La Salle College Antipolo

1985 La Salle Avenue, Town and Country Heights

San Luis, Antipolo City, 1870 Rizal, Philippines

Marketing Plan for Starbucks Robinsons

Place Antipolo

Submitted by:

Danica Castro

Eorly Matus

Jayson Mistiola

JC Guir

Jamil Toletino

11-K ABM
 Company Profile

History

The first Starbucks opened in Seattle, Washington, on March 31, 1971, by three

partners who met while they were students at the University of San Francisco: English

teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker were

inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur

Alfred Peet after he taught them his style of roasting beans.

The company took the name of the chief mate in the book Moby-Dick: Starbuck,

after considering "Cargo House" and "Pequod". Bowker recalls that Terry Heckler, with

whom Bowker owned an advertising agency, thought words beginning with "st" were

powerful. The founders brainstormed a list of words beginning with "st". Someone pulled

out an old mining map of the Cascade Range and saw a mining town named "Starbo",

which immediately put Bowker in mind of the character "Starbuck". Bowker said, "Moby-

Dick didn't have anything to do with Starbucks directly; it was only coincidental that the

sound seemed to make sense."

Starbucks originally started in 1971 by Jerry Balswin, Gordon Bowker, and Zev

Siegl, with its first shop located in Seattle's historic Pike Place Market. From this

location, Starbucks sold high-quality whole coffee beans, dark-roasted in small batches,

the European way. The name of Starbucks was chosen in honor of the coffee-loving

first mate in Herman Melville's Moby Dick, and, because they thought the name evoked

the romance of the high seas and the seafaring tradition of the early coffee traders. The

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current company logo is a twin-tailed siren, from Greek mythology, encircled by the

store's name.

Nature of Business

Starbucks is a service and merchandise business that specializes in their

handmade, high quality coffee. Starbucks is the premier roaster, marketer and retailer of

specialty coffee in the world. They purchase and roast high-quality coffees that they sell,

along with handcrafted coffee, tea and other beverages and a variety of fresh food

items, including snack offerings, through company-operated stores. The company also

sells a variety of coffee and tea products and license our trademarks through other

channels such as licensed stores, grocery and food service accounts. In addition to our

flagship Starbucks Coffee brand, the company sells goods and services under the

following brands: Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange

and Ethos.

Mission

“The mission of Starbucks is to establish Starbucks as the premier purveyor of

the finest coffee in the world while maintaining our uncompromising principles while we

grow”

● Provide 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.

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 ● Develop enthusiastically satisfied customers all of the time

● Contribute positively to our communities and our environment

● Recognize that profitability is essential to our future success.

Vision

To inspire and nurture the human spirit – one person, one cup and one

neighborhood at a time

Core Values

Starbucks core values are written like a philosophy and they are:

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

● Acting with courage, challenging the status quo.

● Being present, connecting with transparency, dignity and respect.

● Delivering our very best in all we do, holding ourselves accountable for results.

● We are performance driven, through the lens of humanity

Organizational structure

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According to authorized staff the organizational structure is confidential and not to be

disclosed to unauthorized personnel however the group found a organizational structure

of Starbucks though international.

Products

Starbucks offers a range of exceptional products that customers enjoy in our

stores, at home, and on the go.

Coffee: More than 30 blends and single-origin premium coffees.

Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso beverages,

Frappuccino coffee and non-coffee blended beverages, Starbucks Refreshers

beverages, smoothies and teas.

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Merchandise: Coffee- and tea-brewing equipment, Verismo System by Starbucks, mugs

and accessories, packaged goods, books and gifts.

Fresh Food: Baked pastries, sandwiches, salads, salad and grain bowls, oatmeal,

yogurt parfaits and fruit cups.

Consumer Products

Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle’s Best Coffee

brands), Starbucks VIA Instant, Starbucks Coffee K-Cup pods, Starbucks and Teavana

Verismo pods, Tazo tea filter bags, and Tazo tea latte concentrates.

Ready-to-Drink(RTD): Starbucks bottled Frappuccino coffee drinks, Starbucks

Discoveries chilled cup coffees, Starbucks Discoveries Iced Café Favorites, Starbucks

Iced Coffee, Starbucks Doubleshot espresso drinks, Starbucks Doubleshot Energy

Coffee drinks; Starbucks Refreshers beverages, Evolution Fresh bottled juices, Tazo

bottled iced and juiced teas.

Pricing

Starbucks can charge a premium price because their entire brand image is

based around luxury.Starbucks sets its prices on a simple idea: high value at moderate

cost. Starbucks uses a strategy called Premium Pricing which involves setting the

prices of products higher than comparable products. It is usually used to boost profits in

areas where the customer is happy to pay more.

Location/Place

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 Starbucks operates in 75 countries globally and its products can be purchased

from the following places:

Company-operated stores. There were 12,711 company-operated stores, which

accounts for about 51% of total numbers of stores by the end of fiscal 2016. Almost all

company-operated stores are leased. Starbucks company-operated stores are usually

located at high-traffic, high-visibility locations

Licensed stores. There were 12,374 licensed Starbucks stores by the end of

fiscal year 2016, representing about 49% of total numbers of stores. Licensed stores

generated about 10% of total new revenues in fiscal 2016.

Grocery and foodservice accounts. The world’s largest coffee retailer also sells

its products via global leading supermarket chains such as Walmart, Tesco, Sainsbury’s

and others. Only the most popular products such as Starbucks Espresso Colombia,

Starbucks Seattle Latte, and Starbucks Mocha Chocolate Frappuccino can be found in

supermarket aisles.

Promotions

In this world of IT company believes on one to one promotion rather than

electronic media advertisement. On the whole the company spends little budget on its

promotion. Seasonal induction of items is considered main source of customer

attraction, beside that cards are issued that promotes its popularity certain gift cards are

given on beverages that increase sales considerably. Coffees are transported to offices

free of additional cost and irrespective of cup size, making officials permanent.

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 Starbucks promotes its products mainly through advertising. This component of

the marketing mix refers to the communication strategies used to disseminate

information about the firm and its products. Starbucks’ promotional mix is as follows:

Advertising

Public relations

Sales promotions

The company advertises its products through television, print media and the

Internet. The company infrequently uses public relations, which has not always been

successful for the business. For example, Starbucks’ Race Together public relations

campaign was widely criticized. In addition, the firm uses sales promotions, such as the

Starbucks Card that customers can use to get freebies. This part of Starbucks’

marketing mix shows the core significance of advertising, and the supporting roles of

public relations and sales promotions for the company

Part 2

Marketing Aspect

Objectives

The objectives of this marketing plan is to create an apt marketing strategy which

could be favorable to Starbucks to ensure steady flow of revenue by using the proposed

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marketing strategies, like training employees to know American Sign Language and

using social media as an advertising tool through videos and to gain at least 150,000

more customers by the year end.

Current Situation Analysis

Coffee shop industry

Independent cafes and bars dominated the industry throughout 2016 with a value

share of 80%. Many new cafés set up shops that not only entertain the cravings of

customers for good quality coffee but also entertain them with the uniqueness of the

establishment. From the normal themed café, to the cute dog & cat café, and the cool

gaming café there has been rapid development with the industry. On the other hand,

chain coffee shops continue to lead sales because of their popularity. Starbucks being

one of these. Though Starbucks does not experiment with different concepts, locations,

and design schemes they will sustain a strong following because of their consistency,

familiarity, reliability, and accessibility.

Environmental Analysis (SWOT)

Political Economic
● sourcing of raw materials ● global economic recession
● adherence of social and ● shift to cheap alternatives
environmental norms ● local currency
● importance to fair trade ● different markets
● monitor political stability

Social Technological
● retirement of baby boomers ● wi-fi capabilities
● less “mature” buyers ● in-store outlets
● change in work patterns ● Starbucks App

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Environmental Legal
● partnerships with advocacy groups ● no violations of laws
● global warming ● monitoring of caffeine production
● environmental disasters in and consumption
countries that produce their supply ● strict customs
of coffee

Internal Analysis (SWOT)

7P’s Strengths Weaknesses Opportunities Threats

Place Extensive local Mostly located Lack of Low foot traffic

supply chain in urban areas surrounding
famous coffee
shops in the
surrounding

Price High prices Prices not set Can produce Fierce

ensure its high to suit bundle competition
quality everyone products from cheaper
alternatives

Product High quality consumers Diversification Cheaper

and large preference of Product Line alternatives
variation who offer same
products

Promotion High word-of- Lack of Being well Not applicable

mouth tangible known to to certain
advertising advertisements expand handicaps
network of
retailers

People Industrious and Not equipped Popularity to Deflation due

diligent workers to train servers people to high
to employment
communicate
in various
languages

Process Fast service complications Popularity of its Imitation of

with specific convenience concept of
orders competitors

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Physical Homey, and Lack of seating Inviting the Imitation of
Evidence welcoming for big groups customers to competitors
environment advertise the concept
businesses
aesthetic on
social media

Competitors Analysis (SWOT)

Competitor: Dunkin Donut

7P’s Strengths Weaknesses Opportunities Threats

Place Near the road/ Small place plans to expand Near cheaper

Accessible in the western alternatives

markets are on

the charts.

Price Affordable Best sellers High prices of Many cheap

compared to have high other donut alternatives

others prices stores

Promotion Famous Lack of customers are Luxury

endorsers advertisement fond of competitors

discounts and ad’s

trade or swap

flavors of cafe

frappe and

pastries.

Product Many well- Unsuccessful Innovative Alternatives

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 known products product lines products have high

quality &

famous

products

Process Direct selling Not convenient Retailers

People Limited workers Slow process Automated More salaries

Cashiers expense

Physical Cute, childish Not in line with Modernized Expense

Evidence ambiance target market

Competitor: McDo

7P’s Strengths Weaknesses Opportunities Threats

Place Convenient Small place Strategic People’s

Locations impatience

Price Affordable/ Cheaper Popularity of Not affordable

Cheap alternatives Value meals to low income

people

Promotion Many famous Competitors Social Media Expensive

ads ads advertising

Product Famous and Not healthy Healthy items Some people

has many might not buy

choices

Process Direct selling & Queue/ server automated Expensive

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 online delivery crash cashier

People Friendly & kind Slow paced Diverse

servers workers

Physical Targets Not clean and Social media’s People wanting

Evidence children cramped crave for to dine-in

aesthetically

pleasing places

Competitor: Zagu

7P’s Strengths Weaknesses Opportunities Threats

Place Small/ hole in No place/ New markets Take-out

the wall space to hang- convenience

out

Price Cheap High priced but Growth of People might

high qua. economy not like

Alternatives products

included

Promotion Several print Lack of visual/ Promote on Expense

ads video ads social media

Product Specific line No variety so Innovative Might not sell

less people products well

stay

Process Take-out only Slow paced Card basis Lack of

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 financial

support

People Limited workers Lack of esthetic Fresh Training

graduates expense

looking for work

Physical Simple Modernized Financial

Evidence

Target Market Analysis

Starbucks holds around 33 percent of the market share for coffee in the U.S. It

sells almost as much coffee as do fast food and convenience stores combined, even

though it the bulk of its consumers are in cities or upscale suburban areas. Starbucks

has been able to gain such a large share of the market by catering specifically to a well-

defined target audience.

Adults

Starbucks’ primary target market is men and women aged 25 to 40. They

account for almost half (49 percent) of its total business. Starbucks’ appeal to this

consumer age group through hip, contemporary design that is consistent in its

advertising and decor, and working to keep its products current as status symbols.

Customers tend to be urbanites with relatively high income, professional careers and a

focus on social welfare. This target audience grows at a rate of 3 percent annually.

Young Adults

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 Young adults aged 18 to 24, total 40 percent of Starbucks’ sales. Starbucks

positions itself as a place college students can hang out, study, write term papers and

meet people. Starbucks appeals to this consumer directly through introducing

technology as soon as it come available, focusing on social networking and actively

cultivating a “cool” image. The young adult audience grows 4.6 percent each year.

Kids and Teens

Kids and teens are also a large part of Starbucks’ target audience. Together,

customers age 13 to 17 accounts for just 2 percent of Starbucks’ sales, but most items

for kids are purchased by the parents. Whether the focus is on the steamed milk that

Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated, whipped cream

topped coffee drinks that are so popular with teenagers, kids and teens form a large

part of Starbucks business. Kids go there with their parents; both mother and child leave

with cup in hand. Teens meanwhile use Starbucks as a place to hang out with friends or

study. Starbucks may not cater directly to kids (and risk criticism about the high calorie

and caffeine content of some of its drinks) but it does make its products kid-friendly,

offering special child sizes for instance.

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 Marketing Strategies and Programs

People

We think that all the employees of Starbucks should be trained to handle people

with special needs and specific handicaps.

Promotion

We propose that Starbucks should engage more in promotions that appeal to the

teens, through web series and etc.

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 Part 3

Financial Plan

Marketing Budget

Marketing Effort Existing Target Customers Budget

Customers

Online Video Millenials of Antipolo P17,000 per month

Advertisements age 15-23 (ESTIMATED
3,100 customers 148,290 IN ANTIPOLO)
per month
ASL Training for PWD in Antipolo P21,000 per month
current Employees age 15-52 (ESTIMATED
13,975 IN ANTIPOLO)

TOTAL BUDGET PER YEAR P456,000

Forecasted Sales

Actual number of seats: 52

Period Estimated Estimated Average Estimated Sales in

Customers Purchase Price Pesos

Daily 100 P20,000

Monthly 3,100 P200 P620,000

Yearly 37,200 P7,440,000

Sales Before Marketing Effort Sales After Marketing Effort

P7,440,000 P8,984,000

SALES ADDED AFTER MARKETING P1,544,000

EFFORT
Source:

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https://www.statista.com/statistics/289357/starbucks-marketing-spending-worldwide/

https://www.quora.com/What-is-SWOT-Analysis-of-TATA-Starbucks

https://www.starbucks.com/about-us/company-information/starbucks-company-profile

https://myassignmenthelp.com/free-samples/marketing-plan-for-starbucks

https://www.coffee.org/History-of-Starbucks

https://sites.google.com/a/email.vccs.edu/starbucks-corporation/company-history

https://www.scribd.com/doc/48355878/Starbucks-Marketing-Plan

http://www.theleadermaker.com/core-values-starbucks

https://www.fastfoodmenuprices.com/starbucks-prices/?redir

https://eugeniachanlush.weebly.com/blog-posts/objectives-strategies-and-tactics

http://smallbusiness.chron.com/starbucks-target-audience-10553.html

http://panmore.com/starbucks-coffee-company-organizational-structure

https://eugeniachanlush.weebly.com/blog-posts/objectives-strategies-and-tactics

https://www.ukessays.com/essays/marketing/current-situation-and-performance-of-
starbucks-marketing-essay.php

http://panmore.com/starbucks-coffee-marketing-mix-4ps-analysis

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https://research-methodology.net/starbucks-marketing-mix-starbucks-7ps-of-marketing-
2/

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