16 - StabucksV2 - LO - 3-4 - MADHUSHRI KOLI

Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra, India
STRATEGIC MARKETING MANAGEMENT

LEARNING OUTCOME: 3, 4
Ms. Madhushri koli

(MBA INTERNATIONAL)
Statement of Authenti city
I certify that the work submitted in regard to this assignment is my own and wherever the works of others have been
used to support my work, the credit has been duly acknowledged.
Student Email: madhushri.isms@gmail.com. Date: 18/11/2019
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TABLE OF CONTENTS
SERIAL NO PARTICULAR PAGE NO

1 Executive summary 3
2 Task 3 4-9
3 Task 4 10-17
4 Conclusion 18
5 Bibliography 19-20
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EXECUTIVE SUMMARY
The case that I have done here is about a company named star bucks. It’s a main business is providing beverages and fast
food.Based on study of the various secondary and primary data sources star bucks marketing strategies for increasing
marketing share in the Indian market are described .The study also describes segmentation and growth strategies used
by star bucks and proposes suitable marketing mix tactics.
TASK 3
INTRODUCTION
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Starbucks Corporation is a leading roaster, marketer and distributor of specialty coffee worldwide, an American
corporation founded in 1971 in Seattle, WA. Starbucks has nearly 182,000 staff working & licensed stores in 62 countries
across 19,767 businesses. Their product mix includes high-quality / premium-priced coffees roasted and handcrafted,
tea, a range of fresh food products and other drinks. In its range of businesses, including Teavana, Tazo, Seattle's Best
Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo, Starbucks also markets its
products blended with other brands. On September 29, 2013, Starbucks had a total revenue of $14.89 billion.
Its common goal is to provide its consumers with the finest product and customer experience while balancing this with
their corporate values which include integrating cultural, environmental and economic obligations and benefits in the
communities in which they do business. The mission statement of the organization notes that Starbucks should be the
leading supplier of the finest coffee.
Across their history, they have tried to accomplish this purpose through a variety of intrinsic values that combine
integrity, honesty, diversity, competence, passion, and the desire to create an atmosphere, a brand, and a unique
customer experience.
REASON FOR SUCCESS:
The foundations of Starbucks success has been built around an aggressive retailing strategy, Starbucks successfully
entered the European market in May 1998 through the acquisition of 65 Seattle Coffee Company stores. The layout of
Starbucks retail outlet is designed to create a comfortable laid back sociable but also private surroundings for consumers
to relax and unwind. These values have seen the business establishing itself on the high street as a premium coffee
supplier with expediential growth in line with the rise of luxury markets, particularly in the 1980s and 1990s. Starbucks
has become a synonym for capitalism and a sign of abundance. Its common goal in line with his luxury identity
throughout this time was his unfailing commitment to providing the customer with a high-quality product and consumer
experience, not placing the product before the customer. Starbucks retail outlets have been designed to provide a
convenient and luxurious atmosphere with a host of features including wireless Wi-Fi connectivity. Promoting exclusive
record deals as well as own corporate branding by trademarked coffee bean sales and branded product business logo.
MARKETING STRATEGIES OF STARBUCKS
One of the main strategy that Starbucks has embraced since its inception is that of product differentiation providing
differentiators. Starbucks has followed a strategic alliance's shrewd approach and wise acquisitions. For international
markets, Starbucks did not follow the template of franchising and managed company-oriented stores and joint ventures.
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Starbucks made some key purchases such as Teavana (Tea products), Bay Breads (premium bread products), Evolution
Fresh (fresh juice products) etc.use the consumer diversification approach. Appendix 7 includes a complete list of
Starbucks joint ventures, strategic alliances and acquisitions. Acquisition policy for Starbucks, as shown in Appendix's
acquisition analysis, has been horizontal acquisitions of brand and business extensions. Another key strategy for the
growth of Starbuck was its global efforts to extend into key developed.Developed and emerging markets to diversify
geographically, and operations in 60 countries were highly successful. All of these strategies provide Starbucks with a
considerable competitive advantage over its competitors.Starbucks has a specific marketing plan centre on its products.
Centre on the high value of its coffee, it distinguished itself from others. The brand has expanded around the world from
its modest beginnings in Seattle to become the number one coffee retail brand.Product quality has to be recognized as
the central pillar of marketing efforts. Great quality has many advantages. This helps with the product image and
reputation first and foremost. Good taste and quality in the fast food industry means greater appreciation and success.
Starbucks has built great respect for the value of its products over time as a company.
Starbucks Marketing Strategy main points:

1. Quality based differentiation – premium quality tea and coffee.
2. Excellent customer service.
3. Consistent brand experience.
4. Use of unconventional techniques for marketing and branding.
5. Image of an ethical brand.
6. Excellent brand merchandise.
7. Customer orientation.
8. High brand equity.
9. Unconventional social media techniques of establishing consumer connection.
10. Creating real customer value.
11. Near no or less use of traditional methods for marketing (till some years ago; now it is using a mixed strategy).
12. Good quality products and customer service – higher word of mouth marketing.
13. Investment in advertising for last 4-5 years.
TARGET MARKETING:
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A target market consists of groups or groups of customers with similar needs or characteristics to be met by the
product (Kotler and Armstrong 2004). Goal marking is a technique for identifying market segments and then
producing a product or providing a service specifically designed for those segments.It's a segmentation-to-product
positioning partnership. When companies choose their market segment to release their product, the next move is to
target advertising. It was run locally before Starbucks began its business in Seattle and had a very limited product
range. Yet Starbucks entered the market with clear ideas and clear goals.The master plan was to build a community
of an Italian coffee bar, a cafe that feels like a third place between people's home and office. A place for people to
sit in, rest and socialize. Although it wasn't an original concept brewing coffee and there were also a lot of
competitors on the market.A place for people to sit in, rest and socialize. Although it wasn't an original concept
brewing coffee and there were also a lot of competitors on the market. Starbucks tried to position themselves as a
luxury brand and were slowly on the mark with their target market, despite the fact that coffee consumption in the
United States has been declining since the 1960s.Starbucks ' CEO made the right decision to introduce new
innovations into the industry at the right time. To promote their business, he used the following market strategies.
1. Well planned store arrangements which facilitate customers to relax and socialize.
2. Customers were allowed to listen music they like.
3. High level of customer service, well trained staff which were given good training and other job benefits which
kept them loyal and enthusiastic to their work.
MARKETING MIX 4 PS OF STARBUCKS:
The marketing mix refers to the set of actions, or tactics, that an organization uses to promote its brand or product in the
market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. The marketing mix helps a
organization to make their strategy to select product in a affordable price for a customer in a particular market with a
required promotion of the product. This marketing mix is related to customer needs and wants also their power by
buying. Price, Product, Promotion and physical evidence, method and individuals are the extensive marketing means a
company uses to achieve its goals.The marketing mix or 4P acts as a promotional strategy to create a cohesive and
comprehensive approach to delivering the products of Starbucks Corporation to food and beverage markets around the
world. All these components of the advertising mix play a vital role in every business success. A number of functions
involved in these aspects are discussed below in Starbucks are;
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Product-
Starbucks began business with traditional techniques of coffee brewing and some other items such as coffee jars and
gadgets needed to grind and make coffee at home. They clearly widened their product line and won the demand for
most of these products. Like the launch of non-fat milk by Starbucks, it increased demand and improved
results.Customer care is a main service marketer quality control strategy. (Lancaster 2001). High quality of service was
another of Starbucks ' key highlights. All the workers were well educated and Starbucks supported them with good
training and other job arrangements that kept them happy and excited about their jobs. In Howard Schultz's words,
"Treat people like friends and they will be loyal and give everything to them.
Price-Starbucks is using a method for premium pricing. In the context of the marketing mix, this pricing strategy takes
advantage of people's psychological tendency to buy more expensive products based on the perceived connection
between high price and high value.Coffee items from the company are more costly than most competing products, like
the Premium Roast from McDonald. Starbucks retains its high-end specialty brand through this price policy.
Nevertheless, the company aims to create and offer high-quality products and fulfilling customer experience in its coffee
houses.This aspect of the promotional mix is directly related to the standardized competitive strategy of Starbucks
Corporation to help the company retain its brand image.Starbucks, however, started with a $1 bottomless cup of coffee
to have a competitive edge, which was not only 50 cents cheaper from their other coffees, but the customer could also
refill it as many times as they wanted. Starbucks is expanding by opening shops in various parts of the world, including
various other value-added services such as breakfast pairings for $3.95. This combo was launched especially for the price
conscious customers and provided them with breakfast along with a cup of coffee.
Place-Place or position in the advertising mix is an important tool. Starbucks performed a variety of comprehensive
research to figure out the complexities that may arise as part of their physical existence as a business ' position plays a
key role in their success. They used to research the population profiles to create a high-leverage organizational
framework. Starbucks also tried store clusters and opening stores across the street. All these decisions produced fair
results than expected.Through opening covert stores, which are street names rather than Starbucks, they try to locate
themselves. They have invested a lot in educating their staff to make sure they have an enjoyable coffee experience for
their customers. Starbucks is using more than one distribution channel. They sell their products through stores owned by
companies or through a specific distribution network. In today’s date Starbucks have their teas and coffees available in
more than 40,000 grocery stores, 33000 of which are in the USA. Starbucks also launched itself in India in the year 2012.
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Promotion-Starbucks faced short of funds when they entered a new market for their promotional activities. Instead of
running a successful advertisement at a very prominent location, Starbucks planned to celebrate at least one major
social or community event upon its arrival in each area, as well as hiring local representatives as part of promotional
activities that made broad visibility and goodwill for them, which made wide publicity and goodwill for Starbucks and
also improved sales turn over.In this case, Starbucks’ promotional mix is as follows:
 Word-of-mouth marketing
 Advertising
 Sales promotions
 Public relations
Starbucks relied heavily on word of mouth, which was beneficial to them as their brand awareness and brand loyalty
increased. Starbucks today has more than 27 million Facebook fans and more than 2 million Twitter followers. Starbucks
has built itself throughout the world with its trendiness and creativity freshness.
FINANCIALS/MARKETING SHARE
The fiscal year of the company generally runs every year from October 1 to September 30. Starbucks announced full-
year net sales of $26.5 billion for the full year ending Sept. 30, 2019, with the bulk of revenue from corporate-operated
stores.This is an improvement of 7 percent in 2018 from the same time. The company provided investors with a total of
$12 billion in dividends and share buybacks.
EQUITY CAPIALIZATION:
Starbucks had outstanding 1,51 billion fully diluted shares, with market capitalization on Dec. 31, 2014 at $61.88 billion.
As of March 30, 2015, the company implemented a two-for-one share split for shareholders on record— the last time a
stock split was initiated by the company. On April 9, 2015, shares started trading on a split-adjusted basis.At the end of
the first quarter, it caused the market cap to rise to $143.77 billion. At the end of the second quarter, the diluted share
count for equity options almost doubled from 11.3 million to 22 million shares. During that time, the total equity market
cap declined to $82.67 billion.Diluted shares in the third quarter reached 30.5 million at the end of September 2015,
representing $1.76 billion in stock compensation. This boosted to $87.88 billion the total equity market cap.With a
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trailing P / E of 28.40x based on diluted earnings per share of $2.93 for the 12-month period ending September 2019,
Starbucks ' market cap was $98.57 billion by the end of trading on November 1, 2019.
SEGMENTATION:
Starbucks has four reportable market segments: 1) America, including the United States, Canada, and Latin America; 2)
China / Asia Pacific(' CAP'); 3) Europe, Middle East, and Africa(' EMEA'); and 4) Network Growth. They also have several
non-reportable sections of activities that are referred to as All Other Sections.The divisions of the Americas, CAP, and
EMEA include both company and authorized stores. The market of the Americas is the most developed sector and large
scope has been achieved. Many markets within CAP and EMEA operations are still in the early stages of development
and need a larger support organization relative to their current revenue and operating income levels than operations in
the Americas.Channel Creation section covers roasted whole-bean and ground coffees, premium teas, a range of ready-
to-drink drinks and other branded products sold worldwide across networks such as grocery stores, discount clubs,
specialty shops, convenience stores and U.S. food service accounts.
TASK 4
Starbucks internal and external environment analysis- SWOT Analysis

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Starbucks Strengths – Internal Strategic Factors
1. Strong brand image- Starbucks Corporation is the food and beverage industry's most successful and strongest
brand. It has continued to grow in size, volume and number of loyal customers over time.
2. Strong financial performance – Starbucks has a stable financial position on the market with a market
capitalization of $81 billion. It increased the number of stores between 1998 and 2018 from 1,886 to 29,324.
3. Extensive international supply chain – Starbucks is considered to have a wide international distributor network.
Starbucks sources its coffee beans from three regions that produce coffee, Latin America, Africa, and Asia-Pacific.
4. Acquisitions –Company has acquired top 6 firms including Best Coffee, Teavana, Tazo, Evolution Fresh,
Torrefazione Italia Coffee, and Ethos Water from Seattle. These acquisitions proved to Starbucks to be quite successful.
5. Moderate diversification –The development of creative products and food items has also diversified Starbucks '
business operations. One such example is the introduction of coffee ice cubes, resulting in a stronger coffee flavor.
6. Quality, Taste and Standardization – Due to its premium blends and delicious coffees, Starbucks has extended
globally. It offers excellent quality and consistently standardized products in all the locations.
7. Efficiency, Strategic Planning, and Reinvestment Strategy – Starbucks is reinvesting its earnings to grow its
market in various locations. The company's productive operations and well-planned strategic decisions have yielded
several benefits.
8. Employee treatment –This handles its workers very well, which eventually translates into happy customer
service employees. Starbucks is regularly classified as one of the top 100 places to work for the Fortune.
Starbucks Weaknesses – Internal Strategic Factors
1. High prices - – Starbucks ' offerings are more expensive for many middle classes and working customers than
McDonald's and other coffee outlets. The high prices rising consumers ' competitiveness.
2. Limitability of products – Starbucks doesn’t own the most unique product in the market. This makes the
limitability of products quite easy for other companies. Other coffee shops and food chains like McDonalds McCafe and
Dunkin Donuts offer almost the same products.
3. Generalized standards for most products –Some of its product offerings do not comply with other markets '
cultural standards. In some places, for instance, its designed beverages do not correspond with consumer preferences.
4. European Tax avoidance –It faced several controversies and criticism due to its tax avoidance in the United
Kingdom. Reuters ' investigation found that in three years before 2012, it did not pay tax on its £ 1.3 billion revenue..
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5. Procurement Practices –The company has been criticized by many social and environmental activists for its
unethical procurement practices. They claimed it was supplying coffee beans from poor third world farmers. It was also
charged with violating the principles of "Fair Coffee Trade".
6. Recall of Products –A lot of in-demand items have been remembered by Starbucks over the years. This can
negatively affect the company's brand image and cause a loss of customer base.
In March 2016, two items were recalled by Starbucks. One was the breakfast sandwich sausage, bacon, and cheddar, and
the other was the bistro box of cheese and fruit. The reason these items were recalled was the contamination and
allergens risk. It was discovered during routine testing that the facility that developed the breakfast sandwiches was in
touch with Listeria Monocytogenes. These had to be recalled from the 250 stores in Arkansas, Texas, and Oklahoma that
showed these sandwiches. The cheese and fruit bistro box was remembered as it held traces of undeclared cashew nuts
from the almonds found in the bag. The existence of cashew nuts was not indicated by any warning label. To people with
cashew allergies, this could actually be life-threatening.
Starbucks Opportunities – External Strategic Factors
1. Expansion in developing markets – Starbucks has coffee shops primarily in the United States. Global expansion
in a few areas such as India, China and a few regions in Africa can provide the business with a great opportunity
2. Business diversification and Products Specifications –It can further diversify its business operations to improve
prospects for overall revenue growth. In addition, the production of goods in the specific target market according to
consumer expectations is also a competitive opportunity.
3. Introducing new products Since the brand is quite successful, it would be lucrative and accepted in the markets
to introduce new products and holiday flavors (Peppermint Mocha, Eggnog Latte, Gingerbread Loaf) under its name.
4. Partnerships or alliances with other firms – Always benefit from co-branding. Starbucks has the chance to
develop collaborations and alliances with major companies. This would boost its position and its market share.
Starbucks Threats – External Strategic Factors
1. Competition with low-cost coffee sellers –Most coffee houses are offering affordable rates of goods. This could
threaten Starbucks ' potential sustainability, which offers higher prices.
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2. Competition with big outlets – Aggressive rivalry with multinationals such as Dunkin Donuts and McDonald's
could also challenge their market position.
3. Imitation – Products can be imitated by both new and old rivals.
4. Independent coffeehouse movements –Starbucks has many socio-cultural challenges. Such socio-cultural
movements support small independent and local coffee houses and resist the growth of large multinational chains.
5. Controversy on California warning rule –A California judge ruled in March 2018 to provide warning labels on all
their coffee goods for Starbucks and other businesses. This was about avoiding a risk in chemical use that could cause
cancer.
6. Philadelphia arrests –Two African-American men have recently been arrested in Starbucks, causing quite a
backlash against Starbucks on social media. Employees of Starbucks declined to use the bathroom because they bought
nothing. CEO Kevin Johnson eventually apologized to both men.
Starbucks competitive environment analysis- Porter’s 5 force Analysis
Porter five forces model was proposed by Michael E. Porter in 1979. The purpose was to this model is assess and
evaluate the competitive position in market and strengths of business organizations. The model has three horizonal
forces and two vertical forces. These forces shape give idea about the competition within the industry. Many new
companies use the Porter Five (5) Forces Model to decide whether it is profitable to enter in a particular industry.
Here is the pictorial presentation of the Porter Five (5) Forces Model:
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The analysis can help to take strategical decision which can improve the organization performance as well as industry
performance.
Threat of New Entrants: Moderate New entrants in the industry are moderately threatened as the barriers to entry are
not high enough to discourage new competitors from entering the market. The penetration of the market is moderately
high with a system of monopoly competition. The initial investment is not important for new entrants because they can
lease stores, facilities, etc. at a modest investment level. Small coffee shops will compete with the likes of Starbucks and
Dunkin Brands at a regional rate because there are no product switching costs. Even though it is a competitive industry,
there is moderate opportunity for new entrants to succeed in the industry. But this relatively easy market penetration is
typically offset by large brand names such as Starbucks that have gained economies of scale by lowering costs, improving
efficiency with a huge market share. The new entrants have a moderately high barrier as they vary from the product
quality of Starbuck, its prime real estate locations and its store ecosystem. The established companies like Starbucks
have a greater scale and scope, giving them an edge in the learning curve and preferential access to the raw material in
their suppliers ' relationship. The expected retaliation for brand equity, assets, prime real estate locations and price
competition from well-established companies is moderately high, creating a moderate entry barrier.
Threat of Substitutes: High There are plenty of fair coffee replacement beverages, mostly tea, fruit juices, water, soda,
energy drinks etc. Bars and pubs with non-alcoholic drinks could also replace Starbucks Consumers social experience by
making their own home-made coffee with premium household coffee makers at a fraction of the cost of purchasing from
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premium coffee retailers. But it's important to note that industry leaders such as Starbucks are actually trying to counter
this challenge by selling coffee makers, quality coffee packs in grocery stores, but this threat also puts their profits under
pressure. Bargaining Power of Buyers: Medium to Low Pressure This industry has many different buyers and no single
buyer can claim a price concession. It sells vertically differentiated goods with a large consumer base that make
purchases of relatively low value, eroding the control of the buyer. In premium coffee retailing, customers have a mild
tolerance because they pay a premium for higher quality goods but are watchful of unnecessary premium in relation to
product quality.
Bargaining Power of Suppliers: Low to Moderate Pressure The key inputs in Starbucks ' value chain are coffee beans
and premium Arabica coffee grown in select regions that are common inputs, resulting in moderately low switching costs
between suppliers. Strategic Analysis With its size and scale, Starbucks Corporation has the power to take advantage of
its manufacturers, but retains a Fair Trade certified coffee.Industry suppliers also pose a low threat of competing with
Starbucks through forward vertical integration, which decreases their strength. Starbucks is also a very important part of
the suppliers sector because of its size and scope, which makes suppliers ' power lower. Suppliers face a moderately low
bargaining power because of these factors.
Intensity of Competitive Rivalry: High to Medium There is a strong imbalance in the industry, with Starbucks having the
largest share of sales and its closest competitors also having significant market share, putting significant pressure on
Starbucks. Consumers have any cost of moving to other rivals, resulting in high competition strength.
Threats of new entrants-
In the minds of many customers, Starbucks ' status as a premium coffee supplier is seen as a luxury expense and one that
is expendable through times of financial instability in which many of the economies in which Starbucks operates. With
the increasing number of customer issues combined with high living and energy and heating costs, these tiny luxuries
like a cup of premium coffee. Increased global warming and environmental conditions combined with unpredictable
weather cycles in some of the regions where Starbucks is the source of their beans can cause supply shortages and force
high trade prices, this puts an ever-increasing focus on Starbucks ' ability to update and actively pursue their links with
the environment and the communities in which they work to ensure the security and reliability of production. Successful
and profitable suppliers coupled with a strong sustained working relationship have been and will continue to be the
bedrock of Starbucks strategy going forward.
Rivalry among existing firms
1. There have limited number of players in the market.

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2. The industry is growing at a fast rate.

3. There is a clear market leader
4. The products are highly differentiated, and each market player targets different sub-segments.
5. The economic/psychological switching costs for consumers are high.
6. The exit barriers are low, which means firms can easily leave the industry without incurring huge losses.
Bargaining Power of buyer.
Additionally, buyers ' bargaining power plays an important role in assessing the desirability from an investor's point of
view of the world in which the specialty coffee industry operated at the beginning. Individual consumers were the
majority of all buyers in the specialty coffee industry; thus, they usually did not buy in large volumes and did not act in
concert. The relative bargaining power of consumers in this industry was diminished by both of these factors. Therefore,
the cost of buying a cup of specialty coffee did not represent a large fraction of the cost of living of any individual
purchaser, rising the price shopping pattern and increasing the focus on quality and customer service.The amount of
differentiation involved in the specialty coffee industry and the lack of differentiation in the basic coffee industry is one
of the main discrepancies between the coffee industry and the specialty coffee industry. This further dilutes buyers '
bargaining power through the product premium offered by specialty coffee retailers.The main buyers of specialty coffee,
as stated earlier, are individual customers, who face no switching costs. It enhances their strength of persuasion.
Ultimately, not all information is available to the buyer or customer in the 14 specialty coffee industry. Consumers do
not know the actual demand, market prices or product costs which reduced significantlyThe consumer does not know
the actual demand, market prices or supplier costs which greatly reduces their bargaining power.Ultimately, then, the
negotiating power of the specialty coffee industry buyers or customers, which consisted mostly of individual consumers,
was not important.
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Opportunities for starbucksinIndian market:
Starbucks generally preferred a premium price approach, using a slightly modified menu and storage format for local
tastes. Across India, this strategy worked well. Local and foreign specialty coffee retailers, however, proved to be highly
formidable competitors. The larger cities in India had become crowded.Then, most rivals turned their attention to
expanding into smaller towns. India was a large, but complex market, divided by age, geography, wealth, and
demographic lines. Whether Starbucks will better adjust has not yet been apparent.India offered the potential for selling
to a large number of consumers, as with other heavily populated countries. Although India has been prone to populist
political swings since itachieved independence from Britain, there have been some encouraging signs for foreign food
retailers that have been considering entering the market. Historically, eating in restaurants has been popular in India.
Many competitors had now turned their attention to expanding into smaller cities. India was a large, but complex
market, fragmented along age, geographic, income, and demographic lines. Continued success was not certain. It
was not yet clear how Starbucks should best adapt Many competitors had now turned their attention to expanding into
smaller cities. India was a large, but complex market, fragmented along age, geographic, income, and
demographic lines. Continued success was not certain. It was not yet clear how Starbucks should best adapt Then, most
rivals turned their attention to expanding into smaller towns. India was a large, but complex market, divided by age,
geography, wealth, and demographic lines. Whether Starbucks will better adjust has not yet been apparent.
Starbucks generally preferred a strategy of premium prices, using a menu and store layout somewhat modified
for local tastes. This strategy had been working well in India. However, local and foreign specialty coffee retailers
were proving increasingly formidable competitors. India’s larger cities were becoming saturated. Many competitors
had now turned their attention to expanding into smaller cities. India was a large, but complex market, fragmented along
age, geographic, income, and demographic lines. Continued success was not certain. It was not yet clear how Starbucks
should best adapt Starbucks generally preferred a strategy of premium prices, using a menu and store layout
somewhat modified for local tastes. This strategy had been working well in India. However, local and foreign
specialty coffee retailers were proving increasingly formidable competitors. India’s larger cities were becoming
saturated. Many competitors had now turned their attention to expanding into smaller cities. India was a large, but
complex market, fragmented along age, geographic, income, and demographic lines. Continued success was not
certain. It was not yet clear how Starbucks should best adapt.
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Conclusion
Nevertheless, urbanization, smaller family sizes, higher salaries, increased menu options, and the increasing popularity of
cooking television shows have resulted in a significant increase in the number of local and multinational food
establishments, from fast food to fine dining.Starbucks has announced that, with a changed menu, it plans to continue
its global strategy of similar stores offering the same prices. It is worth noting that other retailers who insisted on
standardized non-Western approaches often did not do as much as they might have done.Therefore, as some European
coffee retailers have done, Starbucks plans to emphasize its luxury social experience and global roots. Starbucks also
seems to have acknowledged the fact that the younger generation, which surprisingly is more willing to consider foreign
brands than older, affluent consumers, will not be affordable.
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Reference
http://www.starbucks.com/about-us/our-heritage
http://www.starbucks.com/about-us/company-information
http://www.starbucks.com/responsibility/global-report/year-in-review
http://news.starbucks.com/executive+biographies/?start_row=11
http://www.forbes.com/profile/howard-schultz/
http://finapps.forbes.com/finapps/AccountingRisk.do?tkr=sbux
http://finance.yahoo.com/q?s=SBUX
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http://www.sosemarketing.com/2011/09/22/starbucks-swot-analysis/
http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html
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Extended Diploma in Strategic Management & Leadership

International School of Management Studies, Pune – Maharashtra, India

STRATEGIC MARKETING MANAGEMENT

Ms. Madhushri koli

Statement of Authenti city

Student Email: madhushri.isms@gmail.com. Date: 18/11/2019

SERIAL NO PARTICULAR PAGE NO

REASON FOR SUCCESS:

MARKETING STRATEGIES OF STARBUCKS

Starbucks Marketing Strategy main points:

MARKETING MIX 4 PS OF STARBUCKS:

Starbucks internal and external environment analysis- SWOT Analysis

Starbucks Strengths – Internal Strategic Factors

Starbucks Weaknesses – Internal Strategic Factors

Starbucks Opportunities – External Strategic Factors

Starbucks Threats – External Strategic Factors

Starbucks competitive environment analysis- Porter’s 5 force Analysis

Threats of new entrants-

Rivalry among existing firms

1. There have limited number of players in the market.

2. The industry is growing at a fast rate.

Bargaining Power of buyer.

Opportunities for starbucksinIndian market:

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