Marketing
Executive Summary
Following a victorious decade, Starbuck UK has suffered a disposition in the customer’s perception. In order to restore its strategic success, Starbucks UK had to utilize its developed brand and robust financial resources to reap out the best benefits of reducing pub market segments and new lucrative customer markets. There was a need to conduct customer, market, trend and competitor analysis which could reveal the tactics. Also, there was a need to shift the customer back to the hub of the decision to develop holistic customer experience and protect increasing indirect and direct competitors from grabbing the market share. In this paper, there is a proposed marketing plan based on the requirement of Starbucks to step back to its underlying goals of fostering relationships and offering high quality coffee to its customers. The key message was therefore back to the roots.
Table of Contents
Market Analysis A comparatively narrow perception of the market Starbucks is working in would be the coffee shop market. The UK coffee shop market segment increased by almost 7.5 percent in 2012 to hold almost fifteen thousand coffee shops with a business of 5.8 billion pounds (Mcgrath, 2012).The largest portion of the market includes branded coffee outlets which is a segment that represents an oligopolistic market structure. The stores’ location is distributed amongst branded coffee shops (5,300), non specialist outlets (4,800), and independents (4,100). Even though Starbucks do not claim itself to be a real coffee shop instead, a place where they can inspire the human spirit and nature (Starbucks Coffee Company, 2013). Therefore, the company closely focuses to any offers that deliver their customers with some benefit.
Starbucks UK
In 1998, Starbucks integrated the United Kingdom market with the acquisition of local coffee brands. Currently, the company contributes around 300 million pounds per annum to the
Following a victorious decade, Starbuck UK has suffered a disposition in the customer’s perception. In order to restore its strategic success, Starbucks UK had to utilize its developed brand and robust financial resources to reap out the best benefits of reducing pub market segments and new lucrative customer markets. There was a need to conduct customer, market, trend and competitor analysis which could reveal the tactics. Also, there was a need to shift the customer back to the hub of the decision to develop holistic customer experience and protect increasing indirect and direct competitors from grabbing the market share. In this paper, there is a proposed marketing plan based on the requirement of Starbucks to step back to its underlying goals of fostering relationships and offering high quality coffee to its customers. The key message was therefore back to the roots.
Table of Contents
Market Analysis A comparatively narrow perception of the market Starbucks is working in would be the coffee shop market. The UK coffee shop market segment increased by almost 7.5 percent in 2012 to hold almost fifteen thousand coffee shops with a business of 5.8 billion pounds (Mcgrath, 2012).The largest portion of the market includes branded coffee outlets which is a segment that represents an oligopolistic market structure. The stores’ location is distributed amongst branded coffee shops (5,300), non specialist outlets (4,800), and independents (4,100). Even though Starbucks do not claim itself to be a real coffee shop instead, a place where they can inspire the human spirit and nature (Starbucks Coffee Company, 2013). Therefore, the company closely focuses to any offers that deliver their customers with some benefit.
Starbucks UK
In 1998, Starbucks integrated the United Kingdom market with the acquisition of local coffee brands. Currently, the company contributes around 300 million pounds per annum to the
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