INTERNATIONAL UNVERSITY

GROUP12
Principles of marketing

STARBUCKS
FINAL REPORT
 contribution
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 01. About us

02. Executive summary

03. Market analysis

04. Swot analysis

05. STDP analysis

TABLE OF 06. Marketing mix

CONTENTS 07. References

 “Starbucks” is an American company that is the largest coffeehouse chain
ABOUT US in the world. Its headquarters are in Seattle, Washington. Starbucks was
founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl, opening its
first store in 1971 near the historic Pike Place Market in Seattle. The
three Starbucks founders had two things in common: they were all coming
from academia, and they all loved coffee and tea.

Starbucks entered into a meteoric period of expansion that continued

after the company went public in 1992. In 1996 it began opening stores
outside North America, and Starbucks soon became the largest coffeehouse
chain in the world. By the end of the decade, Starbucks had some 2,500
locations in about a dozen countries. The world’s largest Starbucks, a
Starbucks Reserve Roastery, opened in Chicago in 2019. In 2021 Starbucks
had a presence in dozens of countries around the globe and operated over
32,000 stores serving hot and cold drinks, whole-bean coffee, espresso,
and snacks. Some are seasonal or specific to the locality of the store.

Mention Starbucks, except whole-bean coffee and espresso, Starbucks

merchandise collections play a vital role for engaging with the
customers, being seen as an Starbucks merchandise industry.
Limited collections to celebrate
special events, occasions of the year
have become one of the features of
Starbucks’ business strategy and make
this coffee brand more attractive than
others. On December 8, 2021, LINE
FRIENDS - the popular characters based
on stickers from messaging app Line,
have partnered with Starbucks to unveil
a new Christmas collaboration across
Asia Pacific. On April 22, Starbucks
teamed with Line Friends to roll out a
limited-edition merchandise collection
to celebrate Earth Month after the
successful Christmas collection last
EXECUTIVE
year.
Currently, to celebrate the upcoming
World Cup 2022 in November, Starbucks
SUMMARY
continues to work with FIFA to create a
new collection called “Starbucks x
World Cup 2022” that is inspired by 10
football stars in the World Cup 2022
like Messi, Ronaldo, Neymar,....
 MARKE
T
ANALYSIS
 THE REVENUE OF
STARBUCKS
WORLDWIDE

While Starbucks stores currently have an average of just over 500 customers per day,
that number will grow to more than 750 customers in 2020, according to the report.
An expanded food menu, Starbucks’ mobile app, and mobile payment capabilities will
help drive Starbucks growth in the future - Trefis writes.
Starbucks revenue over the last ten years has tripled. With its global expansion and
multi-billion dollar deal with Nestle in 2018, pre-pandemic calculations expected
Starbucks’ revenue to skyrocket in the next few years. However, Starbucks lost $3.2
billion due to the pandemic (CNBC, 2020), posting only $23.518 billion in 2020
(Starbucks, 2020). With the availability of COVID-19 vaccines, Starbucks is
expecting the demand for coffee to grow by over 20% by 2022 (CNBC, 2019).
 Starbucks has seen the potential influence
of the World Cup all around the world. WC
is a huge football event for not only the
football lovers but also the audiences who
support their country in the World Cup.
The World Cup is an event occurring over
the preceding four years. It is seen as
one of the biggest competitions in
WHY STARBUCKS WOULD LIKE TO football for many national teams to join
LAUNCH THE PRODUCT to spread the sport spirit and strength of
IN THE WORLD CUP ? national teams in the world.
World Cup 2018 attracted 3.57 million
people watching the games live in the
stadiums from all continents. The average
attendance at the 2018 World Cup games was
47,371 - conducted by FIFA. Furthermore,
FIFA World Cup 2022 is held in Qatar with
about 5 billion people around the world -
FIFA president Gianni Infantino.
WORLD CUP
MARKETING CAMPAIGN
OF OTHER BRANDS

ADIDAS
"Brand positioning is considered
advantageous if it is strongly
associated to the value of a
prominent athletic event." Adidas,
for example, has been the official
sponsor of the FIFA World Cup since
1970, driving its investment to
sell millions of World Cup balls
and merchandise, to drive revenue
in the never-ending battle with
claims vying for who is the leader
at soccer tournaments.
 COCA-CALA
Coca Cola launched Food Combo, igniting moments of
football passion and culinary sublimation. Not only
being "satisfied with the taste" with your favorite
cans and delicious dishes. Coca-Cola indeed took a very
precise step when launching the "Benefit Combo" right
in the rolling football season, when the pace of life
of the football fan community became bustling, "hot"
than usual. much. Food Combo is "rooted" from the very
basic needs of people who enjoy football: They can both
enjoy and cheer for football, and satisfy their
personal preferences when they have bright Coca-Cola
FIFA World Cup cans that are brilliant, collectible and
associated with your favorite team.
SWOT
ANALYSIS
 S
SWOT Starbucks Corporation is the food and beverage
industry’s most well-known and powerful brand
STRENGTH

Employee treatment: Starbucks is known for treating its hundreds of

thousands of employees very well, and has previously been listed as
one of Fortune’s Top 100 Places to Work For.

A diverse product line: Starbucks has produced hundreds of exclusive beverage

alternatives strongly linked to the entire brand such as Frappuccinos,
Pumpkin Spice Lattes or pairing its already popular Evolution Fresh juices
with Dannon Oikos Greek yogurt for the launch of a line of yogurt smoothies.

Superb supply chain management- having a large worldwide supplier network. Coffee
beans for Starbucks are sourced from Latin America, Africa, and Asia-Pacific.
Starbucks obtains coffee beans from 30 nations worldwide, including Central and
South America, Asia, and the Pacific Islands.
 high prices : Starbucks products cost an average of 38%

W
SWOT more than their competitors' products While their
premium quality and good ethical values ​
may be
WEAKNESS appealing, some people can not afford to buy a cup of
coffee.

Expansion into emerging markets: Starbucks

already has a significant presence in the
United States and is becoming more steady in

O
China year after year. Global expansion in
growing economies such as India, China, and a SWOT
few African nations might provide the
organization with significant opportunities. OPPORTUNITIES
Starbucks is present in 83 countries throughout
the world.

Fierce competition from cheaper alternatives: Dunkin'

Donuts and McDonald's are two other giant multinationals
that compete directly with some of the products

T
SWOT Starbucks sells. While these companies don't take full
pride in their coffee and tea, they offer similar
THREAT quality products for a fraction of the price of
Starbucks.
 STDP
ANALYSIS
SEGMENTATION Geography
Because of the nature of the
World Cup, the target segment
will be divided by countries and
Density
Countries:
. Starbuck's WC product line will
focus on countries that meet one
of two conditions:10 players
representing the team can attend
the WC and the host country
. The country with the highest
number of football fans in the
world can be mentioned: Vietnam,
China, Thailand, India
Density: Because Starbucks
products have a very high price
of over 40$ per bottle, we will
focus on urban.
 Demographic
This is a segment that can't
properly target the customer
segment of the product line,
but it is still necessary if
the focus is on the variable:
• All gender- with men have
higher percentage than
women.
• Age: 10 - 60
• Occupation: Professionals,
employees, and students
• Income: higher income -
because Starbucks average
botte is too high compared
to the base salary of the
countries with the highest
number of soccer fans
globally
• Education: for all
 Spychology
• Social Class: Middle and
upper-class markets
• Lifestyle: sport,
collectible, fan
• Personality: dynamic,
passionate

Behavioural
• Brand Knowledge: Strong because because this is a
collection, so don't put too much emphasis on products
but only care about brands. A water bottle of Starbuck
x Messi will attract a lot of brand
• Types of Loyalty: Strong because because a customer
must meet two conditions: be a loyal fan of collecting
Starbucks water bottles or a die-hard fan of the
representative player in the product line
 TARGETING OF CAMPAIGNS
STARBUCK X WORLD CUP

Starbucks WC campaign target markets focus on middle to highly financial

position civils looking for premium quality products and collectible items.
Because Starbucks has a chain of stores around the world, the company is
able to mass produce water bottles with the logo of the player representing
the team participating in the 2022 World Cup (Son Heung Min represents the
Korean football team , or Harry Kane representing the English football
team). Moreover, changing images between water bottles is only in the design
and printing stages - not changing the structure of the product, thus saving
a lot of costs in case the product is not supported. Starbucks is recyclable
for other collections. In addition to the fact that people come to watch
the World Cup in Qatar in winter - the weather is extremely hot compared to
the world, this collection of Starbuck helps owners around the world can
head to the World Cup without having to go to Qatar (because of disease or
weather problem)

So it is Niche Marketing, the collection focuses on a small group of loyal

Starbucks customers and the passion for each football player in the
Campaign.
 POSITIONING OF CAMPAIGNS
STARBUCK X WORLD CUP

Positive competitive advantages to build a position in this campaign

come from Image difference. With product, the product still accurately
simulates the water bottle used to drink. However, in terms of images,
the history with previous Starbuck product lines has brought water
bottles to a new level - different in the bottles of other brands -
proving that many people buy to resell or arrange Shop for this water
bottle - can cost two to three times more than retails. In addition,
with the combination with big events - World Cup and football players,
image differentiation is stronger.

Therefore, in choosing the right competitive advantages, Starbuck is

stronger than competitors on the superior and communicable side with a
large ecosystem of products and dominating the market for water bottles
manufactured by a FnB brand.
Campaign Starbuck x World Cup is More for More
MARKETING MIX
 PRODUCTS
ACTUAL PRODUCT

• Name: Thermos flask signed by 10 most famous stars of Fifa rankings

(Lionel Messi, Cristiano Ronaldo, Neymar Jr, Eden Hazard, Kevin De
Bruyne, Jan Oblak ,Virgil Van Dijk, Mohamed Salah, Luka Modrić, Marc-
André ter Stegen)
• Design: Sports water bottle engraved with famous players' names
• Quality level: The water bottle has the ability to retain heat for a
long time and is aesthetically pleasing
• Size: 16oz or 24oz
• Logo: the symbol will be engraved meticulously right in the bottle
holder.
• The body of the bottle is made of stainless steel, anti-rust and high
heat resistance. The bottles will have 10 versions corresponding to 10
countries of 10 players.
PRODUCTS AUGMENTED
PRODUCTS

After-care service, easy-to-find contact details on the

label:
Phone: 024 3643 5999
Website: www.starbucks.vn

CORE
BENEFIT

Water bottle with 10 special editions signed by 10 world stars

capable of keeping heat for up to 20 hours.
 The prices at Starbucks are obviously more expensive
than usual compared to other brands.
Starbucks firstly focuses on product value, they
position their products by high-value products to
customers. The raw materials of the product are all
carefully selected by this enterprise, strictly
processed, and made by a team of professional staff. As
PRICE
a result, Starbucks products will certainly not be
cheap. To put it another way, Starbucks charges mid-
high pricing to provide the finest experience to its
target clients.
The Starbucks x World Cup 2022 collection will have the
same range of retail price from 39.90$ - 69.90$ up to
size as Starbucks x Line Friends collection, Starbucks
x Blackpink collection…..
 Starbucks will focus on places that
PLACE have the high rate of football
viewership, which means countries
with a lot of football fans will be
the main markets that Starbucks
targets for the collection between
Starbucks and World Cup 2022.
According to FIFA statistics, the
highest percentage of people who
watched the World Cup 2018 was in
Asia (43.7%) with countries with a
high fan base such as China, Korea,
Vietnam, and Japan. .... Therefore,
those countries will be the main
markets for this collection.
With other regions in the world, Starbucks will only focus
on customers from countries participating in the World Cup
2022 and have economic potentials such as France, Brazil,
Argentina, , .... instead of promoting in Italy,
Russia, ....
In addition to direct distribution, the company also
combines with an intermediary distribution form through a
direct ordering application to provide products to
customers anytime and anywhere around the world. This
proves the brand's adaptation to the change in time and
technology.
PROMOTIO

TARGET AUDIENCE
N

This campaign targets young people

who are fans of King sport-
soccer . They love sports,
especially soccer.
St he

COMMUNICATION
ar wo
t

OBJECTIVE
b u rl d
ck

The Starbuck will start

sk ss

"Starbuck kicks with the

world's stars" campaign. And
the result is that Starbuck
i c k t ar

has successfully built the

'

brand awareness in the mind

sw s

of the customers; yet have

not built the customers'
loyalty with our brand.
i th

Therefore, we have to build

the marketing plan that aims
at raising brand engagement.
PROMOTION
 PROMOTIO
N
ADVERTISING
KOLs or artists from countries
around the world will be printed
with the water bottle and has the
hashtag #StarbuckwithWorldCup
#WorldCup2022
to increase product visibility. We
will give 10 bottles of this
product line to the 10 players
mentioned above and ask them to
check-in and enter the brand name.
 REFERENCES
https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf

https://financesonline.com/number-of-starbucks-worldwide/#7

https://www.foodbusinessnews.net/articles/20594-starbucks-continuing-to-adapt-to-shift
ing-market-conditions

https://www.businessperspectives.org/index.php/journals/innovative-marketing/issue-382
/starbucks-coffee-corporation-s-marketing-response-to-the-covid-19-pandemic

https://www.warc.com/newsandopinion/news/how-starbucks-is-using-covid-19-crisis-to-dif
ferentiate-the-brand/43929

https://seoaves.com/starbucks-swot-analysis/

https://fooddigital.com/retail/starbucks-finding-value-product-diversification

https://tuoitre.vn/bao-cao-moi-cua-fifa-3-57-ti-nguoi-theo-doi-world-cup-2018-20181221
202646816.htm
THE END