Starbucks Report
MARKETING
STARBUCKS CASE REPORT
Section 3 – Group C
Raghav Aggarwal – Meghan Collins – Pedro Geraldes Cardoso Giulia Hamard – Pascal Klein – Francesco Racanelli
MIM September 2013 Intake
Marketing Course
Professor Shameek Sinha
INDEX
Executive Summary
3
Problem Statement
4
Situation Analysis
4
Alternative Strategies
5
Recommendation
6
Implementation
7
Appendix
8
2
Executive Summary
In 2000 the global markets were hit by the burst of the “dot-com” bubble, which led to the toughening of the economic environment. In addition, Starbucks management was focused on short-term profits, rather than the feedback from customers, majorly due to the separation of marketing operations from the rest of the functionalities of the company.
As a result of this separation the firm was not able to deliver customer service, definitely not to the needed extent.
The solution proposed in the report states the need to establish a functional marketing department, lead by a CMO who would be able to tie the marketing strategy and the corporate strategy together. Secondly, there is the need to strengthen and efficiently utilize the existing CRM platform within the firm in order to retain customers and attract the new ones. With the data collected by the CRM system the marketing department would design a strong marketing strategy specifically targeted at the “Starbucks audience”, that is in line with the corporate strategy. The main objective here is to increase the customer base, hence sales and revenues, in order to fuel the expansion of the company.
3
Problem Statement
Starbucks lacked a marketing team to implement and support the company’s aggressive business strategy; thus failing to recognize the growing dissatisfaction of their customers and the potential threatening medium to long term effects on their bottom line, i.e. profitability.
Due to this, they were
STARBUCKS CASE REPORT
Section 3 – Group C
Raghav Aggarwal – Meghan Collins – Pedro Geraldes Cardoso Giulia Hamard – Pascal Klein – Francesco Racanelli
MIM September 2013 Intake
Marketing Course
Professor Shameek Sinha
INDEX
Executive Summary
3
Problem Statement
4
Situation Analysis
4
Alternative Strategies
5
Recommendation
6
Implementation
7
Appendix
8
2
Executive Summary
In 2000 the global markets were hit by the burst of the “dot-com” bubble, which led to the toughening of the economic environment. In addition, Starbucks management was focused on short-term profits, rather than the feedback from customers, majorly due to the separation of marketing operations from the rest of the functionalities of the company.
As a result of this separation the firm was not able to deliver customer service, definitely not to the needed extent.
The solution proposed in the report states the need to establish a functional marketing department, lead by a CMO who would be able to tie the marketing strategy and the corporate strategy together. Secondly, there is the need to strengthen and efficiently utilize the existing CRM platform within the firm in order to retain customers and attract the new ones. With the data collected by the CRM system the marketing department would design a strong marketing strategy specifically targeted at the “Starbucks audience”, that is in line with the corporate strategy. The main objective here is to increase the customer base, hence sales and revenues, in order to fuel the expansion of the company.
3
Problem Statement
Starbucks lacked a marketing team to implement and support the company’s aggressive business strategy; thus failing to recognize the growing dissatisfaction of their customers and the potential threatening medium to long term effects on their bottom line, i.e. profitability.
Due to this, they were