culture.
Starbucks has looked towards products which are of high quality at a slightly higher price and at the same time ensuring increase in product offerings. This has helped Starbucks develop a brand image and work on their internal strengths which has grown them into a market power and has helped the business earn higher profits. The SWOT analysis highlights improved efficiency and being able to work on the different aspect of business which has helped them to stay ahead from competition which is intensifying due to the wide possible profits that the market presents.
Starbucks through their enduring efforts and objectives will look towards occupying the position of the market leader and will continue to satisfy customers due to quality performance in all areas. Marketing ObjectivesThe analysis of the market and the SWOT analysis help to find out certain areas that Starbucks need to lay stress on and improve their working style to facilitate better growth.
These areas are both internal and external to the organization and working on them will help to facilitate better strategies which can be implemented for the growth of the business. Some of the identified marketing objectives are asStrategy to renew the name brand name of Starbucks: This is one of the most important activities that the management needs to realize and develop steps because people feel that the coffee served by Starbucks is comparable to that of McDonalds. This has made people doubt whether paying additional cost for Starbucks is justifiable or not.
The management needs to bring forward the customers that Starbucks is superior in quality and service due to which the customer has to pay a premium in comparison to others. For this Starbucks has to take an aggressive attitude especially while advertising and should ensure that they clearly educate the public about the uniqueness and specialty of coffee served by them in comparison to other. Starbucks while developing advertising campaign needs to concentrate on their core business which is coffee and has to look towards using other ways along with the in store promotional activities which the company recently relies on.
This will help to develop the required strategy which will help Starbucks to strengthen its brand name and ensure better flow of customers for its business (Buckstein, 2010). Building & Retaining Customer Loyalty: Intensifying competition and increase in the number of alternatives available to the customers with regard to coffee has made them jump from one brand to another. This requires that Starbucks looks towards having some customer retention program. Starbucks also has a retention program like a loyalty bonus card where customers are provided points when they drink coffee and this can be redeemed online by purchasing goods from the points.
The fact that the program offered by Starbucks is similar to other provided by different competitors it leaves towards little differentiation. This thereby makes it difficult for Starbucks to differentiate thir product or services from others. This will require that Starbucks develops some new loyalty programs which is different from other competitors so that customers look towards having coffee at Starbucks which will thereby help to grow the importance and improve the customer loyalty program for Starbucks (Buckstein, 2010)Focus on Cost Efficiency: The manner in which all economies are experiencing a difficult time to sustain growth and increasing cost is also putting pressure on Starbucks as it is no exception (World Bank, 2010).
Also, the fact that Starbucks has looked towards diversifying its business into non core areas like music, films and books has diluted their share. This has increased the burden on their financials and has increased the cost for the business. This requires that Starbucks looks at concentrating on their core business and aims to develop other business through that.
One way forward in this direction can be by developing new stores through better expansion strategy. This will help Starbucks to spread their chain and while looking to do so the stores should be developed in a manner where it is able to concentrate on their core business which is coffee but at the same time also develop their other business. This strategy will help Starbucks to diversify their risk to a large extent and will help them to concentrate on their business and ensure that cost is reduced by better strategy (Thompson & Strickland, 1999). Developing strategy towards future growth: Starbucks to sustain the competitive market needs to look towards developing strategy for the future.
The manner in which new players are entering the market and the intensifying competition has made it all the more likely. This requires that Starbucks looks towards developing strategies where they focus on entering the corporate sector and looks towards expansion strategy by having more stores at different locations.
Entering the corporate sector will provide Starbucks to get an advantage as they will be provided with a niche sector where they can aim and grow their business due to increase demand for ready to coffee from the corporate sector. This will act as a helping hand for Starbucks as this will help them to develop their business further at the same time ensure that better strategies can be developed which will help them in the future to improve their business.