marketing plan for starbucks星巴克市場分析

1、.：.；Project 3 The growth strategy of the companyStarbucks in India“We arent in the coffee business, serving people,We are in the people business, serving coffee Howard Schultz CEO MC1y2, 2nd Semester AP Degree Marketing Management 2021Counsellor: Gitte OvesenBeierholm Group members: Cristina Alexand

2、ra Grindei, Alisha Khatri, Yunjing Lu,List of ContentsIntroduction. 3Problem formulation.3Methodology and Limitation.3Macro and micro Analysis.44.1 Country profile.44.2Company profile54.3 Final Decision.7Recommendation.75.1 Entry mode.75.2 Segmentation and target market.95.3 Suggested position and l

3、ocation.105.4Suggested Value chain.11Conclusion.12Reference.13Appendix .14Introduction:Starbucks Corporation has been the most successful coffee chain in the past years. The company has focused on creating a network of stores in US while opening new locations around the world. Nowadays, the recessio

4、n is effecting the economy of the entire world badly, no exception for the coffee market. Starbucks, as the coffee chain giant, is seeking for a new market in order to keep the leader position in the industry. Meanwhile, at the other side of the world, in India, a country known for the tea consumpti

5、on, coffee is becoming more and more popular. According to Euromonitor International, in 2021, the total volume of coffee in the Indian market was 44,209.8 tones, the fifth largest coffee consumption country in the world. So is India a possible future market for Starbucks? Problem formulation:Starbu

6、cks is considering going to India. How can Starbucks enter the Indian market?Is India an attractive market for Starbucks?What could be the best entry mode for Starbucks in India?Limitation and Methodology:The limitations of the project are the page limit and the restriction in contacting the company

7、. Regarding the company data, the limitation is in focusing on the entire product range of Starbucks, so as a consequence we have choose to focus only on the two main products: coffee and tea.We have applied secondary data sources/quantitative data sources. The research method was the desk research.

8、 The theories used in the project are: the micro and macro analysis, the SWOT analysis, the entry mode analysis, segmentation and positioning, target market and value chain. We have used the theories to create an overview of the subject field and apply it for solving the project problem formulation.

9、Macro and micro analysis4.1 Country profile Economy In 1991, the Indian economy experienced a dramatically growth after the government liberalized number of industries open to foreign investment, loosened approval requirements and allowed majority foreign equity ownership Fact book CIA . The economy

10、 had a growth rate of 5-7% in average since 1991 till 2007, but an industrial slowdown early in 2021, followed by the global financial crisis, led annual GDP growth to slow to 6.1% in 2021 (Appendix 1), but it is still second highest growth in the world among major economies. Income The income per c

11、apita of Indians increased by 14.2% in 2006-2007 Data monitor/ Database/ bon online. Per capita income at current prices was estimated at Rs29,642 in 2006-2007 Euromonitor/ Database/ bon online, compared to Rs25,956 Euromonitor/ Datebase/ bon online for the previous year. As a result of the increase

12、 in total income, the mean annual disposable income also increased by almost 150% from 1995-2007.Government and laws The introduction of VAT in India has been a key development. In April 2005, it was the vat was implemented in at a standard rate of 12.5% Euromonitor/ Database / bon online. This new

13、system Businesses will consequently have to raise prices to compensate for higher production costs and this will affect consumer spending.Competitive landscapeInternational companies such as Nestle India and Hindustan Unilever are the leaders in the coffee industry in India. Domestic players such as

14、 Tata Coffee or Barista Caffee are active in fresh ground coffee. No other domestic player was able to become established as an Indian brand with their presence restricted to the southern states in India.Geographics and Demographics India is the second most populated country in the world with a popu

15、lation of about 1.03 billion people. The age structure of India looks like this: 0-14 years: 30.5% (male 187,197,389/female 165,285,592)15-64 years: 64.3% (male 384,131,994/female 359,795,835)65 years and over: 5.2% (male 28,816,115/female 31,670,841) (2021 est.)“Geographically speaking, India is lo

16、cated in South Asia in the Eastern Hemisphere. There are 25 states and New Delhi is the capital. The national language is Hindi and about 83% of the population speaks it. Other than that, India has 18 official languages primarily associated with the different states Wikipedia . 4.2 Company profile S

17、tarbucks was established in 1971, Inspired by coffee bars in Milan, Italy, Howard Schultz The CEO of Starbucks wanted to introduce the coffee bar culture to America. Starbucks mission statement is to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our

18、 uncompromising principles while we grow. ExpansionStarbucks has grown at incredible rate since the opening of its first coffee bar. Now Starbucks has more than 16,000 retail outlets in more than 50 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate mor

19、e than 6,500 units worldwide, primarily in shopping centers and airports. Starbucks specializes in quality coffee and other related beverages. “They sell quality coffee, Italian-style espresso beverages, cold blended beverages and complementary food items, a selection of premium teas and coffee rela

20、ted accessories and equipment Business description of Starbucks: DatamonitorSwot analysisThe Starbucks brand gives the company a distinct competitive advantage over lesser known coffee brands. However, Starbuckss business is highly sensitive to changes in customer traffic, and the current economic d

21、ownturn would put downward pressure on the companys margins. Therefore we need to analyze the companys performance, both internal and external. An excellent tool for that is SWOT. (Appendix 2)Current financial situation The general financial performance for Starbucks in 2021 was declining from previ

22、ous years. The company recorded revenues of $10,383 million. Although the sale was increased in the last 4 years, the net profit income has decreased with 53.1 percent over 2007 Starbucks annual report/ starbucks. Year2021200720062005Sales10,383,0009,411,4977,786,9426,369,300Net Income315,500672,638

23、564,259494,467Starbucks operates in three segments: the US, international and global consumer products group. However, the company reported its revenues by product type in 2021. The Four Categories are:BeverageFoodCoffee-making equipment and otherWhole bean coffees64.2 %14.5%11.8%9.5During the year

24、2021, the beverage division recorded revenues of $6,663.3 million, an increase of 10.5% over 2007. The food division recorded revenues of $1,511.7 million in 2021, an increase of 13.4% over 2007. The coffee-making equipment and other division recorded revenues of $1,220.2 million in 2021 an increase

25、 of 7.4% over 2007 Data montior/ database. The whole bean coffees division recorded revenues of $987.8 million in 2021, an increase of 8.2% over 2007.Global ResponsibilityStarbucks is committed to being a deeply responsible company in the communities where it does business around the world. The Comp

26、anys focus is on ethically sourcing high-quality coffee, reducing its environmental impacts and contributing positively to communities. Starbucks Global Responsibility strategy and commitments are integral to the Companys overall business strategy. As a result, Starbucks believes it delivers benefit

27、s to the Company and its stakeholders, including employees, business partners, customers, suppliers, shareholders, community members and others. 4.3 Final DecisionConsidering India a very attractive and growing market and the analysis of the country and company profile, we have decided that Starbuck

28、s should enter the Indian market. We will analyze furthermore the strategies Starbucks should apply in order to enter the Indian market.Recommendation 5.1 Entry mode Starbucks international strategy adapts to different markets to satisfy needs and requirements from every market, respecting its cultu

29、res and traditions. In order to enter Indian market, we are going to use the Root entry mode (Appendix 4). The model is divided in four groups: Internal, external factors, desired mode characteristics and transaction- specific behavior. Under the four groups there are 16 factors. We have decided to

30、only look at most relevant factors for Starbucks, which are international experience, product differentiation advantage, intensity of competition and Market potential.Market potential: India has become one of the most exciting economies in the world with a huge increase in foreign investment and con

31、sumers who are willing to spend and spend. Due to massive outsourcing on the part of foreign companies especially from the United States, educated Indians are now presented with exciting career opportunities, excellent pay, and the confidence to spend more money. Time magazine reports that these new

32、 consumers command $10.5 billion in cash to burn. There could not be a more suitable time for the Starbucks to enter the Indian market. International experience:Starbucks is operating in more than 16000 locations in over 50 countries. Starbucks uses three entry modes that are joint venture, licensin

33、g and wholly owned subsidiaries.Product differentiation advantage: Starbuck should keep focusing on high-quality, because for our target group, price is not the most important thing which they might concern, a cup of fantastic coffee and a relaxing environment will impress them much more than a low-

34、price. Starbucks also invests in extensive research and development efforts to develop new flavors, blends or even roast fusions.Intensity of competition:India coffee market is a growing market with large potentials, and because of that, it attracts lot of companies to enter, so the competition in t

35、he market is quite intense. The major competition for Starbucks in India at the moment is the Barista Coffee Co., which is an existing coffee shop branch in India, but Starbucks is expected to gain its market share for several reasons. The international popularity of the Starbucks brand will help th

36、e company step into the country.Suggestion:Based on the analysis we made, we suggest Starbucks should apply joint venture. There are three main reasons. First, Starbucks lacked knowledge of the Indian market, so the company needs a partner who provides it country specific knowledge. Besides, Starbuc

37、ks should have a fast expansion in India after the first test coffee houses success ,so they need an international strategy that enabled its internationalization in a short period of time, the wholly-owned subsidiary strategy was unsuitable. Lastly, the Indian market is growing fast with several sig

38、nificant competitors ，Starbucks needs an entry mode that allowed higher control in order to face the competitive situation. Therefore, Starbucks should chose joint venture as entry mode.5.2 Segmentation and target groupProfile:Age: under 16, 16-25, 25-35, 35-45,over 50Social class: upper, middle, sk

39、illed worker, unwagedBehavioralBenefits sought: low-cost, low-calories, health-oriented, taste-oriented, environment orientedPurchase frequency: occasionally, loyal, during tourPsychographic:Geograohic: urban, countryTarget group:Since Starbucks has a wide product range, which includes hot drinks li

40、ke coffee, tea, cold drinks like Frappuccino, coffee beans, hot and cold sandwiches, pastry and snacks, and the target group varies between different products, for instance, tea is mainly consumed by the health-focused people while Frappuccino is trying to catch the young people who value the taste

41、most. However, because of the words limits, we will just focus on Starbucks main productcoffee.The target group in India market is the young both male and female from the ages of 16-35 which come from middle class to upper middle class population. This market is well educated and gourmet. The geogra

42、phical position of the target market is the consumers who live or work in the vicinity of the proposed locations for the Starbucks Coffee shops. The secondary target markets are the tourists in the areas. Tourists will recognize Starbucks, as it is a multinational company, as most tourists in India

43、come from the countries of U.S., England, Germany, and Japan. This market will also fall in the middle to upper middle class population and will find the Starbucks India prices relatively cheap.5.3 Suggested Position and locationStarbucks coffee shops should be located in centre urban, near to cente

44、r locations, technology companies, major tourist hot spots, colleges and universities, and shopping centers, where are near the population centre, so the target group can get Starbucks easily.Suggest location: New Delhi as the capital city and the centre of economy, culture and polity of India, woul

45、d be the first choice for Starbucks to launch. The Starbucks in New Delhi should be located in Connaught Place, a large commercial shopping area in New Delhi. Most of the call centers and big companies are also in the Connaught Circle. New Delhi is the nearest big city to the world famous Taj Mahal,

46、 therefore also being the popular place for tourists from all over the world. 5.4 Suggested value chainInbound Logistic: The coffee beans and tea will be bought from local Indian farmers in order to support the local agricultural economy, save money in transportation and avoid tariffs. But high-qual

47、ity should be ensured to maintain Starbucks brand name. These goods will then be transported to the Starbucks roasting plant located near the New Deli via India vast and efficient railway system.(see appendix 3) Equipment and other necessary supplies will be shipped from the United State. Operation:

48、 Starbucks can use a local partner to help it recruit talented employees, set up supplier relationships, locate suitable store sites. Starbucks should also hire regional marketing specialist who will handle the laws and customs for Starbucks.Outbound logistic: There are 3 ways the Starbucks products

49、 can be reached by the customer:1. The customer can get the fresh and high quality coffee at their retails stores.2. Starbucks can sells their product in major restaurants, United Airlines and other specialty accounts that do not fall under the retail business customer.3. Customers can order from th

50、e internet or the mails.Marketing and sales: Types of available media for marketing purposes are in India are very similar to those of the United States, which include everything from newspaper advertising to television ads. The promotion for the store has to be very focused on our target markets. B

51、illboard advertising on the roads leading to the store locations is a good way to increase awareness of the locations. Direct mail advertising with promotional coupons will be used to reach the homes of the target market. Sales brochures offering delivery services will be sent to the local call cent

52、ers and big companies.Service: Starbucks must customize their menu to fit the tastes of the Indians. A new menu will be formulated after several months of research and development. There are some common tastes preferences of the Indians known already.For example, Indians tend to take more cream in t

53、heir coffee. Also, the skim milk optionwill not be offered in India because dieting is not a commonly accepted practice in thecountry. Indians will feel that they are being cheated out of their money if skim milk isput in their beverages. Indians also like spices in their tea and coffee, especially

54、gingerand black clove. One of Indias favorite fruit flavors in mango, and in fact the mango isIndias national fruit.Administration: Starbucks India will be a privately incorporated business with horizontal organization. Each store may have a manager and three to five employees that will rotate shift

55、s depending on the rush during the day. Starbucks believes in an open and friendly work environment and all employees of Starbucks refer to each other as partners.ConclusionThe main purpose of our project is to find out if Indian market is attractive for starbucks and how could Starbucks enter it. F

56、rom the country profile and company profile we made, it shows that India is a very attractive, potential market for Starbucks, because of the raising coffee consumption and the growing market. On the other side, Starbucks has plenty international experience and their current capability is perfectly

57、suitable to expend business to Indiabased on relevant theories and analysis tools, we made a marking plan for Starbucks which includes a target group (age between 16-35) in Indian market, an efficient value chain, a suitable entry mode (joint venture) and a suggested location (New Delhi) for the first test coffee house. Reference HYPERLINK portal.euromonitor/Portal/Magazines/Topic.aspx portal.eurom