An Advertising Model And Recommendations For Starbucks (Essay Sample)

TABLE OF CONTENTS
1: EXECUTIVE SUMMARY……….......................................................................................3
2: SITUATIONAL ANALYSIS………………………………………………………………..4
2a: History and Background…………………………………………………………………4
2b: Product Evaluation……………………………………………………………………….5
2c: Consumer Evaluation…………………………………………………………………….6
2d: Competitive Analysis…………………………………………………………………….8
3: MARKETING GOALS………………………………………………………………………9
3a: Marketing Objectives……………………………………………………………………..9
4: BUDGET…………………………………………………………………………………….10
5: Advertising Recommendations………………………………………………………………11
5a: Target Market………………………………………………………………………….....11
5b: Advertising Communication Objectives………………………………………………….12
5c: Creative Strategy………………………………………………………………………….12
6: Media recommendations……………………………………………………………………..16
6a: Media Problem…………………………………………………………………………….16
6b: Media Objectives………………………………………………………………………….16
6c: Media Strategy…………………………………………………………………………….17
6d: Media Plan…………………………………………………………………………………18
7: SALES PROMOTION………………………………………………………………………..19
8: EXECUTIONS………………………………………………………………………………..19
Advertising plan working model for Starbucks Coffee
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1: Executive summary
Starbuck is a coffee retailer formed in 1985 and it operates one of the best coffee brands, through its expansion plans of creating network of stores all round America as well as opening hundreds of new locations in other parts of the world. Apart from their specialty coffee they offer other beverages like espresso and other complementary food items related to coffee. Starbucks has a great reputation for investing in their employee, providing them with a conducive environment that creates a good ambiance to offer satisfactory services to its customers.
Despite this, the brand has faced decline in its share value. The company is committed to conserving the environment by adopting the use of recyclable products. The company is at the fore front of promoting conservation through various programs. Their organization system has been developed in a way that even the lowly paid employees feel valued and acknowledge that they do play a role in the success of the company.
The company has had major expansion programs but the plan was cut short by the falling of its stock prices. Starbuck’s mission is to be a respected and recognized brand for coffee and specialty drinks. They aim to make Starbucks Coffee locations a frequent place to visit besides work and home. For the company to achieve this they must continue to expand by opening more retail locations and introducing unique products to prevent their customers from going to other coffee shops.
Even though it is the strongest player in the industry, it is faced with a lot of challenges. They include the ability to provide an impressive experience to warrant return for the same product, competition from fast foods and market saturation. Going forward the company must seek to partner with other operators to increase its revenues and brand awareness.
2: Situational analysis
2a: history and background
Starbucks Coffee retail outlets were the first to be established; later the company has diversified into other complementary and related industries such as bottled water.
Starbuck has specialized in adapting to the needs of the customers as and when they arise. The present challenge is for Starbucks Corporation to package its coffee in a way that appeals to the customers and create a long lasting experience for its customers. They have a high differentiation strategy to please their customers in every way possible. The company will continue with these trends as it makes plans to adopt new promotion strategies.
Starbucks coffee is considered the best in the industry; this is good for the company since it already has a competitive edge of some sought in that people associate themselves with the Starbucks Coffee brand. The primary expansion strategy for Starbucks is to open more retail locations as compared to its competitors. This can be a good move as these locations allow them to access domestic market as well as the international market wherever they are. This can also be a disadvantage; currently Starbucks’ existing coffee locations are performing better as compared to the expanded locations. This is evidence that Starbucks needs a new advertising model to help the increase company increase sales in its new locations.
In term of the development stages of the coffee industry, it operates in mature stage. This has caused stagnation in coffee sales; Starbucks has opted to branch into different markets such as the music industry to leverage itself against low sales volume.
Overall, Starbucks coffee is doing well in the market and its unique environment and atmosphere makes it had for competitors to emulate. Although there are culture differences across the world, there are similarities that exist, many that Starbuck can use to create a consistent environment, similar to that in the US. Starbucks has the ability to become a strong international competitor what is needed now is a thorough examination of its marketing strategy to embrace and a global mindset in its operation.
2b: Product evaluation
Starbucks uses contemporary designs that unify various age groups. In various Starbucks Coffee locations, free internet is provided giving customers the luxury of enjoying their coffee while they are connected to the rest of the world. Their presence in online platforms is another avenue they use to pass information about new products and upcoming social responsibility events. The company also uses online to help customers access coffee for home brewing.
Customers can easily change their beverage provider since there are no switching costs involved, what keeps them with the Starbucks coffee is the reputation and the brand loyalty they have created.
In US, creation of monopolies and dominance is limited, as Starbucks embarks on an advertising campaign for its coffee, laws and regulation limiting monopoly need to be followed. The company is at the fore front of conserving the environment and their participation needs to be felt even as the company moves forward.
The coffee industry is moving nearer to t...