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Marketing involves its starting point, that is, to meet customer needs, but also related to what kinds of products to meet customer needs, how to meet consumer ...
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First of all, I would like to extend my sincere gratitude to my supervisor Dr.Vijit Supinit, for his instructive advice and useful suggestions on my thesis. In the preparation of the thesis, he has spent much time reading through each draft and provided me with inspiring advice. Without his patient instruction, insightful criticism and expert guidance, the completion of this thesis would not have been possible.
Secondly, I also owe a special debt of gratitude to all the professors at the department of MBA, from whose devoted teaching and enlightening lectures I have benefited a lot and academically prepared for the thesis.
Last but not the least, I would like to express my gratitude to my beloved parents who have always been helping me out of difficulties and supporting without a word of complaint. I also owe my sincere gratitude to my friends and my fellow classmates who gave me their help and time in listening to me and helping me work out my problems during the difficult course of the thesis.
1.1Research background
With the development of society and the improvement of people's living standard, when they face continuously improve the quality of products, prices continue to decline, the technical content rising, the choice of consumers not only based on product quality or service requirements, more attention in the process of their purchase and consumption, to meet their psychological needs and the specific feelings of personal preferences. Now, in the expansion of product diversification and customer choice, top quality and attentive service is no longer attracting customers, the pace of life is accelerating, consumers want is a kind of spiritual relaxation. Now most people face strong work pressure and life pressure, people's consumption concept has also undergoing tremendous changes, before the pursuit of fresh young people are now seeking the spiritual relaxation and rest, so as to promote the popularity of coffee. Starbucks also in such a context came into being, and the rapid development and expansion.
1.2Research significance
With the continuous improvement of the quality of life in China, the Chinese people to accept the degree of coffee is also greatly improved. The feeling of coffee is no longer a drink, people drink coffee is no longer the purpose of refreshing, but to meet a spiritual enjoyment. Starbucks provides customers with a third space so relaxing site, so that more and more people like Starbucks. This article through the analysis of Starbucks marketing strategy, summed up the successful marketing strategy, and puts forward personal opinions and practical marketing strategies for
2.1 Marketing
Marketing is through the similar enterprise design, product design, advertising design, promotion design, marketing activities and so on the external way, to stimulate consumer demand for our products, reduce sales difficulty or even cancel sales, directly make our products convert to the consumer's consumption, such a senior sales process called marketing. Because the traditional market can not meet the needs of customers, businessmen can’t reach the maximum profit. Marketing involves its starting point, that is, to meet customer needs, but also related to what kinds of products to meet customer needs, how to meet consumer demand, namely, through the way of exchange, when and where to exchange products, who achieve connectivity products and consumers, in order to service future market.
2.2 Marketing strategy
In 20th^ century, marketing into the booming period, when the change of the enterprise management concept, enterprise management to realize form old business management to new business management. 4P marketing strategy is made up of products, price, place, promotion, proposed by Macarthy, USA. It provides the best comprehensive marketing activities for the enterprise to realize the goal of marketing , also known as the overall marketing. With the development of economy and society, 4P theory has been unable to cope with the ever-changing market environment, 6P,11P and other emerging marketing strategy gradually into the eyes of entrepreneurs. Because of the general marketing strategy combination 4P ignore the business activities of enterprise can also affect the external environment, the contemporary marketers increasingly needed the political power and public relations skills to
eliminate barriers when product leading to the future market. Due to changes in time and the market, so marketing strategy also will change.
2.3The development of Starbucks
The name "Starbucks" earliest originated in the 19th century American literature outstanding master Herman Melville's classic "Moby Dick". The protagonist of the novel, Starbucks is a calm, charismatic chief officer, his hobby is to drink coffee.
On April 1971, it only a small coffee shop in Seattle, USA. to sell coffee beans. Starbucks making the main coffee, to provide tea, filling pie , cake and other products to supply consumers collocation, Make every guest came to Starbucks has a feeling of home, so Starbucks give consumers more is a kind of busy 's quiet ,iron and steel forest in the oasis of experience.
It is through this carrier of coffee, in order to maintain the integrity and consistency of Starbucks's global brand, Starbucks's style is to create a similar logo, then its official use this point, with the shop decoration - wooden furniture, dark sofas and wallpaper, all the time to give customers a comfortable. Also have to say is that Starbucks unique mermaid logo, its dark green contours and even sought after and follow the trend coffee entrepreneurs to follow. there are some businesses threats of litigation , with its former competitor Starbucks go to court.
2.4 The evolution of mermaids
In 1971 ,The young designer Terry Heckler began to study the ancient maritime books, according to Scandinavia's two-tailed mermaid pattern, designed the Starbucks logo. She is actually a fairy tale 's siren, the legends siren in sitting on the rocks with a wonderful song attract passing ships and sailors, but never come back. From the beginning of the breast exposed to later two-tailed. The first major change was 92 version. Fishtail from there become two , like a crab clip, is often mistaken for a
3.1 Starbucks's current situation
Starbucks was founded in Seattle, Washington ,on March 31, in 1971. Its overseas expansion plans surprisingly successful, at present, the number of overseas stores accounted for 20% of the share, and this number is still increasing. Starbucks entered the U.K. market in 1998 with the $83 million USD acquisition of the then 56-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks, has been expanded to 300. Today, Starbucks has more than 5,000 head offices in North America, Europe, the Middle East and the Pacific. Whenever and wherever ,Starbucks opens a store, it's always a surprise to new customers. According to the "Business Week" Interbrand released in 2006 the world's top 100 and top brands list, Starbucks ranked 91st with a brand value of 3.099 billion. After 30 years of development, the company through the strong expansion strategy has been extended its business to many countries around the world the main blocks and major intersections. We can see Starbucks in a short period of 20 years, in addition to the rapid development in the country at the same time, the pace of expansion in the global market is obvious to all. From the growth momentum, the Americas region is the company's main source of income; In 2015 the Americas region operating income reached $13.293 billion , accounting for 69.4% of total revenue. Asia-Pacific region is the second largest source of revenue, Asia-Pacific region in 2015 operating income reached $2.396 billion, accounting for 12.5% of the total revenue.
Fig.3.1 Starbucks company operating income regional composition in 2015
3.2 Starbucks's marketing strategy
3.2.1 Marketing strategy analysis
Of course, Starbucks's success should be attributed to its several innovative measures in the coffee industry, these measures makes Starbucks has soared in the coffee industry, stores in every corner of the world developed areas, and standing. First of all, customer experience is the Starbucks brand equity core demands. Starbucks to the typical American culture can be decomposed into elements of experience: the warmth of the visual, hearing the arbitrary, smell the aroma of coffee, etc. Imagine listening to light music, looking at the outside, gently sipping a cup of coffee, which is consistent with the "yuppie" feeling experience. As a result, the value of the product profits naturally be achieved. Starbucks believes good employees can accurately convey all products and services to customers, so customers can understand the enterprises. In addition, they and the protection of the international strategic alliance for Starbucks to obtain better coffee. Howard Schultz will not discard anyone , be kind to employees, Starbucks
accurately convey all products and services to customers, so that customers from the heart to feel the real quality of enterprises. From the point of view of Starbucks cooperation team, coffee staffs and other employees of the behavior is the most important element of Starbucks's success , behind the professional coffee technology. The success of Starbucks's trick is to create a unique corporate culture, and humanistic care, is also a "partner" culture, not only touched every Starbucks employee, but also touched countless Starbucks consumers. We are here to describe the partner culture contains two aspects, first, Starbucks internal atmosphere and organizational structure; the second are the employee compensation and benefits measures. This upgrade to become a partner, to establish employee loyalty and dedication.
3.2.4Quality control of Arabica coffee beans
Starbucks continues to implement this plan to protect its supply chain. Leaving aside the special control of Starbucks in the specialty coffee industry, Starbucks has never directly used their market power to compete against their coffee suppliers. For the establishment the cooperation and development of the C.A.F.E. Ordinance (the Ordinance on the protection of coffee and agriculture) with the International League. One is the development of sustainable high-quality coffee beans from the hands of coffee growers who have stable resources but are not partners; and then to know that farmers' families are healthy, safe, and need to be funded or not. Starbucks invests a lot of money to growers and their communities every year , not only to manage risks with growers, but also to improve the stability and health of the coffee grower community, to achieve win-win situation. The protection of the international strategic alliance to jointly promote the benefits of the C.A.F.E agreement, Starbucks through a positive external economic effect to expand their market. Starbucks through to the land price subsidies to protect the supply of high quality coffee beans. In the end, it makes Starbucks more transparent
in the supply chain of they bought coffee beans. Increased transparency enhances Starbucks' ability to understand supplier needs and better predict future supply shortage.
3.2.5 The third space
The last one , but also Starbucks is able to attract sp many white-collar crowd is a crucial selling point, is his “the third space”, to develop social awareness. Starbucks to ensuring that supplier’s health is part of important content in the company’s expansion its public good. When the customer passing the store, Starbucks to convey to the public most of the content is a sense of social responsibility. Starbucks wants give customers feeling that this space has no noise and hostility in the city.
3.3 SWOT analysis
Want to better judge Starbucks, the surrounding market and the future needs. A good analysis is SWOT analysis, strength, weakness, opportunity, and threat.
3.3.1 Strength
At least in the United States, most people know Starbucks, and put it and high-end coffee together. Moreover, people think Starbucks as the biggest and best enterprise. This is a big advantage for Starbucks, because Starbucks can naturally down some unknown competitors, and let the customers think that Starbucks is a company with high-end products quality and rich experience. Starbucks huge number of stores so that it can be more close to the local market and the international market. This allows it to promote its new product more quickly through a large number of customers, and to ensure that its reputation in the customer .This also allows it to the people of other age enlarge their potential market.
lack of choice of product sales so that Starbucks can not attract more customers to buy their coffee products
3.3.3 Opportunity
By acquiring company, Starbucks to carry out their own business in different market groups. Compared to open stores, Starbucks is more inclined to use low cost to expand the market, for Starbucks also provides a series of products to sell to other companies, such as its bottled products Frappuccinos and other characteristics of goods. Starbucks spent a very large part of their resources to expand their international business. This will undoubtedly generate more revenue for Starbucks, to help them expand their product visibility and brand image. One of Starbucks' great opportunities is to use its huge capital.
3.3.4 Threat
Recently, the fierce competition has entered a white-hot state. Some companies have developed coffee products that can rival Starbucks. Some companies, like UBC coffee and Cstraits Cafe etc. have in some places with their own development foundation, and they have the comparable quality coffee as Starbucks.
Coffee raw material costs rise, if the price of raw materials to rise, for Starbucks is a very big blow. Failed to predict whether the coffee market will grow and retain customers, or the emergence of new varieties of drinks or leisure activities to replace coffee.
4.1 Starbucks in China's current situation
With the process of Starbucks global expansion, now, China has become the Starbucks's largest overseas markets, is Starbucks an important potential consumer market. To develop the business of Starbucks in China ,has become an important step in Schultz and Starbucks. At Starbucks, often can see consumers on a laptop or holding a magazine, a sit for hours. Compared with other fast-food restaurants, Starbucks more expression is a way of life, this management concept is very promising. Analysts believe that Starbucks has many places are commendable. First of all, it has introduced leisure drinks to attract repeat customers; In addition, the coffee has increasingly become a lot of people's living habits. Starbucks overseas business highlights is the Chinese market. Today, Starbucks has more than 230 chain stores in China, and it is estimated that China's potential consumer population of about 250 million, which is equivalent to the total population of the United States. Therefore, So the future Starbucks market size in China may be close to its size in the US market, the total number of chain stores may reach 10,000. Around the world, people are becoming more and more love to drink coffee. Followed by the "coffee culture" full of life every moment. Whether in the home, or in the office, or a variety of social occasions, people are tasting coffee, it gradually associated with fashion, modern life. According to the relevant report statistics, China's current coffee consumption is far below the world average, there is a huge commercial space. According to experts predict that China will become the world's largest consumer of coffee by 2020, Chinese people to drink a cup of coffee per person a day, only coffee beans market will reach $50 billion a year, the whole
