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8/8/2019 Starbucks B.A. DECK
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STARB
UCK
S
BRAND
AUDIT
8/8/2019 Starbucks B.A. DECK
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Company Analysis• Starbucks has been dedicated to building a
brand that was known for its quality, ethical
sourcing and its human connection• The Starbucks brand has been part of the
company since it began operations and has
been a unifying element throughout its
international expansion• Nielsen released figures showing that
Starbucks invested $43 million in marketing
in 2009 • In 1998, Kraft currently licensed the right to
sell Starbucks to grocery stores• This agreement brings together Starbucks’
expertise in sourcing, roasting, and
packaging and Kraft's extensive knowledge
of marketing, selling, and distributing
8/8/2019 Starbucks B.A. DECK
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Market Analysis• Starbucks in 3
rd
in the market• Established brands dominate the roasted
coffee market• There has been year on year growth in
the roasted coffee market • Consumers are spending more on coffee
in grocery stores while reducing their
expenditures at coffeehouses• Established brands are diversifying their
varieties to compete more effectivelywith specialty brands
8/8/2019 Starbucks B.A. DECK
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Brand Analysis• Starbucks brand aims to deliver high
quality coffee, that people truly enjoyexperiencing
• Starbucks is one of the largest online
brands in the world• Starbucks want to promote a greener,
more economically friendly brand image• “Green Project” – New York City
• Five print ad campaign that ran in the
New York Times in 2007• Starbucks has minimal advertising• Differentiation: quality, CSR &
relationship
8/8/2019 Starbucks B.A. DECK
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Consumer Analysis• Bought by brand loyals and brand
switchers• Tend to be between the ages of 18 – 44
years old• Consumers drink Starbucks:
• To enjoy the taste, to give energy, for
enjoyment, for relaxation or to improveconcentration
• Excellent knowledge amongst consumers• Good brand attitude amongst consumers• Consumers behavior is good for brand
loyals, however could be improved for
brand switchers• Blogs portray consumers as everyday
people who enjoy having coffee
8/8/2019 Starbucks B.A. DECK
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Competitor Analysis• Two main competitors
• Folgers – 53% market share• Maxwell House – 39% market share
• Competitors to watch for:• Steep & Brew• Cameron’s Coffee• Caribou Coffee• Dunkin’ Donuts
• Largest Competitor is Folgers• Owned by J.M. Smuckers• Currently diversifies the variety of coffee
they have on offer • Competitors’ main strength: affordable
pricing• Competitors’ main weakness: perceived
lower quality
8/8/2019 Starbucks B.A. DECK
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Key Fact• Increase the purchase frequency of
current users• The main message that Starbucks should
convey to consumers should aim to affectthe behavior of these users
• Key Fact: Increase the purchase
frequency of Starbucks amongst current
consumers, in particular those who like
Starbucks but switch between brands
regularly.
8/8/2019 Starbucks B.A. DECK
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Target GroupsSource of Business:
Increase the purchase frequency of existing
users
• This can be achieved by encouraging
current brand switchers to chooseStarbucks coffee more often
• It will ensure that users continue to
purchase Starbucks and will allow them intime to penetrate the 45+ years of agemarket
8/8/2019 Starbucks B.A. DECK
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PropositionProduct Differentiation
• Starbucks should portray the higher
quality of its coffee versus itscompetitors
• It should also portray the CRS
initiatives that purchasing
Starbucks helps support
Added Values • They should depict the feeling you
experience when drinkingStarbucks coffee
• The sensation you get whendrinking Starbucks
• The positive emotion you can have
from knowing you supported one of Starbucks CSR initiatives
8/8/2019 Starbucks B.A. DECK
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Role of Advertising Modify AttitudesThe role of advertising here should be to
modify the attitudes of current brandswitchers. Starbucks need to communicate
how their coffee aligns with consumers’wants to help build relationships betweenthem and the brand. Knowing that thisbrand can fill their ‘want’, consumers aremore inclined to purchase it, over other
brands in their repertoire.