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Marketing TECHNIQUE FOR Starbucks Expansion

Starbucks is the top-ranked niche restaurant that has received huge gratitude from its target market. It gets the goal of providing high quality drink products especially coffee at prime prices along with abundant experience that will improve the customer's experience in the shops. Starbucks has capitalized its unique placement in the market by developing outlets that are equipped with finest quality furniture that is comfortable for the clients along with assisting amenities such as music, Internet facilities and handicapped gain access to so that the customers are provided a total superb experience in the shop.

Starbucks has efficiently created its position as the best place for socializing other than office and home. The only way to enter in the new marketplaces is to put into action that same global marketing strategy that it's been following for each of its extension plan. Hence, it will slowly type in the market segments of Trinidad and Tobago so that the customers in your community accept the concept of specialty coffee shops and have a fantastic experience in the restaurant.

Table of Contents

Introduction to Starbucks

Starbucks Espresso was started as a little coffee shop in 1971 by Gerald Baldwin, Ziey Siegl and Gordon Bowker and it has completely revamped its image by growing in to the number one espresso retailer for those people who want area of expertise coffees. It really is within more than thirty countries and has been doing expansion on a continuing basis. You will find more than 10, 000 caffeine shops of the business worldwide and about 60% are had by the corporation and left over are franchised and certified. The primary aim of Starbucks Coffee is to establish as "a highly respected and known brand in the international market" (Starbucks, 2012).

Situational Analysis

Current Marketing strategy

After careful evaluation of marketing strategies outlined by Michael Porter, cited by Alison (2010), Starbucks is following a differentiation strategy. Initially, the main factor of its business activities was concentrated strategy with strong focus on creating differentiated products within the mark consumer market. However, the company soon understood that it needs to strengthen its position on the market by creating a differentiation strategy and the success of Starbucks is obvious from the actual fact that it is rolling out an excellent marketing mix for its customers.

In order to increase its businesses in international market, it is offering same "coffee experience" to the international customers by providing them superior quality products and aesthetically designed atmosphere (Tu, Wang & Chang, 2012). It offers ensured that there is uniformity in its marketing activities by using only third party mediums for promoting its product and service offerings. Corresponding to Michelli (2007), Starbucks has allocated only 4% of its total cost on the advertising budget.

One of the main element elements of differentiation strategy is to bring in new and ground breaking products on the market and Starbucks has been exceeding its customers' anticipations by offering them products that are completely different from the existing ones (Parayani, 2011). The advancement aspect of its marketing strategy provides it a competitive border in the niche coffee industry. In order to ensure that this develops entirely new offerings, plenty of money is invested in the research and development.

Most importantly, Starbucks has gained the trustworthiness of possessing excellent syndication network within the area of expertise coffee industry and it is evident from its development strategy. When it designs to enter any new country, it first conducts in-depth market research such that it can penetrate easily and effectively obtain the attention of its target market (Boyd, Mullins & Walker, 2006).

The key factor that has become UPS of Starbucks is the wonderful customer service as it creates the ultimate atmosphere for the customers to give them a fantastic coffee drinking alcohol experience. The experience that is given to the customers is the actual fact that attracts these to the outlet in order to have an amazing time using their friends, individuals or even enjoy calm and soothing environment provided by the shop.

The marketing combination is the basic pre-requisite of creating a marketing strategy. It is manifested in the initiatives of Starbucks so it aims to provide a variety of high quality products and services so that the customers can get value because of their money, the prices of the products is high but it works with with the exceptional service quality provided to the clients, the store is present in each community so that everyone can do to the coffee shop easily and conveniently and promotional mediums used are website, banners, posters, billboards and Starbucks credit cards (Thomson, Trickland & Gamble, 2007).

Segmentation, Targeting and Positioning

Starbucks is the leading name on the market as it has been striving to capture the market talk about of the specialty coffee industry. Matching to a review by Paryani (2011), the market share of Starbucks in the caffeine retail industry is 33% in USA and they have increased its efforts to enhance it by increasing its operations worldwide. One of the key factors that have been a source of Starbucks success is the creation of brand image as "the best place for socialization between work and office". The strategy has became beneficial for the organization and this image along with perception of an affordable luxury brand has allowed it to avail the ability of charging high grade prices from the customers.

The target market of Starbucks serves as a:

Age: 18-40 years

Gender: Guy and Female

Occupation: Depending on life-stage but generally students, faculty people, managers, executives, housewife and business person

Lifestyle: Daring, Fun-loving, Love for socializing, Value excellent customer service, Thinkers, Achievers, Innovators and Experienced

Income level: Based on life stage but just a little on higher range

Technology: Folks who are technology savvy come to the coffee shop for carrying on their important work and like to use iPad, Tablets, Macintosh and so many more.

Starbucks always wished to position itself of the upscale brand and provide a rich experience in addition to a special range of caffeine products. As the original target market of Starbucks made up of young college going students, neighborhoods and interpersonal classes who are prepared to buy a sit down elsewhere i. e. $3 and want a fun-filled time using their relatives and buddies. As a result of continuous development and development, its target market now consists of every individual of every age group and it is targeting every rural community, small town, cultural neighborhood, highway break outlets and etc.

Starbucks has placed itself as a place where people like to spend their time besides home and work. In order to create a calming and calm atmosphere, the shops were furnished with comfortable furniture and light music is enjoyed to enhance the disposition of the customers. Within the last few years, Starbucks has included other offerings such as complimentary catalogs, wireless Internet, common areas for cooperation and handicapped access. The stores of Starbucks have been placed as the locations where very customer can have a contented environment and most of its products are positioned as having top quality and prices.

Strengths and Weaknesses

The main talents of Starbucks are as follows:

Existing market share - It has a good market show in all of its regions, well-built customer base and has adequate amount of funding which allows it to do enlargement in other market segments easily.

Strong brand image - Starbucks is perceived as the top quality brand that offers exceedingly high quality products and services.

Unique value proposition - The value proposition that Starbucks has generated on the experience that is directed at the customers by giving them superb ambience in the wall socket.

High moral and professional expectations - Starbucks has highly reliable workforce that strives to enhance the reputation by building up the ethical worth and improved dedication to the community activists and environment.

The weak regions of Starbucks that need to be better are following:

Too much occurrence in local market - Starbucks has three-fourth of its cafes in local market i. e. USA and it needs to increase in international market strategically so that it can expand in other areas conveniently.

Innovation in beverage industry - There exists too much reliance on creativity in the drink industry so it can fall over time as it will have to expose new and progressive products at an accelerating rate.

Less options for diversification - Starbucks has limited options when it desires to diversify in the espresso retail industry. It could significantly lower its diversification acceleration.

PESTEL Analysis

The PESTEL Evaluation of Starbucks demonstrates it is operating in a stable political environment but there are a few stringent legal requirements that the firms have to adhere to for functioning their business; current economic climate is recovering from the recession and folks have good amount of money to invest on luxury items; and interpersonal factors of the clients are changing as they prefer to socialize a lot and are looking for avenues that will help them in having exceptional time using their friends and young families.

The technological innovations are going on at an accelerating speed and Starbucks offers all services for latest scientific gizmos; Starbucks is environmental friendly company as it includes carried out various initiatives to show its responsibility towards safeguarding the modern culture; and there are numerous laws that require to be followed by Starbucks to ensure conformity with all business moral and professional code of conduct so that it does not violate any of the government rules and regulations.

Recommended Objective and goals

As Starbucks is planning to enter into Trinidad and Tobago, it must ensure which it enters the market by following the same strategy that it has followed in all its international development projects. Taking into consideration the marketing strategy, PESTEL research and strengths and weaknesses of the coffee shop, following are the recommended goals:

To open up four outlet stores in Trinidad and Tobago (two in each region) by the finish of May 2013 to get 5% of the retail caffeine shop's market talk about.

To introduce a new product line of beverages and fast food items in the retailers by August 2013.

To open four new outlets in each Trinidad and Tobago with the purpose of acquiring 10% market talk about of specialty espresso industry by November 2013.

Recommended Marketing strategies and Programmes

In order to effectively enter the marketplace, the marketing strategies and programmes which will be put in place in the respective new market segments are as follows:

During the first time of enlargement in Trinidad and Tobago, the company will organize an event in which folks of the regions will be asked to visit the venue and connect to its labor force. The visitors will get free samples of the merchandise so that they can test their quality and preference.

On the shops, customers will get 10% discount on buying more than two cups of drinks and 15% discount on their third sessions.

Advertisements will be achieved in the form of billboards and posters along with inserts with the neighborhood magazines so that more and more customers are attracted to the stores.

On Internet, social networks will be developed so that all customers can interact with one another and discuss about the brand. On Facebook, LinkedIn, MySpace and other interpersonal networking sites the internet pages of Starbucks will be created so that the customer base in the region can broaden with the passage of time.

In the outlets, all offerings from products to services such as soft drinks, hot and frigid coffees, light goodies, smoothies, tea, Internet facility and each and everything will be provided so that the customers receive a sensational experience at the outlets which is the business's USP.


Hence, Starbucks can follow the same expansion strategy that this has carried out in its other development plans when introducing its products in international market. It has to develop the idea of specialty coffee shop in Trinidad and Tobago as these regions have low pattern of these retailers. Starbucks will slowly and gradually penetrate on the market so that its idea is accepted by the target market and people are looking frontward for its new stores and new offerings. It will have to monitor its performance on a continuing basis so that it is assured that it'll manage its marketing strategy of differentiation effectively and successfully.

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