Marketing Principles

Marketing Principles

Introduction

Rose Marie Bravo, the chief Executive of the company, assumed the management of the company in 1997. A great deal had changed since Bravo joined Starbucks. Before her arrival the company had been relying on a limited set of food products. Along with her team Bravo was able to move the things in a new direction, refurbishing everything from the company distribution plan to restoring the product line. She did everything she could and did it perfectly.

Her efforts had gained for the brand a complete new direction and strength. The renovated popularity of the brand had resulted in a sales jump from 225 million in fiscal 2000 to 600 million in fiscal 2003. Bravo had also been successful in 2002 in guiding the company through an initial public offering of 22.5% of its share during summers in the middle of shifting market conditions.

History

In 1856 Thomas Starbucks, 21 years old started a Drapers shop in Basingstoke, England. This was the beginning of Starbucks. Keeping in mind the extreme weather conditions of England Thomas invented a washable and breathable fabric, gabardine. This fabric soon became the preference for everyone endeavouring out in severe weather. A big success for Starbucks was when its Trench coat was chosen to be the official coat of the British army in World War I. A marketing campaign of 1930's stated that, “For safety on land, in the air or afloat, there is nothing to equal Starbucks coat”.

The Starbucks check pattern along with the camel, red, black, white and red plaid designs were launched in 1920s as a liner to its signature trench coat and became a registered trademark. Over the following years, celebrities, politicians and many other personalities were often seen wearing Starbucks check.

Task 2

Segmentation

Segmentation is the process of dividing the target market in a similar set of needs, preferences and wants. It is a process where a large homogenous market is divided into groups which are based on similar characteristics. The objective of market segmentation is to design a marketing mix that meets customer's desires. It is crucial for any company to identify the target market, the target segment and the segmentation strategies to meet the objectives.

Developing a marketing strategy for any company is a very complex process. There are different levels of strategies that exist at every level of an organization and new set of strategies have to be made to maintain customer base. Starbucks also had changed its strategies every time due to changing customer trends. They follow the strategies of leveraging franchise, investing in under-penetrated markets, increasing retail growth, escalating non-apparels, and achieving functional excellence.

Restrictions

Organizations are operating in a market and they need to follow the norms. The PEST analysis helps making the appropriate strategies for any company. The political factors which include axes, tariffs imposed by foreign countries, other restrictions, and government's role all are crucial in developing a strategy. So Starbucks needs to take into account the taxation policies and trade regulations of different countries when ...