Unit 4 Marketing Principles Assignment Sample
Understand Marketing Principles with SWOT Analysis
It is very much significant that company goals are required to be explained clearly. By explaining the marketing objectives for Starbucks their focused customer base and complete objective should be evident and these would create the marketing mix for Starbucks. Market orientation assists Starbucks to gather the knowledge related to the consumers and actualizing these requirements by making them a segment of the of the total business scenario for Starbucks.
1.1 Prepare a SWOT analysis for Starbucks and explain the importance of using SWOT analysis as marketing tool.
SWOT Analysis for Starbucks
Starbucks is considered to be the leading roaster, dealer and seller of exclusive coffee internationally, having a strong line-up of twenty thousand coffeehouses in more than sixty countries. It is the numero uno brand of coffee chain operating on a global scale.
- Smooth record of finance
- Best brand in coffeehouse category having a worth of four billion dollars.
- Starbucks knowledge
- Biggest coffee chain on a global scale
- Efficient management of staffs
- Price of the coffee beans has a significant effect over Starbuck’s earnings.
- Value of merchandise
- Harmful exposure
- Comprehensive dealer variety
- Extension to approaching financial systems
- Growing merchandise contributions
- Extension of trade functions
- Growing worth of coffee beans and dairy merchandises
- Trademark infringements
- Rising rivalry from local cafes and different coffeehouse chains having the speciality
- Oversupplied markets in the advanced financial systems
- Contribution disturbance
Let us discuss the SWOT analysis in detail which is as follows:-
- Smooth record of finance: Starbucks’ revenue is steadily growing for the past few years and is presently standing at a 14%. The organization also defeated its closest rivals with a 24.54% return on savings and 29.16% return on equity.
- Best brand in coffeehouse category having a worth of four billion dollars: Starbucks boasts of a strong variety presence related with superior coffee and outstanding consumer service. Its variety is the most expensive variety in the coffeehouse category and its worth is around four billion dollars.
- Starbucks knowledge: The biggest benefit Starbucks possesses is the knowledge it passes on to its consumers with the flawlessly mixed coffee, quality music, hospitable staffs and a cosy surrounding which tantamount to giving an unparalleled consumer service.
- Biggest coffee chain on a global scale: Starbucks functions at over twenty thousand coffeehouses in sixty countries, which makes it the leading coffeehouse chain globally.
- Efficient management of staffs: Starbucks give its staff’s exhaustive variety of reimbursements and spend a charge more than presented by the rival brands.
- Price of the coffee beans has a significant effect over Starbuck’s earnings: Starbuck’s revenue and its value for coffee are majorly based on the worth of the coffee beans, which is a product and is not possible to be maintained by Starbucks. Because of prevaricate finances, weather aspects and various different scenarios; Starbucks is not possible to assess the value of the coffee and productivity of the organization.
- Value of merchandise: Starbucks provides excellent coffee and consumer satisfaction but that concludes in rise in the value of its merchandise. In contrast, McCafe quality coffee was valued less compared to Starbucks ‘coffee and was assessed in an enhanced state.
- Harmful exposure: The business fraternity repeatedly gets harmful exposure in accord with its futile endeavours of becoming a greener organization, avoidance of tax, and ill conduct of certain traders.
- Comprehensive dealer variety: Starbucks does not have the ability to produce its coffee beans and purchases it from the other suppliers, which are majorly based in South America, Arabia or Africa. For Starbucks to make certain of having significant supplies for its functional aspect in Asia, minimise the reliance of better or worse production in Africa and South America and to invest on shipping prices, Starbucks needs to grow its dealer association.
- Extension to approaching financial systems: There are wonderful scopes for coffeehouses in China and India, where Starbucks has a small strength of restaurants.
- Growing merchandise contributions: The business has the possibility for growth in the quantity of coffeehouses that provides alcoholic beverages, and includes certain innovative merchandises, and attending to an extended consumer assembly.
- Extension of trade functions: Starbucks not only takes care of the coffeehouses and franchisees but sells some of its merchandises with the help of different vendors. The organization is required to construct such kind of tie-ups on an increasing scenario and provide to sell its coffee for instance in big shopping malls.
- Growing worth of coffee beans and dairy merchandises: The sequence majorly bases itself on the coffee beans and dairy merchandise values, which is not possible for Starbucks to maintain, or could be barely assessed.
- Trademark infringements: Starbucks at times is engaged in scenarios over unlawful utilization of its trade name, which is expensive and harmful for Starbucks.
- Rising rivalry from local cafes and different coffeehouse chains having the speciality: Neighbouring cafes provides diminished prices and provides a more apt list of options for its consumers. Big coffeehouses have their own specific set of menu and for that reason they do not have to go for competition with Starbucks. In both the scenarios, Starbucks faces tough rivalry from the other varieties and drops market allocation.
- Oversupplied markets in the advanced financial systems: Coffee markets in the advanced financial system, are already oversupplied and with the cut-throat rivalry, Starbucks will have a tough time in penetrating such markets.
- Contribution disturbance: Because of political, economic, and weather scenarios, Starbucks has the possibility to face contribution disturbance, totalling an important expense to the company.
Importance of using SWOT analysis as marketing tool
With the help of the searching done through SWOT, Starbucks can productively influence the market and easily benefit from the scope. The importance of using it are mentioned below,
- Recognizing Business potency: Starbucks can recognize what will make its business stand apart from other varieties. It helps Starbucks to recognize what makes its brand so much unique and to benefit from those searches.
- Scope for development: The weakness section of the SWOT analysis can assist in finding out on what Starbucks should concentrate on for developing itself as a brand.
- Scope for revenue development: Scope is normally regarded as outer scope for actualizing development. Scopes can take into consideration different types of aspects, which are choosing the requirement of the customer in a way which no other brands are doing.
- Outer challenges: Starbucks is required to find out outer disturbances that will affect its success. Although these challenges cannot be averted, SWOT will assist Starbucks to recognize the threats beforehand. By doing so, Starbucks could avert from committing the faults. (Boone, 2015)
1.2 Present and evaluate the marketing objectives of Starbucks and explain how defining marketing objectives can help a business to develop marketing strategies. How does this contribute to the benefits of costs such as market orientation as customer satisfaction, desired quality, service or customer care, relationship marketing etc.
The marketing objectives of Starbucks are mentioned below: -
- Brand relocation: For keeping the loyal consumers and developing new customer support there is a need for brand relocation to identify Starbucks’ brand from its rivals.
- Endorsement scenarios: Starbucks will keep taking into account new endorsement stores for attracting different customers. A dedicated involvement in the digital platform, television campaigns, and email marketing will b used for endorsing merchandises and schemes.
- Growth of new trade: Adding new food sections, adding recently made outlets at the recently selected domestic and abroad places is crucial to grow Starbucks’ marketing scenario.
- For growing international marketing mix: International marketing mix with the domestic business scenarios in relation with particular market is very crucial for turning into a international brand.
Marketing planning at Starbucks is based on the marketing objectives of the company. As a result, it is very much significant that company goals are required to be explained clearly. By explaining the marketing objectives for Starbucks their focused customer base and complete objective should be evident and these would create the marketing mix for Starbucks. Market orientation assists Starbucks to gather the knowledge related to the consumers and actualizing these requirements by making them a segment of the of the total business scenario for Starbucks.
This will prove to be beneficial in variety of aspects in relation to the costs. Taking into consideration the aspects of market orientation such as customer satisfaction, desired quality, service or customer care, relationship marketing and so on let us discuss each of the topics briefly and how they will prove to be beneficial through the following points:-
- Customer Satisfaction: If Starbucks keep the cost of its coffee at a competitive level in comparison to its rival brands and give good quality coffee and service, then automatically it will gain on customer satisfaction.
- Desired Quality: If the customers can get the desired quality o coffee they were aspiring for at Starbucks then they will keep coming back to the store often which will help the cost to the company to improve.
- Service or Customer care: The service or customer care, if improved then automatically the cost will get affected in a positive way for Starbucks and the company will keep on making considerable amount of profits.
- Relationship marketing: This is another aspect where having good relations with the stakeholders, suppliers and the existing customers will help the company thrive and will contribute to the benefits of costs.
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