Strategic Marketing Plan of Starbucks Coffeehouse

 Introduction

 Starbucks is the largest coffee producing house in the world. It was established by Jerry Baldwin and Gordon Bowker that focus on aggressive marketing. It was firstly opened in the country known as Washington and it entered into the UK market thus the customers also enjoys the high quality service along with the soothing atmosphere. Starbucks has continuously focused on continuous development and growth in terms of expansion of its operations, faster networks and delivery services as well as other operations worldwide. Starbucks do believes in high quality of coffees and it deals with rich form of Italian espresso. The company offers pastries and other form of confectionaries. This way, the company expands the sales in the supermarket with the help of high quality products available in their shops. This strives for better satisfaction of customers and also it helps to welcome the customers with respect to high level of standard in the business forms and approaches. This way, the company also believes in offering newspapers, reading materials and music and important forms of access through the help of internet.

The company was opened in Seattle with Mr. Howard Schultz and the company adapted lot of principles for expansion of its stores and also for increasing the resources. This way, the company reached the emerging part of the business and also it attracted lot of attractions for achieving the goals successfully. It has been the most recognized brand and also it focused on high quality products.

It has been significantly competitive in the whole world and it offers the high quality coffee business. Therefore the business is competitive and also it focuses on the premium products as well as services.

This paper will meet with the important principles of strategic marketing planning for the selected organization known and established well as “Starbucks”.

The paper followed the discussion of the process involved in the strategic marketing that discuss about the major goal of an organization which is based on the global presence. The mission of the organization i.e. Starbucks is associated with the establishment of the finest coffee in the world that helps to maintain the important principles at the time of growth.

Later on, the paper evaluated the connection and relation between the strategic marketing as well as the corporate strategy which discuss about the values, brands and logos.

By the help of the above discussed parameters, the paper mentioned the important tools and techniques for developing the strategic marketing strategy that helps to assess the important tools and models of strategic planning and marketing. This way, the paper discussed the important links of strategic positioning and tactics of marketing. This also helped to analyze the advantages of relationship marketing in the given strategic marketing planning for the well established organization known as Starbucks. The strategic marketing plan will be based on the Australian market.

On the other hand, this paper will meet with the other important task known for marketing tools and techniques. This task will deal with the competitive environment and also it will meet the important areas of competiveness.

Task 1

Principles of strategic marketing plan for Starbucks

Strategic marketing meets with the important approach of marketing planning. It helps to analyse the best part of the company to satisfy the customers and to manage the profits accordingly. The process of developing and maintaining the strategic approach between the goals and skills of the organization is known as strategic planning. It is strongly based upon meeting the level of competition so as also by developing the long term growth and development. This also helps to address the requirements of the consumers and to determine the actions for better objectives (Sekirin, 2012)

Marketing plan is an important task for the success of an organization. It includes the change in needs and the requirements of the customer. It is an important understanding of communicating with customer and it includes important activities such as to build the products and services that will meet the customer’s requirement and to communicate the proper values thereof to deliver the products that provide values. Strategic marketing plan also provides the overview of customer focused products and services for assessing the effectiveness of marketing strategy. There are different steps of the strategic marketing planning process such as:-

ü  There is a requirement of mission statement for the strategic marketing planning process. Later on, the company should possess the set of corporate objectives and also it should lead to the desired level of profitability.

ü  The next step is to focus on the marketing audit that will help in innovative nature and also it will develop the strong level of performance.

ü  The organization should focus on the market overview and also it should try to understand the right market for the business needs. Thus the SWOT analysis will be also helpful.

ü  Identification of 4 ps of marketing will also be successful for the organization to meet with the level of success.

ü  Also there will be the requirement of designing the budget in the proper manner for addressing the major challenges of marketing in the companies. (McDonald, 2006) 1.1 Role of strategic marketing in Starbucks

Strategic marketing planning takes time but it provides the competitive advantage and shapes the corporate positioning so as it also sets an important agenda for high level of growth as well as innovation. (Frost, 2009)

In company like Starbucks, the company should apply the principle of success in the large form. The company should try to attract millions of people for better strategies and there should have unique and relaxing experience for the people. Thus there should have strong concepts of dealing with the customer satisfaction. There is a requirement of building innovative ideas for better strategic marketing planning.

The major goal of an organization should be based on the global presence. The mission of the organization i.e. Starbucks is associated with the establishment of the finest coffee in the world that helps to maintain the important principles at the time of growth.

The company inspires the spirit of the human beings and also it always focus on quality. (Tewell, 2006)

Marketing strategies meet with the transparent strategies and it tends to have more appealing factors such as reengineering and right sizing. It helps to reinterpret the maximized shareholder’s value. This encompasses the functions, processes as well as the department of the organization with respect to proper form of success. This seeks to follow the maximization of developing the growth as well as relationships with the help of competitive advantage. Therefore it enhances the customer experience; it increases the market share and enters the market through the help of strategic marketing. This way it achieved and increased the leadership position as well as strong financial position in the important aspects. Success has been created with this important approach and in the competitive manner.

The well known established relationship maintained the competitive advantage in the company and it develops the relationship with the help of enthusiastic and satisfied customers.

1.2 Process that should be involved in strategic marketing

There are different processes involved in the strategic marketing such as:-In the first stage, there will be the understanding of both the important factors known as internal as well as external factors that helps to influence the business. There is an understanding of business vision and mission, sales related performance and market trends as well as competitive landscape.

The next stage is to formulate the marketing strategy and to define the unique selling point that will help in modifying the product opportunity and also it will help to define the objectives of the market.

Later on, there is a requirement of creating the marketing objectives and designing as well as implementing the marketing plan for better goals and objectives to meet with this stage. This might include the important strategies of advertising, public relations, word of mouth and consumer competitions etc.

Thus there is a requirement of evaluation and execution of marketing that will depend on the marketing goals and also it will assist in better decision making approaches. (Businesspropulsion.com, 2012)

1.3 Links between strategic marketing and corporate strategy

Strategic marketing is useful for delivering high amount of values to the customers and it is necessary for better implementation. It helps to identify the process and the capabilities to execute the strategies. This also helps in evaluating the needs and wants from the stakeholders and it helps to identify the organizational performance, goals and strategies. (Ryals, 2008)

Corporate strategy is known well for the broad marketing plan and it includes the logo as well as the brand of the company. It also indicates the packaging of the product. It is concerned deeply with the competition in the industry and also is associated with the issues of business strategy. (Peters, 2007)

Corporate strategy meets with the important objective of success in the organization for long term. It deals with the leadership and also develops the structure of organization with respect to proper and effective conditions. Thus it contains important stages of marketing perspective and also this increases the market share and improves the quality of the products along with the services. The internal audit of the company should depend on the staffing, budget and responsibilities. The external audit is based upon the analysis of macro environment.

Starbucks is the leading specialty coffee retailer in the country that has its presence in not less than 22 international markets. It deals with the important positions with their products so as it also is known well for the appealing atmosphere. 2.1 Value of models used in strategic marketing planning

Value of models that will be used in the process of strategic marketing planning is known well for the greatest management. It includes the management and also focuses on important place. It is a planning model with the emphasis on the organization and it has several characteristics. This model will be useful for designing the product and service.

There are different tools that are used in strategic planning and process and also for marketing and sales such as:-

It involves in the internal as well as external factors in the organization. It is helpful for considering the needs and the requirements of the customer and also it develops and implements ways for effective actions.

This is concerned with identification, anticipation and meeting of the customer needs for the organizational goals and profits. It is an important element of marketing because it provides the right product at the right price and through the help of important distribution channels. (Richards, 2012)

Marketing research is an important element that involves the greater source of marketing mix and it is concerned with the long term decisions with proper approach of meetings of internal as well as external needs of the customer. It is important to review the appropriate theories of marketing and to create the more advanced strategic marketing plan. Marketing strategy includes the company’s environment and also it helps to earn profits both internal as well as external environment.

2.2 Links between strategic positioning and marketing tactics

Positioning drives the strategy of marketing because it maintains and creates the target audience. It also helps to define the product according to the people needs and characteristics. It establishes the result of marketing plan and deals with the similar needs and buying habits. This accomplishes the understanding of the demographics and the psychographics market segment as the target audience. (Duff, 2012)

Marketing is important in any business. It depends on the formulation of well informed and better strategic marketing plans. It is important to formulate the needs of the positioning strategy. This is about finding the right path to create the unique and the significant ways for the strong positioning. Starbucks has positioned itself with the help of focused differentiation strategy. It has been the great experience for the good coffee.2.3 Merits of relationship marketing in a given strategic marketing strategy

Relationship marketing focuses on marketing strategy in the past two decades. It helps in implementing to improve the customer loyalty and to increase the sales as well as profits. Thus it is an important approach to continue the relationship with the organization and its customers. This way, it emphasizes the strong importance of customer service and high quality development with consumers. This way it provides high value to the customers and also emphasizes the customer retention. Therefore it provides the important basis of achieving the edge of competitiveness. This recognizes the long term values of customer relationships and also it deals with better communication. It refers to the important approach of consumer requirements and also it uses a team-based approach. (Palmatier, 2008)

Relationship marketing focus on customer retention and it encourages increasing the spending of long term relationships with the customers. (Ramakrishnan, 2011)

Relationship marketing is known as the general concept of marketing that helps to conduct data and information and also provides the improved customer experience. Thus it involves the proper set of technology and manages the customer needs.

Porter’s Five Forces Model Analysis:

(Source: Mindtools 2012)

 

Industry Rivalry Starbucks being one of the most reputed and versatile coffeehouse in US faces tough competition within the industry. Some of its key competitors are McDonald, Dunkin Donuts, Tim Hortons, Peet’s Coffee and The Coffee Bean and Tree Leaf (largest privately owned coffee retailer in the U.S.) (Forbes 2012). Some of the largest basic coffee companies who sales coffee in grocery chains could have responded to swift growth in the speciality coffee industry by introducing by they own versions of popular supermarket brands ^[6] (Koehn 2005). Some established companies would have needed to achieve high volume of sales then small companies to achieve profit target.

Potential for new entrants

 American coffee market houses a variety of coffee brands, coffee chains and restaurants. Starbucks being one of the oldest service providers in the industry enjoys unprecedented customer loyalty in the market though new entrants always keep making an entry in the market. Barriers are too low to deny a new player to make a splash in the market.

 The coffee industry does not put a high premium on economies of scale. We can tell in other words that companies with national distribution in the coffee industry at large experienced some discount thought bulk purchases and suppliers and because of their greater infrastructures though their advantages was small. But this trend hasn’t stopped the new players to make an entry in the already cluttered coffee market of USA.

Substitute Products

Substitute products especially in an industry like coffee always pose a great threat. The most popular substitute of coffee is tea throughout the world. Second one is itself from coffee industry and that is instant coffee which is most often considered as a low-quality substitute of a premium-brewed coffee. Since Starbucks provides instant coffee and tea to its customer with the brand-names of Starbucks VIA and Tazo’s Tea respectively, so we can confidently say that there is very little threat of substitute products for Starbucks.

Bargaining Power of Buyers

 In the speciality/premium coffee segment, the main buyers are individual customers who are never considered strong bargainers in the industry. Also since a buyer doesn’t know the intricacies of coffee industry, he finds himself lacking in knowledge level while bargaining. But they always have an option of making a switch to other competitors if Starbucks is not up to the task. So in this case, bargaining power of buyers holds a minimal threat to Starbucks.

 Bargaining power of buyers

The bargaining power of suppliers to the specialty coffee industry would get significantly increased if they threaten to move the prices up of the Arabica beans which are used in the production of dark roasted coffee, or by a threat of drop in the quality or quantity of the coffee beans themselves. The suppliers of Arabica beans are mostly small to medium-sized family owned farms and typically sell their crops to processors (Starbucks etc.) through local markets (Lee, 2007). Primarily, these farms were located in Latin America, the Pacific Rim and East Africa. These farms were numerous and unrelated to one another, with no unionization, giving them very little collective bargaining power (Lee, 2007).

While there is no direct alternative for the Arabica beans used in the production of specialty coffee, but the huge no. of farmers with their huge range of farms supply the crops always makes it easy for buyers to avoid obligations to any particular farmer, which all over again erodes the bargaining power of suppliers. The farmers who produces the Arabica beans sells exclusively to specialty coffee retailers and as such are dependent upon their continued business.

But Arabica beans are generally of 15 types and being the most important ingredient of premium coffee, the producers hold an advantage and control over its varieties as these different beans allow a marketer to differentiate its offerings. So again, we can conclude saying that suppliers in this industry hold few advantages as compared to the marketers who use their raw materials.

Ansoff’s Growth-Vector MatrixIgor Ansoff growth matrix accounts for four marketing strategies – market penetration, product development, market development and diversification (International Marketing Review, 2008). Since Starbucks is operating in America for the last 31 years and has grown manifold in the process, the market has become old for Starbucks. As far as the new markets are concerned, they have recently opened their first ever store in India. And as well know, India is always considered a potential market with a lot of opportunities to grow for any marketer, Starbucks should adopt the strategies of market development to tap Indian market with its current products. As far as American market is considered, Starbucks’ menu is already loaded with all kinds of food items and beverages possible. So they should adopt the strategies of market penetration to stop the erosion of their market share in America.

SWOT Analysis

Strength

1. Motivated staff

The cafe industry is to some level dependent on front house staff, their manner and their skill to make customers come back. Starbucks promotes a situation that encourages team working and collaboration. Hence through outstanding service, customers keep coming back. This is why Starbucks has one of the lowest staff attrition rate in the industry. (workforce.com).

2. Excellent customer service-the torch-bearer of American corporate legacy in terms of quality service and loyalty

3. Flexible pricing policy-very affordable for every income group

4. a lot of food-items and all kinds of beverages (barring spirits and alcohol) in the menu which ensure that everyone coming from any age-group can enjoy here

5. The ambience of its stores with free Wi-Fi facility and unlimited laptop usage makes it a go-to place for tech-savvy youths and professionals as well as older population

Weaknesses

Over-reliance on home market:

Although the American coffee market is valued over $18 Billion (e-importz.com)., over-reliance on this market leaves Starbucks vulnerable to unexpected changes that may occur in such market. For example, recession affected disposable income for American customers and then their consumption habits. Thus the management decision to focus mainly on the US market denotes a weakness in decision-making skills of Starbucks.

Opportunity

Growth coffee market

The universal taste of coffee drinkers in America is shifting near the more expensive organic coffee which accounted for $1.3 billion in imports (Restaurant Hospitality 2012). This links to the Social factors recognized in the External analysis of American market and relates to changing taste of the masses. This situation is very favourable for Starbucks because it provides an opportunity to Starbucks to increase its customer support with the possibility of high profit margins as a result.Threats

Competition

Coffee industry is very competitive. McDonalds is the main competitor of Starbucks coffee. McDonalds is said to be offering better coffee than Starbucks, that too more economical is putting high pressure on Starbucks (digitaljournal.com). Also as discussed above in Porter’s analysis that more reputed competitors like Tim Hortons as well as Peet’s coffee, not to leave Dunkin Donuts are also posing a lot of challenges to Starbucks in terms of value offered and prices charged.

 PEST Analysis

 Political

 Government stability

Political policies of a ruling party can affect the marketing strategies of a company. If a country is politically unstable like Libya, Yemen or Egypt, no company would like to do business there. So the expansion plans of a company can take a serious hit because of this political imbroglio. Starbucks, for example, has to shut down its stores in Israel as the Israel’s conflict with Palestine was very disturbing and not good for business.

Economical

 Exchange Rates

The decreasing dollar value as compared to other currencies couldn’t be good for an American’s marketer point of view as that business has to depend on its suppliers for raw materials. This will lead to expensive imports which will compel the marketer to push its prices a little higher. As far as coffee industry is concerned, import of Arabica coffee beans will get expensive and a marketer has to endure higher cost for its services and subsequently consumers will get charged more. This situation could be very precarious for Starbucks as consumer will be reluctant to pay anything extra to avail its services.

Social

Social and cultural issues could force a company to alter its policies. Population, age-groups income, religion, eating habits etc. may sound too many and too little issues to be discussed but are of more relevance. For example, McDonald changed the colour of its restaurants from red to yellow in China to show a sign of respect for China’s love for Red colour. McDonald was the same company who completely restructured its menu in India over the issue of using ‘beef ‘ as one of the ingredients for its dishes, as in India Cow is considered very holy and pious and eating its meat is strictly prohibited by law. Since then, McDonald has completely removed the list of items from its menu-card in India which include beef. Similarly, Starbucks greeted Indian consumers with a menu influenced by heavy-price cut as compared to American market on the inauguration of its very-first store in the country as Indians are known to be very price-conscious consumers.

 Technical

 Technological Influence

Technological advancements have never been so fast, hence firms need to consistently follow the trends and exploit any opportunities that may result and implement any change required. For example, Starbucks have embraced the new phone payments system that was introduced recently which helps cut long queues at peak time.

 

 

 

 

 

 

 

 

 

Task 2

TARGET MARKET AND SEGMENTATION

Geographical	United States
Demographical	College students and youth

Gender- Male/Female

Family Size- nuclear families

Business class families/ College students/

Income- High incomeDemographical Lower upper class, middle Upper Class, Behavioural Frequency of purchase- Regular basis in life time

 

 

Segment 3: Marketing Strategies and Statistics

3.1 Market Share of Starbucks, its Competitors and Their Statistics

 

This statistics tells us that Starbucks’ currently has 32.6% market share of American coffee-market as of April 2011.

Starbucks competitors in the coffee beverage sales include 7-Eleven, Dunkin Donuts, BIGGBY Coffee, Caribou Coffee, McDonald’s, Panera Bread, and Einstein Bagels. Competitors such as McDonald’s and Dunkin Donuts not only have extensive menus, but also the financial resources and position to leverage their strengths to threaten Starbucks profitability.

In terms of perception, 7-Eleven and Dunkin Donuts provide coffee in a “no-nonsense fashion”, which attracts customers who are extremely price sensitive. Caribou Coffee’s environment is similar to that of Starbucks because of furniture, free internet, and cozy surroundings, but their lack of market expansion has prohibited them from gaining the notoriety Starbucks has achieved. Finally, BIGGBY Coffee is in the middle ground where the likes of Dunkin Donuts and Caribou Coffee separate themselves.

Perceptual Map of Starbucks And It’s Competitors (Coffee Shop Market)

The graph below illustrates customer perceptions regarding various brands:

(Source: Indews Broadcast 2012)

Customers- The average no. of customers who visit a Starbucks store daily has decreased from 463 in 2005 to 408 in 2007 (Trefis Team 2010).  The rationale behind such decay is due to the launch of low-priced beverages by McDonald. Also meanwhile, Caribou Coffee and Peet’s Coffee has raised their standards higher. Male form a large part of customer’s segment with 55% share with rest 45% goes to females (Moon 2002). The age for an established customer is 40 years while for a new one, its 36 years (Moon 2002). Demographically, they target young, affluent and tech-savvy customers (Hoovers 1999).

Financial Analysis of Starbucks against its Competitors

Company	Price/Book	Price/ Cash Flow	Forward P/E	5-Year CAGR
Starbucks	9.2	32	25.6	8.5%
Green Mountain Coffee Roasters	3.4	80.7	12.1	63.8%
Caribou Coffee (Nasdaq: CBOU  )	3.7	13	27.5	6.7%
Peets Coffee & Tea (Nasdaq:PEET  )	5.5	79.4	32.6	12.1%

(Source: The Motley Fool 2012)

The shares of Starbucks reached 52-week peak as compared to its competitors on 5^th April this year after quite a long time. According to the industry experts, credit should go to senior management team of Starbucks including its charismatic CEO Mr. Howard Shultz who is currently on a very aggressive expansive spree in China and experiencing a remarkable growth there (Sean Williams 2012).

Target Audience and Segmentation

Starbucks generally targets customers from all age and income groups, though predominantly adults and young teens cater to its services more. Their primary target is men and women ageing between 25-40 years. They are responsible for almost 49% of Starbucks’ total business.

Next comes the young adults group who accounts for 40% sales of Starbucks. They age between 18-24 years and assume its stores as a place to hang out and enjoy.

Kids and teens ageing anywhere between 8-13 years also form a large part of Starbucks target market. Though they only contribute to only 2% of sales to Starbucks but a lot of products pertaining to them are purchased by their parents, so they become a priority for Starbucks.

All these segments are followed by complimentary products offered by Starbucks which account for a heavy 75% sale for Starbucks. These complimentary products include speciality coffee drinks and whole bean coffees & merchandise (Chron 2012).

 Frequency of Purchase/Loyalty Test

A survey conducted by CustomerDNA including more than 15,000 quick-serve restaurant customers found that 41% of these customers remained strongly loyal to Starbucks while 53% of the customers also visited either Dunkin Donuts or McDonald other than Starbucks over the period of One month (CustomerDNA 2012).

3.2 Marketing Strategy

a) Corporate Strategies

Starbucks fall in fast casual restaurant sector with Dunkin Donuts and McDonald. In this sector, no player is in a position to command a price denoting a monopoly. The customers of this segment are very price-sensitive and hold low-brand loyalty. Since Starbucks has maintained a very strong brand image, they should concentrate on the strategy of increasing profitability and return on investment.

Another corporate strategy could be of acquisition. The strategy of acquisition would allow Starbucks to purchase other competitors like Caribou Coffee and Mountains in the fast casual industry that will allow it to increase profits and gain market share (Mullins, 2009). Caribou has a market cap of US $ 170 million and its acquisition could help Starbucks revive its R & D department.

  b) Business Strategy

The fast casual restaurant sector is characterized by superior products and low profit margins. So the perfect strategy to apply here could be of ‘Differentiator’ and ‘Defender’ strategies. As a defender, it will defend its territory with cost-effective superior products while on the on the other hand, it should try to make apperception in consumer’s mind that they are different than any other company in terms of superb customer service and highest quality products.

Now we should concentrate upon the marketing mix of Starbucks as a step for formulating marketing strategy for Starbucks. This will include an analysis of 4Ps which is as follows-

Product – The product market that we recommend Starbucks focus on is high quality brewed coffee, coffee beans, select food items, branded equipment and providing food service.

Price- Since in the market, Starbucks is seen as a premium service provider, they should increase their prices by 10% as compared to competitors to look different than others.

Place- For this P, they should concentrate on exclusivity because of their portrayal of One of USA’s finest coffeehouse. This place should provide their customers a never-before-experienced ambience. The practice of having multiple stores existing in a 1-mile radius must be cease. In the targeted areas, the new store should be able to accommodate a small conference of up to 15 people.

Promotion – To execute their differentiation strategy more suitably, they must craft TVCs which portray them as distinct as possible from their competitors. We further recommend that Starbucks sponsor events that are in line with the interests of customers who purchase premium products. This would include sponsoring professional golfing events, college games, the arts and business conventions. College students, young professional adults and those with more disposable income should be targeted. The message must be send to the customers that they are the best coffeehouse and if they are having its products, they should feel proud of having consumed a Starbucks product.

 3.3 Strategic Marketing Objectives of StarbucksFollowing are the strategic marketing objectives of Starbucks –

• To create a Starbucks experience that makes people come for the coffee, stay for the  ambience and environment, and return for the connection
• To build an image separate from smaller coffee chains
• To clearly communicate the values and commitments of the Starbucks business to their customers, instead of only growth plans publicized in the media

Segment 4: Impact of Strategic Marketing Decisions on External and Internal Environments

 4.1 Changes in External Environment

Business is getting operated in the independent network and areas. It is because of certain actions and activities. It includes certain factors such as:-

• The political influences reduce the effects of tariff and it can also affect the rate of competitiveness as well as sales and profitability.
• The income disparity with respect to economical factors creates inequality and also it affects the low sales in many locations. This also creates unfavourable conditions.
• In case of two countries such as India and China, the tea is preferred in most of the locations so people are health conscious to eat and drink. So it is a concern for Starbucks.
• The technological influences create the ideas of social networking options and it helps to connect with the customers directly that could have a favourable impact for Starbucks.
• Thus the impact of changes in the external environment works like the threat itself.

There will be negative impacts on the work culture, decisions and the performance of the company through the changes in the external environment. Thus it will also change the financial impacts on the consumer’s perception with respect to substitutes. (Brown, 2011)

 4.2 Internal analysis of strengths and weaknesses

Strengths: It is the most reputed coffeehouse brand which focuses on providing soothing experience and delivering high quality, positive attitude and experience to the customers. It also focuses on public awareness as well as follows the unique strategy of helping the motivated and highly dedicated employees. It tries to build the new products that increase the market share of the company and meets the expectations of customers. This way, the company enters into the new market and try to achieve the expansion objectives. This also creates the competitive advantage for the firm and improve financial situation.

 Weakness: The company policies are full-proof for any organizational weaknesses. However its aggressive expansion policies could lead to employment to workers of many nationalities which in turn will demand for a lot of attention from senior management of Starbucks. If Starbucks fails in providing proper working conditions (Like USA) to its employees of foreign nationalities, the worker unrest could be a serious problem for Starbucks. The second weakness could be related to its pricing policy which should be very flexible for developing countries. It’s very much possible that pricing structure for developed economies could not relate itself to the developing ones.

4.3 Strategic marketing responses

The strategic marketing responses focus on the important approach of marketing strategies and objectives. It meets the important selection of proper advantages and benefits to the consumers and in response provides a lot of profit for the firm. Strategic marketing responses are results of strategic marketing decisions a firm take to build its place in the market. Starbucks has cemented its place in the market as an icon and changed the perspective of people in terms of coffee-drinking. All its marketing strategies have gained tremendous response from the people and hardly anyone failed to impress the customers. We hope that Starbucks will continue this trend even further in the future.

 ConclusionEvidently, to conclude the paper must say that there has been the important analysis of the discussion on strategic planning process for the chosen organization known importantly as Starbucks.

This paper effectively dealt with the important understanding of strategic marketing plan and also it met with the important relationship among the strategic marketing and corporate strategy with respect to proper theories and principles of understanding.

Later on, the paper focused on the important approaches of tools and techniques for developing the proper strategic marketing strategy. This way, it analysed the advantages of relationship marketing and its importance for both the organization along with the customers. Relationship marketing deals with the customer retention and it also encourages increasing the spending of long term relationships with the customers thus it also helps to conduct and gather data as well as information and also provides the improved customer experience.

Overall this paper gave us an insight about the key marketing strategies adopted in Starbucks and what challenges its competitors pose in front of it.

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