ASSIGNMENTS ON MARKETING MIX

Starbucks Coffee Company

Hand out Date : 29 December 2020

Hand in Date : 21 January 2021

Name Hana
Student ID 2018001010
Class PBA
Course Validation Sesi 1 2020/2021
Programme BA003 - Pre Diploma
Lecturer’s Name En. Mohd
Course MGT028 - Introduction to Business

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 CONTENT

No Figure Page

1 Acknowledgement 3

2 Introduction of Starbucks Coffee Company 4

3 Marketing Mix ( 4Ps ) 5

4 Starbucks Coffee Company - Products 6-7

5 Starbucks Coffee Company - Price 8-9

6 Starbucks Coffee Company - Place 10 - 12

7 Starbucks Coffee Company - Promotion 13 - 15

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 Acknowledgement

Assalammualaikum , first and foremost , my deepest praise to Allah S.W.T who has
given me the patient , strength and determination to complete this assignment entitled “
Assignment on Marketing Mix ” successfully .

This assignment is a collaborative of many people . To begin with , my utmost thanks

and gratitude goes to my lecturer Encik Mohd Noor Fawzi Baharum for imparting me with
his wealth of knowledge , valuable guidance and experience .

My appreciation and thanks is also dedicated to all my friends , classmates for their
helpful insights , cooperation and comments . I would also would like to express my apology
for any mistake and shortcoming in carrying out this assignment . To end with , I am truly
delighted , for this research would bring benefits to others .

Finally, thank you to the parties who have helped me directly or indirectly throughout
my assignment .

______________________
Hana Binti Hashim
( 2020630838 )
Date : 21 January 2021
 Starbucks Coffee Company

Starbucks is the world's largest coffeehouse chain . Starbucks was founded by Jerry
Baldwin , Gordon Bowker, and Zev Sieg . First Starbucks’ store is in year 1971 near the
historic Pike Place Market in Seattle . The three Starbucks founders had things in common
where they all loved coffee and tea . They invested and borrowed some money to open the
first store in and named it “Starbucks” after the first mate in Herman Melville’s classic novel
Moby Dick . Starbuck’s Coffee Company has operated and opened over 30,000 locations
worldwide in more than 70 countries .

The first Starbucks’ Coffee store in Malaysia opened on 17th December 1998 at KL
Plaza in Jalan Bukit Bintang , Kuala Lumpur . The business of Starbucks Coffee in Malaysia
are primarily selling a range of frappuccinos , espresso , hand crafted hot drinks , non-coffee
beverages , sandwiches , pastries , confections , coffee-related accessories , merchandise and
souvenirs . As of now , Starbucks Coffee Company in Malaysia had already more than 115
stores operating the coffee business .
 What are Marketing ?

The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services ( product ) to create exchanges that satisfy
individual and organizational goals .

What are 4P’s ?

The four P’s is a combination of four marketing elements which is called The
Marketing Mix . The 4 P’s includes Product , Price , Place and Promotion . They are the
variables which the marketers can control . The four Ps are constrained by internal and
external factors in the overall business environment, and they interact significantly with one
another . The marketers must combine these four elements in such a way in order to reach its
target market . The 4 Ps are used by companies to identify some key factors for their
business, including what consumers want from them, how their product or service meets or
fails to meet those needs, how their product or service is perceived in the world, how they
stand out from their competitors, and how they interact with their customers.
Starbucks Coffee Company’s Products

Product refers to anything that can be offered to the market . Product is considered to
be the lifeline of every business . Thus , this component of the marketing mix focuses on
what the Starbucks offers to customers . Starbucks has positioned itself to be the best place
for premium coffee . Starbucks Coffee Company provides an unbeatable and unmatchable
experience for the various products it offers . Although Starbucks’ speciality is coffee, it has
entered various range of product categories in its marketing mix to attract all kinds of
customers either at the shop itself , at home or even on-the-go . Starbucks Coffee Company
adds and modifies various product lines , with the aim of expanding its market . The
following are the main categories of Starbucks products :

1. Handcrafted Beverages
2. Fresh Brewed Coffee
3. Espresso
4. Frappuccino
5. Non-Coffee Blended Beverages
6. Starbuckks Refreshers Beverages
7. Tea
8. Baked goods ( pastries )
9. Smoothies
10. Coffee-related accessories
11. Packaged goods ( gifts )
12. Merchandise (mugs, instant coffee, etc.)
 Starbucks Coffee Company’s product mix is a result of years of business innovation.
For example, the company added the Frappuccino line after it acquired The Coffee
Connection in 1994. The business also has an ongoing product innovation process that aims
to offer new products to attract and keep more customers , especially because the business
must attract a diverse population of customers in the international market . Thus, this part of
Starbucks’ marketing mix involves beverages, foods, and merchandise that are carefully
selected or designed to satisfy the needs and preferences of target consumers worldwide.

For instance, Starbucks sells locally made white coffee in Malaysia, while they sell
the pure black coffee in Brazil. The snacks are also different , it is tailored to the market’s
taste with local Malaysian ingredients that are typically used in Malaysian restaurants and it
is also the same for the local ingredients of other countries used in their respective outlets in
those country . These are example of how Starbucks Coffee Company has planned its
business strategy to focus on the local needs of its market , rather than using international’s
menus . As the company offers locally made beverages and food , customer value increases
in the sense that customers can ensure the food meets their local tastes . In that case, affective
behavior increases and this leads to increased customer loyalty and repurchase decisions.
Starbucks Coffee Company’s Price

Price is often determines the value of a product . A business has to set appropriate
prices for the products and decide whether to set a price above , below or about even with
competitors’ product . High prices may force the consumer to buy competing products . But
in this case , Starbucks offers reasonable prices comparable to what is offered . Although
Starbucks sells their coffee at a premium price which is at least 20% higher than market
brands . The company has always put their best to offer premium products with which means
they only buy the best quality coffee beans and making sure that their staff is efficiently and
effectively trained . Therefore , it is proven and can be seen at their price, because Starbucks
coffee is not cheap and uses a premium price because of the experience it offers .

To keep the competitive edge , Starbucks company also began to offer 50% off your
favorite beverages when you bring your own Starbucks tumbler . This indirectly helps in
saving the environment and attracts more customers . This has also proven that Starbucks has
been constantly push themselves to reduce the environmental footprint of their operations .
Eventually helps the company save a little less for their manufacturing .

The packaged products are also available at grocery stores which are comparatively
cheaper than the normal outlet products and is easily accessible to everyone . The drinks at
Starbucks are also available in various sizes as per the need and requirement of every
customer with variations like short , tall , grande and venti . The quality is always the highest,
which helps in maintaining a loyal customer base and brand name .
 By offering a unique, consistent Starbucks best experience, Starbucks has managed to
boost the perceived value of its brand . All these has proven Starbucks’ high pricing and
show how Starbucks’ environmentally-friendly brand image has helped their products to gain
and maintain upscale image attached to its brand . Therefore, customers are willing to pay
more for a cup of Starbucks coffee .
Starbucks Coffee Company’s Place

Place refers to the venues at which customers can get hands on the products .
Starbucks have a really clear vision which is to have a direct and personal connection or
relations with their consumers . Thus , Starbucks offers most of its products at cafes or
coffeehouses . They have their chains all over the world . Even in Malaysia , Starbucks is a
household name and you can find its store in almost all neighborhoods . Starbucks also have
a well-designed website which contains information on each and every aspect of coffee
making , varieties of coffee that they sell , quizzes to find your own perfect coffee , the
ingredients, how to brew your starbucks coffee powder at home and many more . Not only
that , Starbucks have various other places or channels of distribution available for their
products . In this case, the following are the main venues or places that Starbucks Company
uses to reach its target customers :

1. Cafes / Coffeehouses
2. Mobile apps
3. Retailers

( Starbucks’ Website )

Starbucks is a global brand , by that you can them in more than 28,000 outlets in more than
70 outlets all over the world . You can also find a Starbucks in almost every mall in Malaysia
, whether it’s located in a major shopping district or in the cental . This allows customers to
access the brand almost anywhere . Need a coffee fix? Starbucks is right around the corner .
Following are unique Starbucks stores around Malaysia :

( Starbucks With A French Village Charm - Bukit Tinggi, Pahang )

( Glass House Starbucks - Teluk Cempedak, Kuantan )

( Starbucks By The Beach - Batu Feringgi, Penang )

 Besides stores, Starbucks has also been expanding into the online sphere . The brand’s
mobile app combines e-commerce and e-payment . Customers can use their mobile phones to
pay , reload their Starbucks card and track rewards . They can even use the app to place
orders and make payment before picking up their orders at the store . Mobile apps allow
customers to conveniently place their orders online so they could easily get their food and
drinks at their nearest Starbucks’ coffeehouses . This way is perfect for time-strapped
customers and people who hate waiting in line . Like any other business , they should strive
to make their products accessible and convenient to acquire . A troublesome buying process
is the quickest way to lose a customer .

(Foodpanda) (Starbucks’ App) (Grabfood)

Nonetheless, some of Starbucks’ merchandise items are available through retailers.

This part of Starbucks’ marketing mix shows how the firm adapts to changing times,
technologies, and market conditions .
Starbucks Coffee Company’s Promotion

Promotion is known as the marketing communications mix . It refers to the

communication strategies used to spread information about the company and products . This
marketing mix also helps in encourage customers to buy their products . Starbucks Company
promotes its products through advertising , interpersonal relations and communications . The
following are Starbucks’ promotional mix :

1. Advertising
2. Public relations
3. Special offers

Starbucks became popular mainly through their interpersonal relations way . It

focuses on providing the best customer experience in order to encourage people to spread
positive words about the business . Besides , they also do advertisements like TV
commercials and print media ads . Starbucks also actively promotes its products on social
media like Facebook and Instagram and has more than 500k followers .

(Instagram) (Facebook) (Twitter)

 Starbucks has also introduced Starbucks Cards . The Starbucks Rewards Card
program is available on mobile devices (the Starbucks’ app) and has seen impressive
membership and growth eversince it was introduced . It offers many benefits to its customers
who join . The rewards program helps them get more people coming in their doors and
prompts them to spread a positive words about the brand . Starbucks Reward cards gives
customers ease in which , the customers can order and pay through the app before arriving at
the physical location , as well as earning stars as rewards that can be redeemed into free
drinks, food, and merchandise .

Starbucks is known for its specialty offerings are at the highest during holiday season
in December . It gives a huge advantage of the holiday by encouraging the customers to
upload drinks photos and encourage friends to visit their coffeehouses to get their hands on
the seasonal unique drinks .
 Starbucks brand continues to grow by increasing engagement with the community,
promoting its holiday drink offerings and leveraging its already strong loyalty programs .
Starbucks’ fans of the beverage brand are fast to upload photos of Starbucks’ signature red
winter cups for during Christmas Season and their new popular holiday drinks,which includes
the new Pumpkin Spice Latte specially as their halloween drinks . Starbucks tactics not only
drive consumers to the store for this exclusive offer, but more importantly, it attracts more
users to its app, which is ultimately where Starbucks has the opportunity to engage on a
larger scale with old and new customers . Starbucks Coffee Company is a winner who has
maintain their relationship with customers and gained tremendous value through their
investment into digital technologies .