I.

INTRODUCTION
1.1 Introduction to Starbucks (address, website, business scope, history, development
milestones)
- Address:
Starbucks Corporation does not have a single headquarters address, as it is a multinational
company with locations worldwide. However, its corporate headquarters is located in Seattle,
Washington, USA. có 87 cửa hàng ở việt nam
- Website:
The official website for Starbucks is www.starbucks.com.
- Business scope:
 Starbucks is a renowned global coffeehouse chain that operates in more than 80
countries, with thousands of stores. The company's primary focus is on the sale of coffee,
tea, and other beverages, along with various snacks and food items. Additionally,
Starbucks markets a variety of coffee products such as whole-bean coffee, instant coffee,
and coffee-related accessories
 The brand has expanded its offerings to include:
 Serving handcrafted beverages, such as espresso drinks, lattes, macchiatos, and
frappuccinos
 Selling pastries, sandwiches, and other food items
 Selling other items such as mugs, bags, seasonal specials and special holidays
throughout the year
- History:
Starbucks was founded in 1971 by three partners: Jerry Baldwin, Zev Siegl, and Gordon Bowker.
The first Starbucks store was opened in Seattle's Pike Place Market. The company quickly grew,
and by 1987 it had over 100 stores.
In 1987, Starbucks was purchased by Howard Schultz, who had been working for the company
as a marketing director. Schultz expanded the company's menu and opened new stores in new
locations. He also introduced a number of innovations, such as the Starbucks Rewards program
and the Frappuccino blended beverage.
Under Schultz's leadership, Starbucks became one of the most successful companies in the
world. The company's stock price soared, and it became a household name. Starbucks was also
praised for its commitment to social responsibility and environmental sustainability.
- Development milestones:

 First Starbucks Store (1971): The first Starbucks store opened on March 30, 1971, in
Seattle’s Pike Place Market, selling high-quality coffee beans and equipment.

They began expanding to more stores in the following years

 Expansion and IPO (1990s): Starbucks rapidly expanded throughout the 1990s, going
public in 1992.
 Global Expansion (2000): Starbucks reached a milestone of 2,000 stores, solidifying its
position as a leading coffeehouse chain. The company’s growth was driven by its loyal
customer base and its ability to innovate and adapt to changing consumer preferences.
  Mobile Payments and Digital Innovation (2010): Starbucks became a pioneer in mobile
payments with the launch of its mobile app. The company also invested in digital
technology, loyalty programs, and introduced innovations like the Reserve Roastery
stores.
 February 2013: Starbucks opened its first store in Vietnam
 2017: Starbucks reached a milestone of 25,000 stores worldwide, demonstrating its
global reach and popularity. The company’s success was attributed to its consistent focus
on quality, innovation, and customer experience.
 Sustainability Initiatives: Starbucks has committed to sustainability, setting goals to
reduce its environmental footprint. Initiatives include ethically sourced coffee, eco-
friendly store designs, and efforts to reduce waste.
 Diversification and Product Expansion: Over the years, Starbucks expanded its menu to
include not only a wide variety of coffee beverages but also teas, pastries, sandwiches,
and more, catering to a diverse customer base.
 Community Engagement: Starbucks has engaged in various social responsibility
initiatives, including ethical sourcing, farmer support centers, and community programs,
contributing to its image as a socially responsible corporation.

1.2 Introduction to Starbucks (brands, models, specifications)

- Brand: Starbucks Coffee
- Models:
 Traditional: These are the largest and most common type of Starbucks store. They offer a
full menu of beverages, food, and merchandise, and they typically have seating for
customers.
 Licensed Stores: These are smaller, more streamlined Starbucks stores that are typically
located in high-traffic areas such as airports, train stations, and office buildings. Express
stores offer a limited menu of beverages and food, and they may not have seating for
customers.
- Specifications:
Starbucks stores are designed to be comfortable and inviting places where customers can relax,
work, or socialize. They typically have a warm and inviting atmosphere with soft lighting,
comfortable seating, and free Wi-Fi. Starbucks stores also have a variety of amenities, such as
restrooms, power outlets, and outdoor seating.

Here are some of the key specifications of Starbucks stores:

Store size: Traditional Starbucks stores typically range in size from 1,500 to 3,000 square feet.
Express stores are typically smaller, ranging in size from 500 to 1,500 square feet. Licensed
stores can vary in size depending on the location and the licensee.

Seating: Traditional Starbucks stores typically have seating for 25 to 50 customers. Express
stores may not have any seating, or they may have a limited number of seats. Licensed stores can
vary in the amount of seating they have.
Amenities: All Starbucks stores have restrooms and power outlets. Traditional Starbucks stores
typically also have outdoor seating and a fireplace. Licensed stores may not have all of the same
amenities as traditional Starbucks stores.

1.3 Business performance in the recent years

Starbucks showed resilience and continued growth despite facing challenges such as
competition, changing consumer preferences, and the impact of global events like the COVID-19
pandemic. Some key points from that period include:
 Starbucks had been experiencing consistent revenue growth. Much of this growth was
attributed to the expansion of its store network globally and the introduction of new
products, including innovations in its coffee and non-coffee offerings.
 Starbucks has been actively expanding its presence in international markets. The
company has been focusing on adapting its menu and store formats to cater to local
preferences while maintaining its global brand identity. As of October 2023, Starbucks
has over 30,000 stores in 83 countries, making it one of the most recognizable brands in
the world.
 Starbucks has been investing in digital initiatives to enhance customer experience and
loyalty. This includes the success of its mobile app, which allows customers to order
ahead, pay digitally, and participate in the Starbucks Rewards program.
 Like many other businesses in the food and beverage industry, Starbucks faced
challenges during the COVID-19 pandemic. Lockdowns and restrictions impacted store
traffic, leading to a temporary decline in sales. However, the company adapted by
emphasizing digital orders, and implementing safety measures in its stores.

-> In 2023, Starbucks reported annual revenue of $35.976 billion, up 11.55% from 2022.
- Starbucks' strong business performance is expected to continue in the years to come, as the
company continues to expand its global presence, diversify its product offerings, and adapt to
changing consumer preferences. However, the company also faces some challenges, such as
rising labor costs and increasing competition from other coffee chains.
- Overall, Starbucks is a well-positioned company with a strong track record of success. The
company's focus on customer experience, innovation, and brand reputation should continue to
drive growth in the years to come.

1.3.1 Sales performance in the recent years

Year Revenue Year-over-year growth

2018 $24.61 billion 11.2%

2019 $26.50 billion 7.6%

2020 $23.57 billion -15.53%

2021 $29.061 billion 23.57%

2022 $32.25 billion 10.98%

source: Starbucks Revenue 2010-2023 | SBUX
  From this table we can see that Starbucks has experienced consistent growth in its sales
performance over the past few years. This growth has been driven by a number of factors,
including strong global expansion, diversified product offerings, digital transformation,
focus on retail experience, and adaptation to changing consumer preferences.
 Overall, Starbucks is a well-positioned company with a strong track record of success.
The company's focus on customer experience, innovation, and brand reputation should
continue to drive growth in the years to come.

1.3.2 Market share and position

Market share
 Based on available information, Starbucks' market share in Vietnam is estimated to be
around 2-3% in terms of revenue.
 In contrast, domestic coffee chains like Highlands Coffee and Phuc Long hold a larger
market share in terms of both store count and revenue. Highlands Coffee is estimated to
have a market share of around 30-40%, while Phuc Long holds a market share of around
10-15%. These figures indicate that domestic chains have a stronger presence and wider
reach in the Vietnamese coffee market.
 Despite its smaller market share, Starbucks remains a significant player in Vietnam's
premium coffee segment. The company's high-quality coffee, brand image, and modern
store environments attract Vietnamese consumers seeking a more upscale and
international coffee experience.
Position
 While Starbucks faces challenges in expanding its market share due to the strong
presence of domestic chains and deeply ingrained local coffee culture, its focus on
premium products, brand differentiation, and customer experience has enabled it to
maintain a significant position in the Vietnamese coffee market.
 Starbucks' position in Vietnam is characterized by its premium brand image, diverse
product offerings, modern store environments, local adaptability and digital integration.
These factors have positioned Starbucks' image and position for high-income Vietnamese
consumers looking for a more premium and international coffee experience.

CHAPTER2
CURRENT ANALYSIS OF STARBUCKS VIETNAM’S MARKETING STRATEGIES
AND ENVIRONMENT
2.1 Internal analysis
2.1.1 Segmentation and Targeting
 Segment:
Starbucks segments its targets by demographics, psychographics, and geography. Although it is
possible to identify several segments in a potential market like Vietnam, Starbucks still takes a
focused, targeted marketing approach. That means the company emphasizes a narrowly defined
market segment for luxury coffee products, high quality, high prices and eye-catching packaging.
Accordingly, Starbucks' target customer profile will be Vietnamese people with the following
characteristics: 25-40 years old; belonging to the high-income class; mainly live and work in
Hanoi and Ho Chi Minh City; have the mentality of being a luxurious and wealthy person; with
modern, Western lifestyle trends; Appreciate the importance of appearance and pay attention to
health, environmental, and social safety issues.
 Demographic segmentation:
Starbucks may consider demographic factors such as age, income, education level, and
occupation. For example, talk to urban professionals and students.
 Psychographic segmentation:
We customize our services by considering your lifestyle and values. Starbucks can target people
who value a premium coffee experience or who enjoy a modern, cosmopolitan lifestyle.
 Behavioral segmentation:
Analyze consumer behavior. Frequency of coffee consumption, particular beverage preferences,
or willingness to pay a premium for quality.
 Geographic segment:
Starbucks can focus on specific areas in Vietnam, especially urban areas, where more potential
customers can be concentrated.

 Target:
Starbucks Vietnam's goal in 2023 is to open its 100th store after 10 years of the American coffee
brand opening its first store in Vietnam in February 2013, at Phu Dong intersection (District 1,
Ho Chi Minh City). ). Also on this occasion, Starbucks Vietnam is expected to launch a number
of typical product lines marking a decade of development in the country known as the coffee
capital of the world.

Starbucks Vietnam's orientation is to open stores with moderate area, aiming for streamlining,
looking for more premises in new urban areas, high-rise buildings or local communities to be
able to bring the best experience. The Starbucks experience reaches more customers.
 City experts:
Starbucks targets young people in urban areas who are looking for a trendy and upscale coffee
experience. This group may appreciate the convenience of a downtown Starbucks.
 Students and Young generation:
With the popularity of coffee among students and the younger generation, Starbucks can tailor its
services and promotions to suit this target group.
 Coffee lovers:
Targeted at individuals who are passionate about coffee and want to try a variety of coffee
options, including specialty drinks and brewed coffees.
 Digital version:
Leverage digital marketing and mobile app capabilities to attract tech-savvy consumers who
value convenience and digital engagement. Socially conscious consumers:
Highlight ethical sourcing and sustainable practices to encourage consumers to prioritize socially
responsible brands.
 Foreign tourists:
Take advantage of brand recognition to attract foreign tourists who are familiar with Starbucks,
creating a feeling of familiarity and safety.
 Business meetings and connections:
Positioning Starbucks as a place for business meetings and casual networking, it attracts
professionals looking for a comfortable environment.
2.1.2 Positioning (perceptual maps, competitors’ positions, the current position)
 Cognitive map:
The perception map of Vietnamese coffee chains can take into account factors such as price,
quality, locality, and menu diversity. Starbucks, Highland and Phuc Long stores are described
based on consumer perceptions.
 Opponent's position:
Highland: Known for its local authenticity and often considered a strong local competitor. Phuc
Long: Vietnamese brands can position themselves based on factors such as traditional
Vietnamese coffee culture and perhaps an emphasis on local flavors.
 Starbucks current location:
Starbucks can position itself as a global brand that focuses on high quality and a diverse menu,
possibly at higher prices than its local competitors. Starbucks could also focus on providing a
comfortable, modern atmosphere that attracts a more urban and international audience.
Starbucks' positioning strategy is based on customers and providing more than what customers
need. In addition to focusing on beverage products, the brand also designs great store spaces and
spreads social responsibility with commitments to protecting the environment and consumer
health. When it comes to Starbucks, customers not only know it for its excellent coffee or a
coffee brand for the rich, they also think of a "third place" - a place where you can often visit
behind the house and where you can relax. Work to "be yourself"l

2.1.3 Market offer (physical products, services, and prices)

 Material products:
 Coffee beans: We source high-quality coffee beans from around the world, focusing on
popular blends and single origins.
 Tea and other drinks: We offer carefully selected tea leaves and other beverage
ingredients to help you recreate the Starbucks experience at home or anywhere else.
 Branded products: Retail sales of Starbucks-branded products such as cups, mugs and
accessories. Service:
 Training and support: We provide training and support programs for businesses or
individuals interested in serving Starbucks coffee. This could include barista training or
assistance setting up your coffee service.
 Device: We carry the coffee makers, machines and accessories you need to make
Starbucks quality drinks.
 Advice: We provide consulting services to companies looking to integrate Starbucks
products into their products to ensure brand consistency.
 Wholesale price: Establish a wholesale pricing structure for businesses or retailers who
purchase Starbucks products in bulk.
 discount: To encourage businesses to buy more Starbucks products, they offer discounts
and incentives for large orders.
 Contract agreement: Our ability to enter into agreements with partners to ensure a stable
and consistent supply of Starbucks products.
2.1.4 Marketing communication (budget, messages, media, promotional tools, programs,
strategies, coverage, frequencies …)
Components of marketing communications:
 Budget:
Starbucks allocates its budget for marketing communications activities by considering factors
such as campaign size, media selection, and promotional events.
 News:
Create messages that resonate with Vietnamese viewers. This includes focusing on quality, the
Starbucks experience, and unique aspects that suit local tastes.
 Media channel:
Use a combination of traditional and digital communication channels. This can include
television, radio, print media, social media and online platforms.
 Promotional materials:
Introduce various promotional tools such as discounts, loyalty programs and limited-time offers
to attract and retain customers.
 Programme:
Develop marketing programs and campaigns that align with local events, seasons and cultural
celebrations to increase relevance.
 Strategy:
Implement strategies that help Starbucks differentiate itself from competitors, such as: Highland,
Phuc Long. Highlight premium locations, ethical sourcing, or unique menu items.
 Network range:
Target specific geographic or demographic areas in Vietnam based on research and market
segmentation.
 Regularity:
Determine the frequency of your marketing communications, such as regular social media
updates, seasonal offers, and special promotions.
PR for your image through opening events, promotions, new product launches and limited gift
sales to attract customers. This is an extremely clever way of communication that is still
extremely effective.
Every Name's A Story in Starbucks' Marketing strategy in Vietnam is a film depicting the story
of a young transgender man. He is struggling with the world as everyone around him always
calls him by his old name. This campaign is tied to the I Am campaign.
Starbucks gives them the right to change their name more easily when they enter a Starbucks
store and are called by Order staff by their new name in the LGBT community. This shows that
each customer can only truly feel themselves when they come to Starbucks. The strategy has
brought Starbucks many outstanding achievements, making many users impressed and love the
brand more.

2.1.5 Distribution and sales (distribution channels, distribution terms, salesforce, sales policy)
 Distribution route:
 Shop: Starbucks relies heavily on retail stores strategically located in high-traffic areas
such as shopping malls, shopping malls, and urban areas.
 Franchise cooperation: By partnering with local franchise partners, Starbucks can expand
its reach and establish its presence in different regions of Vietnam.
 Grocery and retail partnerships: It is sold through grocery stores and retail partners,
offering packaged coffee beans, ready-to-drink drinks or other Starbucks-branded
products.
  Shipping conditions:
 Quality management: Maintain consistent quality across all distribution channels to
maintain the premium image associated with Starbucks.
 Inventory control: Implement effective inventory management to minimize inventory and
waste while ensuring product availability.
 Supply chain and logistics: Build a strong supply chain and logistics network to support
timely deliveries to retail stores and distribution partners.

 Sales force:
 Shop staff: Starbucks associates are well-trained and customer-focused to deliver a
positive customer experience and encourage upsells.
 Field sales representative: A dedicated sales team can engage with prospective corporate
customers, explore new partnership opportunities, and manage relationships with existing
partners.

 Sales policy:
 Pricing strategy: Implement a pricing strategy that reflects Starbucks' premium
positioning while considering local market conditions and competitive factors.
 Promotions and discounts: Offer promotions and discounts strategically. Seasonal
promotions, loyalty programs, or special prices on certain products.
 Loyalty program: Implement and promote customer loyalty programs to drive repeat
business and improve customer retention.
 Payment options: Offer a variety of payment options such as cash, cards, and digital
payments to suit different customer preferences.

 Ability to adapt to the Vietnamese market:

 Local cooperation:
Cooperate with local businesses, hotels, and airlines to expand sales channels and increase brand
awareness.
 Localized products:
We offer products tailored to local tastes and preferences to ensure the product mix meets the
expectations of Vietnamese consumers.
 Digital Interaction:
Digital transactions are very popular in Vietnam, so use digital platforms for promotions, online
ordering and mobile payments.
 Cultural considerations:
Adjust sales and marketing strategies to suit the cultural norms, traditions and behaviors of
Vietnamese consumers.
2.2 Customer analysis
2.2.1 Customer demand and buying behavior
 Customer Demand Analysis:
Market research for customer demand
 Types of Market Research:
  Surveys: Starbucks conducts both online and in-person surveys to gather information
about customer demographics, preferences, and satisfaction levels.
 Focus groups: Starbucks brings small groups of customers together to discuss their
experiences with Starbucks products and services.
 Social media monitoring: Starbucks monitors social media to track customer sentiment
and identify trends.
 Sales data analysis: Starbucks analyzes sales data to understand what products are selling
well and where there are opportunities for growth.

Starbucks' market research has revealed a number of key insights about its customers, including:
 Customers are willing to pay a premium for Starbucks coffee because they believe it is of
high quality.
 Customers appreciate the convenience of Starbucks stores and the variety of products
offered.
 Customers are increasingly interested in healthy and sustainable products.
 Customers are loyal to the Starbucks brand and enjoy the experience of visiting Starbucks
stores.

Starbucks uses its market research to make informed decisions about a variety of aspects of its
business, including:
 Product development: Starbucks uses market research to identify new product
opportunities and to test new products before they are launched.
 Marketing strategy: Starbucks uses market research to develop targeted marketing
campaigns that appeal to its customers.
 Store location: Starbucks uses market research to determine where to open new stores
and how to design its stores to meet the needs of its customers.
Customer Segmentation
Urban Professionals: These are affluent, educated individuals who work in urban areas. They
value convenience, quality, and a comfortable workspace, making Starbucks an ideal destination
for their daily caffeine fix and work meetings.
Casual Enjoyers: These customers appreciate the taste and experience of Starbucks coffee but
may not visit as frequently as urban professionals. They are drawn to Starbucks for special
occasions, social gatherings, or a treat during their shopping trips.
Value-Conscious Consumers: These customers are more price-sensitive and may seek out
cheaper alternatives to Starbucks. However, they may still occasionally indulge in Starbucks'
premium coffee and beverages, especially during promotions or special offers.
Health-Conscious Consumers: These customers prioritize healthy food and beverage choices.
Starbucks has catered to this segment by expanding its menu with healthier options like reduced-
fat milk, plant-based beverages, and lighter food items.

Starbucks customers are typically affluent, urban, and educated. They are also more likely to be
female and have children. Starbucks customers are attracted to the company's coffee, but they
also value the Starbucks experience, which includes comfortable seating, free Wi-Fi, and
friendly service.

Demand Drivers
There are several factors that are driving demand for Starbucks coffee, including:
 The increasing popularity of coffee: Coffee consumption is on the rise worldwide, and
Starbucks is one of the most popular brands.
 The convenience of Starbucks stores: Starbucks stores are located in convenient
locations, such as downtown areas, office buildings, and shopping malls.
 The Starbucks experience: Starbucks customers value the comfortable and inviting
atmosphere of Starbucks stores.
 The Starbucks brand: Starbucks has a strong brand reputation for quality and innovation.

Demand Challenges
Starbucks is facing several challenges that could dampen demand for its products, including:

 Rising costs: The cost of coffee beans and other ingredients is rising, which could put
pressure on Starbucks' profit margins.
 Increased competition: The coffee industry is becoming increasingly competitive, with
new entrants and established players vying for market share.
 A changing consumer landscape: Consumers are becoming more price-sensitive and are
increasingly willing to try new brands.

Opportunities for Growth

Despite the challenges it faces, Starbucks is well-positioned for future growth, thanks to several
factors, including:

 A strong brand: Starbucks has a strong brand reputation for quality and innovation.
 A loyal customer base: Starbucks has a loyal customer base that is willing to pay a
premium for its products.
 Innovative products: Starbucks is constantly innovating with new products and
beverages.
 An expanding global footprint: Starbucks is expanding its global footprint, with a
growing presence in emerging markets.

Buying Behavior
Habitual Consumption: Many Starbucks customers have developed a daily routine of visiting
their local store for their preferred coffee drink. This habitual consumption is driven by factors
like convenience, taste familiarity, and the Starbucks experience.
Impulse Purchases: Starbucks' enticing atmosphere, seasonal menu offerings, and limited-time
promotions can trigger impulse purchases among customers. The company strategically positions
its merchandise and food displays to encourage impulse buying.
Brand Loyalty: Starbucks has cultivated a loyal customer base through its rewards program,
personalized service, and consistent quality. These loyal customers are more likely to make
repeat purchases and recommend the brand to others.
Price Sensitivity: While Starbucks is known for its premium pricing, customers are generally
willing to pay a slightly higher price for the perceived quality and experience. However, price
sensitivity can influence purchasing decisions, especially among value-conscious consumers.
Seasonal Variations: Starbucks' sales are typically higher during the colder months when
customers seek warm beverages. Seasonal menu offerings, such as pumpkin spice lattes,
contribute to this seasonal demand.
Mobile Ordering and Payment: Starbucks' mobile app has significantly impacted customer
buying behavior, enabling customers to order and pay ahead for their coffee drinks. This has
increased convenience and reduced wait times, further enhancing the customer experience.

2.2.2 Customer assessment on company products and marketing-mix

Customer Assessment of Starbucks' Products
Starbucks' products are highly rated by customers.
 Taste: Customers consistently rave about the taste of Starbucks coffee, praising its rich
flavor and aroma.
 Quality: Customers perceive Starbucks coffee as being of high quality, using premium
ingredients and consistent brewing methods.
 Variety: Starbucks offers a wide variety of coffee drinks, catering to different preferences
and taste buds.
 Innovation: Starbucks is known for its innovative approach, constantly introducing new
products and seasonal offerings.

Customer Feedback on Specific Products

 Espresso-based drinks: Customers particularly enjoy Starbucks' espresso-based drinks,
including lattes, macchiatos, and cappuccinos.
 Frappuccinos: Frappuccinos are a popular choice among customers who prefer blended
and iced coffee drinks.
 Seasonal drinks: Starbucks' seasonal drinks, such as the pumpkin spice latte, are highly
anticipated and well-received by customers.
 Food items: Starbucks' food offerings, such as pastries, sandwiches, and salads, are
generally seen as convenient and satisfying options.

Customer Assessment of Starbucks' Marketing Mix

Starbucks' marketing mix is effective in reaching and engaging its target audience.

 Branding: Starbucks has a strong brand reputation, recognized for its signature green
logo, siren icon, and consistent messaging.
 Advertising: Starbucks uses a variety of advertising channels, including TV, print, digital,
and social media, effectively reaching its target audience.
 Social media: Starbucks has a strong social media presence, actively engaging with
customers and building brand awareness.
 Public relations: Starbucks actively engages in public relations activities, generating
positive media coverage and promoting its brand values.
 Pricing: Starbucks' pricing strategy is perceived as premium, but customers generally are
willing to pay a slightly higher price for the perceived quality and experience.
 Store locations: Starbucks stores are strategically located in high-traffic areas, offering
convenient access for customers.
  Store atmosphere: Starbucks stores are designed to be comfortable and inviting, creating
a welcoming environment for customers.
 Customer service: Starbucks employees are typically friendly and knowledgeable,
providing positive customer service experiences.

2.3 Industry and Competitor analysis

2.3.1 Industry environment (apply the Five-Force Model by Porter)
The following are the intensities of the Five Forces impacting Starbucks Coffee Company:

 Competitive rivalry or competition – Strong Force

 Bargaining power of buyers or customers – Strong Force
 Bargaining power of suppliers – Moderate Force
 Threat of substitutes or substitution – Strong Force
 Threat of new entrants or new entry – Moderate Force

Competition or Competitive Rivalry (Strong Force)

Starbucks Coffee Company faces the strong force of competitive rivalry. In the Five Forces
analysis model, this force pertains to the influence of competitors on each other and the
coffeehouse industry environment. In this case, the following external factors contribute to the
strong force of competition against Starbucks:
 Large number of coffeehouses and food-service firms (strong force)
 Moderate variety of businesses (moderate force)
 Low switching costs between coffeehouses (strong force)
The large number of coffeehouses and food-service firms is an external factor that intensifies
competitive rivalry in the context of this Five Forces analysis. Starbucks has many competitors
of different sizes, including multinational businesses and small local cafés. The company’s main
competitors include coffeehouses, like Tim Hortons, and food-service businesses, like Dunkin’,
McDonald’s, Wendy’s, Burger King, and Subway. Also, competitors are moderately varied in
terms of specialty and strategy. For example, some coffeehouses focus on local coffee varieties
only. In this Five Forces analysis of Starbucks, moderate variety strengthens competition by
dividing the market into segments based on business specialty or strategy. Moreover,
competition is strengthened because of the low switching costs between coffeehouses. In the
Five Forces analysis model, low switching costs reduce barriers when customers switch from
Starbucks to competitors. Based on this component of the Five Forces analysis, competition is
among the coffee company’s top-priority challenges. Starbucks’ generic competitive strategy and
intensive growth strategies reflect strategic responses to such competitive challenges.

Bargaining Power of Customers or Buyers (Strong Force)

Starbucks experiences the strong force or bargaining power of buyers or customers. In Porter’s
Five Forces analysis model, this power is based on the influence of individual customers and
their groups on the coffeehouse business environment. The following external factors contribute
to the strong bargaining power of customers relative to Starbucks:

 Low switching costs between coffee shops (strong force)

  High availability of substitute foods and beverages (strong force)
 Small size of individual buyers (weak force)
The bargaining power of consumers or buyers is among the most significant forces affecting the
coffeehouse industry determined in this Five Forces analysis. With low switching costs,
customers can easily transfer from Starbucks to other brands. In addition, the high availability of
substitutes means that customers can easily stay away from the company’s products and opt for
substitutes, like instant beverages from vending machines and home-brewed coffee from local
roasteries. These strong external factors overshadow the fact that individual purchases are small
compared to Starbucks’ total revenues. In the Five Forces analysis context, small individual
purchases mean that individual consumers have weak or insignificant influence on the business.
However, low switching costs and high substitute availability lead to the overall strong force of
the bargaining power of customers against Starbucks. Such a strong force in this component of
the Five Forces analysis shows that the bargaining power of customers is a top-priority strategic
issue. Starbucks’ marketing mix or 4P can support brand strengthening to partially address the
bargaining power of consumers.

Bargaining Power of Starbucks’ Suppliers (Moderate Force)

Starbucks Coffee Company faces the moderate force or bargaining power of suppliers. Porter’s
Five Forces analysis model considers this power as the influence that suppliers have on the
coffeehouse chain business and its industry environment. The following external factors
contribute to suppliers’ moderate bargaining power over Starbucks Corporation:

 Moderate size of individual suppliers (moderate force)

 Limited variety of suppliers (moderate force)
 Supply shortages (strong force)
The moderate size of individual suppliers is an external factor that imposes a moderate force on
Starbucks. In the Five Forces analysis framework, larger suppliers have stronger bargaining
power over the coffee business. On the other hand, the limited variety of suppliers provides them
with only moderate bargaining power relative to Starbucks. For example, different suppliers may
have similar supplies if they source their coffee beans from the same region or country. In the
Five Forces analysis model, this condition enables Starbucks to shift from one supplier to
another with moderate ease because of these suppliers’ similarities.

The bargaining power of coffee suppliers is partially strengthened because of supply shortages.
Such shortages are linked to droughts that damage crops, among the other ecological concerns
presented in the PESTLE/PESTEL analysis of Starbucks Coffee Company. Shortages enable
suppliers to impose their demands, such as by increasing the prices of coffee beans, thereby
strengthening their bargaining power in the context of the Five Forces analysis. Overall, the
external factors enumerated in this section create the moderate force of suppliers in the
coffeehouse chain’s business environment.

Threat of Substitutes or Substitution (Strong Force)

The strong force or threat of substitution affects Starbucks Corporation. In the Five Forces
analysis model, this threat pertains to the impact of substitute goods or services on the coffee
business and its external environment. The following external factors contribute to the strong
threat of substitution against Starbucks:

 High availability of substitute foods and beverages (strong force)

 Low switching costs between coffeehouses and substitutes (strong force)
 High affordability of substitute products (strong force)
This component of the Five Forces analysis indicates that substitutes have strong potential to
negatively impact the coffeehouse chain business. The high availability of substitutes makes it
easy for consumers to buy these substitutes instead of Starbucks’ products. There are many
substitutes, such as ready-to-drink beverages, instant beverage powders and purees, and foods
available from various outlets. These outlets include fine-dining restaurants, vending machines,
supermarkets and grocery stores, and small convenience stores. The Five Forces analysis
framework considers this high availability as an external factor that strengthens substitutes
against Starbucks’ products. In addition, the low switching costs further strengthen the threat of
substitutes to coffeehouse products. This external factor is viewed in the Five Forces analysis as
an enabler of consumers in switching from Starbucks to substitutes. Moreover, many of these
substitutes are more affordable than the company’s foods and beverages, thereby strengthening
the threat of substitution. Starbucks’ organizational culture (business culture) can help address
the threat of substitutes by providing warm and high-quality service that reinforces customer
loyalty. Also, Starbucks’ corporate social responsibility strategy and stakeholder management
initiatives can help retain customers based on emphasis on sustainable business practices.

Threat of New Entry/New Entrants against Starbucks (Moderate Force)

The moderate force or threat of new entry imposes challenges to Starbucks Corporation. In
Porter’s Five Forces analysis model, this threat refers to the effect of new players or new entrants
in the coffeehouse industry. In this business case, the following external factors contribute to
new entrants’ moderate threat to Starbucks:

 Moderate cost of doing business (moderate force)

 Moderate supply chain costs (moderate force)
 High cost of brand development (weak force)
The moderate cost of doing business refers to the cost of establishing and maintaining operations
in the coffeehouse industry. For example, the cost of operating a small coffeehouse is lower
compared to that of a coffeehouse chain. Also, smaller cafés have lower supply needs and
corresponding supply chain costs. Despite their relatively small sizes, many new entrants can
reduce Starbucks’ market share and revenues. Thus, in this Five Forces analysis, this external
factor leads to the moderate threat of new entrants in the coffeehouse industry.

The high cost of brand development is viewed in the Five Forces analysis framework as an
external factor that reduces the threat of substitution against Starbucks Corporation. Small local
coffeehouses typically do not have the resources to develop their brands to directly compete with
the Starbucks brand. Also, brand development takes years to reach the level and strength of the
Starbucks brand. The external factors enumerated in this part of the Five Forces analysis
establish the threat of substitutes as a moderate force and, thus, a significant but limited issue in
the multinational coffeehouse chain’s strategic management decisions.

2.3.2 Competitor 1: Highlands

Direct Competitive Products
Highlands Coffee is a leading Vietnamese coffee chain with over 500 stores nationwide. They
are known for their high-quality coffee beans, traditional Vietnamese coffee brewing methods,
and extensive store network. Their signature Phin Sữa Đá, a blend of freshly brewed coffee and
condensed milk, is a popular choice among Vietnamese consumers.
Marketing Mix

 Product:
o Offers a more limited selection of coffee drinks, food items, and merchandise.
o Products are known for being more affordable.
o Products are more locally sourced and seasonal.
 Price:
o Prices are generally lower than Starbucks.
o Prices may vary by location.
o Offers a more limited selection of pricing options.
 Place:
o Has a smaller number of locations than Starbucks.
o Stores are typically located in more local neighborhoods.
o Stores are designed to be more relaxed and cozy.
 Promotion:
o Uses a more limited range of marketing channels, primarily focusing on local
advertising and community events.
o Has a stronger focus on word-of-mouth marketing.
o Uses promotions and discounts to attract new customers.

Strong and Weak Points

Strengths:

 Strong Vietnamese coffee heritage: Highlands Coffee is a Vietnamese coffee chain with a
strong heritage. This has helped the company to attract customers who are looking for
authentic Vietnamese coffee.
 Local presence: Highlands Coffee has a strong local presence in Vietnam, with over 500
stores nationwide. This gives the company a strong competitive advantage in terms of
market share and customer loyalty.
 Affordable prices: Highlands Coffee's prices are generally lower than those of Starbucks.
This makes the company more appealing to price-sensitive customers.
 Wide variety of beverages: Highlands Coffee offers a wide variety of beverages,
including coffee, tea, smoothies, and frappes. This gives customers more choices and can
help to attract a wider range of customers.
  Extensive food offerings: Highlands Coffee offers an extensive menu of food items,
including pastries, sandwiches, and salads. This makes it a more attractive option for
customers who are looking for a meal.

Weaknesses:

 Limited global reach: Highlands Coffee is primarily a Vietnamese coffee chain with
limited presence outside of Vietnam. This makes it difficult for the company to compete
with Starbucks in terms of global market share.
 Lower brand recognition: Highlands Coffee's brand recognition is not as strong as
Starbucks' brand recognition. This can make it difficult for the company to attract new
customers, especially in international markets.
 Potential for product overlap: Highlands Coffee's product offerings are similar to those of
Starbucks. This could make it difficult for the company to differentiate itself from
Starbucks and attract customers.

2.3.2 Competitor 2: Phuc Long

Direct Competitive Products

Phuc Long is a renowned Vietnamese coffee and tea chain with over 1,000 stores nationwide.
They are known for their affordable prices, convenient locations, and focus on Vietnamese-style
coffee and tea beverages. Their signature Phúc Long Milk Tea is a popular choice among
Vietnamese consumers.
Marketing Mix
 Product:
 Offers a more limited selection of coffee drinks, food items, and merchandise, with a
focus on Vietnamese coffee specialties.
 Products are known for being more affordable and using local ingredients.
 Products are inspired by Vietnamese traditions and flavors.

 Price:
 Prices are generally lower than Starbucks.
 Prices may vary by location, particularly in international markets.
 Offers a more limited selection of pricing options.

 Place:
 Has a growing number of locations, primarily in Vietnam but expanding internationally.
 Stores are typically located in both urban and suburban areas, often catering to local
communities.
 Stores are designed to reflect the Vietnamese coffee culture and offer a more
personalized experience.
  Promotion:
 Utilizes a combination of traditional and digital marketing channels, focusing on local
advertising, social media engagement, and community events.
 Emphasizes authenticity, Vietnamese heritage, and cultural connection in its marketing
messaging.
 Employs a more localized approach to marketing, tailoring campaigns to specific regions
and customer preferences.

Strong and Weak Points vs Starbucks

 Phuc Long
 Strengths:
 More affordable prices
 Perceived as a more authentic Vietnamese coffee experience
 Strong focus on local ingredients and flavors
 Growing international presence
 Weaknesses:
 Smaller and less loyal customer base, particularly outside of Vietnam
 Fewer locations globally compared to Starbucks
 Limited marketing reach compared to Starbucks' extensive global campaigns
 Starbucks
 Strengths:
 Strong brand reputation established over decades
 Large and loyal customer base worldwide
 Wide variety of products catering to diverse preferences
 Extensive global presence with a consistent brand experience
 Strong marketing and advertising efforts driving brand awareness
 Weaknesses:
 Higher prices, potentially limiting accessibility for some consumers
 Perceived as less personalized and more corporate compared to Phuc Long's local touch
 Can be crowded and less intimate due to high popularity

Phuc Long has emerged as a formidable competitor to Starbucks in the Vietnamese coffee
market and is expanding its presence internationally. While Starbucks holds a dominant position
globally, Phuc Long's strengths in authenticity, local focus, and affordability make it a
compelling choice for many coffee enthusiasts. The competitive landscape continues to evolve,
and both companies are striving to attract and retain customers through innovative products,
personalized experiences, and effective marketing strategies.

2.4 Macro-environment analysis

2.4.1 Demographic environment
Research indicates that businesses, the wealthy or those with a solid average income or above,
and members of the upper intellectual class make up Starbucks' target consumer base. These
individuals are generally between the ages of 20 and 44.
Vietnam is a nation with 97 million people (as of 2020 estimates), with an average age of 32.5
years, a high percentage of the population—up to 34%—living in metropolitan areas, and a
robust economy. The economy is becoming more robust every day. Starbucks has found that a
growing number of young individuals with steady or even high earnings are prepared to spend
between $100 and $500k on coffee each day, making them a valuable consumer base.
Additionally, since the majority of Starbucks' locations are located in major cities and bustling,
central places, the fact that many people live in metropolitan areas is advantageous for the
company's target market.

2.4.2 Economic environment

In 2019, in the context of a decline in global aggregate demand
World economic and investment activities and trade declined, Vietnam's import and export of
goods still maintained a positive growth rate:
- GDP in 2019 increased by over 7%: Gross domestic product (GDP) achieved impressive
results, with an increase rate of 7.02%, exceeding the target set by the National Assembly of 6.6-
6.8%.
- Mobilization and lending interest rates are basically stable; Stock
The market grew positively, making an important contribution to mobilizing capital for
economic development.
-Total import-export turnover of goods exceeds the 500 billion USD mark
-The consumer price index (CPI) in December 2019 increased by 1.4% compared to the previous
month, the highest increase in the past 9 years. Among them, the food and catering services
group increased the highest by 3.42%.
- In 2019, the scale of the economy increased 1.3 times compared to 2016, while this year's
growth rate reached over 7% for the second time in a row, at 7.02%, and the scale of the
economy increased. to 262 billion VND. U.S. DOLLAR. This growth rate also far exceeds the
expectations of reports from international organizations such as ADB calculating 6.9%, World
Bank 6.8%...
- In the first 9 months of 2019, the whole country exported 1.27 million tons of coffee, earning
about 2.17 billion USD, average price of 1,718 USD/ton, down 12.6% in volume, down 21% in
value. quota and decreased 9.6% in price compared to the same period in 2018.

2.4.3 Technological environment

Technology has advanced significantly in all areas throughout the fourth technological era.
Starbucks has a lot going for it, especially with regard to the extensive social media coverage.
The company has a fan page with 33 million likes, which is a figure that would surprise any
brand manager. Brands owned by multinational manufacturers of consumer products.
This feature makes it easier for Starbucks to reach a large audience with their marketing
initiatives, which attracts potential customers.

2.4.4 Political-Legal environment

Vietnam is a potential market with a large population and high per capita income. The
Vietnamese government is also promoting economic reform, creating a favorable investment
environment. This creates conditions for Starbucks Coffee to expand its market and open more
stores in Vietnam. Vietnam's legal system is promulgated and enforced in a transparent and clear
manner, helping businesses, including Starbucks Coffee, minimize risks in the business process.
Besides, the Vietnamese coffee market is becoming increasingly competitive, with the
participation of many businesses, both domestic and foreign. Vietnam's political and legal
environment is creating positive impacts on Starbucks Coffee's business operations. However,
Starbucks Coffee also needs to be clearly aware of the challenges and take appropriate measures
to overcome these challenges, thereby developing sustainably in the Vietnamese market.

2.4.5 Socio-cultural environment

Of the approximately 90 million people living in Vietnam, half are under the age of thirty-five.
The World Bank (WB) reports that Vietnam's GDP per capita increased by more than ten times
between 1986 and 2009, when the country attained average income. Vietnam's average annual
income was 1,270 USD in 2011.
IAM research on coffee consumption trends indicates that 65% of Vietnamese coffee drinkers
drink coffee seven times a week, with a tendency toward male consumption (59%). When it
comes to instant coffee, 21% of consumers use it three to four times a week, with a slight
preference for female customers (52%). At 49%/50%, the percentage of people who use coffee at
home and outside of their homes is equal. The hours of 7-8 am are when coffee is most
commonly consumed.
Coffee-drinking behaviors: Taste, store design, and coffee brand are the three primary
determinants of whether or not a customer chooses to purchase coffee from a business. In
particular, most customers like coffee with a bitter taste, as confirmed by 44.7% of those who
drink coffee in a store.

2.4.6 Natural environment (if yes)

Vietnam has a very poor road traffic system and infrastructure. Locating a suitable location for a
business will be challenging.
Even though there is a steady and plentiful source of fuel for coffee, Vietnam's weather is very
harsh; natural disasters and erratic weather patterns can have an impact on locations that grow
raw coffee.

=> Starbucks target customers:

- Adults: from 25 to 40 years old
● Is Starbucks' main target market (accounting for 49% of Starbucks' total businesses).
● They are often people with relatively high incomes, professional careers, and a focus on
social welfare.
● What attracts them is the spatial design, consistent modern design in advertising as well as
decoration.
● This target audience is growing at 3% per year.
- Young people: 18 to 24 years old
● Accounts for 40% of Starbucks' total businesses.
● What attracts them: Starbucks is positioned as a place where college students can study,
chat with friends, meet people, check in,... Besides, Starbucks takes advantage of social
networks to actively build a Youthful and dynamic image, directly impacting this target
group.
● The younger audience is growing at 4.6 percent per year
- Children and adolescents: from 13 to 17 years old.
 ● Represents 2% of Starbucks' total business, but most children's items are purchased by
parents.
● Children traveling with their parents. Teens meanwhile use Starbucks as a place to hang out
with friends or study.
● What attracts them: drinks with milk or coffee with sugar, caffeine, whipped cream topped
coffee. Besides, Starbucks makes its brand child-friendly, such as special sizes for children.
● Although the number is not large, this can increase potential customers in the future,
meaning Starbucks has made children and teenagers recognize the brand and made the brand
more friendly to this audience. can come back in the future (when old enough to use
Starbucks signature drinks)

2.5 SWOT analysis

(formulate a SWOT table, show strong points, weak points, opportunities and threats)

 Strengths:
 Famous brand: The first strength of Starbucks is its brand strength. Starbucks has
a highly appreciated brand value with a coffee taste that is loved by many people.
In 2019, Starbucks had a brand value of $11.7 billion according to Interbrand
rankings. The number of Starbucks stores increased from 1,886 to 31,256 from
1998 to 2019.
 Stable financial investment source: Starbucks is a company that has a very strong
financial base. Starbucks made approximately $3.6 billion in profits and
approximately $26.5 billion in revenue in 2020. This is undoubtedly a record-
breaking business outcome that emphasizes Starbucks' operational effectiveness
even more.

 Weaknesses:
 Price is not competitive: Starbucks beverages are frequently more expensive than
those of its rivals. When there were fewer coffee shops, Starbucks products were
seen as "luxury" brands, and the company invested much in raising the caliber of
its coffee to justify the price. But as more coffee shops open up these days, one of
Starbucks' weaknesses is the cost of their premium goods.
 The product lacks uniqueness: Despite having a wide variety of drinks on offer
and being accessible to the public for a considerable amount of time, Starbucks
products are nevertheless seen as being unoriginal. Starbucks doesn't have any
distinctive goods that would set the company apart from its competitors.

 Opportunities:
 Popularity of social networks: The majority of corporate clients currently use
social media and Internet connectivity on a daily basis. As per the 2020 data from
Statista.com, individuals utilize social media platforms for 135 minutes daily on
 average. Unquestionably popular, social media platforms are a great way for
businesses to access a wide audience, run targeted marketing efforts to draw in
customers, and boost conversion rates. transform.
In an effort to reach a wide range of potential customers, Starbucks has increased
its social media presence and started to invest in paid online advertising in recent
years. Social media's widespread use will present Starbucks with chances to draw
clients and raise awareness of its brand.
 Great demand in developing markets: In developing countries, building a
foundation for a brand can take a lot of time, however, the need for local
customers to interact is high, so once a solid foundation is established, it is
important to expand more doors. Starbucks products are just an overnight thing.

 Threats:
 High degree of competition: A major challenge to Starbucks' long-term viability
is the willingness of many of its rivals to lower their pricing in order to draw in
customers. Starbucks will find it difficult to persuade consumers to pick its goods
over those of rival companies given their high prices.
 Economic recession: Starbucks' profits and revenue have historically fallen during
recessions; in the fiscal 2020 second quarter, the company's revenue dropped 5%,
and in the third quarter, it experienced a dip. 38%, in part because of the Covid-19
pandemic's effects.

SWOT model of Starbucks

2.6 The marketing problems ( thư)

(determine the marketing problems facing the company in the current time and near future)
  Cultural adaptation:
 Challenge: Ensure marketing strategy is consistent with Vietnamese cultural tastes,
traditions and lifestyle.
 Potential problem: If Starbucks does not adapt its services and messages to local culture,
the company may have difficulty reaching its target audience.
 Compete with local brands:
 Challenge: Faces competition from established local coffee chains that may have strong
ties to the local community.
 Potential problem: Starbucks may need to differentiate and demonstrate a unique value
proposition to stand out from local competitors.
 Price strategy:
 Task: Determine the optimal pricing strategy to balance Starbucks' premium image with
the price sensitivity of the Vietnamese market.
 Potential problem: If prices are perceived as too high without enough perceived value,
Starbucks may have difficulty attracting and retaining customers.
 Digital and mobile adoption:
 Challenge: Adapting to the digital preferences of Vietnamese consumers, who
increasingly prefer to order and pay via mobile devices.
 Potential problem: If Starbucks falls behind in providing practical digital solutions, it
could lose customers to competitors that offer more complex digital solutions.
 Local marketing communications:
 Challenge: Create a marketing message that effectively conveys the Starbucks brand
while resonating with local consumers.
 Potential problem: Ineffective communication strategies can lead to a lack of brand
engagement and understanding among Vietnamese consumers.
 Sustainability expectations:
 Challenge: Meeting growing expectations for sustainability and ethical sourcing in the
Vietnamese market.
 Potential problems: Failure to communicate or implement strong sustainable practices
can create negative perceptions among environmentally conscious consumers.
 Compliance:
 Challenge: Comply with local regulations and standards in the food and beverage
industry.
 Potential issues: Non-compliance could lead to legal challenges, reputational damage or
business disruption.
 Adapt to local tastes:
 Challenge: Ensuring Starbucks' menu meets the unique tastes and preferences of
Vietnamese consumers.
 Potential problem: If the menu doesn't reflect local tastes, Starbucks may have difficulty
gaining widespread acceptance.

2.7 Starbucks' target customers:

Starbucks segments its target customers demographically, psychographically, and
geographically. Although it has identified a number of potential segments in Vietnam as above,
Starbucks still focuses on a focused targeting approach. That means the company only
emphasizes a small niche that can afford quality luxury coffee products, premium prices and eye-
catching packaging.
Based on the above criteria, Starbucks' target customer profile will be Vietnamese people with
characteristics such as:
• Age: 25-40.
• Income: Have high income.
• Geography: Mainly living and working in Hanoi and Ho Chi Minh City.
• Psychology: Accustomed to a luxurious, wealthy lifestyle, tending to live in a Western
style. Show interest in appearance and issues of health safety, environment, society,...

CHAPTER 3

RECOMMENDATIONS FOR IMPROVING STARBUCKS VIETNAM’S MARKETING

STRATEGIES AND PROGRAMS IN THE NEXT PERIOD
3.1 Improving market segmentation and target market strategies
 Continue market research to better understand Vietnamese consumer preferences and
behaviors. This will help Starbucks identify specific customer segments and tailor its
marketing efforts accordingly.
 Focus on younger generations, such as millennials and Gen Z, who are more likely to
embrace Western-style coffee culture and have more disposable income.
 Consider targeting specific demographics, such as professionals, students, and travelers,
to develop targeted marketing campaigns.
3.2 Improving the market offer strategy (physical products, services, prices)
 Introducing more local menu items to satisfy Vietnamese tastes. This can include
incorporating traditional Vietnamese ingredients or flavors into drinks and cakes.
 Expand your non-coffee beverage portfolio to attract a broader customer base. This can
include tea, smoothies, and other refreshing drinks.
 Consider offering more affordable options to attract budget-conscious consumers. This
can include smaller drink sizes, combo deals, and loyalty programs.
3.3 Improving the positioning and marketing communications strategy in
 Emphasizes the high quality and craftsmanship of Starbucks coffee. Emphasizing the
brand's global expertise and commitment to using high-quality Arabica beans.
 Positioning Starbucks as a lifestyle brand represents a modern and ambitious lifestyle.
Create marketing campaigns that showcase your brand's connection to creativity,
innovation, and community.
 Leverage social media platforms to interact with Vietnamese consumers. Use local
influencers and create content that is relevant to your target audience.
3.4 Improving the distribution and sales strategy
 Expand your store presence in high-traffic areas, such as city centers, shopping malls, and
transportation hubs. This will increase visibility and accessibility to potential customers.
 Partner with local businesses, such as cafes and restaurants, to expand distribution
channels. This will allow Starbucks to reach a wider audience without the need for
additional investments in physical stores.
  Explore e-commerce opportunities to reach consumers who prefer to shop online.
Implement seamless ordering, delivery, and payment systems to enhance the online
experience.
3.5 Other recommendations (if available)
 Integrate sustainable initiatives to attract environmentally conscious consumers.
Highlight Starbucks' commitment to ethical sourcing, waste reduction, and
environmentally friendly practices.
 Participate in local community initiatives to build brand loyalty and positive connections.
Support local charities, cultural events, and educational programs.
 Nurture a strong customer service culture to enhance the overall customer experience.
Train employees on knowledge, friendliness, and attention to customer needs.