Marketing plan Starbucks Coffee company Term Paper

Marketing plan Starbucks Coffee company - Term Paper Example Their TV and radio marketing mix is unobtrusive: Instead, in-store advertisements will keep people aware of new specials since most people come into Starbucks or have a friend who do. Ansoff's Matrix Current Products New Products Current Market Virtually everywhere: Control almost all US markets and regions, provide coffee Constant innovation for new types of coffee to keep people interested New Market Trying to expand among ethnic populations such as Latina/os, Asians, African-Americans Marketing Warfare Starbucks has an entrenched, defensive position. Although they certainly remain nimble in many ways, keeping ahead of market trends, they are the established power. They can be viewed as a power of light forts. Starbucks losing one, two or even a hundred shops is not a serious threat to its long-term viability. It has low entry and low exit costs since there is no substantial overhead: Office space, baristas and supplies do it. This is an incredibly daunting position for opponents, as Starbucks has both the advantage of mobility and wealth. They can sweep in and stymie opponents by shutting them out of an area and forcing them to compete against multiple Starbucks in the same region. When a competitor does gain an edge, Starbucks can just move its position. Porter's Generic Strategies Starbucks has chosen an overall cost leadership approach. ... , they are using a differentiation strategy: Go to Starbucks and get a simple smoothie alongside your friends who are getting a coffee, or go to Jamba Juice on your own. Their coffees are more expensive than, say, a gas station black, but Starbucks discovered that people are willing to spend about three to five dollars a day on coffee as long as the coffee is markedly better than a ninety nine cent cup of joe, more convenient, more pleasant and with more amenities. It is meaningless to call them â€Å"higher cost† than gas stations because the difference in most consumers' minds between a dollar coffee and a five dollar coffee is minimal: Coffee is a staple, one just gets it. Target Markets Almost everyone above the age of eighteen drinks coffee. Starbucks has market saturation such that they offer their services everywhere from poor inner-city urban areas to poor rural areas to middle-class and rich suburbs. Most food marts, mega-marts and grocery stores have some connection to Starbucks as well. However, Starbucks targets particular demographics clearly in terms of their design. Children. Children don't tend to like coffee, but Starbucks offers hot chocolate and highly syrupy coffee drinks that serve to get children interested in coffee. (This becomes important under both SWOT and PESTLE analysis below). Young urban and suburban professionals. With Wi-Fi offerings, music choices that tend to be of the alternative rock and modern rock varieties, and so forth, they offer good choices to this group. Older professionals. Starbucks offers a lot in terms of quality. An older professional is far more willing than an older blue collar worker to spend three dollars on a cup of coffee provided the cup is better. Starbucks would undoubtedly like to expand among ethnic