ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and

Unit 2. Marketing Essentials
title

Submission date 7th March 2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1. Ho Viet Trung (FGW DN) Ho Viet Trung (FGW DN)

Phan Thuy Quyen (FGW

2. Phan Thuy Quyen (FGW DN)
DN)
Group number:
3. Hoang Yen Nhi (FGW DN) Hoang Yen Nhi (FGW DN)

4. Tran Ngo Tra My (FGW DN) Tran Ngo Tra My (FGW DN)

Nguyen Minh Khang (FGW

5. Nguyen Minh Khang (FGW DN)
DN)

Class GBD0903 Assessor name Alelie Zaragoza

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.

P3 P4 M3 M4 D2
 OBSERVATION RECORD

Student 1 Ho Viet Trung (FGW DN)

Description of activity undertaken

 Editing the whole paper

 Promotion plan for new products
 Marketing issues
 Segmentation, Targeting, Positioning;
 Company background
 References

Assessment & grading criteria

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business
objectives

P3 Compare the ways in which different organizations apply the marketing mix to the marketing planning process to
achieve business objectives.
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives can be achieved.

LO3 Develop and evaluate a basic marketing plan

P4 Produce and evaluate a basic marketing plan for an organization.
M4 Produce a detailed, coherent evidence-based marketing plan for an organisation

LO2 & 3
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing
objectives.
How the activity meets the requirements of the criteria

Student signature: Date:

Assessor signature: Date:

Assessor name:
Student 2 Phan Thuy Quyen (FGW DN)

Description of activity undertaken

 Customer Trend
 Marketplace Information
 Product Life Cycle
 Marketing campaign Objective
 Customer Feedbacks

Assessment & grading criteria

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business
objectives

P3 Compare the ways in which different organizations apply the marketing mix to the marketing planning process to
achieve business objectives.
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives can be achieved.

LO3 Develop and evaluate a basic marketing plan

P4 Produce and evaluate a basic marketing plan for an organization.
M4 Produce a detailed, coherent evidence-based marketing plan for an organisation

LO2 & 3
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing
objectives.

How the activity meets the requirements of the criteria

Student signature: Date:

Assessor signature: Date:

Assessor name:
Student 3 Hoang Yen Nhi (FGW DN)

Description of activity undertaken

 New products introduction

 New products’ marketing mix
 SMART goals
 Methodology
 Recommendation

Assessment & grading criteria

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business
objectives

P3 Compare the ways in which different organizations apply the marketing mix to the marketing planning process to
achieve business objectives.
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives can be achieved.

LO3 Develop and evaluate a basic marketing plan

P4 Produce and evaluate a basic marketing plan for an organization.
M4 Produce a detailed, coherent evidence-based marketing plan for an organisation

LO2 & 3
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing
objectives.

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor name:
Student 4 Tran Ngo Tra My (FGW DN)

Description of activity undertaken

 Budget
 Timeline
 Control and Monitoring
 Introduction
 Conclusion

Assessment & grading criteria

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business
objectives

P3 Compare the ways in which different organizations apply the marketing mix to the marketing planning process to
achieve business objectives.
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives can be achieved.

LO3 Develop and evaluate a basic marketing plan

P4 Produce and evaluate a basic marketing plan for an organization.
M4 Produce a detailed, coherent evidence-based marketing plan for an organisation

LO2 & 3
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing
objectives.

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor name:
Student 5 Nguyen Minh Khang (FGW DN)

Description of activity undertaken

 SWOT
 PESTEL
 7Ps Comparison between Highlands and Starbucks
 Market Segmentation
 Promotion for new products

Assessment & grading criteria

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business
objectives

P3 Compare the ways in which different organizations apply the marketing mix to the marketing planning process to
achieve business objectives.
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives can be achieved.

LO3 Develop and evaluate a basic marketing plan

P4 Produce and evaluate a basic marketing plan for an organization.
M4 Produce a detailed, coherent evidence-based marketing plan for an organisation

LO2 & 3
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing
objectives.

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor name:
 Summative Feedback:  Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

Assignment Brief (RQF)
Higher National Certificate/Diploma in Business

Student Name/ID Number: Group 2

Unit Number and Title: Unit 2 - Marketing Essentials

Academic Year: 2020-2021

Unit Assessor: Alelie Zaragoza

Assignment 2 –
Assignment Title:
Marketing Plan with the Application of Marketing Mix

Issue Date:

Submission Date: 7th March 2021

Internal Verifier Name:

Date:

Submission Format:

This is a group project. Each group has no more than 5 members.

This should be written in a course, formal business style using Arial, 1.5 lines spacing and font size 12 with
justified text to enhance the legibility for markers. You are required to make use of headings, paragraphs
and subsections as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system.

Please also provide a bibliography using the Harvard referencing system. The recommended word limit is
7,000 words, although you will not be penalized for exceeding the total work limit.

You are also required to deliver a 30-minute group presentation. Each member will be assessed individually
during this presentation.

Unit Learning Outcomes:

LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall
business objectives

LO3 Develop and evaluate a basic marketing plan

Assignment Brief and Guidance:

Your team is the marketing team of a company. Your team is assigned to develop a detailed, tactical
marketing plan for one product/service of the firm. You will conduct research in order to review your new
product/service in a rivalry with many competitors in various ways. Based on the study, provide a tactical
marketing mix strategy for your product/service.

You are allowed to choose any product/service to develop a Marketing Plan for an existing product/service
or even create a new product/service. Creativity is highly appreciated.

The content of your marketing plan should include:

1/ Executive Summary:

Introduce your chosen organisation and product/service. An overview of the marketing plan.

2/ Situation Analysis:

2.1. Marketing Environment and the impact on Business Activities

2.2. Marketplace Information (Industry research and Market trend)

2.3. Competition Analysis with the comparison in which way different organisations apply
Marketing Mix in their strategy. (Core competitor’s Marketing Mix)

2.4. Customer Analysis (Customer Segmentation and Consumer trend)

2.5. Company’s internal capabilities (SWOT analysis and Competitive advantages)

3/ Marketing Campaign Objectives and Issues

3.1. Objectives: The objectives should follow SMART objectives criteria.

3.2. Issues: It could be key issues that might prevent the organisation in achieving its marketing
objectives or the current issues of the company or from the market that your Marketing plan needs
to overcome.

4/ Marketing Strategy

4.1. Segmentation, targeting, positioning (including a positioning map) and differentiation

strategies of your company.

4.2. Suggest new Marketing Mix using 7Ps with an evaluation of different strategies applied by
your organisation.

5/ Action Program (Tasks, timeline and person in charge)

6/ Budget (Your anticipated operational costs)

7/ Control (KPI of each milestone)

However, these parts could be changed due to your team preferences as long as the content is clear,
detailing, logical, and coherent.

Relevant theory/concepts should be explained as the foundation for any suggestions you make in the
marketing plan.

Requirements for the Oral Presentation:

1. Oral presentation is not more than 30 minutes.

2. You should prepare a presentation not less than 8 slides. Use graphics/graphs/tables or videos as
necessary.
3. Check the format, grammar and overall presentation
4. Remember to keep your presentation short and simple.
5. Each group member will be assessed individually.
6. No reading!

Parts to be included in the slide presentations.

1. Background about the company, V-M-V

2. Situation analysis – SWOT, PESTEL, Product Lifecycle
3. 7Ps of the company
4. SMART Objective
5. Segmentation
6. The Plan (On-line and Off-line promotion)
7. Budget
8. Controls and Monitoring

Learning Outcomes and Assessment Criteria:

Learning Outcome Pass Merit Distinction
LO2 Compare ways in P3 Compare the ways in M3 Evaluate different LO2 & 3
which organizations use which different tactics applied by D2 Design a strategic
elements of the organizations apply the organizations to marketing plan that
marketing mix (7Ps) to marketing mix to the demonstrate how tactically applies the use
achieve overall marketing planning business objectives can of the 7Ps to achieve
business objectives process to achieve be achieved. overall marketing
business objectives. objectives.

LO3 Develop and P4 Produce and M4 Produce a detailed,

evaluate a basic evaluate coherent evidence-
marketing plan a basic marketing plan based marketing plan
for for an organisation.
an organization.
 ASSIGNMENT 2:

MARKETING STRATEGY
FOR STARBUCKS

Researcher : Ho Viet Trung (FGW DN)

Phan Thuy Quyen (FGW DN)

Hoang Yen Nhi (FGW DN)

Tran Ngo Tra My (FGW DN)

Nguyen Minh Khang (FGW DN)

Instructor : Ms. Alelie C. Zaragoza

Subject : Marketing Essentials - 486

Word count : 6994

 Table of Contents
INTRODUCTION .................................................................................................................1
METHODOLOGY ................................................................................................................1
FINDINGS AND DISCUSSIONS .........................................................................................2
I. COMPANY BACKGROUND .........................................................................................2
1. COMPANY PROFILE ...............................................................................................2
2. HISTORY BRIEF.......................................................................................................3
3. VISION – MISSION – VALUE ...................................................................................5
4. CURRENT OBJECTIVES .........................................................................................6
II. SITUATION ANALYSIS ...............................................................................................7
1. MARKETING ENVIRONMENT AND THE IMPACT ON BUSINESS ACTIVITIES ...7
2. MARKETPLACE INFORMATION ...........................................................................14
3. COMPETITION ANALYSIS WITH THE COMPARISON IN WHICH WAY
DIFFERENT ORGANIZATIONS APPLY MARKETING MIX IN THEIR STRATEGY ..15
4. CUSTOMER ANALYSIS .........................................................................................20
5. COMPANY’S INTERNAL CAPABILITIES ..............................................................22
6. PRODUCT LIFE CYCLE .........................................................................................24
III. MARKETING CAMPAIGN OBJECTIVES AND ISSUES ..........................................25
1. MARKETING ISSUES ............................................................................................28
2. OBJECTIVES (using SMART goals) .....................................................................29
IV. MARKETING STRATEGY ........................................................................................30
1. SEGMENTATION, TARGETING, POSITIONING (INCLUDING A POSITIONING
MAP) AND DIFFERENTIATION STRATEGIES OF YOUR COMPANY. ....................30
2. SUGGEST NEW MARKETING MIX USING 7PS WITH AN EVALUATION OF
DIFFERENT STRATEGIES APPLIED BY YOUR ORGANISATION. .........................32
V. PROMOTION .............................................................................................................33
1. PROMO CODES, DISCOUNTS ..............................................................................33
2. FREE SAMPLES OF NEW PRODUCTS ................................................................34
3. POSTS ON ONLINE AND OFFLINE MAGAZINES ................................................35
4. MERCHANDISE RELATED TO ETHIOPIA AND GUATEMALA CULTURE .........35
5. COLLABORATION WITH KOLs ............................................................................36
6. “MAKE YOUR OWN COFFEE” TREND ................................................................37
 7. SOCIAL MEDIA PROMOTIONS .............................................................................38
VI. BUDGET AND TIMELINE.........................................................................................40
1. BUDGET .................................................................................................................40
2. TIMELINE (For Marketing activities in 2021) .......................................................40
VII. CONTROL AND MONITORING ..............................................................................42
1. ANNUAL PLAN CONTROL:...................................................................................42
2. PROFITABILITY CONTROL: .................................................................................42
3. EFFICIENCY CONTROL: .......................................................................................43
4. STRATEGIC CONTROL: ........................................................................................44
CONCLUSION ...................................................................................................................45
RECOMMENDATION ........................................................................................................45
REFERENCES ..................................................................................................................46
 LIST OF FIGURES
Figure 1: Premium coffee chain share in Vietnam on social media platform .............14
Figure 2: Customer trend of Starbucks .........................................................................21
Figure 3: Charts about customers’ feedbacks of three brands: Starbucks, Highlands
and Trung Nguyen. ..........................................................................................................22
Figure 4: Starbucks’ product life cycle ..........................................................................24
Figure 5: Comparison between participants following influencers and total
participants in both genders...........................................................................................36

LIST OF PICTURES
Picture 1: Starbucks’ mission and vision. .......................................................................5
Picture 2: PESTEL Analysis (How to conduct a PESTEL analysis in a marketing
environment |, 2020) ..........................................................................................................7
Picture 3: SWOT Analysis (Parsons, 2021)....................................................................23
Picture 4: Ethiopia Yigachefffe Chelelektu Whole Bean Coffee ..................................26
Picture 5: Guatemala Huehuetenango Whole Bean Coffee..........................................27
Picture 6: Approaches of Annual Plan Control .............................................................42
Picture 7: 4 steps in Profitability Control .......................................................................43
Picture 8: Factors that impact the productivity .............................................................44
Picture 9: Steps in the control process .........................................................................45

LIST OF TABLES
Table 1: General Information about Starbucks Corp. .....................................................2
Table 2: Summary of PESTEL Analysis .........................................................................13
Table 3: Starbucks & Highlands Product & Price .........................................................15
Table 4: Starbucks & Highlands Place ...........................................................................16
Table 5: Starbucks & Highlands Promotion ..................................................................17
Table 6: Starbucks & Highlands Physical Evidence .....................................................18
Table 7: Starbucks & Highlands People ........................................................................19
Table 8: Starbucks & Highlands Process ......................................................................20
Table 9: SWOT Analysis of Starbucks ...........................................................................24
Table 10: Coffee bean line comparison from three brands. .........................................28
Table 11: Starbucks Seagmentation ..............................................................................30
Table 12: Position of Whole Bean coffee products in Vietnam market .......................31
Table 13: New Marketing Mix for new Starbucks product ............................................33
Table 14: Budget for Marketing plan ..............................................................................40
Table 15: Timeline for Marketing plan ............................................................................41
INTRODUCTION
Starbucks Corporation is an American company founded in 1971 in Seattle, WA, is a
multinational chain of coffeehouses and premier roaster. As of early 2020, the company
operates over 30,000 locations worldwide in more than 70 countries.

This paper is made to present and analyze a new marketing plan for an upcoming realease.
It is now very important for every company to determine a right marketing direction for their
company, especially in a ever-changing market like Vietnam. The topic is to help Starbucks
find out sustainable future strategies to develop and solve current issues.

This research contains three part: the first part is to analyze the coffee market of Vietnam
and the advantages and disadvantages Starbucks is facing; the second part is to plan a new
marketing strategy for Starbucks’ new products; and the last part is to decide whether the
plan is practical and gain revenue for the company

METHODOLOGY
The reserachers use the theory of subject Marketing Essentials to support and clarify the
characteristics of Starbucks. Also, the researchers focus on using and applying these
theories to Starbucks’ latest marketing campaign.

Furthermore, the researchers use informations and papers from articles and credible
online magazines to support for the ideas and the and enhance the truthfulness of the
research.

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FINDINGS AND DISCUSSIONS
I. COMPANY BACKGROUND
1. COMPANY PROFILE

Company name Starbucks Corporation

CEO Kevin Johnson

Founders Jerry Baldwin, Gordon Bowker and Zev Siegl

Founded 31st March, 1971

Headquarters 2410 Utah Avenue, Seattle, Washington, United

address States

Number of stores 31256 (in 2019)

Revenue 26,5 billion USD (2019)

Website www.starbucks.com

Coffee, Tea, Ice cream, Handcrafted Beverages,

Products
Merchandise and Fresh food

Starbucks Coffee, Seattle’s Best Coffee, Tazo

Brand portfolio Tea, Evolution Fresh, La Boulange and
Torrefazione Italia Coffee

Table 1: General Information about Starbucks Corp.

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Starbucks Corp is a coffee roaster and specialty coffee retailer with operations
around the world in approximately 82 countries. About 32,000 business-owned and
licensed stores are operated by the company. It also offers a number of products for
coffee and tea and licenses its brands through other outlets, such as licensed
products, grocery and foodservice accounts.

2. HISTORY BRIEF (Starbucks Company Timeline, 2021)

1971
Starbucks opens first store in Seattle’s Pike Place Market.

1987
Il Giornale acquires Starbucks assets with the backing of local investors and changes its
name to Starbucks Corporation. Opens in Chicago and Vancouver, Canada.
Total stores: 17

1988
Offers full health benefits to eligible full- and part-time employees, including coverage for
domestic partnerships.
Total stores: 33

1990
Starbucks expands headquarters in Seattle.
Unveils Starbucks Mission Statement.
Total stores: 84

1991
Becomes the first privately owned U.S. company to offer a stock option
program that includes part-time employees.
Opens first licensed airport store at Seattle’s Sea-Tac International Airport.

1992
Completes initial public offering (IPO).

2000
Establishes licensing agreement with TransFair USA

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Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and United Arab
Emirates.

2008
Chairman Howard Schultz returns as chief executive officer and begins transformation
of the company.
Adopts new Mission Statement “To inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time.”
Launches My Starbucks Idea, Starbucks first online community. Also joins Twitter and
debuts Starbucks Facebook page.
Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic and Portugal.
Total stores: 16,680

2009
Launches Starbucks VIA® Instant
Launches My Starbucks Rewards® loyalty program and Starbucks Card mobile payment.
Opens stores in: Aruba and Poland.

2010
Expands digital offerings for customers with free unlimited Wi-Fi, Starbucks Digital
Network.
Seattle’s Best Coffee reinvents business strategy to extend brand’s reach.
Opens stores in: El Salvador, Hungary and Sweden.

2011
Launches first annual Global Month of Service to celebrate company’s 40th
anniversary.
Opens first Community Stores in Harlem and Crenshaw neighborhoods.
Launches Starbucks® K-Cup® packs.**
Acquires Evolution Fresh.
Total stores: 17,003

2012
Introduces Starbucks® Blonde Roast.
Opens Farmer Support Centers in Manizales, Colombia and Yunnan, China.

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Acquires La Boulange® bakery brand to elevate core food offerings.
Launches Starbucks Refreshers® beverage platform.
Acquires Teavana to transform the tea category.
Opens stores in: Costa Rica, Finland, India and Norway.
Total stores: 18,066

2015
Launches Cold Brew iced coffee and Evolution Fresh™ handcrafted smoothies.
Commits to hiring 10,000 opportunity youth by 2018.
Reaches 99% ethically sourced coffee milestone.
Opens stores in: Panama
Total stores: 22,519 (as of June 28, 2015)

3. VISION – MISSION – VALUE

Picture 1: Starbucks’ mission and vision.

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Mission:
 Creating an atmosphere of community and warmth, where everyone is
welcome.
 To be present, to communicate with openness, integrity and reverence.
 Delivering the best in everything and keeping all responsible for the
outcomes.
Vision: The vision statement is expressed around the idea of family, allegiance, and
kindness. It means that Starbucks is a place where people spend a lot of time and
feel like a second home.

Value: Creating a culture of warmth and belonging, where everyone is welcome.

Delivering our very best in all we do, holding ourselves accountable for results. Acting
with courage, challenging the status quo and finding new ways to grow our company
and each other. Being present, connecting with transparency, dignity and respect.

4. CURRENT OBJECTIVES (Starbucks, 2020)

“As we approach the 50th anniversary of Starbucks in 2021, we are looking ahead with a
heightened sense of urgency and conviction that we must challenge ourselves, think bigger
and do much more in partnership with others to take care of the planet we share,” Kevin
Johnson, CEO of Starbucks, said.

A comprehensive, data-driven environmental footprint of carbon emissions, water use and

waste in Starbucks global operations and supply chain informed the five strategies to prioritize
work:

1. Expanding plant-based options, migrating toward a more environmentally friendly

menu.

2. Shifting from single-use to reusable packaging.

3. Investing in innovative and regenerative agricultural practices, reforestation, forest

conservation and water replenishment in Starbucks supply chain.

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 4. Investing in better ways to manage waste, both in Starbucks stores and in its
communities, to ensure more reuse, recycling and elimination of food waste.

5. Innovating to develop more eco-friendly stores, operations, manufacturing and

delivery.

Johnson also outlined three preliminary targets for 2030:

1. A 50 percent reduction in carbon emissions in Starbucks direct operations and supply

chain.

2. 50 percent of water withdrawal for direct operations and coffee production will be
conserved or replenished with a focus on communities and basins with high water
risk.

3. A 50 percent reduction in waste sent to landfill from stores and manufacturing, driven
by a broader shift toward a circular economy. To underscore its commitment to the
circular economy, Starbucks is pleased to sign the Ellen MacArthur Foundation’s
New Plastics Economy Global Commitment, setting ambitious circular targets for its
packaging.

II. SITUATION ANALYSIS

1. MARKETING ENVIRONMENT AND THE IMPACT ON BUSINESS ACTIVITIES
A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework
or tool used to analyze and monitor the macro-environmental factors that may have a
profound impact on an organization’s performance. (PESTEL Analysis (PEST Analysis)
EXPLAINED with EXAMPLES | B2U, 2016)

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Picture 2: PESTEL Analysis (How to conduct a PESTEL analysis in a marketing environment |, 2020)
 1.1 Political and Legal

As a multinational company, Starbucks is under strict supervision both in home and

international ground. That why Starbucks operates very carefully on this task.

The key political imperative facing Starbucks is the issue of importing its raw materials. This
is why Starbucks is keen to adhere to social and environmental standards and to follow
effective and legal sourcing strategies in compliance with Fair Trade laws.

Another political imperative confronting Starbucks is the regulatory pressures in the United
States within its domestic market leading to increased regulation of the corporate processes
to which US-based multinationals are now subject.

Vietnam marketplace is a open environment for foreign business. However, their policies
are very strict. Starbucks must ensure that it does not violate any laws and regulations.

Sourcing the raw materials is an essential factor. This has gathered a lot of the attention
from Vietnam government recently. Starbucks not only should alert about the origin but also
about introduction of caffeine production and consumption related policies and regulations
by health authorities.

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Other factors affect the business are:

- Tax policy

- Employment law

- Trade regulation

1.2. Economic

-The foremost external economic driver for Starbucks is the on-going Covid-19 pandemic,
which forces Starbucks to closed some of the stores that located in the centre of the
pandemic. This problem has dented the profitability of the brand. CNBC news said that in
2020, Starbucks had lost about $3.2 billion in revenue because of the pandemic.

- After Covid-19 Pandemic, Vietnam is enjoying an economic boom. This is a good chance
for Starbucks to approach and expand in Vietnam marketplace.

- Several preferential policies have been implemented to attract foreign business in

Vietnam.

- Other factors affect the business are:

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+ Local currency exchange

+ Taxation level

+ Labor and operation fees

1.3. Technology

4.0 Innovation has bring many changes includes payment and order. Moreover, Covid-19
Pandemic has discouraged people to go out through lock-down. Starbucks has to change
its ways to approach customer.

However, Starbucks is in a good position to enjoy benefits of the emerging mobile wave. Its
partnership with Apple to bring app based discount coupons is helping it ride the mobile
wave easily. Starbucks is also enabling e-payment with bring conveniences for customers.

Other factors affect the business are:

- Emergence of innovative technology

- Biotechnological developments

- Developments in agriculture

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 1.4. Social

Vietnam has a special agricultural field in coffee. Strong and aromatic taste is a signature of
Vietnamese coffee. This is very different with Starbucks’s coffee with may cause many
challenges for the company to approach Vietnam marketplace.

Other factors affect the business are:

-Target customer

-Changing work patterns

-Lifestyles of population

-People's income

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 1.5. Environment

Environment pollution is a global issue so that Starbucks have to come up with eco-friendly
ideas. They reduce the amount of plastic by avoiding plastic cups and straws. The brand
offers special discount for customers who bring their own glass or bottle to buy drinks.

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 *SUMMARY: PESTEL Analysis

POLITICAL ECONOMIC SOCIAL TECHNOLOGY ENVIRONMENT LEGAL

- Sourcing of raw -Local currency -Target -To cooperate -Alert about laws -Environmental
materials exchange rates customer with others and regulations, rules and
(Different -Local -Changing company to where they buy regulations
countries) economic work patterns bring app-based raw materials. -Environmental
-Other impact environment -Lifestyles of discount -Introduction of disasters
are tax and (Different population coupons. caffeine -Global warming
employment markets) -Enabling production and -Environmental
policy. -Taxation level -People's mobile consumption by protection
income payments. health
authorities.

Table 2: Summary of PESTEL Analysis

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 2. MARKETPLACE INFORMATION

- Marketing helps businesses to survive long-term and firmly in the market because
it provides the ability to adapt to changes in the market and the external
environment.
- Marketing creates a connection of the business' production activities to the market
in all stages of the reproduction process.
- The effects of the COVID-19 pandemic have severely affected restaurants and
businesses, including restaurants and beverages. Especially in the period of
social separation, the above business points were forced to stop working. In
general, sales of Starbucks coffee are still higher than other brands of coffee.
- Currently, Starbucks coffee has gained a lot of success and is chosen by many
consumers. Moreover Starbucks has held the number two position in terms of
revenue and profit (only behind 1% compared to Highlands)

Figure 1: Premium coffee chain share in Vietnam on social media platform (Cuộc chiến chuỗi cà phê : Phân
tích thảo luận trên social media, 2016)
Above is the chart, showing the share in the premium coffee market in Vietnam. As you can
see, Starbucks gets 27%, only after its biggest enemy in Vietnam, Highlands (with 28%).
Only appears in this competitive market for only 8 years, Starbucks has shown their level,
their difference and gain more than a quarter of the share. However, to be “the boss”,
Starbucks needs to attract more customers and do more campaigns, also, keep improving
the quality of their products and services.

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 3. COMPETITION ANALYSIS WITH THE COMPARISON IN WHICH WAY
DIFFERENT ORGANIZATIONS APPLY MARKETING MIX IN THEIR STRATEGY
3.1. Product & Price

STARBUCKS HIGHLANDS
-Starbucks is the leading coffee chain -Highlands exclusive traditional coffee! The
brand globally. In order to stay on the top, premium Robusta and Arabica coffee
the company keeps innovating its products beans grown in the highlands of Vietnam are
to satisfy the needs of customers. roasted and blended according to a unique
Basically, Starbucks coffee is divided into 4 recipe at Highlands.
different criteria, to meet the diverse needs -Vietnam has a rich coffee heritage and the
of coffee lovers around the world: ‘Phin’ (filter) is a key element in the
+Based on coffee bean type Vietnamese way of enjoying coffee. Roast
+Based on roast strength and ground coffee is placed into the metal
+Based on caffeine level filter that sits over a cup collecting the rich
+Taste based coffee liquid slowly dripping down. It takes
-Although coffee is the main products, us back to a time when the pace of life was
Starbucks has various other product slower and we would enjoy conversation
categories such as tea, ice-cream, ice- with friends in an unhurried manner. Served
blended, smoothies, pre-packaged food hot or iced, with or without condensed milk,
items, etc. Moreover, they also renew Highlands Coffee is proud to serve our
product lines with seasonal products, Vietnamese coffee the traditional
limited editions, products for the holiday Vietnamese way.
season.

-Price: 1,75-6,45 $ -Price: 1,0-3,0 $

Table 3: Starbucks & Highlands Product & Price

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 3.2. Place

STARBUCKS HIGHLANDS

Present in more than 80 countries with
about 32,000 business-owned and
licensed stores. Three main venues that
Starbucks uses to reach target customers
are Coffee House, Retailer and Mobile
App. 64 stores in VN, 4 in Danang, 40 in
HCM, 3 in Haiphong and 17 in Hanoi.
At Highlands Coffee, they aspire to affirm
the position and quality of the Vietnamese
brand coffee chain that is not inferior to any
international brand. Highlands Coffee has
been making continuous efforts to expand
the system of more than 300 shops across
21 provinces

Table 4: Starbucks & Highlands Place

3.3. Promotion

According to (Kotler, Armstrong and Opresnik, 2014), the promotion mix (or marketing
communication mix) of a company is: “The specific blend of promotion tools that the
company uses to persuasively communicate customer value and build customer
relationships”.

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 STARBUCKS HIGHLANDS
Starbucks promotes its products -Official Websites:
through Word-of-mouth marketing,
Advertising, Sales promotions and
Public relations. By providing the best
customer experience, Starbucks brand
are spread in positive words by them.
The company also advertises its
products through television, print media,
and the Internet. Sales promotions are
used in Starbucks Rewards, which is a -Fanpage:
program involving freebies that
customers can avail after purchasing a
certain amount of the company’s
products. Another way to make the
brand more popular is offering the
Starbucks Gift Card. With this
promotion, the company easily attracts
new customers who have never used
Starbucks services. -Promotion Campaign:

Table 5: Starbucks & Highlands Promotion

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 3.4. Physical Evidence

STARBUCKS HIGHLANDS

Table 6: Starbucks & Highlands Physical Evidence

3.5. People

The final P of the marketing mix is people. Develop the habit of thinking in terms of the
people inside and outside of your business who are responsible for every element of your
sales, marketing strategies, and activities (Tracy, 2014)

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 STARBUCKS HIGHLANDS
Uniqueness in service. Only baristas Working Style
service in the coffee house so that “ Enthusiasm- Friendly- Honest”
customer can have a close-contact, friendly
and comfortable. Besides, Starbucks is
well-known for its investment in employee
training and development.

Table 7: Starbucks & Highlands People

3.6. Process

Process refers to the processes involved in delivering your products and services to the
customer. It is also about being 'easy to do business with'.

Having good process in place ensures that you:

- Repeatedly deliver the same standard of service to your customers

- Save time and money by increasing efficiency.

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 -Strict standards of product processing.
Raw materials are stored in special dry
storehouse with daily checked.
-Enthusiastic service process
through pay, receive at the frontline
concept.
+Step 1: Greeting customer and deliver
first impression.
+Step 2: Find out customer’s wants.
+Step 3: Introduce products, convince
and negotiate with customers.
+Step 4: End selling, deliver order to
the barista and give them self-service
device.

Table 8: Starbucks & Highlands Process

4. CUSTOMER ANALYSIS
4.1. Customer Trend

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 Figure 2: Customer trend of Starbucks

Starbucks main target markets are men and women between the ages of 25 and 40. They
make up nearly half (49%) of its total businesses. Starbucks' appeal to the consumer age
group through its spatial, modern design that is consistent in its advertising and décor.
Clients are usually people with relatively high incomes, professional careers, and a focus on
social welfare. (This target audience is growing at 3% per year)
- Female customers account for 41.3% while male customers account for 57%, the
rest is 1.43%
- The number of female customers who choose to use Starbuck coffee is still lower
than male customers because there is a need to come up with solutions to attract
female customers.
 Although Starbucks does not serve children directly because of the high calorie and
caffeine risk in some drinks but it's drinks like drinks with chocolates or cakes.
Especially the size for children.
Totaling 40% of Starbucks' sales. Starbucks is positioned as a place where college
students can study, take notes, chat with friends, and meet people. Starbucks attracts these
customers directly through technology, focuses on social media, and actively builds a
dynamic youth image. The young audience grows 4.6 percent annually.

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 4.2. Customer Feedbacks

 Good drinks
 Well-designed stores
 Good food
 High prices

Figure 3: Charts about customers’ feedbacks of three brands: Starbucks, Highlands and Trung Nguyen.
(Cuộc chiến chuỗi cà phê : Phân tích thảo luận trên social media, 2016)

5. COMPANY’S INTERNAL CAPABILITIES

SWOT analysis is a tool that help businesses to analyse business’s materials and
summarize critical issues relate to marketplace.

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 Picture 3: SWOT Analysis (Parsons, 2021)

SWOT factors Analysis

 Strong Market Position and Global Brand Recognition
 High quality products
 Location and Aesthetic appeal of its stores
Strength  Good Human Resource Management
 Top position in digital, card, loyalty and mobile capabilities
 Strong loyalty program

 Expensive Products: Although the price goes along with

quality and service, Starbucks should lower the products’
price by cutting off some unnecessary cost. Because for
many middle tiers and working customers,
Starbucks’products are more costly than McDonald’s
(competitor) and other coffee outlets.
Weakness
 Imitability of products: Starbucks doesn’t own many unique
products in the market. Other coffee and food chains like
McDonalds and Dunkin Donuts offers almost the same
products. This makes customers have more choice rather
than buying Starbucks offerings.

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  Expansion in developing markets such as Viet Nam, India, China
and few regions of Africa
 Introducing new products in special occasions or holiday season
 Drive-thru and take-away channels play the main role during the
Opportunities
Covid-19 pandemic
 Coffee delivery service available on food delivery apps to satisfy
people don’t want to go out

 On the competition with low-cost coffee sellers

 Coronavirus: Starbucks has temporarily closed about 2000
Threats stores in China because of the outbreak of Covid-19
 The prices of raw coffee beans-Arabica has been rising

Table 9: SWOT Analysis of Starbucks

6. PRODUCT LIFE CYCLE

Figure 4: Starbucks’ product life cycle

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  Introduction Stage
- After research, we introduced two new products from products processed from
coffee beans.
- During this period, Starbucks still had to spend a lot of money on marketing and
branding activities.
- Price: the price of the product is very high at the moment (spending a lot of
money on R&D activities, research and development of products).
 Growth Stage
- After introduction stage, customers start to know about the product. The
amount of revenue thus began to grow strongly .
- The product cost has decreased significantly compared to the first period.
- Sales: Sales of the product increased. Starbuck started breaking even and
making a profit.
 Maturity Stage
- Investment cost: The cost that Starbucks spends during this period is the lowest.
- Product cost: The product has a relatively stable price
- Competitors of the product began to gradually increase. Businesses will have
methods to improve their competitive position
 Decline Stage
- This is the final stage of the product, before it officially leaves the shelf
- Investment cost: Starbuck is forced to invest large costs to keep consumers from
using the product.
- The number of competitors is at the highest level
- If Starbuck has the right marketing strategy, chances are, a new product life
cycle will begin again.

III. MARKETING CAMPAIGN OBJECTIVES AND ISSUES

This year Starbucks introduce two new products from the Whole Bean product line: Ethiopia
Yirgacheffe Chelelektu & Guatemala Huehuetenango. They will be launched this year at
Starbucks Reserve Roastery around the world and come to Vietnam as soon as possible.

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a) Ethiopia Yigachefffe Chelelektu:
Yirgacheffe is a wet processing zone with coffee gardens grown at an altitude of
1,700 to 2,200 meters above sea level. This is one of the highest coffee regions in
southern Ethiopia. Conditions allow the coffee plant to grow slowly so that the plant
can accumulate nutrients in the coffee bean and develop its best flavor. It features
citrus and fruit flavors along with a bright texture that is well balanced with sweetness.

Picture 4: Ethiopia Yigachefffe Chelelektu Whole Bean Coffee

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 - Acidity: Medium

- Region: Africa

- Origin: Ethiopia

- Flavor Notes: Jasmine & Tangerine

- Integral foods or flavors: Fresh beries, Chocolate

Delicate floral aromas and sparkling acdity with rapsberry and tangerine notes.

- Brewing Recommendations: Pour over, Coffee press

b) Guatemala Huehuetenango:

This lush land in southern Guatemala sits between three volcanoes. The high altitude
and clayey soil create conditions that are almost ideal for coffee growers as well as coffee
lovers. And costumers also love this coffee. This is an elegant coffee: pure with an acidity,
recognized by its characteristic mild flavor and delicate cocoa-like color.

Picture 5: Guatemala Huehuetenango Whole Bean Coffee

- Acidity: Medium

- Region: Latin America

- Origin: Guatemala

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 - Flavor Notes: Candied Orange & Dark Chocolate

- Integral foods or flavors: Chocolate, citrus, brown sugar

Rich and elegant with notes of candied orange, dark chocolate and graham cracker.

- Brewing Recommendations: Cold Brew, Pour over, Coffee press.

1. MARKETING ISSUES
The coffee market generally and the premium coffee chain particularly in Vietnam is very
young, dynamic and competitive. Besides big brands that were taking control of the market,
new brands are also established everyday. This puts a lot of pressure to the Marketing team
of Starbucks, to figure out a perfect plan for the two new products: Ethiopia Yirgacheffe
Chelelektu Whole Bean Coffee & Guatemala Huehuetenango Whole Bean Coffee, not
to mention that other brands already create same product line with much cheaper price.

Phuc Long Coffee & Tea Highlands Coffee Starbucks Coffee

75.000 VND/250gr 61.250 VND/250gr 621.854 VND/250gr

Table 10: Coffee bean line comparison from three brands.

Through the table above, it is easy to realize that Starbucks’ have the highest price. This
might be an obstacle to the brands’ marketing plan, as price always contribute an important
part when customers consider buying a product. However, with high brand recognition and
the increasing want of entering the premium living standard of Vietnamese consumers,
Starbucks still have the chance to compete and gain more market share in this game. We

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also think, and believe, that the flavors and notes of these two products will make a
difference in Vietnam

2. OBJECTIVES (using SMART goals)

Despite being considered “late” in the coffee bean market, the Marketing team of Starbucks
has been working on long-term marketing plan for the Whole Bean Coffee product line in
Vietnam market, and the reasearcher thinks that it is the perfect time we published these
products to mass market, for many REASONS:

 The needs of enjoying premium coffee without having to go abroad: The

premium coffee chain in Vietnam, though having high developing rate, still lack of
diversity and leading products to form customers’ needs and taste. Many people still
choose to enjoy a premium cup of coffee in other famous markets. With this products,
the Starbucks team want to set a style of “domestic premium coffee”.
 The convenience for customers to prepare their own whole bean coffee at
home or workplace: COViD-19 is still out there and got many people in lockdown.
That leads to people’s needs of enjoying a good, perfectly-made coffee even higher.
These products, with different notes and flavors, can help solve this problems.
 Minimize waste from plastic cups, helping to protect the environment.
 The original taste of whole bean coffee has many benefits to human health.

With the release of two new products, Ethiopia Yirgacheffe Chelelektu Whole Bean
Coffee & Guatemala Huehuetenango Whole Bean Coffee, we’ve set our goals and
ambition in this potential market, which is:

Get 90% of Vietnamese loyal customers (Starbucks membership) to know about the
products, increase market revenue by 7.5% through marketing campaign and finally, gain
30% of market share in the premium coffee chain in Vietnam by the end of 2021.

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IV. MARKETING STRATEGY
1. SEGMENTATION, TARGETING, POSITIONING (INCLUDING A POSITIONING
MAP) AND DIFFERENTIATION STRATEGIES OF YOUR COMPANY.

1.1. Segmentation
There are three groups in geographic segmentations. People have different taste and
quantity of food by countries. Also, climate and seasons vary due to geographical features.
Therefore, First of all, the company can make a group of seasonal products. It can develop
special products for the certain period. Secondly, food preferences among people are
important in the market. Some people want healthy and nutritious food while others want
favored food even though it is not good for health. The criteria of deciding food are different
by people. Finally, the amount of food per a person can be one of groups. It is apparent in
the size of drinks of Starbucks. In venti sized iced americano, it is 591ml in Korea while it is
almost 709ml in USA.

In psychographic point, lifestyle is the key to forming groups. Some employees such as
office workers, entrepreneurs have coffee every morning before they go to work. These
kinds of people regularly have coffee so they can get free drink with reward service. And for
the people who want to protect environment and use their own bottles, Starbucks sells 1 / 3
tumblers. Most of tumblers have different designs and it’s hard to get after selling season.
So, there are many people who collect tumblers with unique designs. Some people even
queue to get them before being sold out.

Geographic Demographic Behavioral Psychographic

-Region: -Age: 22-60 -Benefits sought: -Social Class: Middle

official stores in Enjoying quality and upper class
Vietnam -Gender: Male and coffee in a relaxing
Female atmosphere -Lifestyle:
-Destiny: A place to chat with Mainstreamer, Aspirer,
Urban -Occupation: friends and Succeeder, Explorer,
Students, relatives Reformer.
employees, A place to work
professionals

Table 11: Starbucks Seagmentation

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 1.2. Targeting

First of all, Starbucks provides ‘local delights’ which shows cultural characteristics among
people. For example, Ponche Navideño, a tea-based beverage that only appears in
Starbucks Mexico menu. The name of the drink means “Christmas punch”, and is inspired by
a local drink that only served in Mexico family gatherings. This shows that Starbucks cares
about cultural differences and want to each stores around the world have their own identity.

Secondly, Starbucks also serve seasonal drinks. For example, every year Starbucks serve
a different menu for Christmas, and depends on tha country’s culture, the menu could be
different,too. Starbucks also base on the potential of the countires,too. For example,
Starbucks change thei Smoothie menu to fit with that countries’ fruit of that season.

Lastly, according to the various criteria of customers, it has a lot of menu that people can
choose with their preferences. For people are on diet, Starbucks shows the tables of food
and drink nutrition like calories, fat, fiber, protein, and sodium on its website. People who
don’t want to have heavy calories can refer this information. Additionally, There is dairy-free
options that customers can choose soymilk, almond milk, and coconut milk with extra pay.

1.3. Positioning

BRAND PRICE (VND/250g)

Starbucks ~621.854

Highlands 61.250

The Coffee Bean & Tea Leaf ~164.543

McCafe ~350.000

Phuc Long Coffee & Tea 75.000

Table 12: Position of Whole Bean coffee products in Vietnam market

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As shown on the table above, we can see that Starbucks has the highest price of all.
However, Starbucks has their reasons to make their products always more expensive. They
offer the customers good-quality products, good promotions, and above all, good services.
Though Starbucks sell their products with high prices, many people still choose it as they
are curious and want to feel the ”premium-ness” brought by Starbucks products and the
brand itself.

2. SUGGEST NEW MARKETING MIX USING 7PS WITH AN EVALUATION OF

DIFFERENT STRATEGIES APPLIED BY YOUR ORGANISATION.

Starbucks’ new products Ethiopia Yigarcheffe Chelelektu & Guatemala Huehuetenango

will be launched this year, so this table will show basic information about our goals, target
market,…

Starbucks Corporation

Product Ethiopia Yirgacheffe Chelelektu & Guatemala Huehuetenango.

Price 621.854đ/250g

-Official Distribution:
Big Cities: 65 Official Starbucks Store in 4 cities.
-Online Sites: Starbucks Official Online Site
Place https://www.starbucks.com/
-Retailers:
+ Retailer stores: Circle K, VinMart, Seven Eleven, etc.
+ E-Commerce site: Shopee, Tiki, Lazada, Sendo,...

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 -Only baristas in the store is a uniqueness in service of Starbucks
-Customers can be a Barista on their own by created their own coffee
Process
when they buy this product.

-World-of-Mouth marketing.
- Collab with KOLs to promote new product: The whole bean from
Ethiopa and Guatemala
Promotion
- Created Starbucks banner then put them in Online news
- Merchandise related to Ethiopia and Guatemala Culture

-Customer: people in well-off cities, business partner, worker (quiet

space), Student, people who want make their own Coffee
People -Employes: good team work skills.
Workforce: support center, manager, barista, ect.

Physical environment of Starbucks includes but not limited to its store

designs, logo, coffee cups, and napkins. Starbucks offers customers an
inviting atmosphere. It has adopted a new approach to store designs. The
Physical Evidence
new approach requires Starbucks designers to look at each store
individually to ensure that it looks distinctively local (Starbucks
Corporation, 2020).

Table 13: New Marketing Mix for new Starbucks product

V. PROMOTION
1. PROMO CODES, DISCOUNTS

The first step of the plan is to promote through social medias. As we know, Starbucks’ social
media, with millions of followers. These platforms are perfect for giving most informations to
our customers.

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But that’s not everything. We are thinking of promoting through email. Most of our
memberships, loyal customers are in the age of working and so, they spend most of their
time checking emails. And we already got their email through signing up. So the researcher
thinks we can give them early information through email. Along with that, we will offer
them disount codes and exclusive deals when purchasing for the new products, only for
people who are already a membership of Starbucks. This will encourage them to be more
loyal to the brand, also help them know of the products sooner than others.

2. FREE SAMPLES OF NEW PRODUCTS

For the next step, to promote for the two new products better, and also to be in touch and
expand the amount of customers, we will do in-store promotion. The plan will be: For every
purchase above 600.000 VND, we will give the customer for free a small gift, either:

 A small package of raw coffee bean from either our new products: Ethiopia
Yirgacheffe Chelelektu Whole Bean Coffee & Guatemala Huehuetenango
Whole Bean Coffee. They can keep that in their car or pocket. It is good for
eliminating bad smell.
 A small packaage of grinded coffee from either our new products. They can save
and make a cup of coffee at home if they want.
 A small cup of coffee to have a quick taste a the store from either our new products.

This plan helps the customers to have a initial look and taste of how the coffee is like, and
whether it suits their types. And if they purchase for our new products at that moment, they
will get a small discount, too.

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 3. POSTS ON ONLINE AND OFFLINE MAGAZINES
For the next step, we are going to contact with famous newspapers, so they can deliver our
release as fast as possible to the readers. Also, we can ask them to write a review about
our brand and new products, too. We are thinking of directing this step into 2 smaller ones:
 Offline magazines: Our team is thinking of famous obscure magazines, those are
not actually well-known to most people, but to a more specific and targeting line of
customers and readers, ones that are really understand and love coffee.
 Online magazines: Besides the offline line, our team will “attack” a more various
type of customers through mainstream magazines, to help enhance the brand
indentity.
With this kind of strategy, our Marketing team particularly and Starbucks generally want to
develop the image of “perfect for everyone” of Starbucks, showing that our new products
are not only for people with special gouts, but also everyone.

4. MERCHANDISE RELATED TO ETHIOPIA AND GUATEMALA CULTURE

Starbucks is not only famous for the food and beverages, and our loyal customers are not
only come to a store only for coffee. Merchandise is among one of the most best-selling
line of the brand. So we want to take advantage of this, create a limited marchandise
collection based on the coffee-making culture of Ethiopia and Guatemala.

Also, we are going to use this collection as a platform to market for the products. If the
purchase include the products and the merch, customers will get 30% discounts for the
whole bill. We can also use this merch to create more ways of marketing the products. The
researcher believes that with the help of Design team, we can actually create a collection
that represents the countries and Starbucks’ cultures, along with the gaining revenue.
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 5. COLLABORATION WITH KOLs

Vietnam has a high percentage of young people at the age of 18-24, and this is the type that
is young, dynamic, and curious. They would love to follow the trends that is made by
influencers, ot KOLs. That is why influencer marketing has been becoming very popular in
Vietnam. According to a report, 97 people of the total 125 respondents, accounting for
77.6% of the individuals followed famous people on the Internet. Compared to the total
participants in both genders, the percentage between male and female were 77.5% and
77.6%. It is possible to claim that about three out of every four Vietnamese follow
influential people.

Figure 5: Comparison between participants following influencers and total participants in both
genders. (Ha My, 2020)

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As the growth of influencer marketing, it is the time we took consideration of booking
KOLs and influencers to promote for our latest products. Take a look at this example .

The pictures are the collaboration between Giang Oi and Nescafe. Giang Oi is owned by a
very young woman, and her lifestyle inspired a lot of people. The collaboration with Nescafe
shows viewers the journey from the coffee bean to a cup of coffee. Through the collab,
people can see the beauty and elegance of a cup of coffee and the tradition of coffee-
making in Vietnam.

Also, we are taking in to account of giving the KOLs full colllection of our limited
merchandise, so they can do Giveaways to their fans, or use it to promote for us. With this
way we can attract more and more various type of customer, gaining brand’s popularity, and
help developing the market of KOLs in Vietnam.

6. “MAKE YOUR OWN COFFEE” TREND

As many places in Vietnam and around the world still experiencing COViD-19 lockdown, not
everyone get the opportunities to get to our stores, spend their times to enjoy a cup of coffee.
So, with the release of the Whole Bean Coffee line, we would like to start a “trend” on every
platforms, called “Make your own coffee”, The rules are simple: Create your own coffee
recipe, using the Ethiopia Yigarcheffe Chelelektu & Guatemala Huehuetenango new
products, and feature the packaging of the products in your videos.

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Winners are ones with the most creative and fascinating recipe judged by the barista team
of Starbucks. The prizes are also very promising: $20,000 cash; with a brand new limited
collection based on the theme of Ethiopia & Guatemala; and a chance to be working with
Starbucks team to feature their recipes in Sarbucks menu for a season.

7. SOCIAL MEDIA PROMOTIONS

Times have changed, and even the way businesses approach their customers has shifted.
We are living in a flat world that everything can spread in the lightning speed through
Internet. That why digital marketing plays an essential role in marketing promotion.

While skewing towards younger users, with 62% of users falling between 18 and 34 years
old, Facebook and Instagram attract users of all generations, with 38% of falling from 35
all the way to 65+. The majority of Facebook’s user are our target customer. That why
Starbuck will focus on promotion through them.

Vietnam marketplace is experiencing boom situation in economic. This is a chance for our
business to come to them. We will bring them the feeling of luxury, elegant like a king
approach to a higher throne. Feeling of success

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We can use the image of successful people to attract more customer through the value we
will bring them not only the product.

Spreading the image of product is the first step to advertising. Already have the product in
their mind, creating a light push and the customer will try to get them. As we said below,
publishing discount, generating promotion campaign and starting a new trend depends on
the new products. We will put them all on Facebook and Instagram step by step.

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VI. BUDGET AND TIMELINE
1. BUDGET
 Total estimated revenue: 2 million dollars
 Expected revenue gain: 0.75 million dollars
=> The Marketing team of Starbucks will spend about 1.25 million dollars for the whole
marketing strategy.

Amount of money (million US

dollars)

Research and Development 0.3

Materials and Equipment 0.2

Organization and administration of general

0.25
management

Press (online & offline) 0.1

Advertisement 0.1

Promotion (KOLs, gifts, merchandise, etc..) 0.1

Workforce 0.15

Other costs 0.05

TOTAL COSTS 1.25

Table 14: Budget for Marketing plan

2. TIMELINE (For Marketing activities in 2021)

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 Month Activities Cost (US dollar)

Making banners about

“upcoming” products and the
January 40,000
products after release for
one year.

Leaking information through

emails, along with exclusive
Mid-February 7,500
discounts for memberships.

 Releasing the new

products at official store.
 Getting news to mass 37,500-50,000 for 15-20
March public through official posts (2,500/post)
media pages, blogs,
online magazines,…

Posting reviews of new

25,000 for 10 posts
April products on obscure and
(2,500/post)
mainstream magazines

 Releasing limited
merchandise collection.
 Pressing reviews, along
June 25,000
with news about combos
and discounts...

 Booking KOLs to make

products reviews and
promotions
June to September  Giving gifts for KOLs, 100,000
along with gifts for
giveaways...

Beginning of challenge
“Create your recipe” with
3 prizes for 3 people
September to December 60,000 (20,000/person)
(merchandise, cash,
opportunities,...)

TOTAL 287,500 - 300,000

Table 15: Timeline for Marketing plan

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VII. CONTROL AND MONITORING
1. ANNUAL PLAN CONTROL:
 Definition: Annual plan control is the monitoring of ongoing marketing activities and
progress in order to ensure that the annual revenue and profit goals are achieved.
 Purpose: to examine if planned results are being achieved in terms of sales,
profits, costs, finance, attitudes of participants in marketing operations.
 Prime responsibility: The top and middle management.

Picture 6: Approaches of Annual Plan Control

2. PROFITABILITY CONTROL:
 Definition: Profitability control is to determine the actual profitability of the firm’s
products, territories, market segments and trade channels.
 Purpose: to examine whether the company is making and losing the money.
 Prime responsibility: Marketing controller.

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 Picture 7: 4 steps in Profitability Control

3. EFFICIENCY CONTROL:
 Definition: Efficiency control is the task of improving the efficiency of such
marketing activities as personal selling, advertising, sales-promotion and
distribution.
 Purpose: to evaluate and improve the spending efficiency and impact of marketing
expenditures on the marketing operations.
 The company should measure the profitability of their products, territories, customer
groups, order sizes and trade channels.
 Prime responsibility: Marketing controller, marketing departmental line and staff
people.

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 Picture 8: Factors that impact the productivity

4. STRATEGIC CONTROL:
 Definition: Strategic controls are intended to guide the organization in the course of
its long-term strategic goals.
 Following the selection of a plan, it is implemented over time to lead a firm in a
rapidly evolving environment. Strategies are forward-looking and based on
management assumptions about a variety of yet-to-happen events.
 Purpose: to identify whether the organization should continue with its present
strategy or modify it is the light of changed circumstances.
 Prime responsibility: Top management and marketing auditor.

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 Picture 9: Steps in the control process

CONCLUSION
Although Starbucks is considered as a too luxury coffee brand for Vietnamese people
because of many low-price competitors, Starbucks still hold their strong position as the
second-best brand of market share in the premium coffee chain in Vietnam, just behind
Highlands Coffee. Thanks to the research and analysis about the situation, issue and
customers of the Marketing team, Starbucks can identify key factors in the coffee industry
and the vital value of customers to achieve their objectives. Moreover, through research
result, the Marketing team have come up with marketing plan for new products and helps
the company enhance the abilities to compete with other brands to become more familiar
with Vietnamese people and reach the top position in coffee market share in Vietnam.

RECOMMENDATION
We want to reaffirm that the Marketing Plan the researchers have talked above will work
because it is developed and implemented based on the business goals and objectives of
Starbucks Corporation. Furthermore, it is also set up through a careful study about
Vietnamese customers’ taste and the coffee market in Viet Nam. So we believe that if the
marketing campaigns follow to the plan step by step, we will achieve the goals said and the
future of Starbucks in Vietnam will be brighter.

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REFERENCES
1. B2U - Business-to-you.com. 2016. PESTEL Analysis (PEST Analysis) EXPLAINED
with EXAMPLES | B2U. [online] Available at: <https://www.business-to-
you.com/scanning-the-environment-pestel-analysis/> [Accessed 5 March 2021].
2. Buzzmetrics. 2016. Cuộc chiến chuỗi cà phê : Phân tích thảo luận trên social
media. [online] Available at: <https://buzzmetrics.com/cuoc-chien-cac-chuoi-ca-phe-
tai-viet-nam-phan-tich-thao-luan-tren-social-media/> [Accessed 5 March 2021].
3. Chowdhury, I., Strategic Control: Meaning, Types, Techniques, Process and
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