Cloud Based Customer Relationship Management Marketing plan of Starbucks coffee shop

Cloud Based Customer Relationship focussing trade envision of Starbucks java sponsorEXECUTIVE SUMMARYThis depict looks at the Marketing plan of Starbucks cocoa shop, and its contri only whenion to the victory of family. brass of successful tradeing plan is the key point for a bon ton to gain the war-ridden advantage over its competitors. The tradeing plan evaluates the st setgies shortly adopting by the political party. But the main theme of this report is to focus mainly on political party foodstuffing strategies, much(prenominal) as SWOT Analysis, Ansoff ontogeny Matrix, Boston Consulting Group Matrix, 4s, federation short term goals, objectives, and how it can be successful in the future.COMPANYS INTRODUCTIONStarbucks Corporation is a dominant transnational chocolate and cocoaho manipulation chain confederacy based in the united States. Starbucks is the largest cocoa treehouse company in the human beings with 8,505 company-owned and 6,505 licensed stor es in 42 countries, making a total of 15,011 stores humankindwide. Starbucks sells drip brewed coffee, espresso-based hot drink, fruit bottled, conjugate with sandwiches, pastries, snacks, salads, soups, other hot and cold drink.Core competency of star bucks To summarize, Starbucks has a richly reputation for musical none because of the chaseThe company goes to extreme lengths to bargain the real finest Arabica coffees available on world markets, regardless of charge.The companys freshness and select ar legendary. Beans that are held in bins for to a greater extent than a week are donated to charity.E rattling piece of coffee-brewing equipment that is sold has been tested and evaluated. severally Starbucks employee is extensively accomplished to ensure that nodes receive knowledgeable dish.Mission StatementTo establish Starbucks as the premier purveyor of the finest coffee in the world while detecting our uncompromising principles as we grow. The keep abreasting six Guideline Principles forget help us pulse the appropriateness of our decisionsProvide a prominent work environment and consider each other with respect and dignity. extort diversity as an crucial comp unrivallednt in the way we do crease.Apply the eminentest standard of worth to the purchasing roasting and fresh delivery of our node.Develop sky-high convenient customer all told of the time.Contri scarcee positively to our communities and our environment.Recognize that profitability is inborn to our future success.Starbucks has the avocation core valuesProvide a great work environment and treat each other with respect and dignity.Embrace diversity as an essential component in the way we do moving in.Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.Develop enthusiastically satisfied customers all of the time.Contribute positively to our communities and our environment.Market DemographicsThe profile for the starbucks customer consists of the following geographical, demographic, and behavior factorsGeographic The geographic survey may acknowledge the identification of total gentlemans gentleman body of population, in society and total number of rump customer in which you are operating (Lanchester, Massingham, Ashford 2002).The immediate geographic target market for starbucks is the total population of the UK which is 60,776,238 approximately.The specific targeted market of Starbucks is for the to the highest degree part the students of schools, colleges, and universities.DemographicsMale and female.Age below 40. This age range d bleaks off a combination of university students and locals within the society.Have (or are getting) a college education and roughly(prenominal) with graduate degrees.An income over 457 per week (except the students who earn far less but pitch a decent amount of disposable income).Non-conventional customers.PsychographicThe people who requisite to enjoy a total ly different coffee experience, they go to starbucks as it is positioned a completely different coffee shop.MARKET NEEDSStarbucks is providing with a wide range of high quality coffee and snacks options to their customer. Starbucks seeks to fulfill the following arrive ats that are of the essence(predicate) to their customersSelectionA wide range of coffee and snacks options that is unavailable at the larger, dominant coffee chains.AccessibilityAlmost all types of coffee are available from starbucks centrally located storefront.Customer serviceThe patron will be impressed with the level of attention that they receive. warlike pricingPrices of all range of coffee and other stuff will be priced competitively sexual relation to the competition.SITUATION ANALYSIS OF STARBUCKSThe company mail analysis is used at the furrow level to determine the strategic issues and problems that shoot to be overlayed through the adjoining three locomote of the strategic think process.Starbucks has own very good different kinds of effect to dominant in this industry make it to differentiate to others one in this market. This are the strength, those help starbucks to turn over their targets and desire goals. These are the stratbucks some important characteristics or strengths.STRENGHTSStrong Brand RecognitionLarge retail statistical dispersion system prime(prenominal) returnExtensive product leaning silk hat supplier relationshipStrong financial historyStrong human resourcesWEAKNESSESEven though starbucks posses a number of strengths but it alike has some weakness too. starbucks emergencys to overcome on and deal them for remaining the hand position in this competitive market.These are the s following list of starbucks weaknessesDependence on single source of business incomePrices high relation back to competitionStrong dependence on suppliersMerchandise sales in storesSWOT ANALYSIS FRAMEWORKOPPORTUNITIESIt is a fact that both company who enter in the market e ssentialiness has different kind of opportunities last in market. This is the important, how to recognize and make to system to acquire them, acquiring these opportunities is called success of company .Starbucks can more successes in market if they will be able to act upon theses opportunities accordingly.The following unused opportunities can help starbucks to success more in the future in the way of their business.Expansion into overseas marketsExpansion into untapped U.K and worldwide marketsExpansion of stigma name into upstart products or business linesTHREATSNobody knows about tomorrow. Especially for nowadays circumstances, world is changing dramatically. Some cutting scourges are prevailing in the market with full swing of their effectiveness. Despite the fact of strong position of strabucks in the market, he still need to keep eye on these threat get strong positioning and branding.These are the list of some very common internally and externally threats.Economic hol d ins may make consumers grudging to digest high pricesPolitical conditions abroad may limit blowupIncreasing competition in coffee marketMay be reaching saturation point in some U.S markets append prices of raw material for coffee and other stuffBOSTON CONSULTING GROUP (BCG) intercellular substanceThe Boston consulting Groups growth-share matrix, developed in the early 1970s, probably became the most everyday counseling technique ever.The vertical dimension is th growth rate of the market, which is used by the BCG as a proxy variable for market attractiveness. High-Growth markets are assumed to be more attractive because, being competitively non zero sum, market share gains are often more tardily obtained. Also market share gains in a growth market will be worth more in the future as the market develops. The midpoint between high and low market gtowth isIn the BCG matrix, star quadrant is the most dominant place where the companies enjoy the high market growth and high market share. Thats why every company penurys to stay in star quadrant. As STARBUCKS coffee shop is the noteworthy coffee chain in the world, thats why it clearly lies in the (STAR quarter-circle High Growth + High Share) because the annual sales of the company in last financial year 2007 are US $ 9.411 Million, moreover the coffee shop enjoying the highest market share as hearty in the coffee industry.ANSOFFS GROWTH MATRIXThe product-market matrix proposed by ANSOFF, provides a useful simulation for considering the relationship between strategic direction, and merchandising strategy (Brassington Pettitt 2006).The four-cell matrix shown in the figure considering various combinations of product-market options. Each cell in the Ansoff Matrix presents unequivocal opportunities, threats, resources, requirements, return and risks.Market expansions means selling more of the animate products to new markets, which could be based on new geographic segments or could be reachd by opening up other new segments such(prenominal) as age, product, usage, lifestyle or any other segmentation variables (Brassington Pettitt 2006 p 955).In the ANSOFF growth matrix, the STARBUCKS coffee shop lies in the (MARKET EXPENSION Existing Product + smart Market), because company is making very good profit in closely every coffee shop in different military position of the world. spending its coffee market in Middle eastern hemisphere, and Asia could be very accommodative for the companys profit because there is huge potential for the coffee market as there is no illustrious coffee shops in that part of the world. sound like recently they have opened their two coffee shops, one in China and other is in Kuwait.MARKETING MIX strategy FOR STARBUCKS In rules of order to make appropriate strategies for gaining customers preferences and their loyalty, we need to understand as to how STARBUCKS Marketing Mix or 4 Ps have alterd the company to achieve superior customer satisfaction, and also in pissing a long-term relationship with its customers. The issue is not whether there should be four, six, or ten Ps so much as what framework is most helpful in designing selling strategy. bonny as political economy use two principals concepts for their framework of analysis, namely Demand, and Supply. The marketers see the four Ps as a filing cabinet of tools that could guide their market planning (Philip Kotler, 1999 p 96). succeeding(a) are the some recommendations for STARBUCKS in relation with marketing mixFrame Work of marketing MixPRODUCTTypically, the marketing mix stars with product p. the heart of the marketing mix, the starting point is the product offering and product strategy. It is hard to design a place strategy, purpose on a progress campaign, or set a price without knowing the product to be marketed.The product includes not only the physiological unit but also its bundle, warranty, subsequently-sale service, brand name, company image value, and ump teen other factors. A Starbucks coffee has many a(prenominal) product elements the chocolate itself, a fancy gold wrapper, a customer satisfaction guarantee, and the prestige of the Starbucks coffee brand name. We buy things not only for what they do (benefits) but also for what they mean to us (status, quality, or reputation).Products can be tangible goods such as computers, ideas like those offered by a consultant, or operate such as medical care. Products should also offer customer value.Decision that character the new product development process(innovation management), licensing strategies with potential partners, intellectual property rights, services provided to augment the revenue stream from base products product name/brand decisions ,development of complementary products by partners, creation of industry standards, packaging, and so forth, the critical need is to develop a stream of products with the right set of features to satisfy customer needs in a compelling yet sim ple fashion.( jakki j. Mohr, Sanjit Sengupta, Stanley Slater,2000, p7)In Starbucks they made purely their products to material the needs of the customer, and they made coffee with the finest coffee ingredients of the world. The different range of coffee and snacks offered by STARBUCKS are as followESPRESSOCoffee caffe latteCappuccinoVanilla LatteCoffee AmericanoEspressoCOFFEE fellowship FAVOURITES lover stifling burnt umberCoffee MistoClassic savory ChocolateSignature Hot ChocolateFreshly Brewed coffeeFRAPPUCCINOCinnamon dolceJava haltEspressoCoffeeCaramelSPRING FAVOURITESCinnamon dolce LatteCaramel MacchiatoPRICE decisions that establish price points for the company products, and address issues related salute to produce/manufacturer the good, margins along the distribution channel, competitors prices (pricing relative to a specific firm market position), customer value, total cost of ownership for the customer, price for product bundles, and profitability.( .( jakki j. Mohr , Sanjit Sengupta, Stanley Slater,2000, p8 ).Price is the only element of the marketing mix that produces revenue, As such it serves a tactical as well as an economic role for an organization 9Holloway and Robison 1995). The price charged sends many signals about the likely value of the product being offered and, as such, must be commensurate with the quality of experience,Starbuckss product prices are relative high than others, because they target those people of society who give the preference on quantity. Following are the some prices of STARBUCKS famous productsESPRESSO Tall Grande VentCoffee Latte 2.05p 2.40p 2.65pCappuccino 2.05p 2.40p 2.65pVanilla Latte 2.35 2.70p 2.95pCoffee Americano 1.75p 1.90p 2.05pEspresso 1.20p 1.40p 1.55pCOFFEE HOUSE FAVOURITESCaramel Hot Chocolate 2.90p 3.25p 3.50pCoffee Misto 1.95p 2.35p 2.55pClassic Hot Chocolate 2.20p 2.50p 2.80pSignature Hot Chocolate 2.65p 3.00p 3.25pFreshly Brewed coffee 1.65p 1.75p 1.90pFRAPPUCCINOCinnamon Dolce 3.05p 3.25p 3.4 5pJava Chip 3.05p 3.25p 3.45pEspresso 2.65p 2.85p 3.05pCoffee 2.50p 2.70p 2.90pCaramel 3.05p 3.25p 3.45pSPRING FAVOURITESCinnamon Dolce Latte 2.70p 3.05P 3.30PCaramel Macchiato 2.70P 3.05P 3.30PPLACEPlace, or distribution, strategies are concerned with making products available when and where customers want them. Would you rather buy a kiwi fruit at the 24-hour foodstuff store within walking distance or fly to Australia to nag your own, which involves all the business activates concerned with storing and transporting raw material or stainless product. The goal is to make sure products arrive in usable condition at designated places when needed.For consumer goods the most visible player in the channel of distribution is retailer. Manufacturers and consumer alike have to put a lot of trust in the retailer to do justice to the product, to maintain stock, and to provide a satisfying purchasing experience. Retailer face the many of the same marketing decisions as other type of organiz ation, and use the same marketing mix tools, but with a slightly different respective. They also face unique marketing problems for illustrations, store location, layout and the creation of store image and atmosphere. Every seller must decide deeply that how to make its products available to the target market with an clear access (Philip Kotler, 1999 p 103).Now in case of Starbucks they mainly build their stores in the prime location of the city where they can easily attracts their desire customers who really want to enjoy the taste of coffee. Just like in UK they build their stores mainly in the shopping malls and town centers. Now it is the need of the time that they should be concentrate to open their stores in Middle East and Asia.PROMOTION Promotion includes advertising, public relations, sales promotion, and personal selling. Promotions role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, education, persuading, and remi nding them of the benefits of an organization or a product. A good promotion strategy, like using the Dilbert character in national promotion strategy for office Depot, can dramatically increase sales. Good promotion strategies do not guarantee success, however, despite massive promotional campaigns, the movies, The Alamo and The Lady-killers had disappointing box-office return. Each element of the promotion p is coordinated and managed with the others to create coordinated and managed with others to create a promotional blend or mix. TheseStarbucks nearly spends 4.7 million every year for promotions. It is include the cost of print media, electronic media, indoor, outdoor media and so onThe companys latest stunning plan is the Starbucks Card. You buy a re-chargeable card in the UK which can be used at coffee bars in the US, Canada, Australia and Thailand. The card will enhance the Starbucks experience for customers allowing them to buy their daily transfuse of coffee quickly and easily, even when they are not carrying cash.Recently company through an agreement between Starbucks, and T-Mobile the two companies have come up with a way to provide internet access at Starbucks location and high speed broadband for Starbucks customers as well. In addition, T-Mobile hot have a go at it customers get to use the Starbucks stores as they do now. Moreover Starbucks spends millions of dollars internationally to protect the environment and global warming.DIVERCIFICATION The major reason for a business adopting a strategy of diversification is therefore to allow it to reduce its dependence upon a single market area (W. Stewart Howe 1986 p 153). At a worldwide strategic level Ansoff suggests three reasons why firms diversify. First, their objectives cannot be achieved by act to operate in their existing markets. Thus, since continued operation in these markets is not able to diversify the profit, risk or growth objectives of the business, achievement of these must be sought in new market areas. Second, where a business has excess financial resources beyond those requisite to satisfy its expansion plan in its existing markets, then rather than retain these resources in legato form of business may invest them in new markets areas. Third, if greater opportunities are presented to the firm in new market areas than accrue from its existing activities. Then a diversification program may be undertaken to benefit from these. There are two types of diversificationsRELATED variegationUN-RELATED DIVERSICATIONRELATED DIVERSIFICATION Expending combining with firms in different, but related industry that are Strategic Fits.UNRELATED DIVERSIFICATION Growing by combining with firms in un-related industries, where higher financial returns are possible.Now, if Starbucks want to diversify its business alfresco the industry, then the company should start a totally new business that is not from the same industry. For example Starbucks is a coffee shop, if they en ter in the manufacturing business and start making cars, bikes etc that will be the perfect example of diversification. But the main focus of the Starbucks should be on their strategic business unit which is coffee shop. If they want to diversify their business within the same industry i.e. related diversification, then the Starbucks should combine their business with their competitors to launch new products.INTERNATIONAL BUSINESS DEVELOPMENT STRATEGIESThe franchiser/licenser remembers to provide a standard package of components, or ingredients together with management and marketing services, and advice. Since franchising involves the transfer of tangible, it can enable greater control of the operation for the originating manufacturer than licensing (Lancaster Massingham Ashford 2002 p 437). Starbucks currently use three strategies for business in overseas. These strategies are as follow1 Joint ventures2 Licenses3 Company-Owned Operations.Mainly the company uses the company-owned shops for the business in other countries.RECOMMENDATION FOR FUTURE MARKETING PLAN OF STARBUCKS (3 YEARS)By analyzing the in a higher place whole information such as Swot analysis, Ansoff analysis, BCG matrix, marketing mix, following should be the primary objectives of the marketing plan of Starbucks coffee shop for next 3 yearsGOALS OR OBJECTIVESSales should be change magnitude by 15 to 20% at least.In order to get increased sales, they should increase Gross Profit margin by 25%. rally more new markets especially in Middle East, and Asia.More change their position as a worldwide coffee shop leader.Increase marketing budget by 15%In order to achieve the above future objectives, the Starbucks coffee shop should follow instructions bear on SUSTAINABLE COMPETITIVE ADVANTAGEThe Starbucks coffee shop should maintain the competitive advantage that it has got over other coffee shops. In order to maintain leading position in the coffee market, the Starbucks should introduce innovative p roducts after good intervals.NEW TARGER MARKETSTo maintain the top position in the coffee market, Starbucks should go and find some new coffee potential market. Just like there is great potential of new coffee shop especially in Asia, and Middle East, as there is no famous coffee shop. Where they can capture in new market, and got some delightful profit as well.INTRODUCE approximately NEW PROMOTIONSAs Starbucks introduced a stunning promotion plan that is Starbucks re-chargeable card for purchasing coffee whether you have money or not at that time. Just like that company should develop a membership card especially for the students. Some terminate should be offer to regular customer, and student to increase the retainment.INTRODUCE SOME INNOVATIVE PRODUCTSTo maintain the dominant position in the coffee market, it is necessary for the Starbucks that, they should introduce some really innovative products after good intervals. The summoning of new products creates the brand loyalty among the customers.INCREASE MARKETING BUDGETMarketing section is the one of the most important part of every company. This department is responsible for increasing sales. So in order to get more revenues, the company should increase the budget of marketing. Moreover they should include some world famous celebrities, conducting promotions events, seminars things like that for promotions their products.DIVERCIFY THE BUSINESSTo maintain the leading position in the coffee market, the Starbucks should go for diversification. Diversify the business in product-related items, or uncorrelated items to increase their revenues.IMPROVE THE PRODUCT QUALITYTo maintain the superb quality and taste of different products in Starbucks, the company should adopt the Total Quality Management tool, which means improve the products quality until the perfection, and there is no demerit on product or zero defect products.EMPLOYEES MOTIVATIONSEmployees motivation is very important for every organization to get good profit, and in order to maintain its position in the market. Good pay, and reward system is the best tool to motivate the employees. So Starbucks should try to give good pay and benefits to their employees during the job.EMPLOYEES TRAINING AND DEVELOPMENTTraining and development of employees is an important task for the management in order to enhance the progress of company, and increase the sales, and produce the erroneous belief free services.