The aim of the following report is to make an in-depth analysis of an organization’s operating environment from a marketing perspective. More precisely, the report will identify and analyze the marketing activities of a selected organization as well as will analyze the particular environment in which the organization operates its business. In the contemporary era of business, marketing has become an essential aspect and one of the chief determining factors for an organization’s success. Considering the particular fact, the present paper will analyze the chosen organization’s market orientation by applying the 5cs of marketing and thereafter will examine in what ways the organization collects vital information about each of the elements of 5cs for marketing. Finally, with the cumulated information and their subsequent marketing, the paper will recommend market strategies and marketing tactics for the organization, which would possibly help the enterprise in future.
For the aforementioned purpose of the current report, the internationally acclaimed Starbucks have been chosen. In recent years, Australia and its business and marketing sector have become one of the convenient places for more or less every international organization to penetrate in. The considered organization Starbucks is not an exception to that. The focus hence would be to see how the organization has managed its business operations in a foreign land like Australia.
Brief description of the company
Prior to analyze the market orientation of the considered organization – Starbucks, it is essential to have a profound knowledge regarding the considered enterprise’s background, present business status, and size, revenue, and mission and vision statements. It has been identified that Starbucks is known to be a coffeehouse chain founded in Seattle in the year 1971. As of 2016, the international organization operates in more than 23,768 locations in the world. However, in the premise of Australia, the enterprise opened its first store in the year 2000 in the forefront of Sydney (starbucks.in, 2017). Since then the organization is growing in an impressive pace and currently the organization has more than 27 coffee parlors in Sydney, Brisbane, Melbourne and the Gold coast (starbucks.in, 2017). It is essential to mention here that some of the chief reasons behind the organization’s fast success in Australia are the friendly and flexible customer service, cozy as well intimate interior and quality beverage. The organization mainly specializes in high quality coffee though it serves sandwiches and other beverages in an affordable price.
It has been identified that Australia’s Starbucks’ mission statement, which guides its business operations and set the philosophy is, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. The most impressive fact about the organization is its corporate social responsibility (starbucks.com.au, 2017). Starbuck gives utmost priority to the environmental issues and develops innovative as well as attainable solutions to mitigate them. The organization is considers marketing to be a potentially integral part of their business operation and therefore works present itself both on online and offline social platform to accomplish revenue and a strong brand image.
5Cs of marketing of Starbucks
The strengths of the organization are
- Strong financial performance
- Strong brand image
- High quality
- Strong people management and
- Strong online and offline social presence/marketing
However, the main weakness of the organization is its complete dependence upon the coffee beans and the price of it. Moreover, lack of internal focus, cross functional management and high product pricing. Therefore, in terms of opportunities while the organization has technological advances, distribution agreements and chance of expanding into retail operations, in terms of threat, the company faces market saturation, price volatility and competition in the global market (Taecharungroj, 2016).
The organization’s main customers belong to the age-group of 18-45 and the organization considers that the youngsters, office workers and adventurous people of the society are their typical customers. Moreover, the organization also considers that more than 52% of their customers prefer to visit their stores according to the suggestions from their friends and family. According to the organization’s research, in terms of potential customer behaviors, the desire relax, bond with friends and having quality beverage should be prioritized. Five most significant attributes of the customers of the organization are considered as price, time of service, quality and ambience (Turban et al., 2015).
The organization is dedicated in selling some of the finest and expensive whole bean coffees and in order to meet the standard of the products, the organization prefers to integrate the coffee purchasing, packaging, roasting and international distribution in their operations. The organization buys green coffee beans from multiple regions, which produce coffee through fixed-price and price-to-be-fixed commitments. The organization believes that their suppliers play a potential role in bringing the present success and therefore they largely depend upon them. However, along with coffee, the organization purchases a high amount of dairy products (Schoultz, 2013). Moreover, the organization is dependent upon national, regional as well as local suppliers for breakfast sandwiches and other beverages through long –term supply contracts.
It has been identified that some of the biggest rival threats of Starbucks are Costa Express, Coke and Peet’s Coffee. Besides, Costa Coffee, McDonalds, Panera, Caribou, Green Mountain Coffee Roasters and Nescafe are potential competitors of the considered organization. Most significantly, the organization always has the threat of the emergence of the new entrants as the particularly industry is one of the easiest sources of income (Liu, 2015).
The organization has the opportunity of integrating with the regional markets and has the ability and opportunity to help Australian government in supporting infrastructure (Wei, 2016). Moreover, Australia’s stable government as well as their stable economic conditions strongly supports the organization in earning the present position.
Collection of Market Research Information
Hollensen (2015), has mentioned that it is highly important for all business organizations to have proper method of data and information gathering system. It is important for all business organization to have proper method of market research in order to implement the 5C of marketing. Proper use of marketing tool is also an important part that is needed in information gathering system of marketing research. With the help of proper market research it is possible for the company to collect information related to the demand of the target customer group and also ensure that they manufacture and prepare their product according to the need of the customers.
It is important for the Starbuck Company to collect proper information related to the Fast Food Industry of Australia in order to estimate the need of the target customer groups. The low calorie that is being launched by the star buck company is considered to be one of the most popular products in the Fast Food Industry. It is also the duty of the marketing manager of Starbuck to collect all relevant information related to marketing and also understand the importance of all relevant products that is available in the fast food industry of Australia. With the help of proper market research, it is possible for the Starbuck Company to imply all the techniques of marketing research. It is also important for the company to properly evaluate the position of all the rival company so that they can gain competitive advantage (Kotler et al., 2015).
Strategy of Marketing
Selection of the target group customers is an important part of the strategy making process of marketing and other operational activities of business (Weinstein & Pohlman, 2015). It is essential for all business company to highlight the context that help in the development process of marketing strategy that is based on the detailed information collected from market research and market intelligence. With the help of tools that are applied in marketing research it is possible for in the companies to imply their marketing plan.
In case of Starbuck the target customer groups include the entire fast food lover in all around Australia and also in various parts of the globe. Moreover, as their product is of low calorific value, the Starbucks Company can also target all the health conscious people who have to compromise upon their fast food habit.
As more number of people are becoming health conscious about the nutrient composition of the food they are consuming it is important for Star back to raise the level of awareness among the customers about the ingredients of the product they are using in preparing the low calorie burger.
Hutchinson et al., (2015) have highlighted the importance of value proposition which is regarded as an important part of marketing strategy implementation process. With the help of this strategy it is possible for to position their product within the Fast Food Industry of Australia and also help in popularizing their product within all the target customer groups. Business deal with the suppliers and manufacturer is also an important part of the marketing strategy that can help the Starbuck Company to get all the raw materials that is needed in preparing the food.
Being one of the deported Fast Food Industry and Cafe of Australia it is important for Star back to use high-quality ingredient and raw materials in preparing the low calorie burger which can help all the fast food lovers not to compromise upon their health while consuming the food. Proper scientific techniques of cooking need to be followed in order to ensure that taste of the food is not compromised in spite of being high nutrient value. As more number of people in Australia is dependent on various type of fast food the low calorie burger can be of great selling point for the people. It is also important for the Starbuck Company to ensure that all the fast food lovers can enjoy the burger along with the coffee that is available in all their cafes and restaurants.
Lindgreen et al., (2016), have mentioned the importance of ensuring that the product is adequately available for the customers. Lesser availability of the product can compromise on the level of popularity and reputation of a particular kind of product. It is important for the Starbuck Company to ensure that all the raw ingredients needed for the preparation of the burger is readily available in all the restaurants and cafes of Australia. The preparation time of the burger also needs to be fast as it will help the cafe owners to serve all the guests in very short amount of time.
Development of the marketing Tactics
The 4 P's of marketing mix is considered to be one of the most effective tools that can be used by all business organization in order to prepare the marketing tactics. According to Dickinson (2014), to prepare the marketing plan according to the needs of the potential customer groups, with the help of the elements related to 4P's of marketing mix. During the time of launch of new product design it is important to imply the elements of 4 P's of marketing in order to ensure that its popularity among the target group of customer is high and it can easily attract all potential customers. It can also help the business organization to position their product in the market. It also provides options to the customers to choose from wide range of products according to the nature of the product and also it’s pricing.
The following are the elements of four P's of marketing:
Products: the product is the primary element that the company needs to select in order to prepare the marketing tactics (Peters et al., 2013). It is important for the company to select the product according to the need and demand of the target customer group. In case of Starbucks new product that is being launched in the market is of low calorie burger that will help to attract all the health conscious people of Australia. The main aim of this product is to ensure that the taste of the burger is not compromised and also its high nutritious value is maintained.
Price: the pricing of the product is and also important part of the marketing tactics that can help to attract all the potential customers. It is important for all business organization to use effective techniques while selecting the price of a product that is being launched in the market. It is high challenge for all company to provide there their product at lower price without compromising upon the quality of the product. It is also important for the business organization to set their price depending upon the buying behavior of the target customer group. For example of a company wants to target their product for richer section of the society, it is important for them to keep the price at the higher category in order to ensure that the reputation of the product is high and the customers will have high level of trustworthiness about the quality of the product.
The newly launched low calorie burger is aimed for all types of people within the society. Hence, is important for the Starbuck to keep the price of the newly launched product at minimum level which will attract customers from all sections of the society.
Promotion: The promotion event is one of the important parts for all business company during the time of launch of a new product. It is important for Starbuck to launch a product in popular public event that can help to seek the attention of all the food lovers. The overall promotional campaign is also an important part of the marketing tactics of the newly launched product. Starbucks can take the help of digital media marketing in order to spread the popularity of the newly launched product. It is also important for the company to raise the level of awareness about the product within the target customer group about the health importance of the low calorie burger. Attractive signboards and billboards can also be used by the company in order to seek the attention of all fast food lovers.
Place: it is also important for the business organization to have a fixed geographical location in order to launch their new product. In case of Starbucks the place of their product launch includes all the major cities of Australia. As the company has cafes and restaurants in various parts of Australia and all around the globe it is important for them to spread the market area of the product to all parts of the globe that will help them in their marketing activities and also raise the total amount of sales of the product.
From the above paper, it can be concluded that the organization has already made an impressive brand position on an international premise and pursues both online and offline marketing. However, the paper has indicated that the organization has the threat of new entrants and already has several potential rivals. Therefore, the present paper has suggested that apart from selling coffees and sandwiches, the organization will also sell low carb burgers in an affordable price. Following this recommendation, the paper has also indicated that worldwide online marketing and will set the price a little high as they believe their target market for the aforementioned product will be the upper-middle class families.
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