Republic of the Philippines

CAVITE STATE UNIVERSITY

    Tanza ǀ Trece Martires City ǀ Gen. Trias City Campus
🕾 235-7997 ǀ 🕾 410-5247 ǀ 🕾 437-0693
www.cvsu.edu.ph
GENERAL TRIAS CITY CAMPUS

MARKETING PLAN – INTRODUCTION PART

Starbucks is known to be the world’s largest coffeehouses chain. Started in 1971 along the

cobblestone streets of Seattle’s historic Pike Place Market. The name is inspired by Moby

Dick’s first mate. It serves roasted and best quality arabica coffee in the world. Expanding

the popularity, Starbucks hits to the top with a total of 26.52 billion U.S dollars in revenue (S.

Lock, Apr 27, 2021). Due to the pandemic, Starbucks faced shortage in menu option and

other item. According to Starbucks Spokesperson on CNN Business, "Due to high demand,

some customers may experience a temporary shortage of oat milk at their store." Oatly, the

supplier of Starbucks struggling its own problems. As it sees a high demand of its oat milk

products, the company struggled because of the pandemic-related construction delays on a

facility in Utah, which supposedly to open last year and serve online “Oatly.” Due to this

shortage because of pandemic, the company hits its net revenue reached 19.16 billion U.S.

dollars in 2020, reflecting a 27.7 percent drop from the previous year. Starbucks coffee is

luxurious enough for middle class people but in some instances, the desire and the

indulgence in coffee makes the people avail it. Varied researches manifest that shortage

occur not only in Starbucks company but also in other coffeehouses are common. The right

thing to do is to address the shortage problem within the Starbucks company and seek

alternative action in coping up company’s problem.

In continuing years, shortage in Starbucks company was not just a concern for a particular

state or country in U.S, but globally concern. According to an internal company viewed by

insider, Starbucks is placing orders for at least 25 items on "temporary hold" as of June 4

due to supply chain issues. Starbucks spokesperson told TODAY Food that "Specific items

will vary by market and store, and some stores will experience outages of various items at
the same time.” Starbucks also issued a warning in its mobile app that some items might be

listed as "out of stock" at local stores.

In the Philippines, due to the pandemics, Coffee Chain giants Starbucks faced difficulties.

Government issued lockdown to the entire country due to the spreading of Covid 19 virus.

But, the imposing of lockdown resulted to the shutdown of different sectors, businesses and

industry. Airlines are hold, Manufacturing companies suddenly shut off and schools are

closed. One affected sector in the Philippines is the Food Industry. Starbucks Corp. has

decided to close all of its stores in the Philippines, supporting the national government's measures

to help fight the spread of the coronavirus disease, the coffee chain's local unit said in a March 23

posted on Twitter. (S&P Global Market Intelligence, March 2021)

Research aim and objectivesThe major aim of this research study is to enhance the
level of Starbucks customers ascompare to its competitors. To explore the meaning and
concept of customer satisfaction. ... To identify the ways to enhance the customer
satisfaction level as compared to thecompetitors. In everything we do, we are always
dedicated to Our Mission: to inspire and nurture the human spirit – one person, one cup, and
one neighborhood at a time. In 2020 Starbucks committed to a resource-positive
future, formalizing environmental goals to cut its carbon, water, and waste footprints by half.
As a progression against those goals, the company commits to Carbon Neutral Green
Coffee and to conserve water usage in green coffee processing by 50%, both by 2030.As
STARBUCKS,1) long term goal is to make 40,000 cafes, intermediate goal is to make a new
favor and short-term goal is making the local STARBUCKS as the third place for the people
in the community. Also there are planning exercise such as SWOT and Five Force Model.2)
Seeking out experiences that effortlessly fit their lifestyle, 3) Appreciation of consistent
experiences, 4) Desire for high-quality and sustainable products and experiences that
support the well-being of people and the planet and, 5) Increasing loyalty to brands with
strong values.
Net revenue of the Starbucks corporation worldwide
https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-worldwide.
Starbucks shuts down all stores in Philippines due to coronavirus
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/
starbucks-shuts-down-all-stores-in-philippines-due-to-cor\onavirus-57744085.
Starbucks oat-milk shortage - https://edition.cnn.com/2021/04/06/business/starbucks-oat-
milk-shortage/index.html.