Marketing Plan for Starbucks

STARBUCKS

Localized Marketing Plan for Beppu Store

Title: Localizing Starbucks Beppu store

Submit to: Prof. Alcantara Lailani L.

Completed By: PK Marketing Consultants

(Group 08)

Table of contents

1. Executive Summary 3

2. Current marketing situation 4

3. SWOT analysis 8

4. Objectives and Issues 10

5. Marketing strategy 11

6. Action programs 13

7. Budgets 15

8. Controls 17

１．Executive Summary

Starbucks found in Seattle's Pike Place Market in 1971 with hopes of creating a "third place" between home and work. Starbucks was created to produce premium coffee, while adhering to various core principles during economic growth. "The company has realized that people don't only come for coffee; they come for the atmosphere". Starbucks is the leading retailer and the roaster for brand specialty coffee in the world.

Starbucks Coffee Japan was established in October 1995, as a joint venture between Sazaby League and Starbucks Coffee International. Since the opening of the first store on August 2, 1996, in the Ginza district of Tokyo, network has expanded rapidly throughout the country and has reached 854 stores as of the end of March 2009.

Starbucks needs to strategically position each store with the hope of matching the specific location, helping to create a unique atmosphere. With this intention Starbucks need to revise its marketing strategy depending on country and location.

This report intends to provide an effective marketing plan to localize and redesign the marketing plan for the Beppu, Starbucks coffee house, which was established in 2005 and has grown to provide its local community with the best coffee since then.

The primary market objective is to localize the store by providing special local products and as a result, it is expected to show a growth in the clientele. This will help immensely in achieving organizations' objectives of increasing both revenues and market share. Furthermore the company will adapt unique promotional means to make sure that it achieves the objectives during the allocated time period.

2. Current Marketing Situation

Starbucks, Beppu was found on 2nd, December 2005; with the intention of serving the Beppu local community with a glimpse real coffee. Since Starbucks was a very well established brand for coffee all over the world, it was not much of a difficult task for the company to set up in Japan and to access the customers in the Beppu local community.

Even though there are a couple of other local coffee stores in Beppu, Starbucks is the only branded coffee house in the city. Competition is therefore less intensive and the image serves as one of the most important competitive advantage for Starbucks, Beppu store. But Starbucks is currently in the need of redesigning its marketing strategy to better suit the local conditions. Meaning when taking the city of Beppu in to consideration, we can see that it is quite a special city from different aspects. It is considered as a village area, compared to the other areas of Japan and is expected to be underdeveloped. Even though Beppu is not as developed as Tokyo and Osaka in terms of infrastructure, it has been able to maintain a specific level of living standards and also is a city which is rich with natural beauty and natural resources- making it the 2nd most famous city for onsen. Because of which it has been able to serve as a major tourist attraction attracting thousands of travellers from all over the world. Also since the city is located in a Bay and comprises of a sea port, it also serves as a trading point as well. Adding to the value of Beppu, Ritsumeikan APU was set up in year 2000 which allowed the city to become more diversified. Currently close to 3000 international student from 97 countries and regions are studying at APU giving a rich cultural variety to the city.

Market Description

As mentioned above the Beppu, Starbucks market consists of consumers who are keen to experience the atmosphere while enjoying the real taste of a premium coffee. Starbucks specific segments being targeted include tourists, businessmen, international and domestic students, and the local community. Local population of Beppu amounts to about 123,000 people. Because of the recent changes and developments in the city, it is essential for Starbucks to localize its marketing strategies to better suit the new born environmental opportunities. Starbucks consumers can choose between a wide variety of beverages, broadly categorized as; brewed coffee, espresso beverages, Frappuccino blended beverages and tea beverages, and includes different kinds of flavors in each type. Adding a wide range of mouthwatering snacks on the shelf has helped Starbucks to further satisfy the customers and build on its clientele. Furthermore, providing a nice calm atmosphere with quality music; is a value proposition and attribute to attract the consumers who are seeking a soothing environment while having a premium cup of coffee.

Table | 1 TSegment needs and corresponding features/Benefits of Starbucks

|Targeted Segment |Customer Need |Corresponding features/ Benefits |

|Students |Relaxing place to hang around |Conveniently located near 2 bus stops |

|(Domestic & International) |Meeting point to work on projects |Providing Wi-Fi Internet facilities free of charge |

|Tourists |Refreshing beverage |Premium quality of coffee made according to international |

| | |standards |

|Businessmen |Calm environment for business discussions |Easily accessible location and a tranquil atmosphere