Assessment II - Individual Strategy Report T220 - Solved Natalie Edge

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Details of Assessment
Term and Year Time allowed 7 Weeks
Assessment No 2 Assessment Weighting 60%
Assessment Type Individual Strategy Report
Due Date Week 7 Room
Details of Subject
Qualification BSB61315 Advanced Diploma of Marketing and Communication
Subject Name Marketing Strategies
Details of Unit(s) of competency
BSBMKG605 Evaluate international marketing opportunities
BSBMKG606 Manage international marketing programs
Unit Code (s) and
BSBMKG608 Develop organisational marketing objectives
Names
BSBMKG611 Manage measurement of marketing effectiveness
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work submitted is my

own and has not been copied or plagiarised from any person Student’s
or source. I acknowledge that I understand the requirements Signature: ____________________
to complete the assessment tasks. I am also aware of my
right to appeal. The feedback session schedule and Date: _____/_____/_________
reassessment procedure were explained to me.
Details of Assessor
Assessor’s Name
Assessment Outcome
Assessment
Competent Not Yet Competent Marks / 60
Result
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
Assessor Declaration: I declare that I have conducted

a fair, valid, reliable and flexible assessment with this
student. Assessor’s
Signature: ___________________
Student attended the feedback session.
Date: _____/_____/________
Student did not attend the feedback session.
Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 1

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Purpose of the Assessment
The purpose of this assessment is to assess the student in the following Competent Not Yet
learning outcomes: (C) Competent
(NYC)
BSBMKG605 Evaluate international marketing opportunities
1.1 Assess international trade patterns and identify their likely importance for the
business
1.2 Research international business and electronic commerce market factors, and
assess opportunities to enter, shape or influence the market for their likely
contribution to the business
1.3 Identify international markets operating under free trade or protectionist
arrangements and estimate likely ease of entering and trading successfully
1.4 Identify international trade policies and agreements and estimate their likely
impact on international marketing opportunities
2.1 Identify and analyse impact of economic, political, social and cultural factors
affecting international marketing opportunities
2.2 Investigate international market trends and developments to identify market
needs relevant to the business
2.3 Identify new and emerging business and electronic commerce markets, and
assess opportunities to enter, shape or influence markets based on their fit with
business goals and direction, and their likely contribution to the business
3.1 Analyse and rate acceptability of political, financial stability and corruption risk
factors of potential market
3.2 Analyse and rate acceptability of legal and regulatory requirements, and trade
barriers to potential market
3.3 Relate risk factors to international business cycles in terms of economic
conditions and estimate their impact on potential market
4.1 Identify and analyse international marketing opportunities according to their
likely fit with the organisation’s goals and capabilities
4.2 Evaluate each opportunity to determine its impact on current business and
customer base
4.3 Use an assessment of costs, benefits, risks and opportunities to determine
financial viability of each marketing opportunity
4.4 Determine probable return on investment and potential competitors
4.5 Describe and rank marketing opportunities in terms of viability and likely
contribution to the business
BSBMKG606 Manage international marketing programs
1.1 Select viable international marketing opportunities and develop objectives
consistent with the organisation’s capabilities and resources
1.2 Identify measurable international marketing objectives consistent with
organisation’s strategic direction, and identify nature and extent of goals for
international market
1.3 Formulate strategic objectives and related key performance indicators by
product, service, country or international grouping, and overall
1.4 Develop a risk management strategy to manage contingencies, and ensure
marketing objectives are met in accordance with overall organisational
requirements
2.1 Research international marketing opportunities and determine global or
customised approaches for promotion of products or services
2.2 Evaluate options for choice of marketing approaches
2.3 Select a marketing approach to meet marketing objectives, international
market conditions and consumer preferences
3.1 Evaluate business culture and consumer preferences, and identify compatible
marketing structures
3.2 Identify options for operational marketing structure and rank them for strengths
and weaknesses in servicing international markets

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3.3 Choose operational structure that best fits international market and product or
service
4.1 Communicate international marketing objectives across the organisation to
suit culture, customs, levels of knowledge, experience and needs of personnel
4.2 Identify and agree roles, responsibilities and accountabilities of staff and
contractors involved in all elements of marketing effort
4.3 Develop communication strategy to ensure personnel responsible for each
element of marketing mix work together to meet organisation’s marketing
objectives
4.4 Manage marketing effort to ensure it is directed towards areas of greatest
potential for the organisation
4.5 Manage integration of marketing, promotional and any sales activities in
accordance with international marketing objectives
5.1 Monitor product, pricing and distribution policies in relation to market changes,
objectives of marketing plan and organisational requirements
5.2 Monitor overall marketing progress against performance targets to ensure
activity, quality, cost, and time requirements are met
5.3 Analyse, review and revise marketing outcomes and objectives
5.4 Analyse successes and performance gaps as to cause and effect, and use to
improve international marketing performance
5.5 Analyse changes in market phenomena, and identify and document their
potential impact on international marketing objectives
5.6 Document review of marketing performance against key performance
indicators in accordance with organisational requirements
BSBMKG608 Develop organisational marketing objectives
1.1 Confirm organisation’s mission, vision, purpose and values from current
organisational materials or from owners, directors or senior management
1.2 Analyse strategic organisational documents to identify organisational
directions and targets
1.3 Complete a situational analysis identifying factors impacting the direction and
performance of the business
1.4 Identify legal and ethical requirements for the organisation
1.5 Document and confirm strategic direction of the organisation with owners,
directors or senior management, and identify its impact on marketing activities
2.1 Evaluate effectiveness of previous marketing and positioning strategies to
identify lessons learned
2.2 Analyse current key products or services and major markets for strengths,
weaknesses, opportunities and threats
2.3 Evaluate previous marketing opportunities captured by the organisation, and
examine and document their profitability
2.4 Evaluate marketing performance against previous objectives, targets to
identify critical success factors, and areas for improvement
3.1 Identify and analyse marketing opportunities for viability and likely contribution
to the business
3.2 Use an assessment of external factors, costs, benefits, risks and opportunities
to determine scope of each marketing opportunity
3.3 Analyse opportunities for likely fit with organisational goals and capabilities
3.4 Evaluate each opportunity to determine its likely impact on current business
and customer base
4.1 Develop objectives in consultation with key internal stakeholders that are
attainable and measurable, and that identify nature and extent of what is to be
achieved
4.2 Ensure objectives are consistent with forecast needs of the business and
market
4.3 Ensure objectives are compatible with the organisation’s projected capabilities,
resources and financial position
4.4 Ensure objectives are compatible with the organisation’s direction and

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purpose, and meet legal and ethical requirements

BSBMKG611 Manage measurement of marketing effectiveness
1.1 Review current marketing strategies and marketing plans, and research range
of metrics available to measure effectiveness of relevant marketing processes and
functions
1.2 Analyse effectiveness of current marketing metrics used by the organisation in
each key marketing operation
1.3 Critically analyse how existing marketing metrics link to strategy, and
opportunities to improve links
1.4 Plan to address any issues with use of marketing metrics within the
organisation
1.5 Design criteria for retaining existing marketing metrics, and for selecting new
manageable and cost-effective metrics
1.6 Gain approval for design or redesign of strategy from senior management
2.1 Set objectives for measurement and evaluation of marketing effectiveness
2.2 Select methods to measure marketing performance for each marketing
process or function, tailored to the organisation s brand or unique positioning
2.3 Calculate costs of gathering and analysing data with assistance of relevant
financial experts
2.4 Design and record implementation strategy for measuring and analysing
marketing performance, or make recommendations for improving current strategy
3.1 Design and implement appropriate communication and training strategy, so
marketing and other relevant personnel fully understand their role in measuring
marketing effectiveness
3.2 Supervise design and implementation of specific metrics
3.3 Plan and monitor work activity to ensure adherence to strategy for
measurement of marketing effectiveness
3.4 Design process to review and evaluate marketing metrics on a regular basis,
and if organisational strategy changes
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
Resources required for this Assessment
 Computer with relevant software applications and access to internet

 Weekly eLearning notes relevant to the tasks/questions
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within two weeks of the assessment due date. All other
feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment for more information (Student Handbook).

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ORGANISATION DETAILS
Note: The organisational details used in this assessment have been sourced (and to some extent
paraphrased) from the organisation’s website and other relevant documents of the organisation. The
information used here is solely for educational purpose.
CASE ORGANISATION: STARBUCKS COFFEE (INTERNATIONAL/GLOBAL

CONTEXT)
Starbucks website - https://www.starbucks.com/
Brief History:
The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This
name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in
Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high
quality coffee and brewing products the company grew to be the largest roaster in Washington with
multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great
opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new
products, Schultz realized an opportunity to bring the café community environment he found in Italy to
the United states and the Starbuck’s brand we know today began to take form. Selling espresso by
the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which
found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations,
Schultz raised the money with investors and purchased the company and fused them with his Italian
bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by
1997, with locations around the United States, Japan and Singapore.
Starbucks also began expanding its brand. According to George Garza in his article the history of
Starbucks the following product lines were added:
• Offering Starbucks coffee on United Airlines flights.
• Selling premium teas through Starbucks’ own Tazo Tea Company.
• Using the Internet to offer people the option to purchase Starbucks coffee online.
• Distributing whole bean and ground coffee to supermarkets.
• Producing premium coffee ice cream with Dreyer’s.
• Selling CDs in Starbucks retail stores. Starbucks uses minimal advertising and has grown on word of
mouth and brand recognition.
Their mission statement from the company profile is as follows:
“Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighbourhood
at a time.”
Their core competencies can be defined as high quality coffee and products at accessible locations
and affordable prices, provided a community to share in the coffee drinking experience, and variety of

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choices. The also value ethics and good business practices and are a leader being voted one of
2010’s most ethical businesses by Ethisphere magazine for the 4th year running. (“Starbucks”)
Starbucks is facing its own struggles however as it saw sales start slipping before other companies
did in the recent recession. According to Melissa Allison in her article Starbucks has a new growth
strategy — more revenue with lower costs, Starbucks has closed 900 stores and eliminated 34,000
jobs. Starbucks new strategy is to refocus on some of the areas that decrease risk and up front
investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs,
selling VIA instant coffee and other products in retail and convenience stores, and reinvigorating the
Seattle’s Best Brand coffee.
A statement from CFO Troy Alstead this March paints this picture:
“We clearly hit a wall and didn’t do very well in the 2007/2008-time frame. From here forward, when
we grow Via, Seattle’s Best Coffee and consumer products, there’s less investment for each dollar of
revenue.”
This new strategy has inspired some optimistic feedback. Morningstar investment research firm has
increased estimate of Starbucks shares from $4 a share to $24 after the statement of revamping the
brand. Product innovations and international expansion not only make the business potentially more
profitable but defend them against competition. International partnerships increase challenges but
also create new ideas in new markets that can then be translated back to markets.
Starbucks is in a mature stage of its life cycle. It was founded over 20 years ago and it has
experienced rapid growth in the last 2 decades. However, within the last few years its growth has
slowed and has even had to close locations. They are now focusing efforts on previous endeavours
and international expansion.
Old Value Chain:
Bean and
Product Product Take-home
ingredient Storefront
Development Distribution products
selection
The above is the value chain for Starbucks. The upstream portion of the value chain shows the
product development from adding teas and international influences, to the research that took place to
develop the VIA instant coffee line. They also search the globe for Fair Trade suppliers of high-quality
beans. These products are then distributed to corporate storefronts, franchise locations, airport
terminals, grocery stores and more, and finally offer ground coffee and gift cards to take home.

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Links to organisational website and relevant information on the organisation:

Starbucks Australia website – https://www.starbucks.com.au/Home.php
Why Starbucks just can't crack the Australian market -
https://www.sbs.com.au/news/thefeed/story/why-starbucks-just-cant-crack-australian-market
Starbucks brief on Wiki - https://en.wikipedia.org/wiki/Starbucks
Starbucks Statistics - https://www.statista.com/topics/1246/starbucks/
Starbucks race together campaign - https://www.fastcompany.com/3046890/the-inside-story-of-
starbuckss-race-together-campaign-no-foam
Marketing Strategy of Starbucks - https://www.cheshnotes.com/2017/01/marketing-strategy-of-
starbucks/
How to Create a Remarkable Brand - https://coschedule.com/blog/starbucks-marketing-strategy/
Marketing Strategy of Starbucks - https://www.marketing91.com/marketing-strategy-starbucks/
Relevant resources on Starbucks - https://www.marketingweek.com/brands/starbucks/
Plans on marketing - https://ninjaoutreach.com/starbucks-marketing-plan/
Communicating the message of quality via multiple channels - https://research-
methodology.net/starbucks-marketing-strategy-3/
Starbucks Positioning - https://www.thebalancesmb.com/starbucks-use-of-market-research-propels-
the-brand-2297155
Starbucks: best and worst marketing campaigns - https://awario.com/blog/starbucks-best-and-worst-
marketing-campaigns/
CONTEXT, PROBLEM SCENARIO & REQUIREMENTS:

For addressing the assessment criteria and to answer the questions provided below, you may refer to
the above given case and organisation (Starbucks Coffee) or you can select your preferred
organisation. You are required to demonstrate in-depth knowledge on how to develop marketing
objectives for an organisation, identifying international marketing opportunities, plan on managing
international marketing programs and measure marketing effectiveness. To complete the assessment
tasks successfully, you will need to acquire some organisational information to conduct some analysis
for both understanding environment and organisational. You are also expected to do your own
external secondary research to provide adequate information and to understand the market. You will
be required to use the template/structure as provided below. Marking criteria and weights for each
section are also provided within the structure.

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Assessment Type: Individual Report
TABLE OF CONTENTS and Mark Allocations PAGES MARK MARK

ALLOCATED RECEIVED
1. Conduct detailed industry analysis 5
2. Conduct an internal and an external diagnosis 5

of the company.
3. Discuss your key marketing strategies and 10

core competence
4. Analyse the key issues the organisation is 6

facing and suggest alternative action
5. Discuss product innovation and international 12

market opportunities
6. Discuss a new value chain for organisation 6

which might be required for the changing
coffee market
7. Identify your international marketing 8

objectives and operational plan
8. Evaluating, measuring and monitoring 5

marketing effectiveness
9. Identify Australian and International policies 3

and legal factors affecting marketing
operations
10. Reference
11. Appendix
TOTAL 60
Conduct detailed industry analysis (5 marks)
In this section you are required to discuss the following:

(1 marks each)

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 Industry Overview and Analysis

 Industry Demand Determinants and Profitability Drivers
 Porter’s Five Forces Analysis of the Retail Coffee and Snacks Industry
 Confirm Organisation’s Mission, Vision and Mission Statements from Current Organisational
Materials
 Discuss and Analyse Opportunities That Fit Organisational Goals and Capabilities
Industry Overview and Analysis
Starbucks is an American espresso organization and café established in Seattle in 1971. In 2018, the
organization was working in 28,218 areas around the world. The organization's main goal is "To
move and sustain the human soul, one individual, one cup, and one neighbourhood are a period",
what requires serving brilliant espresso, yet additionally captivating clients at an enthusiastic
reaction. Starbucks is essential for the Retail Espresso and Snacks Industry. This industry
encountered a major lull in 2009 coming about because of the monetary emergency what changed
buyer tastes, saving on extravagances like eating out, deciding to buy low-value things rather than
expensive espresso and beverages. Before that, the business had a time of development reliable.
Presently, the business is relied upon to develop yearly at a pace of 3.9% for the following five years,
with a possibility to reach $35.1 billion incomes in the US. This development would be
predominantly determined by an improving economy, increment in purchaser certainty and growing
menu contributions inside the business. Starbucks rules the business with a piece of the overall
industry of 36.7%. In 2017, Starbucks results for financial kept on showing the strength of its
worldwide plan of action, and its capacity to effectively make trained interests in its business and
accomplices. United all out net incomes expanded 5% to $22.4 billion, essentially determined by
gradual incomes from 2,320 net new store openings in the course of recent months and a 3%
development in worldwide practically identical store deals.
Industry demand determinants and profitability drivers
The business' interest for premium espresso and food/nibble items can be influenced by various
elements, which incorporate the measure of espresso being devoured, the populace pay and
monetary solidness, sound propensities, espresso valuing. It's an extremely delicate industry, and
every one of these elements can significantly influence its development. The measure of espresso
utilization it a vital factor: with more individuals burning-through espresso around the planet, the
income of espresso and tidbit shops is expanded. A primary driver for that would be the increment
of pay, as the economy improves the shoppers begins to loosen up their spending plan. This factor
has a constructive outcome available income. On the most recent couple of years, the measure of
individuals purchasing, searching for and burning-through espresso has expanded dramatically. Since
2012/13, the utilization of espresso has developed 1,3% per year, see Informative supplement 2. In
outcome, the sum and assortment of cafés has developed also. Presently, the essential contribution
to the estimation of chain of the business are the espresso beans, the variable costs of espresso
beans decides market expenses and productivity edges. The world cost of espresso had expanded
exceptionally a couple of years back because of developing interest in different nations and the
subsequent stock deficiencies. Presently, how it turned out to be more reasonable, the market is

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indicating greater productivity and lower costs. Worried about heath likewise assume a significant
part in deciding the interest in the business. Of late, the clients are more stressed over what they eat
and how they eat; see the development of veggie lovers and vegetarians around the world. This can
be a danger to the business as they become more mindful of issues identified with heftiness and
weight. Therefore, has been a proactive reaction from the business with respect to natural and solid
items, as natural lattes and beverages, and natural bites, as protein balls, for instance.
Porter’s five forces analysis
Competitive rivalry or competition – Strong force Serious competition is a solid power looked by
Starbucks in the food administration and espresso enterprises. The strength espresso market is
strongly serious concerning item quality, development, administration, accommodation, and cost.
Starbucks has numerous contenders of various sizes universally. In any event, having the biggest
pieces of the pie, the organization actually feels the pressing factor seeing that its nearest rivals
additionally have a critical piece of the pie. The assortment of firms isn't pretty much as extensive as
its number, what make this power considerably more threating to Starbucks. The organization needs
to battle a huge assortment of organizations, inside basically similar assortment of items and
administrations. Likewise, Starbucks additionally needs to battle the way that, for the clients, a large
portion of the occasions, it has a low changing expense change from Starbucks to another
organization. In view of that, opposition is one of the first concerns o be looked by Starbucks.
Bargaining Power of buyers or customers – Strong force: This power truly influences Starbucks.
Once more, the low exchanging costs cause the clients to handily change from Starbucks to another
brands. Furthermore, the high substitute accessibility implies that the clients can avoid the
organization however much they need, since they can discover numerous substitutions items. These
variables are solid to such an extent that it is difficult to focus on the way that individual buys are
little contrasted with the organization's complete incomes. Indeed, even with this shortcoming, the
bartering power stays a need key issue.
Bargaining power of suppliers – weak force: Regardless of the people providers having a moderate
size, what can be accommodating a moderate strength, the high assortment of providers debilitates
theirs haggling power. Utilizing as model, the espresso beans. There are numerous providers of
espresso beans around the globe, and every one of them intend to supply their beans to the
organizations as Starbucks. With that, Starbucks can pick which organization fits outperforms their
need. Moreover, their haggling power is debilitated by the assortment of providers as well as for the
enormous in general stockpile. Subsequently, provider's dealing power is a minor issue for
Starbucks.
Threat of substitution or substitute – Strong force: This segment demonstrates that it is a solid
opportunity for Starbucks to be contrarily affected by this power. The high accessibility of substitutes
makes it simple for the clients to simply pick another brand or item rather than Starbucks. What's
more, has said previously, the low exchanging costs it is likewise further reinforce the danger. Large
numbers of the substitutes are less expensive than the organization's items. Thus, this part is a high
essential worry to the organization.

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Threat of New Entrants or New Entry – Moderate force: The expense of working together is
variable. It depends of numerous components as the size of the shop, the scope of items. The
working expense of a little coffeehouse is lower contrasted with a Starbucks. Nonetheless, little
shops have lower supply needs, equivalents to bring down stock expenses. This is the thing that
empowers independent company to contend straightforwardly with Starbucks. Nonetheless, brand
improvement has a significant expense. This is the condition that decreases the danger of this
power. An independent company needs more assets to build up their image as Starbucks has. The
organization is universally known, this "notoriety" required long periods of difficult work and
ventures, something that s independent company can't make. Along these lines, this power shows to
be a huge danger, yet not a critical matter.
Conduct an internal and an external diagnosis of the company. Use the SWOT and PESTLE
tool to synthesize this information (5 marks)

 Strength, Weakness, Opportunities and Threat for the company (2 marks)
 Political, Environmental, Social, Technological, Legal and Economic analysis for the company
(3 marks)
SWOT
Strengths
Starbucks has an enormous topographical presence across the world, keeping a 39.8% piece of the
pie in the US and working in more than 62 nations. Starbucks is additionally the most perceived
brand in the café fragment and is positioned 60st in the best worldwide brands of 2018, what
classified it as one of the world's most grounded brands. Practically 70% of total populace think
about this organization and their items. Also, the organization gives a high significance to the nature
of their items. The organization stores are situated in the absolute generally prime and key area
across the globe. This has procured them a huge bit of leeway, having the option to enter significant
business sectors and point into the clients persuade factor. What's more, their stores are outwardly
engaging and have a 'cool' factor appended to it. They give free Wi-Fi, incredible music,
extraordinary help, warm air and a climate of local gathering spot, which shapes a more extensive
piece of the 'Starbucks Experience'. The principle focus on the organization is to make their stores a
'third spot' other than home and work. Starbucks has a grounded gathering of faithful clients religion
following status among purchasers and they have likewise executed devotion based projects to drive
unwaveringness with the Starbucks Prizes projects and Starbucks Card. In the US, the organization's
participation expanded 14% year over year under the My Starbucks Prizes (MSR) program in the
financial 2018.
Weakness

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Starbucks evaluating police is viewed as a significant shortcoming to the organization. While it is

centred around their separate scope of items, with high calibre and loaded with the entire 'Starbucks
Experience', individuals discover the costs of the organization extremely high when contrasted with
its rivals and normally think about Starbucks as an extravagance thing. Moreover, the organization
endures with a decreased moderateness of its items, what causes limits in their pieces of the overall
industry, particularly in territories with generally lower dispensable wages. Another soft spot for the
organization is: numerous Starbucks items are imitable. A little and neighbourhood bistro could
without much of a stretch create drinks pretty like the ones that Starbucks sells. Indeed, even the
plan and atmosphere of their stores are imitable. By having a colossal and forceful development, and
congestion market, the organization takes their clients starting with one store then onto the next,
subsequently lessening the chance of long haul development focuses of Starbucks. This is occurring
particularly in the US, where Starbucks has 13,930 stores. The way of life of espresso is altogether
different in every country. Generally, Starbucks follows the American espresso culture that may not
be broadly acknowledged in certain parts. Australia, for instance, has a totally different culture for
espresso. They love their espresso with more flavour, more assortments, more particular. This can
influence the procedures for worldwide development for Starbucks.
Opportunities
The US has turning out to be increasingly more soaked each year, thus, it is imperative to have a
decent global development methodology. The fundamental market to focus on the following not
many years is China. Starbucks has just begun with the arrangement to open 600 new stores until
2022, extending their actual impression to 6,000 areas across 230 urban communities. As a creating
market, China has been showing a working-class development, just as the reception of the western
culture of espresso drinking. This would keep on expanding the incomes by high twofold digit rates
in the following not many years. Toward the finish of 2018, the association declared an organization
with Alibaba to make another espresso experience in China. The primary part of their organization is
the appropriation of Ele.me, Alibaba's food conveyance stage that has 3,000,000 conveyance riders
and was esteemed at $9.5 billion, to steer conveyance administrations starting from September in
Beijing and Shanghai. With the development of the program to more than 2,000 Starbucks stores
across 30 urban communities. Be that as it may, Starbucks has fashioned and union with Alibaba, yet
additionally with Settle. The affiliations pronounced an overall promoting deal that gives the last
"endless rights" to exhibit Starbucks' things all around outside its cafés. This alliance will expand the
overall reach of Starbucks marks in the customer packaged product and foodservice classes from the
current measure of 28 to just about 190 countries around the planet. Starbucks is advancing its item
rang with critical development around drinks, reward, wellbeing, tea and centre food contributions.
Beverages developments have been a primary supporter of the organization's development
throughout the long term. Extraordinary and occasional items, for example, the pumpkin flavour
latte have been on the lookout for a very long time and are exceptionally famous. Food has moved
toward a key improvement driver. The association plans to broaden its lunch menu and offer locally
significant snacks the world over. Starbucks' extraordinarily examined night program – food, wine
and blend commitments – open at 100 stores is needed to be taken off in 20–25% of Starbucks
outlets in the US, being depended upon to incorporate $1 billion in salaries before the completion of
monetary 2019.
Threats
With the market being at a created stage, there is extended load on Starbucks from its rival's
strength espresso stores. Another pattern, which is winding up dynamically notable, is distinguishing

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strength espresso roasters. These associations are prompt to client with a creating developing online
media presence and publicizing on offbeat roads, for example, digital broadcasts. They can make
quality coffee and go direct to the purchaser while developing a whole brand around their coffee
including apparel, tumblers, and cups and home planning elective, for instance, French and
AeroPress. The hours of expecting retail to have a productive business are done and this is changing
over into the coffee business now. Numerous nations have worked around the interest in espresso,
as long as the U.S., some much more. This makes a segment of the more incredibly made and
advantageous territories assigned to change in the espresso culture. As Starbucks has not had
adequate energy to totally adjust to these new convictions and characteristics, they can possibly
develop a negative wisdom as per worldwide purchasers. Another danger relating especially to China
is the nonstop trade battle among it and US. China could retaliate against the trade charges, making
restrictions on external hypotheses and dismissing legal advantages of far off had associations.
Another conceivable danger is the unpredictability of the costs in the worldwide espresso market. In
the previous few years, there have been chivalrous variances in the costs of great espresso beans.
The association can't handle it, the lone chance it is to attempt to adjust to it, or changing its own
costs or providers. In an unquestionably monetarily planned world, a financial crisis like the one of
each 2008 could have a stream down effect from the made business sectors to the making markets.
This risk would hurt salaries for Starbucks as buyers move away from premium thing mix to stay in
compelled spending plans during money related difficulties.
PESTEL
Political
One of the principle political elements that have influenced Starbucks is identified with the
reappropriate of materials. Starbucks it is sourcing its crude material from another nations. This has
accumulated a great deal of the consideration from government officials in the West and, obviously,
from the source nations, what have essentially influenced the strategies of the worldwide
organization. Another main consideration is the arrangements like reasonable exchange strategy. It
is important to keep the laws and guidelines in the nations from where the association purchases
the materials. Likewise, every nation has its on duty strategies and business laws. Starbucks needs to
consider that each time the organization intends to open another store in another country. These
can radically influence the organization and its business, if not be followed effectively.
Economical
Any worldwide financial change or downturn would be a principle outer issue for Starbucks. These
days, with respect to the conservative changes on the planet, the vast majority have been changing
their devour propensity, moving to less expensive other options. This factor scratched the
productivity of Starbucks. This can be viewed as a chance to pull in these costumers back, or the
organization will keep on losing space on the lookout. Starbucks needs to comprehend the way that
the purchasers are currently inclined to purchase low value espresso offered by numerous
neighbourhood and different contenders around. These changing patterns ought to be considered to
keep up the business. Another factor that may influence the association is the nearby cash trade
rates. As referenced previously, with Starbucks purchasing crude materials from another nations, it
might confront greater expenses of imports. An appreciation makes trades more costly and lessens
the intensity of sending out firms, what can bring about the crude materials being less expensive,
following an appreciation. As likewise referenced over, the assessments can impact any business.
Various degrees of duties from better places can influence how the organization works.

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Social
Starbucks can much offer more moderate items, yet it may need to influence the quality. This will
grow the shopper base, including the purchasers from the lower and the centre pay. The Eco
accommodating, veggie lovers and vegetarian shoppers are additionally expanding. This, what
numerous individuals call a "pattern"; it is likewise influencing numerous organizations and can push
Starbucks to roll out some critical improvements in their items advertisement administrations. Social
elements advance personal conduct standards and their way of life impact. Each spot has its own
convictions, standards, patterns. These days, these customers are expecting something of value in
lower cost. The days where Starbucks was the just or even most ideal choice for some espresso are
no more. Presently the espresso sweethearts have numerous different brands to pick from, which
oblige Starbucks to capitulate to the adjustments in their strategies and guidelines to follow the new
culture.
Technological
Since the inception of the versatile pattern, Starbucks has been making the most of its advantages.
The organization with Apple for the advancement of a rebate application, it has been incredibly
useful. These days, the Web is the thing that keeps the world moving. Each Starbucks store has free
Wi-Fi. That is the reason is a repetitive occasion to see individuals having a gathering, contemplating,
and working, face timing, at a Starbucks store. They associated two significant things to the clients.
Presently, everybody realizes that on the off chance that somebody needs to work while unwinding
with some espresso, the best spot for that is Starbucks. This additional an enormous incentive to the
brand, upgrading the general purchaser experience. Regardless of all that, the rising accessibility of
home-use forte espresso machines is a danger to Starbucks in light of the fact that it builds the
accessibility of substitutes to Starbucks items.
Legal
Starbucks should ensure that it doesn't mishandle any laws and rules in the home market and
countries from where they buy unrefined materials. It should similarly stay alert about introduction
of caffeine age and usage related courses of action and rules by prosperity specialists. Each area has
its on exchange guidelines, work laws, tax assessment laws, and in any event, permitting guidelines
to open and work a business. Starbucks is as of now performing outstandingly in these points of
view. In any case, growing business rule, especially in making countries, bargains Starbucks
Espresso's passageway to the work publicizes. This external factor similarly impacts Starbucks
through extended spending for HR.
Environmental
Throughout the previous few years, the organization has been attempting to lessen the ecological
effect. It has started a Green store program where all the stores would adhere to building expert
natural norms, and furthermore guarantee that the planning, building and keep up of the stores
develop those guidelines. To diminish the plastics in the climate, the organization is expanding its
reusing programs, advancement reusable cups, "straw less", and intending to accomplish a greener
cup by 2022. The organization has likewise put resources into a sunlight based homestead, which
conveys sufficient clean energy to control in excess of 600 stores.
Discuss your key marketing strategies and core competence (10 marks):
In this section you are required to illustrate and present

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 SWOT of marketing mix which would be the 4Ps (Product, Price, Promotion, Place) (3 marks)
 Core competence involves discussion around company’s innovation, quality of
product/service (such as reliability and performance), customer service, flexibility offered to
employees, any other competencies (such as organisations competitive advantages, superior
internet presence, etc). (3 marks)
 Evaluate the effectiveness of previous marketing strategies (2 marks)
 Evaluate the positioning strategies (2 marks)
Marketing Mix
Product
The primary items classes of Starbucks items are: espresso, tea, heated products, Smoothies,
Frappuccinos, and product as cups, packs of espresso, and so forth Notwithstanding, the items are
not by any means the only things that Starbucks offers to its clients: it's the predominant espresso
experience. Notwithstanding that, the organization offers a high calibre and standard items. The
clients are paying for the entire bundle. Over the world, Starbucks has even more then 1000
unmistakable varieties being offered to their customers. In spite of the way that they were to some
degree late to introduce tea, they picked the method of brand limitation to put it on the map. Close
by this, they similarly offer customers different things from season to prepare, for instance,
Frappuccino, strawberry cream in summers and different lattes, for instance, gingerbread latte in
Christmas. In the Starbucks store you can similarly find Starbucks cappuccino and coffee makers.
Price
Starbucks estimating technique is premium. Its items are more costly than most contending items. In
spite of utilizing an excessive cost methodology, the organization offers a top-notch standard
picture. What's more, its best in class development and the groupings it offers close by the best
customer experience.
Starbucks started with began with an ease range at not many outlets and giving food the customers
who couldn't be pulled in by its significant expenses. The packaged things are moreover open at
general stores, which are comparably more affordable than the customary outlet things and
adequately available to everyone. This exhibits Starbucks not simply seeks after centered esteeming
in its displaying mix yet furthermore relative assessing techniques. The drinks at Starbucks are
furthermore open in various sizes as indicated by the need and need of every customer with second
assortments like demi, short, more modest than typical, tall, grande, venti and trenta. The quality is
reliably the most significant, which helps in keeping up a dependable customer base and brand
name.
Starbucks follows a straightforward line of thought – if the buyers get top notch items they wouldn't
see any problems with paying somewhat more. So for them quality is the key. The never deal on the
idea of the things and completes extreme and severe quality control measures close by exceptional
customer organization to legitimize its expense.
Place

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Starbucks used to sell its items through cafés. Ultimately, the organization began to offer a portion
of its items through its online store. Notwithstanding, Starbucks finished its online store tasks in
2017. The essential change mirrors the organization's work day to zero in on instore insight. Then
again, portable applications permit clients to handily submit their requests on the web so they could
helpfully get their food and beverages at the stores. Starbucks uses more than one channel of
spread. They sell their things through association had stores or a quick retail system. They import
coffee beans from the best nursery the strategies it and sells it under their picture name. In like
manner, they have concurrences with lodgings, transporters and office coffee suppliers. This causes
them consider the more broad market. Around the world, Starbucks is available in excess of 70
nations in Africa, North America, Oceania, South America, Asia and Europe. Starbucks presents a
very much planned site which contains data on every single part of espresso making, espresso
assortments accessible, sourcing alternatives, fixings and best gear and creators.
Promotion
Starbucks became well known particularly by giving the best client experience and confiding in the
verbal promoting. The association additionally promotes its items through customary media, for
example, TV and print media; and, obviously, the Web. Deals advancements are utilized in Starbucks
Prizes. Utilizing a similar thought of the dependability espresso cards, this program includes free
items that clients can profit subsequent to buying a specific measure of the organization's items.
Starbucks infrequently utilizes advertising, which has not generally been fruitful for the organization.
A genuine model is the thing that occurred with the Race Together mission, which was broadly
reprimanded. In any case, the Starbucks Establishment proceeds with its endeavours to tackle
different difficulties in the public eye, helping networks while advancing its brands.
Core Competence
Starbucks has an alternate relationship with its clients and providers. They centre in giving the best
experience they can for their clients, with a decent client care, more worth quality items and
admittance to the Web and the best espresso. Moreover, the organization guarantee to empower
and rouses their group, so it can keep the two sides fulfilled, what additionally adds to improve the
client's experience. Starbucks can support in the serious market in view of it special capabilities
which their clients generally esteemed. Keeping a dependable development it has been feasible for
Starbucks on account of their different methodologies identified with valuing and item. The
organization is continually growing new items for their new business sectors, continually keeping up
its worth and quality. The association has sorted out some way to grow its advantage and piece of
the general business with its advancement methodology and by various joint undertakings with
other related associations. The organization has encountered enormous advantages due to it huge
combination techniques and global, homegrown and public development. The centre capability of
Starbucks has been its ability to successfully utilize their procedures to show their separation by
offering a first rate thing mix of phenomenal beverages and bites. Starbuck's picture esteem
depends on selling the best quality espresso and related things, and by giving each customer an
exceptional "Starbucks Experience", which is gotten from superior customer organization,
unblemished and all around kept up stores that reflect the lifestyle of the organizations wherein
they work, likewise manufacturing a significant degree of customer steadfastness with a group
following.
Analyse the key issues the organisation is facing and suggest alternative action (6 marks):

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In this section you are required to

 Highlight the two key issues of organisation (example: challenges of massive global
expansion, barriers to innovation, difficulty in creating new value chain, etc) (3 marks)
 Suggest alternative actions for each issue which can minimise the issues or strategies to
prevent the issues. (3 marks)
Starbucks has a couple of issues as association. In the US was found that inside same area
there were numerous stores, which further brought about immersion of clients. That
brought about a considered number of stores being shut down.
Consequences of Starbucks are considered as excess things. It very well may be possible that
considering the overall financial slump the customer may feel that it's difficult to spend on Starbucks
thing, which are insignificant costly when appeared differently in relation to their rivals thing.
Another issue is the globalization, it has brought about the expansion in the opposition for
the Starbucks Organization. The Starbucks needs to contend in the market going from the
different worldwide organizations as likewise with all the neighbourhood coffeehouses.
The hypotheses made by the Starbucks are to design their stores is high. This is done as such as to
pull in various customers and give them beguiling and restoring foundation. This can be come about
extreme to the association.
Over the most recent couple of years there has been an adjustment in the clients conduct.
Customers are contributing more energy at home, and a more prominent measure of them are
setting up their own personal excellent craftsmanship coffee, different assessments have showed up.
At the same time, they are moreover using logically set up to-drink espresso and various beverages.
They are having more admittance to mix and espressos before where just accessible in unique spots,
similar to a café.
Things have been changing seeing the opposition too, both at home and abroad. At home,
Starbucks is confronting developing rivalry from McDonald's McCafes and the entire day
breakfast, as confirmed by the new turnaround in McDonald's deals. Abroad, Starbucks is
confronting solid rivalry from local new businesses that have figured out how to coordinate and even
surpass Starbucks "third spot" model. A genuine illustration of that is the Greece based Mikel
Espresso Organization, which includes an arrangement of 130 refreshments — and an exquisitely
planned "third spot" look, staffed via painstakingly selected and all around prepared and committed
partners.
Furthermore, Starbucks deficient advancing procedure on publicizing is anticipation in the

business advancement openings. They like to manufacture the brand by propelling the
refreshments cup-by-cup with customers. The notification closes until they drink the coffee,
reducing the chances to attract huge customers. In like manner the careful augmentation strategy
sought after by Starbucks can contrarily influence the associations brand picture. As associations
create there can be a tendency to focus too strongly on extending yield and zones, and less focus on
quality and brand picture. Starbucks needs to stay with its characteristics and objectives that have
made it successful.
Similarly Starbucks system of not broadening can be an explanation behind concern for the firm.
Broadening would empower the association to open various new stores with less risks, and make
broad advantages in doing all things considered. Because of this the affiliation's imaginative work
costs would fall using the franchisee learning of the close by market similar to geographic,,
psychographics, economics, and the local country rules.

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Expanding is interests in advertising exercises and showcasing investigates are solid factor that
would assist the organization with beating these issues. It is crucial for battle straightforwardly with
the two essential issues: the developing rivalry and the lacking advancement strategies. These could
be the differential to the organization to at last overcome the business sectors where they have
lower exhibitions as the Australian market.
Discuss product innovation and international market opportunities (12 marks)

(2 marks each)

 Discussion on new range of product or suggest improvement on existing ones
 Differentiation strategy
 Opportunities based on international location, labour market, cost competitiveness, ect
 Opportunities related to global and country specific economic, social and industry directions,
trends, practices and techniques.
 Risk assessment for the opportunities
 Analysis of financial feasibility to implement your strategies
Starbucks could consider dispatching an entire assortment of espresso machines and devices, to add
to its items previously been dispatched. This could assist Starbucks with turning into a reference in
the espresso business with respect to beans and creation of espresso.
This activity would have an effect in the Australian market. Clients truly esteem a bistro it serves a
truly notable espresso and uses notable hardware to make it. It very well may be another arm that
Starbucks could develop from itself.
Starbucks likewise doesn't stress on conveying their items to grocery store due to being worried
about the nature of the espresso; if the espressos bundled into plastic sacks. Putting resources into
placing every one of their items and differentials in a position of simple admittance to the public
would be fundamental. A café how sells and appropriates around the world its own espresso,
delivered, grounded and made it by its own hardware.
A decent chance for the organization is put resources into making of better beverages. The vast
majority today are carrying on with a better life, cutting sugar, milk, or in any event, turning out to
be vegetarians. Putting resources into more alternatives that can fulfill this bow wave of clients
could have the effect.
The faithfulness and prize projects are something to keep and improve. There are 15 million
powerful Starbucks Prizes people, a development of 13% from a year prior. Those customers, who
use the convenient application to ask for and pay, will as a rule be continuously unfaltering and have
helped uphold bargains.
Over the span of late months, Starbucks moreover incorporated another 5 million modernized
customers. Those fuse customers, who have used the Starbucks application without joining the
prizes program, sought after party time deals and got to Wi-Fi in the store by entering in their email
address. The thinking is to open a line of cutting edge correspondence with more customers, even
the people who might not really like to advance toward turning out to be people.

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Starbucks uses an extensive partition technique. This framework is centred around a more broad
section of the hard and fast market. Starbucks serves a market that is portrayed by coffee
purchasers. Starbucks has made the affiliation without a doubt comprehended for meeting to wide
customers' requirements by arranging solicitations to meet customers' cravings, paying little mind to
how low down they are. Starbucks is in like manner extraordinary for quality things, with severe
guidelines depicting how their coffees to be prepared, as separated as espresso should be served
inside 23 seconds of getting ready.
India is likewise a worldwide chance for Starbucks. As the Indian economy seeing high single digit
advancement, Starbucks sees a monstrous open entryway in the creating middle class with higher
optional income in the country. While the association faces uncommon test in India from coffee
chains, for instance, Bistro Espresso Day, which had just about 1,500 stores in December 2014, the
overall bistro feature in India is regarded at $1.1. Billions of which the chain bistro market is worth
nearly $300 million. Disregarding the way that it works only 75 stores in India Starbucks
acknowledges that India is its snappiest creating business area. The association plans to bring its
client packaged items, close by its solidarity tea brand, "Teavana," to India. Given that India is
overwhelmingly a tea-drinking nation, dispatch of Teavana in the country could help Starbucks
acquire customers in the locale. It will in like manner benefit via conveying its adaptable and
automated development to India as convenient solicitation and pay can decrease long queues in the
thickly populated metropolitan regions of the country, in this way outfitting Starbucks with a forceful
edge. Each new arrangement or activity presents its dangers. With every one of these chances,
Starbucks additionally is available to awful outcomes, as recently experienced in Australia.
Sociocultural obstructions are one of the huge dangers that the organization face it. Each country
and mainland has an alternate culture and experience with respect to espresso. The little cafés are
effectively adjust to them, however for an organization as large as Starbucks, to have the option to
adjust every one of its tasks to give what the clients are expecting is hazardous. Asia, India and
Australia are totally different business sectors with respect to espresso. It is significant that
Starbucks study and examination profoundly into to the business sectors to see how they work and
what the opposition is doing well and wrong. A high venture will be essential, however it is a danger
that the organization will take to finish up its targets.
Dispatching new items or administrations is likewise very danger. It is a high venture that in the
event that it turns out badly, it is a great deal of cash that will be squandered and the organization's
benefits can be exceptionally influenced. The organization can, once more, have a decent advertising
group, very much prepared and truly into making everything occur, contribute and investigates,
tests; and furthermore working with the correct promoting exercises. In any event, doing all that, it
is conceivable that it may not work. In any case, each one of those activities make it simpler to arrive
at progress than disappointment.
Presently, all that is monetarily conceivable? Thinking about all the expenses with the creation and
advancement of new items and hardware, in addition to the spending plan for the advertising
exercises and operational expenses, it is Starbucks ready to do all that, monetarily?
The expense can't be excessively high, in any case regardless of whether it works it might require
quite a while to recuperate the cash contributed or even benefit on top. What amount of time the
organization will require to be taken care of for all the venture? It is essential to have all that
considered and arranged, yet, as said previously, it is conceivable that even with all worked out,
extraordinary arranging and incredible group, a few things simply don't go as arranged. It is
fundamental that Starbucks assess all the prospects and in the event that it is commendable it to
make these interests in various business sectors. It is truth that, if all the endeavours and openings

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work, Starbucks will have stunning outcomes, with a high return for capital invested and an ideal
monetary effect on the brand.
Discuss a new value chain for organisation which might be required for the changing
coffee market (6 marks)
 Refer to the value chain given in the case and suggest addition to the value chain. (3 marks)
 The development of value chain should consider factors such economical, technological,
cultural, recent trend in coffee consumption, etc (3 marks)
Value Chain
The estimation of chain give for the situation show that since its beginning, Starbucks has
consistently been stressed over build up a decent item, with worldwide impacts, seeing that they
have numerous stores across the globe. Yet, it is essential to consider all the parts of the multitude
of steps until the item can arrive at the client.
The organization has begun investigating, is to have the chance to develop their own espresso. Such
a move in the sourcing of items can build the adequacy of new item improvement activities for the
business, as the organization will get an opportunity of trying different things with growing new
kinds of espresso.
Starbucks has consistently expected to have stores working in the best areas, with high traffic and
perceivability. Differing the size and arrangement of its stores, the organization finds them in or
almost an assortment of settings, including downtown and rural shopping complexes, places of
business, college grounds and in select rustic and off-interstate areas. Enhancing its tasks, the stores
give an encounter where clients can invest quality energy and approach a cool and loosening up
climate with admittance to Web.
Another suggestion would be the organization to consider the alternative of franchising, that would
permit the organization to open numerous new stores with less danger and make extensive benefits
in doing as such. Due to this the association's innovative work expenses would fall utilizing the
franchisee information on the neighbourhood market regarding geographic, psychographics,
socioeconomics, and the nearby nation guidelines.
Also, would be fascinating for the organization to proceed with the venture and even arrangement
to begin being considerably more engaged with new patterns, as it is going on with the Amazon.
Partaking of large occasions or in any event, supporting a thought, it would keep the brand in the
media and in the client's brain. These days, particularly in nations as Australia, where the espresso
culture is very unique in relation to the American, acquiring steadfast clients is a sudden death round
in the business.
Identify your international marketing objectives and operational plan (8 marks):

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In this section you are required to write an email to your stakeholders informing them of the following:
 At least two SMART marketing objectives. (2 marks)

 Roles and responsibilities of at least two relevant marketing personnel (2 marks)
 International marketing mix activities and how that can be executed effectively (2 marks)
 Forecasting any future risk and risk preparing management plan (1 mark)
 Market promotion programs (keeping in mind the cross-cultural communication and
negotiation styles) (1 mark)
To whom it may concern,
In the Asian market, particularly China and Japan, the quickly developing rivalry has been an issue. In
any case, the genuine huge disappointment for Starbucks has been in Australia. The organization's
first appearance was in Australia 2000, where it had the option to develop until 90 stores around the
landmass before the finish of 2008. In any case, Starbucks moved excessively fast, and became
quicker than its notoriety.
Australia's as of now flourishing espresso culture additionally end up being a test for the American
brand. The Australian bistro industry got more than $6 billion in income in 2018. Starbucks didn't
accommodate Australians' preferences. The organization served better espresso alternatives than
Australians liked, all while charging more than the neighbourhood bistros. In its initial seven years in
Australia, Starbucks aggregated $105 million in misfortunes, compelling the organization to shut
down 61 areas.
What's more, that is the reason Australia is in the focal point of the showcasing destinations to be
refined. In this way, as principle goals, Starbucks is intending to: - Increment its deals in 20% in the
Australian and Asian business sectors inside 2 years; - Increment piece of the pie in the espresso
scope universally, particularly Australia; - Increment the measure of stores around the world to
40,000 until the finish of 2022; - Develop normal client spend by 10%.
To arrive at these destinations, it is essential to design well its advertising exercises and some market
advancement programs. Starbucks dominatingly utilizes its site, online media directs and in-store
presentations to advance the brand and the items. It additionally utilizes deals advancements,
occasions, direct advertising, print media, and PR in an incorporated way to increase the effect of its
advancements.
Starbucks is known by is superior cost. After quite a long time after year, the organization just
expands its costs, what have been causing of it losing space on the lookout for its opposition. Value
changings are important. The item costs are very higher when contrasted with that of its rivals.
Activities identifying with cost decrease like justifying worldwide retail network are executed for
improving net revenue.
Investigating various techniques is additionally imperative to attempt to fill in an extreme market as

the Australian. Utilizing dread as a trigger can be a ground-breaking activity. Utilizing the dread of
individuals of passing up a major opportunity it is an extraordinary chance. As per research, 60% of
Twenty to thirty year old make hasty buys driven by dread of passing up on a chance. Utilizing time
restricted or exposed advancements and an occasional/incidental menu to make a desire to move
quickly in individuals' psyches is a choice. "Take the offer today (or at the present time) or it will be
no more".

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The organization is additionally notable for its intensely content advertising procedures to draw in
clients and keep them locked in. Keep on participating in this procedure is additionally a vital piece
of its advertising systems plan. Their substance has a specific quality, a specific look and feel to it
that depicts a high picture of the brand. Extraordinary alternatives are making difficulties for the
clients with remunerations included; connecting advancements, exceptional exercises or even items
to large occasions as Christmas or Halloween.
For every one of these plans to work, it is additionally critical to transform the showcasing group into
brand representatives, Individuals who truly trust in the brand and will attempt to carry the best to
its work.
Getting all that together with a decent PR work, that is typically an imperfection territory in
Starbucks is can truly carry incredible outcomes to the organization's presentation on the lookout.
Each technique, however, has its dangers. Expanding the interests in these business sectors and not
getting the normal outcomes can be a major hit to the association. That is the reason it is
fundamental that the organization to remember that it is conceivable to occur. One chance is
defeating the financial plan or the ventures: is a major danger inside any promoting plan. Missteps
can happen whenever, yet having a solid arranging, great investigates, and great individuals work in
the background, can stay away from that the organization needs to go through more cash than
normal.
Another conceivable danger is the opposition. In these business sectors the opposition is getting
more grounded each year. Subsequent to encountering a major disappointment on the lookout,
Starbucks needs to continue going with the entire arranging and continually following the opposition
reactions to its advertising procedures.
Finally, the social chock of not giving what those clients from these particular market are searching
for. This can be another ruin for the brand. A decent statistical surveying and a full comprehension of
these market and its clients is vital to evade it to happening once more.
Evaluating, measuring and monitoring marketing effectiveness (5 marks):

(1 mark each)

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 Discuss customers value satisfaction
 Marketing contribution to revenue and ROI
 Changes in brand awareness
 Marketing channels and platforms used and their conversion rate
 Gain approval for redesign of at least 1 new marketing metric to measure marketing
effectiveness.
Starbucks acclaim their clients in a general help, giving the specialists a broad client assistance
preparing to make their experience the most ideal experience. Additionally, the help is quick and the
clients have the choice to have dedication plans, which give them great focal points when they are
regulars. To gauge and screen that, it is essential to consistently keep track in the online assessment
instruments as the Web-based Media, Google and food sources applications as Zomato, to follow
along and react all the assessment made it by the clients. For Starbucks, it is truly imperative to keep
a significant level of client's worth fulfillment, seeing it is one of the association differentials.
With one shop opening like clockwork in China, Starbucks showcasing spreads worldwide and still
keeps unfamiliar nations to put resources into the brand in their own dirt. Their fundamental income
is the in store selling, which addresses 91% of complete income though the promoting income
aggregates around 11%, which incorporates new clients, upselling publicized items and like
referenced previously, new establishments around the globe. The new outcomes made by the
showcasing effort and new methodologies will bring about return of the speculation. Expanding the
deals and the piece of the pie of the organization, particularly in nations like China and Australia in
fundamental.
Starbucks is a reference with regards to espresso and its image mindfulness can be a psyche
changing with regards to clients choosing from which brand they should purchase their espresso,
normally in light of the accomplishment of the organization they will undoubtedly go to Starbucks at
whatever point they consider the name. Yet, these days Starbucks, to continue to develop,
particularly in nations like Australia, they need to adjust considerably more to the clients which are
getting more requesting with respect to the kind of milks and dairy free items, they need to
consolidate these sound qualities into their image to be significantly more renowned in this
situation. Monitoring the new patterns and changes inside the brand mindfulness is vital to proceed
with its work.
The brand began to put vigorously in advertising through web-based media as of late, they show up
on Facebook, Twitter, Instagram, Pinterest, Youtube and even on Google In addition to. Not failing to
remember also the email advertising. The emphasis on the Online Media will be Instagram and
Facebook. The objective uses these two medias to query for the most ideal choices for espresso and
breakfast. So the venture to have a decent looking and engaging feed is vital. Thusly, they made a
significant client commitment through their internet advertising advancements. It is critical to
quantify the change pace of these medias. What number of individuals access their Facebook or
Instagram page? What number of individuals watch their accounts? There is a ton of association
between the clients and the brand in Online Media?
Likewise, as the organization is as of now acquainted with the customary media, television and print,
the thought is keep on utilizing it as a help to the next, not as an essential alternative. Seeing that
the vast majority of the objective it is packed in the Social Medias and Web, the conventional medias
will simply strengthen the thought spread all through the others.

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After the new techniques happen, it is additionally imperative to investigate the opposition reaction
to that. They have changed their methodologies. They respond to the organization's changes. Is it
safe to say that they were influenced by it? This is likewise essential for the arrangement
achievement and critical to realize what it worked and what to improve straightaway.
A decent method to achieve all these is to have an Advertising Review figured it out. It is
straightforward an intensive assessment of all parts of the association that can bring important
outcomes.
Identify Australian and International policies and legal factors affecting marketing
operations (3 marks):

 environmental matters
 human rights
 labour relations
The public authority, through its contracting rules and procedures, coordinates the way wherein
associations work with it. It not simply viably asks privately owned businesses to participate in
imparting premium when it purchases things and organizations, yet it moreover puts forth an
immense attempt and goes through loads of money in exertion activities to find incredible, qualified
autonomous dares to be its suppliers to keep an essential separation from genuine factors that
would impact their business. Customarily, it gives information that urges free organizations to offer
with unimportant peril, thusly managing the legitimate variables in the business.
Any business that is coordinated as a lawful component is at risk to the state law that supervises its
action and direct. There are different kinds of business components. For example, associations,
confined affiliations, associations, compelled commitment associations, limited danger obliged
associations and obliged hazard associations all of which have unmistakable legitimate status and
issues.
In case a business is hoping to get financing through different kinds of theorists, it very well may be
obligated to legitimate issues, for instance, security law. For instance, a decision to offer promissory
notes, a sort of credit to your monetary trained professionals, will subject the real factor affecting
business to state and government rules and security laws.
Furthermore, are likewise the agreement laws. If the organization is to enter an agreement with
another person or component, by then agreement law is legitimate. This also has an extraordinary
zone that is incorporated direct with parts affecting business, for example, government contracts,
which is generally called government procurement laws.
Concerning representatives and work laws, it is imperative to think about a couple of things. Various
governments have passed laws to ensure the interest of workers. These laws guarantee them
against off the mark partition at work and while applying for livelihoods. It ensures that no one is
mistreated dependent on such things as race, religion, sex, age, or shading.
It is additionally early stage that the organization thinks about the working conditions. As per the
law, representatives should get assurance when working with perilous machines; at the working

T-1.8.1_v3
environment, workers ought to be given attire and hardware that fulfill the most noteworthy
wellbeing guidelines; workers ought to have a sensible temperature at their working environment;
the most elevated sterile principles at the work environment and washing offices ought to be met
for representatives; representatives to have sufficient breaking periods while working; business
ought to maintain the opportunity of affiliation end successful acknowledgment of the privilege to
aggregate haggling; the disposal of all types of constrained and mandatory work; the powerful
annulment of youngster work. When discussing work laws, it is additionally critical to think about the
migrants. There are uncommon laws for them, particularly in nations where they are permit to work
by the law. Low instalment rates and extended periods are basic to happen seeing that the majority
of the occasions the outsiders need to attempt to make due in an alternate country that may not
give them reasonable freedoms. For this situation, the settlers give a prepared wellspring of
moderately reasonable work that keeps the expense of business low and hoisting benefits. The
organizations need to consider that are laws to ensure them and they are individuals who
additionally have rights, even not being residents.
If there should arise an occurrence of exchanging and burning-through, the association needs to
remember that they are explicit laws for that:
- Weight and Measures Act: These laws guarantee that the merchandise sold are burdened Standard
weighting hardware; - Exchange Portrayal Act: This law guarantees that it is unlawful to intentionally
give misdirecting impression about items; - Shopper Credit Act: As per this Demonstration,
purchasers ought to be given data of the credit understanding and ought to be made mindful of the
financing costs, length of advance while taking an advance; - Offer of Merchandise Act: This
Demonstration pronounces that it is illicit to sell items with imperfections or issues and that any
products sold adjusts to principles.
All countries have their own ecological laws. However, it is realized that, these days, every one of
them pay attention to it very. Natural security is imperative to keep the world turning, and to have a
business an association needs to mull over them. Some industry areas are exceptionally directed.
These guidelines control the producers and merchants of risky substances, which ordinarily need an
enrolment, continually observing the standards of every country or locale. Only one out of every odd
nation permits the deal and commercialization of each substance. This is a wellbeing matter just as
natural. When starting a business, an organization needs to consider what its items or
administrations may mean for the climate and if every one of its perspectives are agreeing the law.
In the matter of showcasing and advertisement, the organization needs to consider the follow: -
While advancing your items or administrations, you need to guarantee that any marking,
proclamation, quote or some other portrayal isn't bogus or deceiving; - Segment valuing is the point
at which the cost of an item or administration is publicized or shown in discrete parts. For instance,
when the single cost of a vehicle is shown and extra on street costs are recorded independently. In
the event that the organization promote utilizing part valuing you should likewise give the maximum
comprehensive of extra expenses in a more conspicuous manner; - Should not do snare publicizing,
that comprise in where an item is promoted at a specific cost without a sensible stockpile. Lure
promoting is illicit if a business sells the item realizing that they can't fulfill anticipated need.
SOURCES AND REFERENCES USED

T-1.8.1_v3
1. http://panmore.com/starbucks-coffee-five-forces-analysis-porters-model
2. https://www.starbucks.com.au/Home.php
3. https://awario.com/blog/starbucks-best-and-worst-marketing-campaigns/
4. https://finance.hr/wp-content/uploads/2018/11/Starbucks-Company-Analysis.pdf
5. https://mission-statement.com/starbucks/
6. https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf
7. https://finance.hr/wp-content/uploads/2018/11/Starbucks-Company-Analysis.pdf
8. https://pestleanalysis.com/pestle-analysis-of-starbucks/
9. http://panmore.com/starbucks-coffee-marketing-mix-4ps-analysis
10. http://www.supplychain247.com/article/starbucks_as_an_example_of_the_value_chain_m
ode
11. https://www.marketing91.com/marketing-strategy-starbucks/

T-1.8.1_v3
APPENDIX
Include any attachments, facts, figures, pictures, diagrams, brochures, web screenshots, etc that you
have discussed in your plan and may relate to explain the e-marketing plan more clearly.

Assessment II - Individual Strategy Report T220 - Solved Natalie Edge

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T-1.8.

Student Declaration: I declare that the work submitted is my

Assessor Declaration: I declare that I have conducted

Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 1

Purpose of the Assessment

Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 2

Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 3

purpose, and meet legal and ethical requirements

Resources required for this Assessment

 Computer with relevant software applications and access to internet

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CASE ORGANISATION: STARBUCKS COFFEE (INTERNATIONAL/GLOBAL

Starbucks website - https://www.starbucks.com/

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Old Value Chain:

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Links to organisational website and relevant information on the organisation:

CONTEXT, PROBLEM SCENARIO & REQUIREMENTS:

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Assessment Type: Individual Report

TABLE OF CONTENTS and Mark Allocations PAGES MARK MARK

1. Conduct detailed industry analysis 5

2. Conduct an internal and an external diagnosis 5

3. Discuss your key marketing strategies and 10

4. Analyse the key issues the organisation is 6

5. Discuss product innovation and international 12

6. Discuss a new value chain for organisation 6

7. Identify your international marketing 8

8. Evaluating, measuring and monitoring 5

9. Identify Australian and International policies 3

Conduct detailed industry analysis (5 marks)

In this section you are required to discuss the following:

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 Industry Overview and Analysis

Industry Overview and Analysis

Industry demand determinants and profitability drivers

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Porter’s five forces analysis

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In this section you are required to discuss the following:

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Starbucks evaluating police is viewed as a significant shortcoming to the organization. While it is

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Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 13

Marketing Strategies, Assessment 2 v1.0 Last updated on 11/06/2019 Page 14

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In this section you are required to

Furthermore, Starbucks deficient advancing procedure on publicizing is anticipation in the

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Discuss product innovation and international market opportunities (12 marks)

In this section you are required to discuss the following:

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Identify your international marketing objectives and operational plan (8 marks):

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 At least two SMART marketing objectives. (2 marks)

To whom it may concern,

Investigating various techniques is additionally imperative to attempt to fill in an extreme market as

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Evaluating, measuring and monitoring marketing effectiveness (5 marks):

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In this section you are required to discuss the following: