Starbucks Marketing Objective
Essay Preview: Starbucks Marketing Objective
Report this essay
Marketing Objectives Jieyin partSales increaseStarbucks expect to increase at least 20% of the sales due to some opening stores in great locations. Starbucks grew its store base across Asia especially at the entrance to the new Shanghai Disneyland. This will become the highest-grossing Starbucks in the world. Digital initiatives such as a new mobile app will help cafes to operate more efficiently, in turn boosting sales.Market share growthStarbucks have many stores in many of the countries and territories. Starbucks can increase the number of the stores in the remaining countries and territories. Starbucks can also spread the package product to all the convenience stores and grocery stores.Starbucks not only concentrating on expanding its footprint, but also changing its store mix. Instead of opening more dine-in coffee shop, Starbucks is concentrating on drive-thrus in the outer edges of urban and suburban areas. In addition, Starbucks is opening up express stores which essentially function as walk-thrus in NewYork, Boston, and Seattle. This strategy is aimed at increasing the company’s store penetration. However, a force that may counter the incremental growth from the new store openings is cannibalization. That said, Starbucks remains confident that it will see a minimum 5% comparable sales growth in the US.Most of the new restaurants the company plans to open are in China/ Asia Pacific. The company plans to take the store count in China to 3,400 by 2019 and 5,000 stores in China by 2021. Furthermore, the opening of the first reserve roaster in Shanghai indicates the confidence and the growth potential the company sees in the country.Targeting new customersStarbucks sell their products to almost all the age group from adults, young adults, kids and teens. Starbucks primary target market is men and women aged 25 to 40. They account for almost half (49 percent) of its total business. Although Starbucks get almost all the age group, but Starbucks can focus on kids and teens age group to increase the sales and profit. This is because kids and teens account for just 2 percent of Starbucks sales, but most items for kids are purchased by the parents. Kids go with their parents; meanwhile teens use Starbucks as a place to hang out with friends or study. This will be a large market due to the trend nowadays that parents pay more attention to their children’s preferences and willing to pay for it.Enter the new market, locally, internationallyStarbucks is an international worldwide company. Starbucks have stores in nearly whole of the world by 72 countries and territories. Although the CEO of Starbucks, Howard Schultz got the idea to bring the coffee culture to the world, but there are some countries that no Starbucks stores. There are some countries that are no Starbucks stores such as North Korea, Zambia, Jamaica, Italy and others. Maldives is one of the countries that no Starbucks store. Maldives is a new market for Starbucks. Maldives focus more on tourism industry and having much of international tourist to visit there. Starbucks can develop coffee shop and Starbucks package product in the convenience stores for local and international customers. It will be easier for Starbucks to enter the new market due to the Maldivian coffee culture. Maldivian loves coffee and some of them cannot live without coffee. Maldivian minimum will spent three to four hours in a café or a restaurant a day. The Maldivian coffee culture could help Starbucks to enter the market easily.
Launch new product or serviceStarbucks have various type of product such as coffee, tea, food and beverages, and equipment. Starbucks can develop new product to gain new potential customers especially kids and teens. The new product that Starbucks can try to develop is Starbucks Candy®. Starbucks can develop their own coffee flavor candy such as, Latte candy, Espresso candy, and Cappuccino candy. This will attract candy lovers to buy the products. These are the example of coffee candy for the Starbucks coffee candy:pictureBuild brand awarenessStarbucks has positioned themselves as a highly respected brand. The Starbucks company has positioned itself in a way it can distinguish their products from competition, which gives them an advantage. Starbucks need to increase to advertise in the geographic area that having the right target customers. The locations to advertise is very important to get large number of customers. Other than that, Starbucks using special strategy such as writing the wrong spelling on the cup to get customers attention so that customer will keep it in mind or share to others about the experiences. Sometimes the baristas will write the correct spelling on the cup, and this will make the customers a surprise and feel happy about it. Promotional activities such as social media and product giveaways are the strategies for Starbucks to build brand awareness. Improve external and internal communicationsExternal communicationsAt Starbucks, communication has served to create a strong brand over the years. They have expanded their line of quality products and services. For example, they have a lucrative gift card business and they have greatly expanded their selection of food items. This has been the product of communication with external forces – namely their customers. They have communicated with them to learn what they want, and Starbucks has worked to give it to them.