BUSINESS

ENVIRONMENT AND
STARBUCKS COFFEE
MARKETING
MKT201
Principle of Marketing
Group Presentation
GROUP MEMBERS
Iftekhar-Ul Islam Chowdhury

Nur Mohammad Tanvir

Fahim Mahmood

Mohammad Irfanul Hoque

BUSINESS ENVIRONMENT
 Definition of Business Environment is sum or collection of all internal and external factors
such as employees, customers’ needs and expectations, supply and demand, management,
clients, suppliers, owners, activities by government, innovation in technology, social trends,
market trends, economic changes, etc.
 Business environment helps in identifying business opportunities, tapping useful resources,
assists in planning, and improves the overall performance, growth, and profitability of the
business.
 There are two types of Business Environment- Internal environment and external environment.
The external environments are-
1) Macro Environment and
2) Micro Environment
TYPES OF BUSINESS
ENVIRONMENT
MACRO ENVIRONMENT
 The major external and uncontrollable factors that influence an organization's decision
making, and affect its performance and strategies. The Macro environment factors are below-
MACRO ENVIRONMENT
FACTORS
 Demographic Forces: Study of human populations in terms of size, density, location, age,
gender, race, occupation etc. Example- Changing (age) structure of population, changing
family structure, increased education, growing ethnic and racial diversity etc.
 Economic Forces: Represent the wider economy and may include-
 Levels of employment and unemployment
 Exchange rates and inflation rates
 Natural Forces: Climate, weather and natural resources that affect human survival and
economic activity. Example- Limited natural resources, recycling, waste management, climate
change, use of green or eco-friendly products and practices etc.
MACRO ENVIRONMENT
FACTORS (CONT.)
 Technological Forces:
 Most dramatic force shaping our destiny.
 New products and new opportunities.
 Political forces: refers to- Public institutions- #. Government

#. Government agencies
#. Government owned businesses
Nonpublic institutions- #. Interest groups
Instruments- law, agreements, policy, tax etc.
 Cultural forces: The institutions and other forces that affect a society’s basic values, perceptions, preference, and
behaviors.
 Cultural values are changing.
 Comprehend the local cultures to deal with them effectively.
MICRO ENVIRONMENT
 Microenvironment consists of the forces closest to the company that plays important role on
the company’s ability to fulfill the customers’ needs.
 Microenvironment Factors:

1) Customers
2) Company
3) Competitors
4) Suppliers
5) Intermediaries
6) Public
MICRO ENVIRONMENT
FACTORS
 The Customers: Customers are the people who buy the products. Customers company can be divided into five-

1) Consumer market
2) Business market
3) Reseller market
4) Government market
5) International market
 Company:
 Internal environment of a company that is marketing the product.
 Areas inside a company.
 Affects the marketing department’s planning strategies.
 All departments must “think consumer” and work together to provide superior customer value and satisfaction.
MICRO ENVIRONMENT
FACTORS (CONT.)
 Competitors: Competitors are the other organizations that are competing with the company for
the same consumers with the intentions of fulfilling the same needs and wants.
 The Suppliers: Suppliers are firms and individuals that provide the resources needed by the
company.
 Marketing Intermediaries: Marketing intermediaries are firms that help the company to
promote, sell and distributes its goods to final buyers.
 Public: Any group that has an actual or potential interest in or impact on an organization’s
ability to achieve its objectives. There are seven types of public- Financial, General, Media,
Government, Local, Internal, and Citizen Action Public.
STARBUCKS COFFEE
STARBUCKS COFFEE
(MISSION STATEMENT)
 Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was
founded in Seattle, Washington in 1971.
 Starbucks Coffee Company has become a common brand among coffee lovers everywhere.
 Mission statement of Starbucks Coffee: Starbucks mission statement has been to inspire and
nurture the human spirit- one person, one cup and one neighborhood at a time.
THE FOUR P STRATEGIES OF
STARBUCKS COFFEE:
 Product: Starbucks offers coffee, tea, food, and accessories. They sell a variety of hot, cold or
blended fair trade coffees and teas as well as other beverages. As for foods, they offer baked goods,
healthy snacks preparing from donuts to chicken wraps.
 Price: Starbucks' pricing strategy is carefully calculated and based on a combination of the target
market, using a premium approach to branding. The strong brand identity drives sales, despite
having higher priced products.
 Place: Starbucks offers most of its products at cafés or coffeehouses. However, there are various
other places or channels of distribution available for these products. In this case, the following are
the main venues or places that Starbucks Corporation uses to reach its target customers:
 Coffeehouses/Cafés
 Retailers
 Mobile apps
THE FOUR P STRATEGIES OF
STARBUCKS COFFEE: (CONT.)
 Promotions: Starbucks Corporation promotes its products through interpersonal relations and
communications, although advertising is also part of the promotional approach. In this case,
Starbucks’ promotional mix is as follows:
 Word-of-mouth marketing
 Advertising
 Sales promotions
 Public relations
STRENGTHS AND
WEAKNESSES
 The strengths of Starbucks:
 Starbucks strengths greatly away their weaknesses for their social responsibility, customer
service, specialty coffee blunts, product expansion and their quality coffee.
 Starbucks feels that it is necessary to hold the competitive advantage by creating significant
short term goals of conserving water, conserving energy, encouraging reusable cups, retrieving
all of their coffee epicly and having recyclable materials.
 . Another strength that put Starbucks above the rest is their customer service by creating a
family type atmosphere.
 The most significant strength Starbucks shows is their quality coffee.
STRENGTHS AND
WEAKNESSES
 The weaknesses of Starbucks:
 Starbucks does have however some weaknesses and these are prices, advertising and locations.
 Many will argue that Starbucks has too high prices for their product.
 Many people cannot afford to spend such a high amount on coffee.
 Competitive threats for Starbucks: Although Starbucks is a leading brand, these are other
companies that may oppose a threat such as Tim Horton’s, Dunkin Donuts, Blentz Coffee and
even McDonald’s.
 Starbucks target market:
 Starbucks target market is the consumer market.
 Their coffee is directed to people who have disposable income that can be spent on high price
strings.
 They are directed towards adults ages 25 to 40 who are working and enjoy coffee in the
morning before work.
 Starbucks is often show some locations near colleges and universities to target students.
THANK YOU ALL…