Final marketing project instruction marketing principles ANALYZING a MARKETING STRAGETY FOR STARBUCKS

From the information that we collected about Starbucks, our group decided to research and analyze a marketing plan to set goals and suggestions to help Starbucks improve the quality of c

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

MAJOR: INTERNATIONAL BUSINESS

Marketing Principles

ANALYZING A MARKETING STRAGETY FOR

STARBUCKS

Lecturer: Thai Dam Huy Trung Team 05 – Shift 01:

Ho Chi Minh City, May 16 th 2022

PREFACE

In the first place, in order to carry out and successfully complete the subject of

Marketing Principles and the final report "Analyzing a Marketing strategy for Starbucks", our team has received a lot of help and facilitated advantage from Ton

Duc Thang University In particular, we would like to express our sincere thanks to Mr Thai Dam Huy Trung – our lecturer, who directly guided and accompanied our team throughout the process of completing this course and this final report

Our report is made based on the efforts of the team members (team 5) as well as the references, lessons learned from books, research works, information from news sites In the process of implementation, although we have tried our best, but because

of limited knowledge and lack of practical experience, it is difficult to avoid shortcomings Therefore, we are looking forward to receiving your attention and comments to improve this report

Finally, we wish you all good health and good work

We sincerely thank you!

Sign

THE LIST OF GROUP MEMBERS

1 Nguyen Thuc Khanh 720I0517

● Chapter 5 (5.1, 5.2)

● Chapter 7 (7.1, 7.2)

● Synthesis the report

100%

● Cover page

● Chapter 7 (7.3, 7.4)

● Presenter

100%

● Chapter 1

● Chapter 5 (5.3)

● PowerPoint

100%

4 Dinh Nguyen Gia Dinh 720I0490

● Chapter 2

● Chapter 6 (6.1, 6.2)

100%

● Chapter 3

● Chapter 8 (8.1)

● PowerPoint

95%

6 Tran Thi Minh Tam 720K0592

● Chapter 5 (5.4)

● Chapter 8 (8.2)

● Presenters

95%

7 Le Hoang Minh Chau 720I0135

● Chapter 4

● Chapter 6 (6.3, 6.4)

● Presenters

100%

TABLES OF CONTENTS

2.1 Brief description of the company’s background and industry 7 2.2 Brief description of your focal Product(s)/Service(s) 7

6.3.1 Senior citizens 13

7.4.2 How has Starbucks implemented promotional mixes? 15

8.1 The forecasted results (e.g., sales volume, market share, revenues over the

8.2 The measurement to evaluate the achievement of goal 16

CHAPTER 1: EXECUTIVE SUMMARY

The complicated issue of the COVID-19 pandemic in Vietnam, as well as the enforcement of anti-epidemic measures, has had a significant impact on Starbucks' business operations However, Starbucks is still able to keep its workforce, expand the area of sales, and recover from the epidemic thanks to rapid adaptation and strategic modifications by the combination of selling offline and online

From the information that we collected about Starbucks, our group decided to research and analyze a marketing plan to set goals and suggestions to help Starbucks improve the quality of customer service in the best way

1.1 Main goals:

- Giving suggestions and recommendations to help Starbucks improve the quality and attract more customers

- Analyzing the 4P strategy and SWOT model to support Starbucks in determining pricing, product, promotional, and placement marketing choices for Starbucks goods to satisfy particular customer needs

From the goals we aim to achieve, we realize that Starbucks needs a strong innovation attitude and aptitude to supply the proper items and align its brand in order

to thrive in its international development and growth strategy Starbucks must maintain consistent service and product quality, satisfy customers with flavors, and diversify types and products to serve customers Customers will remember and want to come back to enjoy the atmosphere, the taste of coffee and connect with people

1.2 Recommendations:

- Send a letter to the owner requesting that the rent of the premises be reduced

- Increasing the number of branches in other provinces

- Create some promotions to attract more customers

CHAPTER 2: COMPANY DESCRIPTION

2.1 Brief description of the company’s background and industry

Starbucks is a globally recognized coffee company This company was founded

on March 30, 1971, at 2000 Western Avenue in Seattle (Washington) Jerry Baldwin,

an English teacher, Zev Siegl, a history teacher, and Gordon Bowker, a writer, were the initial three creators of Starbucks coffee When the firm first entered the Vietnamese market, it created a frenzy by introducing a new and American-style coffee flavor

Initially, the brand was intended to be called "Cargo House," according to co-founder Gordon Bowker Then it was suggested by a partner named Terry Heckler, that

a name starting with "St" would help make the agency more impressive After discussing, they built a brand with the name Starbucks from the novel Moby-Dick The name symbolizes the romance of the waves and the seafaring tradition of the world's first coffee merchants

After nearly 50 years of establishment and branding, Starbucks has changed the logo image many times; each time the Starbucks logo changes, it has different message meanings However, it was until 2011 that the Starbucks logo was changed to fit that period and is still in use today This Starbucks logo no longer has details such as the circle and the Starbucks Coffee brand name But the core, basic image of the Starbucks logo is still kept, so this logo still creates a familiar identity of the company The color

of the Starbucks logo is more minimalistic when only keeping the primary blue and white tones The two-color techniques combined in the Starbucks logo carry the message of cleanliness and deliciousness and attract customers It can be said that the overall Starbucks logo is minimalistic, neater, and more attractive If anyone has never known the old Starbucks logos, they cannot recognize this new change

2.2 Brief description of your focal Product(s)/Service(s)

Some of Starbucks' main products can be mentioned as: The coffee, Tea, Frappuccino, Smoothie, Other food and drink, Commodities (cups, instant coffee, etc.)

In addition to products sold year-round, Starbucks constantly refreshes its products and product lines with seasonal products, limited edition products and products for the holiday season, Besides diversified products, Starbucks also always focuses on improving the quality of its products and services Starbucks always wants

to bring aromatic coffee cups, cakes, and teas with unique flavors and the professional service style of the staff Starbucks has always created new products to meet client demands In addition to coffee with a strong flavor, other products such as fruit tea, seasonal products, and limited products are constantly changing to suit the taste of each season

CHAPTER 3: BUSINESS MISSION

When building its brand, Starbucks made clear its mission to initiate and stay true

to its core values and those core values that arise from relationships with people That means Starbucks not only has a variety of coffee with reasonable prices but also has a cultural space To gain this mission, Starbucks creates its own style with a professional service team, providing the best service to customers Today, when going to any Starbucks coffee shop, customers can not only drink coffee but also read newspapers and work All of those things of Starbucks are developed and follow the set mission That was also the vision of Starbucks when it was founded

Starbucks makes environmental mission statements For example, developing innovative and flexible solutions for change, striving to buy, sell and use environmentally friendly products, and making environmental responsibility a company value Starbucks made a commitment to a resource-positive future in 2020, committing to halving its carbon, water, and waste footprints As a step toward those objectives, the company pledges to produce Carbon Neutral Green Coffee by 2030 and

to reduce water usage in green coffee manufacturing by 50% (stories.starbucks.com, 2022)

CHAPTER 4: MARKETING OBJECTIVE

Starbucks Coffee, a well-known and expected top brand worldwide, is brought into the Vietnamese market and established as a profitable brand Starbucks Coffee attempts to respond and adapt to changes in consumption and demand in diverse markets in general, and Vietnam in particular, by maintaining brand identity through traditional products To adjust to the too busy life to enjoy traditional coffee cups, Starbucks' marketing objective is to add a new style of Vietnamese coffee drinking culture, through which they can enjoy coffee cups conveniently brewed in paper cups with a wide variety of flavor options

To achieve the above marketing objectives, Starbucks has set some short-term goals:

● Sales goal: In 2022, Starbucks attempt to make up for the loss caused by the Covid-19 pandemic through their sales revenue

● Marketing goal: Starbucks' marketing goal in 2022 is to create information flows throughout social networks to attract customers Through a marketing plan, they want to win market share from competitors such as Highlands, Trung Nguyen, etc

● Branch development goal: In 2022, Starbucks wants to open more branches and stores in cities such as Nha Trang, Ha Noi, Da Nang, or Ho Chi Minh city

● Product goal: Starbucks continues to improve product quality and develop more drinks and confectionery products suitable for the Vietnam market this year They also want to change the products such as straws, spoons, and forks into recycled materials

● Service goal: Starbucks wants to enhance its service in 2022 by improving its apps along with developing its delivery service due to the increased amount of online orders since the Covid-19 pandemic

CHAPTER 5: SITUATION ANALYSIS

5.1 Market analysis

Vietnam was attacked by a fourth wave of COVID-19 in the summer of 2021, which has added to the pressures facing the coffee industry

As a result, Starbucks recognizes the potential of online sales, so they are working to improve the online sales channel to attract more customers

5.2 Industry analysis

Coffee is the second most valuable traded commodity on the planet, making it become an essential part of our global economy

As worldwide consumption climbs, there is a growing need for coffee, however, global supply falls short of expected demand Therefore, the coffee industry will

confront difficulty in the future as worldwide supply fails to satisfy the rising global demand for coffee

5.3 SWOT analysis

5.3.1 Strength analysis

- Brand popularity

● For many years, the company has successfully built a brand image as a luxury beverage company

● Starbucks appears in more than 65 countries with more than 40,000 stores in the world Starbucks has 77 stores in Vietnam

- Solid financial performance over time

● Thanks to the success of branding, the interest of consumers helps Starbucks' revenue has continuously increased Even during the pandemic, Starbucks still reached positive profit, although not as much

as in 2020 (Patricia Marques, 2022)

- Quality and diversification of products

● The variety of products, the quality, and the flavors they offer are what make Starbucks famous

- Experienced high-quality leadership and management

5.3.2 Weakness analysis

- The price is high

● In comparison, Starbucks has the highest prices compared to other coffee shops in Viet Nam Starbucks products cost 38% more than products sold by competitors (chiasenow vn)

- Products can be easily imitated

● Products can be easily imitated because Starbucks doesn't have the most unique or distinctive product A large number of coffee chains offer similar types of products For example, Coffee Latte, Capuchino,

- Unhealthy products

● Many Starbucks drinks are high in calories and sugar, causing a risk of harm if consumed regularly For example, a Starbucks cinnamon roll Frappuccino contains 510 calories and 85 grams of sugar,

5.3.3 Opportunity analysis: environment, cultural, price,

- Natural resources

● Vietnam is one of the most favorable coffee-growing lands The cold, rainy climate in some northern provinces is very suitable for growing Starbucks' main coffee - Arabica coffee

- Place of attraction

● With the development of large commercial centers in Vietnam, it is not difficult for Starbucks to find a location that attracts customers with a

centers in Vietnam, it is not difficult for Starbucks to find a location that attracts customers with a decent average income

- Expansion

● Vietnam is a large and culturally diverse country that opens the door to new opportunities The number of coffee drinkers and Western cultural adopters represented by Starbucks is increasing in Vietnam

● Vietnam is a coffee-growing country and has quite a large demand for coffee, coffee shops are scattered in both cities and provinces

5.3.4 Threat analysis

- Global pandemic and recession

- Competition from other coffee chains

● Many other coffee shop business models in Vietnam are built according

to the chain system and threaten Starbucks such as Highland, The Coffee House,

● Sidewalk cafes can offer lower prices and satisfy the majority of customers, so they can attract customers with their new style of decor

5.4 Competition analysis

The competitive issue now depends on the efficiency of Starbucks' brand positioning strategy in helping the company establish a good position in the Vietnamese market For example:

(vnexpress.net,

in 2019)

Popularity

Starbucks ~ 35,000 -

115,000

VND

● Coffee

● Tea

● Frappuccino

● Ice Blend

● Other food and drinks

● Goods (cups, instant coffee, etc.)

783 billion VND >70 branches

Highlands ~ 19,000 -

75,000

VND

● Coffee

● Ice Blend

● Fruit tea

● Bread

● Cakes and other drinks

● Goods (cups, roasted coffee, etc.)

2,199 billion VND

>400 branches

Table 1 Comparison table between Starbucks and Highlands in Vietnam

CHAPTER 6: BUSINESS PROPOSITION

6.1 Mission Statement

Starbucks' mission statement is “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” (Starbucks.vn) With the mission statement, Starbucks has underlined the primary role of the business towards its clients, as well as emphasizes the significance of its buyers towards the firm's future growth

Starbucks has set out principles to follow their mission statement, for example:

● Starbucks ensures the quality of each cup of coffee

● Starbucks connects with, laughs with, and uplifts the lives of its customers

● Starbucks is committed to the role of environmental leadership (Starbucks.vn)

6.2 Segmentation

Starbucks separates the market into three main groups: geographic, psychographic, and demographic segmentation

In the geographic group, everyone has different tastes of food by region

In the psychological group, lifestyle is the key point For example, office workers often drink coffee every morning, so Starbucks can provide them a free drink or bonus service to attract them to be the regular customer For those who want to be eco-friendly, Starbucks provides them with limited-edition tumblers

In the demographic group, Starbucks can divide the customer by their age and gender Children and teenagers often tend to like sweet drinks, on the contrary, people

in adolescence and middle age will choose the bitter taste of coffee Similarly, men will often like coffee with a strong flavor than women

6.3 Target market

Starbucks segments its target by demographics, psychographics, and geographies While it is possible to identify some segments in a potential market like Vietnam, Starbucks still takes a focused targeted marketing approach That means the company emphasizes on a narrowly defined market segment for high-quality, high-priced luxury coffee products and eye-catching packaging Starbucks customers:

6.3.1 Adults: from 25 to 40 years old

Is the main target market of Starbucks (accounting for 49% of all Starbucks businesses) They are usually people with relatively high income, professional career and focus on social welfare What attracts them is the space design, the modern design

is consistent in advertising as well as decoration This target audience grows at 3% per year

6.3.2 Young people: 18 to 24 years old

Accounting for 40% of all Starbucks businesses What attracts them: Starbucks is