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Marketing Management

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Introduction

MARKET MANAGEMENT AND GROWTH - STARBUCKS COFFEE COMPANY IN UNITED KINGDOM INTRODUCTION Starbucks started its operations in the year 1971 in Seattle's Pike Place Market, with a concept as seen in Italian Coffee Bars which is considered to be a place for conversation and a sense of community. Their mission statement explains their belief which is 'to inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time'. Starbucks has achieved significant growth and in the year 1992 had gone for an Initial Public Offering and got listed in the New York Stock Exchange this was followed by their entry into the Japanese market in the year 1996. After this they entered the United Kingdom through the acquisition of sixty five Seattle Coffee Company Stores this acquisition was successful as the two companies shared a similar culture (www.starbucks.com). GOAL The aim of this research paper is to understand how the external environment influences the growth of the company. And the strategy adopted by the company to sustain its phenomenal growth. The period of research would be restricted to one year. External Environment The external environment would be assessed using the PESTLE method and also the 3Cs method would be used to understand the Competition, the Company, and the Customer would also be assessed to have a fair understanding of the macro environment. First we will review the macro environment with the use of PESTEL. PESTEL stands for Political, Environmental, Sociological, Technological, Environmental, and Legal factors. Political: Political issues would be the trading policies, consumer protection regulations, industry-specific regulations, political trends, government structure and leadership would be the issues that would be affecting the political factor. ...read more.

Middle

Customer: Customer is the main factor who has considerable influence on the company as he is the revenue provider to the organisation around whom the whole business model is built. Hence, a proper and systematic analysis of the different segment of customers is to be carried, which then should be targeted using the right communication methods to attract them. Starbucks has the advantage of beautiful ambience and customer friendly support personnel who offer great service, this would enable them to attract first time visitors and bring in old customers on repetitive basis. This ensures that the customers visit the stores on regular basis. From a promotion point of view the company offers different options to customers to retain them in their stores as the competition is increasing in the market place. Company also positioned its stores at convenient locations across the United Kingdom to attract all segments of customers. PART - B As we have seen from the above paragraphs how Starbucks has scanned the external environment and addressed the concerns in a systematic way to ensure that they have countered the threats in an effective way and have risen to become one of the most preferred brands in the United Kingdom. Let us now have a look at the marketing mix adopted by the company which would provide us a better understanding of the overall stategy adopted by the company. Marketing Mix Marketing mix comprises of 4Ps which are namely Product, Price, Place, and Promotion. This theory was proposed by McCarthy J.E in the year 1960. ...read more.

Conclusion

advertising along with Pull strategy to enable them to market their products directly to the customers who would visit the stores and buy their products this strategy is called the pull strategy as the customers pull the product from the distributors or the channel in this case the coffee shop due to the need created by the promotion. Conclusion As can be seen from the above the company has clearly strategized its growth by undertaking an in depth analysis of the macro environment and the marketing mix to ensure that it sustains the recession. The above research is based on historical data and for a future perspective it can be assured with the overall improvements in the economy and the growth achieved by the company along with its strategies to invest in new stores across the country would ensure that the company would maintain its growth in the coming years. The above methodologies of PESTLE, 3Cs and Marketing Mix provide us with a broad overview of the company operations and, the strategies adopted by it can be understood in a theoretical perspective. It would be prudent to assume that the company would require to keep scanning the macro environment and the marketing mix on a continuous or periodical basis to ensure that they can adopt their strategies to meet the demands or variations observed during this studies. Hence, the marketing strategist is expected to have an appropriate methodology for collecting the required data on a standardised basis which would enable him to compare the historical data and arrive at appropriate conclusions which can be presented to the top management for review and implementation. ...read more.

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