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1.0 INTRODUCTION
1.1 Starbuck is a coffee Shop and a largest coffee shop in the worlds based in
Seattle, Washington, USA. Starbucks starts in Seattle in 1971. Three friends,
Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh
coffee, opened a small shop and began selling fresh-roasted, gourmet coffee
beans and brewing and roasting accessories. Starbucks is the leading specialty
coffee retailer in the nation, with over 5,000 locations in 22 international markets.
The Starbucks ensuring the extraordinary potential of coffee is discovered ,
revealed and delivered- helping to bring great pleasure to millions of people each
day.
1.2 Old Town White Coffee, founded in 1999, made history when the company
became the first, the pioneer white coffee producer to manufacture and launch
the famous Malaysia Ipoh White coffee as a 3in1 instant Blend. Old town White
Coffee 3in1 classic together with the original recipe from 1958 spearheaded a
breakthrough in the coffee industry. The company single-handedly captured the
original authentic taste of an otherwise localized white coffee, turning in into a
mobile commodity a fast moving consumer good (FMCG), capturing the South
East Asia market.
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2.0STARBUCK
2.1 LOGO, VISION & MISSION
Starbucks logo designed by Terry Heckler of Heckler Associates .New Starbucks logo will be
displayed on the product starting in March, predominantly green logo of Starbucks and
showed pictures of women, a symbol of the seducer in ancient mythology that made the
sailors were killed. Starbuck's new logo is removing the words "Starbucks Coffee" is circular.
VISION
The companyâs vision is to âestablish Starbucks as the most recognized and respected brand
in the world.
MISSION
The mission of Starbucks is to establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising principles while we grow
Starbucks is committed to a role of environmental leadership in all facets of our business.
Provide a great work environment and treat each other with respect and dignity.
Recognize that profitability is essential to our future success.
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Apply the highest standards of excellence to the purchasing roasting and fresh delivery of
our coffee.
Develop enthusiastically satisfied customers all of the time.
2.2 SWOT ANALYSIS
STRENGTHS WEAKNESS
- Starbucks Corporation is a very profitable - Starbucks has a reputation for new
organization, earning in excess of $600 million product development and creativity.
in 2004.The company generated revenue of However, they remain vulnerable to the
more than $5000 million in the same year. possibility that their innovation may falter
- It is a global coffee brand built upon a over time.
reputation for fine products and services. It has - The organization has a strong presence
almost 9000 cafes in almost 40 countries. in the United States of America with
- Starbucks was one of the Fortune Top 100 more than three quarters of their cafes
Companies to Work For in 2005. The company located in the home market. It is often
is a respected employer that values its argued that they need to look for a
workforce. portfolio of countries, in order to spread
- The organization has strong ethical values business risk.
and an ethical mission statement as follows, - The organization is dependent on a
'Starbucks is committed to a role of main competitive advantage, the retail of
environmental leadership in all facets of our coffee. This could make them slow to
business.' diversify into other sectors should the
need arise.
OPPORTUNITIES THREATS
- Starbucks are very good at taking advantage - Who knows if the market for coffee will
of opportunities. In 2004 the company created a grow and stay in favour with customers,
CD-burning service in their Santa Monica or whether another type of beverage or
(California USA) cafe with Hewlett Packard, leisure activity will replace coffee in the
where customers create their own music CD. future.
- New products and services that can be
- Starbucks are exposed to rises in the
retailed in their cafes, such as Fair Trade
cost of coffee and dairy products.
products.
- Since its conception in Pike Place
- The company has the opportunity to expand
Market, Seattle in 1971, Starbucks'
its global operations. New markets for coffee
success has lead to the market entry of
such as India and the Pacific Rim nations are
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beginning to emerge. many competitors and copy cat brands
that pose potential threats.
2.3 STRATEGY
2.3.1 BUSINESS STRATEGY
Every business can learn from another especially if a particular business is one that has
displayed tremendous success over the years. The Starbucks corporation and its successful
marketing strategies are definitely something that anyone interested in business can learn
about.
The best strategies of Starbucks company is Smart partnership, Starbucks coffee company
has been known to create strategic partnerships that demonstrate the fact that another way
to grow your business is to partner smart, over the years the Starbucks corporation has
greatly increased sales just by using this strategy.
Customer satisfaction is a very important issue with Starbuck, from entrance to the store to
the very last drop to their coffee, it is a must that customers feel the uniqueness of enjoying
their Starbuck coffee experience.
Innovation. To think up creative and innovative ideas to add to their product or services.
They have added different flavours to their coffee, more food on their menu and even
became one of the first to offer internet capability in their stores.
âThird Placeâ â From the very beginning, the Starbucks marketing strategy has focused on
creating the âthird placeâ for everyone to go to between home and work. Creating this unique
and relaxing âexperienceâ and âatmosphereâ for people has been very important for the
company as they have realized that this is one of the strongest concepts attached to the
company, to which customers have been strongly attracted.
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2.3.2 COMPETITIVE STRATEGY
Provide a perfect Cup of Coffee â Starbucks history has shown that they place a huge
emphasis on product quality. Their coffee, even if priced slightly more expensive than
expected, is notorious for satisfying customers with its rich, delicious taste and aroma.
Creating a Starbucks Community. Expanded to create a community around their
brand. On their website, individuals are encouraged to express their experiences with
Starbucks history, and the company strives to âpersonallyâ join in the discussions.
Brand marketing. Always focused on âword-of-mouthâ advertising and letting the high
quality of their products and services speak for themselves. For years, this has been
uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a
success.
Starbucks should not flood new markets to drive out threats of smaller competition. If
cannibalization occurs, and Starbucks is forced to close some of its operations, this could
seriously damage their reputation. Starbucks' image is too important an asset in the
company's international expansion efforts to let reputation tarnish it. Starbucks' should
continue to locate their operations in high traffic areas, high visibility areas. The company
should continue to take excellent care in picking locations. It is extremely important that
Starbucks' international stores reflect a uniqueness in their location and layout. Having
locations in a variety of locations will ensure large market exposure.
The main point is Starbucks reputation precedes itself. It has shown to be successful
in every new market penetration, and to move into smaller city markets would be no
different.
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2.3.3 OPERATION STRATEGY
RESEARCH AND DEVELOPMENT
Starbucks's organizational culture is one of innovation and creativity. This is evident through
the continuous developments of new and exciting products. Whether it's the new 4-cup
thermal coffeemaker recently introduced to the market, or the Starbucks 'Double Shot'
Espresso beverage, Starbucks seems to be the market leader when it comes to new
products and ideas. In November 2001, the Company introduced the 'Starbucks Card', which
is a stored-value card that can be loaded and re-loaded in denominations up to $500. The
Starbucks Card is a wonderful convenience tool for customers that can serve as great gifts,
and reduces time spent at the cash register. This contributes to the overall enhancement of
the customer's experience. Starbucks is extremely pleased with the ongoing positive
customer response to the Starbucks Card. It is through the introduction of new products and
the development of new distribution channels that Starbucks focuses on their Company's
goal of becoming the most recognized and respected brand in the world.
PRICING
Starbucks has been able to accomplish with its pricing strategy focus on profit, not on sale
and low pricing would erode the perception of quality. Starbucks represents an attractive
combination of price features, high quality, good service and other attributes customers find
attractive.
PROMOTION
Starbucks usually picks one or two charities or event that reach the community it serves. For
example is Free tall cup of brewed coffee to anyone who votes on election day.
FIRM INFASTRUCTURE
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Starbucks has proved to be a leader in identifying market trends and positioning themselves
accordingly. For example, before the recent economic slowdown, management noticed a
decrease in traffic. Rather than pull back from their expansion strategy, Starbucks launched
a series of small adjustments to improve efficiency, and continue with their plans.
CUSTOMER SERVICE
One of Starbuck's primary objectives is to provide a superior level of customer service. One
of their guiding principles in their mission statement states, "Develop enthusiastically
satisfied customers all of the time". In building customer loyalty, not only does Starbucks
offer high levels of customer service, but they also strive to educate customers about coffee
quality. There is an information section in each store that provides customers a good
resource for becoming more knowledgeable about the world of coffee. Starbucks also
publishes and distributes a mail order catalog and a catalog of business gifts that offer
coffees, certain food items and select coffee-making equipment and accessories. The
company has several other initiatives to enhance the customers' experience at Starbucks
retail stores.
MARKETING
Starbucks is the leading specialty coffee retailer in the nation, with over 5,000 locations in 22
international markets. Starbucks positions their products on a relatively simple plane. They
focus on quality and experience, rather than price. A comparison of specialty drinks with its
competitors reveals very minor differences. Starbucks' image is one of the key elements to
their success. The company has realized that people don't only come for the coffee; they
come for the atmosphere. People socialize, read, study, or just enjoy the music while
drinking their coffee. Knowing this, Coffee shops try to make their stores unique in some way
or another that will create an appealing atmosphere. Starbucks has less of a distinct setting
for their locations; instead, they focus on having plenty of comfortable seating so that people
feel welcome to stay longer than they might have planned. Starbucks also positions each
store individually according to the specific location it is in. This flexibility has attributed to the
great success of the Company in the past decade. Another important part of Starbucks'
positioning is that they are environmentally friendly. While other retailers position themselves
in similar ways, no one focuses to the extent that Starbucks has.
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3.0 OLD TOWN WHITE COFFEE
3.1 LOGO, VISION & MISSION
The Old Town White Coffee goal is to let everyone enjoy every sip authentic Malaysian Ipoh
white coffee anytime and anywhere.
VISION
To be Asian Pacificâs Leading White coffee producer providing high quality products to
customers globally.
MISSION
To promote our unique Malaysian taste- the authentic Ipoh White Coffee and continue White
Coffee Legacy the rough continuous improvement and innovation that exceeds customer
expectations.
By setting precedence Old Town White Coffee have made a standard that equals
excellence, pushing other brands to do the same.
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Strive for continuous improvement, incorporate innovations and technology in our
commitment to create customer value in our both product services.
These continuing efforts maintain and reinforce our market leader status and more us
forward to become a leading White coffee producer in Asia pacific.
3.2 SWOT ANALYSIS
STRENGTHS WEAKNESS
-The profits obtained by Old Town is quite -Old town coffee also depends an the coffee
high compared to other coffee shop in and makes them difficult to diversify their
Malaysia. product.
-Offer other foods, such as âheavy foodâ -Innovation is slow because depend on one
-Has many branches throughout Malaysia, product only.
Singapore and Hong Kong.
OPPORTUNITIES THREATS
-Able to expend its operation to the global -Consequences from increasing of price of
market to be introduction throughout ASEAN. materials which they have use will be make
-Able to re-brands and to compete with other the price product is also increase.
company using the same material. -Product imitation is a very higher because
they are using coffee which is very common.
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3.3 STRATEGY
3.3.1 BUSINESS STRATEGY
All the store of Old Town Coffee White were located at high traffic, high visible location in
each Asia market. That the market entry strategies have found to be used by Old Town
White Coffee in managing their foreign franchisees when expanding into Asia include master
franchising and company owner-stores.
The marketing approach is essential to gain a competitive advantage for Old Town
White Coffee in the foreign market the construct included market entry, site location, and
market positioning. Reason for Old Town White Coffee to choose master franchise as its
from of franchising is because of that the master franchising was the most popular made of
entry into distant and cultural dissimilar market Asia.
3.3.2 COMPETITIVE STRATEGY
Targeting Old Town white coffee: While evaluating their consumer market the conclusion
was that the ideal consumerâs economic profile will be Upper Middle Class, privileged Class.
While the age demographics will be Students and Youngsters, Professionals, families,
Mature Consumers. Gender and Ethnic or Religious Background was researched to have
minimal or no effect on the choices concerning coffee made by consumers and their
patronage of coffee houses. To maximize on brand name (signature) Costa signifies luxury,
excellence in Coffee, all over the world, along with the theme of Costa.
The marketing communication strategy for Old Town White Coffee is raising
awareness of your product in your target market is where sales begin, and this is where
marketing communications activities begin the selling process. With today's multiple
channels for content to reach potential customers, the art and science of marketing
communications has become increasingly important. However, no company can be sure
they are using the most efficient media mix without creating a marcom strategy that is
aligned with their overall strategic marketing direction.
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4.0 CONCLUTION
The Starbuck should make a variety of Old Town White Coffee must be diversify use
coffee flavour and diversify such as selling of coffee product that mention does not too
others food to attract the more people. slow. Because of Old Town White Coffee is
Beside that, Starbuck give discount price for one coffee shop famous in Malaysia, they
the regular costumers, this can make more should open branches throughout they
people to attract going in Starbuck. Starbuck country to compete with other company. In
also should create new flavour of coffee other way Old Town White Coffee should
every year. provide a various service such as shipping
orders to customers house.
0.5 REFERENCE
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1. Starbuck Corporation, Retrieved 20 August, on the World Wide Web:
http://www.starbucks.com.
2. http://marketingteacher.com/swot/starbucks-swot.html
3. http://www.voteforus.com/starbucksmarketingstrategy.html
4. Starbucks International, http://www.slideshare.net/sk_prince/starbucks-international-
marketing-strategy.
5. http://www.malaysiaco.com/search/old+town+white+coffee
6. http://www.oldtownwhitecoffee.com/
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