Research marketing mix on the chosen company’s competitor and evaluate the the efficiency of the marketing mix Do research on products, segmentation, target market and plan out marketin
Starbucks Marketing Mix
Product
Starbucks offers its customers a very good number of food and drink options The main categories ofStarbucks products are foods including breakfast, lunch, cakes & cookies, muffins, pastries & doughnuts,fresh fruit and beverages including bottled soft drinks, tea, espresso beverages, filtered coffee, frappuccino blended beverages, and cold brew In addition to its flagship Starbucks Coffee brand, the company sells products and services under the following brands: Teavana, Tazo Starbucks Corporation also sells merchandise products such as coffee- and tea-brewing equipment, Verismo® System by Starbucks, mugs and accessories, packaged goods, books, and gifts In the financial year 2016, beverages accounted for 74% of total sales in the company’s product mix Coffee is the main product sold by the company and it sells more than 30 blends and single-origin premium coffees.
Entering Vietnamese market, Starbucks wants to keep its own flavor and uniqueness of Arabica coffee to differentiate with Vietnamese coffee which mainly is Robusta coffee (It has a slightly bitter taste that usually is offset by sweetened, condensed milk) However, Starbuck can customize the products to suit Vietnamese consumer taste It would be a good idea to add more types of coffee drinks that illustrate Vietnamese style like Asian Dolce Latte và Dolce Misto These two kinds of coffee was inspired by traditional milk tea coffee of Vietnam which are familiar with Vietnamese.
With strong brand name of Starbucks as the world largest coffee house chain According to Starbucks
Exceptional coffee demands exceptional beans, a principle guiding Starbucks' relentless pursuit of excellence To ensure unwavering quality, their team tirelessly samples over 1000 cups of coffee daily, meticulously evaluating every sip to guarantee an unparalleled taste experience.
3 that all of consumers have come to expect A batch of coffee is tasted at least three times before it’s approved, so every time customers take a sop of Starbuck coffee, it’s a sip that they will love
Starbucks' packaging strategy plays a crucial role in brand recognition and customer engagement The iconic mermaid logo prominently displayed on its coffee cups and pouches reinforces the brand's identity, while the simple and elegant design enhances the customer's experience Furthermore, Starbucks encourages eco-consciousness by offering discounts to customers who bring their own reusable drinkware This not only promotes sustainability but also fosters a sense of community within the Starbucks brand The visually appealing packaging adds to the overall enjoyment of the food and beverage offerings, reinforcing the brand's commitment to creating a memorable and engaging customer experience.
Starbucks offer consumers excellent services and focus on personalization to keep direct emotional engagement with customers Starbucks recognizes that it's not just about the product, it's also about the experience Each Starbucks location you walk into has the same look and feel Baristas serve your coffee to you by name And if it isn't exactly what you ordered, they make sure to correct it and ask how they can make your experience better.
Price
Starbucks pricing strategy can be described as a hybrid of premium pricing, geographical pricing,psychological pricing strategies Starbucks pursues a premium pricing strategy and its products are generally more expensive compared to the competition A cup of Starbucks coffee costs about VND 70.000 in Hanoi,Vietnam, and about GBP 2.80 in London High Starbucks prices are understandably the result of pursuing product differentiation business strategy and capitalization on a high level of customer loyalty Nevertheless,such a strategy may alienate certain segments within the current customer base, especially in times of economic difficulties.
Geographical pricing represents another important element of Starbucks pricing strategy It has been found that “a Starbucks coffee in London is almost half (48%) the price of the same beverage in Bern,Switzerland, who tops the list for the most expensive drinks from the chain worldwide.” (Ealing Times, 2017).The world’s largest coffee retailer also applies psychological pricing strategy by using Price Point Perspective(PPP), i.e pricing products 0.99 cents instead of USD 1.
Place
The element is to set a question for managers to ask when, and where to serve the customers.
Starbucks holds a unique position as the "third place" for individuals, offering a space outside of home and work This concept was first coined by sociologist Ray Oldenburg in his book, "The Great Good Place" (1989) In Hanoi, Starbucks' flagship stores are strategically situated in malls (e.g., Vinhomes Metropolis Lieu Giai, Vinhomes Royal City) and office buildings (e.g., Charmvit Tower Tran Duy Hung, IPH) These locations provide convenience and accessibility for customers seeking a comfortable and inviting space to connect, work, or unwind.
Tower Xuan Thuy) in the center of the inner districts which have high traffic density Local business people are likely to stop by Starbucks because it is near to their work Some tourists are also likely to go in, because it is in the centre of the city and a familiar brand, and the store can be seen just by the roadside Such an opposite location provides target customers to choose it to be the place that they want to stay and relax.
Promotion
First of all, Starbucks mainly sells their products direct to customers at stores that means personal marketing Starbucks approaches directly with the customer and determines a customer’s wants and needs. The company also organizes events in which people of the regions will be asked to visit the venue and interact with its workforce The visitors will be given free samples of the products so that they can test their quality and taste.Besides, Starbucks gives discount for customers on special days such as: “50% off on any summer beverage”, “Enjoy 30% off on opening celebration” Starbucks also organized meaningful campaigns like: Challenge "Starbucks Moments” or “Experience the First Starbucks Reserve Store” to attract more customers The company also has many other promotional activities, which included printing information on tee shirts, mugs or phone case.
Starbucks makes use of a number of promotional strategies to communicate with its stakeholders It has a customer loyalty scheme called ‘Starbucks Rewards’ As a member, you can collect 1 star for every VND y y , y y
40.000 you spend in stores or online After a collection of 100 stars within a year, members will be upgraded from green status to gold status For gold members, every 25 stars you collect makes you eligible for a reward which is redeemable for a drink item There are also new year gifts for gold members each year and birthday gifts of a free food item for every registered member.
Starbucks leverages corporate social responsibility to enhance its sustainability credentials Since 2015, the coffee giant has implemented ethical sourcing practices for coffee and tea, planted over 40 million trees, and supported local coffee farms Additionally, Starbucks promotes the use of reusable cups through a 10% discount program These initiatives demonstrate the company's commitment to environmental responsibility and fair trade practices.
Vietnamese, especially young people, will be strongly attracted by social networking sites In addition, the presence of Starbucks on Facebook, Instagram or Pinterest will turn coffee into a hobby that consumers
5 can easily share with friends and family For example: Starbucks regularly offers preferential treatment through the form of like, share, comment on social networks, thereby increasing the interaction rate as well as the coverage of the product to the users Easy to see one of the strongest channels are through social media like Facebook, which has 334, 024 people like and 332, 441 people follow page; Instagram with 56,5 thousand followers and so on.
People
Many services involve both actions of employees and customers, which is essentially shown in the case of Starbucks Strategically, service personnel is an important source of product differentiation (Hoffman
& Bateson, 2002) It is often challenging for café to differentiate themselves from similar businesses in the benefit bundle it offers or its delivery system Starbucks recognized this problem The strategies for Starbucks are to offer customers with friendly services Quality is the key factor to attract more loyal customers and good services keep customers’ satisfactory in order that they would raise high perception about Starbucks, hence adding more value to the company Understand the important of services, before lauching new stores, Starbucks had hired their staff and trained them for months to ensure an excellent front-end staff that will serve not only high quality cups of coffee but aslo cautions and comfortable environment.
For instance, to execute the so-called friendly services, Starbucks focuses on developing a friendly environment in the workplace, its stores, which will help employees understand the message that the company wishes to deliver to its customers better Starbucks employees are called partners and are treated like a real partner Starbucks has been building itself up as a brand synonymous with social responsibility since 1988 where it became one of the first companies in the US to offer full medical insurance to both full and part-time partners They provide their partner with free training, which educates them with the basic knowledge of Starbucks service skills, and Starbucks culture The promotion training is also offered for staff g , p g self-development The partners’ job behind the counter includes recording the name of their customers,personalizing their service, and offering the service individually In Starbucks' case, customers have to stay in the actual process of production in order to receive service, so their behaviour and their reaction to the service encounter will play an important role The nature of these interactions strongly influences the customer’s perceptions of service quality (Lovelock & Wright, 2002).
Process and physical evidence
Since a service is not tangible that cannot be felt, smelt or tasted as is the case when you want to buy conventional products such as soaps, drinks or foods, advantage must be taken of every opportunity to link with what is physical In Starbucks Store, customers can often see the Starbucks logo on every take away cup, and napkins They can see some comfortable chairs inside the store, and especially one couch is sited outside They also can feel quite warm and relaxing, due to the warm colors that have been printed on the
6 wall, and listening to the jazz music They can also see the smiling face of every employee that makes them feel good And they also can see the clean environment around, and smell the coffee bean All of those things are referred to as the “tangible clues”, which make customers feel that they are having a quality service here.
In theory, much of that physical evidence is seen by the consumer as part of the product, and they can be often used to influence behavior of customers (Bateson, 1992)
Another reason that customers should drop by a nearest Starbucks store to enjoy a comfortable atmosphere called the third place Starbucks is neither home nor work but a community space where people can meet Purchasing a cup of Starbucks also means that consumers get a pleasant, cozy workplace with free Wi-fi and charging stations (elcectronic socket).
Currently, one of the formidable competitors of Starbucks in the coffee chain business in Vietnam market is Highlands Coffee Highlands Coffee was established in 1998, it is a famous coffee chain and has branches throughout the country In 2020, Highlands is the brand holding a total of 24% market share discussing coffee shop chains on social networks (YouNet Media, 2020) This brand has effectively applied the marketing mix to its brand development and has great similarities and interesting distinctive characteristics when compared to Starbucks.
Highlands Coffee – Starbucks competitors Marketing Mix
Product
In addition to the product is filter coffee, Highlands also offers customers many other choices including:
Drinks (with coffee): Americano, Caramel macchiato, Latte, Espresso, Mocha macchiato, Cappuchaino,Caramel filter FREEZE, Classic filter FREEZE.
Beverages (no coffee): FREEZE green tea, FREEZE chocolate, Cookies & cream.
Tea: peach jelly tea, peach tea, lychee jelly tea, san gold tea.
Price
Valuation method: Highlands products have an average price ranging from 30,000 VND to 70,000 VND per product.
Pricing strategy and sentiment: This is not a low price compared to the general level of brands in Vietnam However, because Highlands Coffee's main target customers are middle-class, office workers and young people, high pricing was clearly and consistently positioned from the outset, with the message "coffee for businessmen" and "coffee for the intelligentsia with income"
Place
Since its inception, Highlands Coffee has always shaped its brand as a high-class coffee brand, so the distribution strategy and location of the shop have always been carefully considered by Highlands Coffee to bring comfort roof, convenience for customers at any shops Highlands Coffee chooses the areas with the best locations to arrange a comfortable space while still keeping the same features romance of its own chain stores This brings many benefits to Highland as in busy areas, a higher number of customers with higher demand is likely to bring better returns for Highland.
Currently, Highlands Coffee has 232 stores (as of November 12, 2018), concentrated in all major The system of stores is usually located in beautiful locations (concentrated in busy neighborhoods or people's attractions such as shopping centers, entertainment venues, entertainment, etc) this is increasing competition compared to other stores or brands, so Highlands Coffee's customer base is very large.
In addition, Highland also has a number of intermediaries providing shipping services such asLoship.vn (Ho Chi Minh and Hanoi), Now.vn, Grab, Beamin, etc Distribution intermediaries receive orders and distribute them by shops Although it is just an add-on service, it also shows that Highland cares more about its customers.
Promotion
Highlands encourages robust communication through posting information about events and promotions on Facebook, via email marketing, and via mobile marketing (SMS Brand name, games App):Send promotional and advertising messages to consumers in order to provide information to the user.
Highlands Coffee developed significantly throughout the country after being in business for a time and steadily, so to reinforce its brand, enhance its marketing operations using PR tool.
Highlands employs a variety of promotions and events to reinforce its brand and establish a name for itself with its featured items.
People
Highlands Coffee's employees are chosen and trained after a rigorous procedure overseen by a skilled and creative management team Highlands Coffee hires the best employees throughout each level To become a Highlands Coffee employee, regardless of position, part-time or full-time, you must fulfill high standards for working style and service style in order to provide the greatest quality to consumers Highlands Coffee also employs new personnel on a regular basis, ensuring that I always have a new life in the café As a
8 result, every time a client enters Highlands Coffee, they are met with a new and fresh vitality from the employees Before beginning work, each employee will spend three days learning the fundamentals of coffee, as well as the Highlands Coffee service style, before beginning work under the supervision of the team manager.Highlands Coffee constantly assures excellent service company organization, administration, and operation by implementing contemporary and proper rules, procedures, and criteria for employee selection and management The organization encourages employees to form connections within the shop, with cross-departmental assistance.
Highlands Coffee's service culture is upbeat and welcoming Highlands' personnel provides excellent service and always appears to be pleasant, with a grin on their faces Throughout the process of drinking coffee at the cafe, there will always be employees available to satisfy all demands and answer any customer queries.
Process
The process that Highland Coffee is aiming for is an industrial process by which, from the moment a customer sets foot in the product until the product isstandardized it will be limited to a fixed time With a professional service style, the division of stages for products is also reasonably divided by Highland to bring the best service to customers The process from the time a customer sets foot in the restaurant until the customer leaves is as follows:
From the moment the customer arrives, the service staff will welcome the customer enthusiastically and warmly Customers will be advised on drinks, guided to choose dishes After receiving the order, the service staff will enter information into the computer, calculate the money and send the invoice to the customer After receiving money from guests, the staff sends a request form to the bartender department,distributes vibration cards and arranges seats for guests. g g
After receiving the order from the waiter, the bartender department will proceed to make drinks and dishes The time to create the dish will be limited to 10 minutes along with using a fixed recipe to create the food with its inherent taste.
While waiting, customers can sip a glass of filtered water and enjoy the music space at the bar After the drinks and food are prepared, the waitstaff will signal to the customer through a vibrating card, the customer can go to the counter to pick it up or ask the staff to help While using the service, customers can ask staff not far away for assistance.
Physical Evidence
Highlands Coffee's employees are chosen and trained after a rigorous procedure overseen by a skilled and creative management team Highlands Coffee hires the best employees throughout each level To
9 become a Highlands Coffee employee, regardless of position, part-time or full-time, you must fulfill high standards for working style and service style in order to provide the greatest quality to consumers Highlands Coffee also employs new personnel on a regular basis, ensuring that I always have a new life in the café As a result, every time a client enters Highlands Coffee, they are met with a new and fresh vitality from the employees Before beginning work, each employee will spend three days learning the fundamentals of coffee, as well as the Highlands Coffee service style, before beginning work under the supervision of the team manager.Highlands Coffee constantly assures excellent service company organization, administration, and operation by implementing contemporary and proper rules, procedures, and criteria for employee selection and management The organization encourages employees to form connections within the shop, with cross-departmental assistance.
Highlands Coffee prides itself on a remarkable service culture that radiates positivity and hospitality Their staff members consistently exhibit warmth and enthusiasm, greeting customers with genuine smiles Throughout the coffee-drinking experience, patrons can rely on attentive and approachable employees who are eager to fulfill every request and address any queries.
Compare
In conclusion, Starbucks and Highlands Coffee bear some similarities in their application of the marketing mix Both of these coffee chains brought a similar products ranges to cater to customers’ need, price tactics are somewhat similar as their target customers is well-off coffee consumers who come to them to experience both the drinks and the excellent services Highlands Coffee also adapted Starbucks’ self- serving idea to make a more wholesome service experience to customer
Marketing Plan for Starbucks’ Merchandise Line
Executive Summary
Starbucks is the leading retailer and roaster for specialty coffee in the world It has over 7,500 stores located worldwide As Starbucks continues to expand, it will encounter all sorts of new product markets, with new and demanding customers for unique and appealing products Starbucks has begun by introducing an extension of the Merchandise line targeted to the set of customers who are loyal customers of the company and customers who are interested in sustainability Entering this new market, Starbucks faces many challenges from having to compete to retain brand recognition of its primary products, yet increase awareness of its new product line Our analysis and research of the market have resulted in key findings as follows:
• The Merchandise line will help Starbucks position itself in the developing market for the aware and
10 concerned young population, who take interest in investment of sustainability; Starbucks will also need to enhance the product perception to maintain the perceived high quality Customers of this segment are sensitive to the quality and longevity of the product
• With this line extension, Starbucks will be facing many new competitors such as Lock&Lock, Thermos or Elmich, and other local reusable bottles and kitchen appliances providers Special care must be implemented to maintain Brand equity for its primary product, and not become diversified as the current customers seek alternatives
• Based on our research, we found that consumers at the age 22-30 with stable income from VND 10.000.000 who care about trends and sustainability to be the primary potential target market
• Additionally, we have concluded generating awareness about the product via a media campaign with KeyOpinion Leaders (KOL) would be highly advisable A Secondary approach would be Social Media or PrintMedia such as magazines, journals, and newspapers.
Current Marketing Situation
Drinkware is one of the familiar items in many families There are many types of cups on the market which come in all shapes, sizes, materials, colors and quality ranging from normal to excellent quality Therefore,this is a very active market with strong growth in proportion to the increase in the country's population At the same time, there is strong competition between many domestic and foreign brands In particular, companies such as Lock&Lock, Thermos and Elmich are names that hold relative market share in Vietnam.
Products range from super low prices to expensive branded products, but the quality of the cup also goes hand in hand with the value the customer spends Currently, many brands and manufacturers try to seize these lucrative parts from the market As a result, the market share of small businesses and autonomous enterprises accounts for 90% of the beverage cups in Vietnam, especially Chinese products
This is a very promising and challenging new market, in which to create a foothold by specialising in differentiation is required so that the product can attract the consumers Starbucks now has a definite position in this market as it is the only coffee chain that distributes drinking cup products that are diverse in types, models and innovate regularly The right directions in the past have helped the company to build a loyal customer base for its drinkware products But in order to penetrate this niche market and grow to establish a name in the industry and contribute to the brand image, new steps need to be discussed.
Starbucks’ merchandise line - drinkwares including mugs, cold cup, tumbler features the following characteristics:
Drinkwares which are suitable for both cold drink and hot drink, come in various sizes: 8 Oz (227ml),
12 Oz (341ml), 16 Oz (455ml), and 22 Oz (625ml).
Cold cups are made of a variety of materials from heat-resistant hard plastic with two overlapping layers to stainless steel or recycled glass for customer reference.
Tumblers are vacuum-insulated stainless steel with the ability to keep the temperature of the liquid a maximum of 4 hours
Starbucks releases six distinct seasonal drinkware collections annually: Spring Sakura, Summer, Anniversary, Autumn Festival, Christmas, and Tet Holiday Each collection features unique designs and a limited number of products The yearly design variations appeal to diverse customer preferences and create anticipation for each new release.
Along with the season collection, there is a basic collection of cups which will be sold in store and online throughout the year, with classical designs that satisfy the most difficult customers, the one who like timeless and simple products.
There will also be collections of drinkware which are collaborations with famous artists and designers,which will be sold worldwide including Vietnam.
In Vietnam, the cup market is almost saturated and there is little change on the part of customers and producers Despite its strong competition, the market is evolving little Starbucks' main competitors like Lock&Lock, Thermos and Elmich, do not have much influence on the decisions and strategies of the company.
Since Starbucks has chosen a completely different segment and the market approach, we can view Starbucks as monopolizing a niche market for premium cups to drink The development of Starbucks products has always gone hand in hand and associated with the brand that created it.
Coming to the Vietnamese market, Starbucks moved to an entirely new segment compared to the market; they shaped their brand and products as a high-end, expensive brand for people with relatively high incomes Go up Because of entering the drinking cup market with such a position and brand, they almost wholly monopolize the segment of high-end drinking cups in Vietnam Because today there are very few products and manufacturers that are qualified and have enough brand strength to enter the piece like Starbucks This is the segment that Starbucks has chosen very precisely based on its brand value.
2.5 Customer needs in Viet Nam
The need to use a drinking cup anywhere is much higher because it is an indispensable essential item in our lives However, here Starbucks has made those everyday items into an object like jewelry and expresses the ego of young people in today's vibrant Vietnamese society Thereby, Starbucks makes its drinking cup an essential product, a necessity, and a need And that need grows with the value and strength of the brand created Everyone needs a cup to drink water, but more than that, they want to own a cup that represents themselves And that's what Starbucks has done with this product line in Vietnam.
2.6 Environmental factors affect product marketing
This section applies the PESTLE analysis tool to indicate the most important factors of the macro environment in Vietnam, including the Political, Economic, Social and Technological factors In the sphere of this thesis, the Environmental and Legal factors are ignored as they do not have considerable effects.
Vietnam is one of the most politically stable countries in SouthEast Asia In Vietnam, the Vietnamese Communist Party is the only party which takes the lead in the country in order to keep political, social and economic stability Mr Victoria Kwakwa, the World Bank’s Country Director for Vietnam said “Vietnam has done well in ensuring macroeconomic stability over the past year, which has been underpinned by moderating inflation and strengthening external accounts' '(The World Bank, 2013) In addition, to encourage the economy to grow, the Vietnamese Government created many policies to attract the Foreign Direct Investment (FDI) into Vietnam Therefore, Starbucks can enter the Vietnamese market without any difficulties.
On the whole, Vietnam has a stable political situation Although there are still several political problems in Vietnam, both the Vietnamese Government and citizens are trying to solve them Therefore, the Vietnamese market is still a good choice for Starbucks.
Vietnam is one of Southeast Asia’s fastest-growing economies and aims to be a developed country in
Vietnam's economy has experienced significant growth in recent years The World Bank reports a rising Gross Domestic Product (GDP), indicating the country's economic expansion Moreover, per capita income has also increased, reflecting an improvement in the standard of living for many Vietnamese citizens However, this economic growth has also come with a rise in inflation, as evidenced by the increasing Vietnam Consumer Price Index (CPI), suggesting the need for balanced policies to address both economic development and price stability.
Boasting a burgeoning economy, Vietnam presents a prime investment opportunity for businesses seeking expansion Its economic growth trajectory provides an ideal environment for Starbucks to establish a presence in this burgeoning market.
Vietnam has a large and young population In addition, the labor force in Vietnam is growing with 1.3- 1.5 million new workers per year, especially skilled and well-educated graduate workers Besides, the labor cost in Vietnam is cheap , just 1/3 of that in China It will be easy for the company to seek and hire employees.
Swot analysis
● High reputation brand on the market
● Hard to cut down on costs
● Produce pricing (high compare to market)
● Negative publicity because of foreign brand prejudice
Objectives and Issue
To bring this product to Vietnam, we want to position the brand image, get the Starbucks Coffee brand to penetrate the Vietnamese market, win market segments and earn profits The goal is to add a new style to the Vietnamese drinking cup culture, today in a busy life when there is no time to enjoy choosing and using cups that do not suit you For me, Starbucks drinks are a quick and easy way to enjoy a wide variety of style options Moreover, Starbucks is not just a cup of water, but in each special cup, Starbucks contains the feelings and styles of the people who make the brand and the customers With such an operating motto, this product of Starbucks can ultimately win a foothold in the Vietnamese market Specifically:
● 90% of the target urban public know the brand, 20% of them love the brand
● 70% of them want to own and use the product
● Released products are always welcomed and sold out
The management of Starbucks Coffee wishes the business to achieve good financial results The specific financial goals are:
● In the next year, it will bring a net profit of 5 billion dong
● Products are always sought after with any value in the market
● Creating information flows and positioning images related to Starbucks Coffee
● Attracting the attention of the press every time a new product is released
● Through the Marketing plan, win market share from competitors
● Create a reputation to develop the company's coffee chain
● Access to products to most urban people
● Create an ownership mindset and use them as jewelry for your customers
● Own a user community of up to 1,000,000 members
Such goals are set within a year and are entirely achievable as we already have a reputation as one of the top coffee chains in the world There are always fans who accompany and develop products with the company As well as abundant human and financial resources Not too dreamy about the future of universalizing products to new audiences in a vibrant, enthusiastic, and developing market like in Vietnam.
Marketing Strategy
One aspect of segmentation would be demographics (age and household status) We choose the target customers that Starbucks needs to target who: the loyal customers, people have a good income or more (Due to the high price of the product, the cost of the product ranges from 300,000 VND or more) The age group from 16 to 35 are young people who will be easier to adapt to new trends than middle-aged or older adults who are too familiar with traditional drinking products Not only that, they are the segment that uses comfortable and easy money to buy products to assert themselves Young people buy products partly because of the function of a cup of water and show their passion and self-confidence when using unique and expensive products for everyone Around In addition, this product will also be more suitable for women than men because women often prefer and have a habit of using reusable cups more often.
Starbucks Coffee is especially suitable for young customers, have a good income, are busy (usually office workers), and mainly (but not required) should focus on distribution The customer segment is female.
Target audience 2 comprises teenagers and young adults, age groups known for their receptiveness to emerging trends and affinity for an active and fashionable lifestyle.
The difference: Starbucks cannot expect to grow by offering the same products as its competitors. Starbucks must come up with “distinctions” that make customers want to come to Starbucks over competitors What sets Starbucks apart from its competitors lies in four key areas:
• Brand experience: Coming to Starbucks, you not only drink drinks from cups like other cups on the market but also a high-class, expensive cup with many highlights from the most expensive beverage brand in the world Gender.
•Brand Quality: Starbucks has been recognized for exceeding expectations for the quality of its products and services This is what will create their loyal customers.
• Health awareness: Active People are healthier than those who are inactive According to our survey, besides coffee, Starbucks is considered a healthy establishment, making their cups seem more beneficial than other products.
• Convenient access: Starbucks is ubiquitous and easily accessible Starbucks offers products on every website as well as in its stores Shows the brand's extensive presence in Vietnam. c) Positioning
Starbucks products are always seen with a prestigious image With high-quality products, unique tastes, friendly environment, convenience, customers are willing to pay high prices for their products AsStarbucks expands its product line with any new products, Starbucks faces new product promotion challenges Therefore, to keep its position in customers' minds as high quality, Starbucks needs to enhance its function by appearing in different ways This can be achieved by increasing the brand's presence in the customers' lives As the strength of brands increases, their perceived quality with customers will also increase Offering a better quality product at the same price will help increase sales and help them be more competitive and attractive in customers' minds."
Marketing Tactics
Factors affecting the pricing strategy of merchandise products
The monopoly in the niche market: Currently, Starbucks' merchandise products are increasingly branded and widely popularized However, Starbucks is almost unique in this market with its high-end
Luxury brands often employ a positioning strategy to enhance the perceived value of their products They carefully control product distribution and limit the availability of new releases This scarcity model creates an image of exclusivity and desirability, which, in turn, drives up the price of the products over time This strategy contributes to the brand's luxury status and allows it to cater to a discerning clientele seeking high-end and exclusive experiences.
Market demand: Thanks to spreading and promoting its brand value well, the company's products are always vigorously sought after by users, especially young people, and at the same time, the release of The limit has also increased the demand of a very high number of customers who love the brand, so that when the brand elevates the brand, the greater the market, the higher the selling price of the product and vice versa (the direction of the brand is higher) The product is proportional to the value of the brand.
Source of raw materials and costs: Merchandise products are produced mainly by a third party, so the supply can vary which in turn leads to a change in price, more so in unique products Not only that, the costs for advertising, operating costs, and selling points from year to year will also have a significant impact on the overall price of the product.
Starbucks thermos cups have a fairly wide price range, the cheapest is 300,000 VND, and the most expensive is up to 1.8 million VND or higher The value of Starbucks cups, mugs, and thermos bottles lies in its design, story, and inspiration, as well as its rarity The purchase price is very high for limited products belonging to the collection according to each season of the year As a high-end brand, Starbucks thermos cups are loved by many customers, so such a wide price range is also suitable for many people to buy quickly.
To further enhance the high-end products, Starbucks implemented strategies to limit effects, create scarcity, and difficulty to own them, thereby increasing the value of products thanks to customers' tastes.
Starbucks uses a premium pricing strategy This pricing strategy takes advantage of behavioral trends of customers, who will buy more expensive products based on the perceived correlation between high "price" and high "value." The company's products are more expensive than most competing products available on the market.
Through this pricing strategy, Starbucks maintains its premium specialty image However, the company still strives to grow and deliver high-quality products and improve the customer experience at its cafes This pricing strategy is directly related to Starbucks' overall competitive strategy in helping the business maintain its premium brand image. b) 2.4.4 Place
With solid coverage in many major cities and provinces in the country, Starbucks products are distributed mainly by direct purchase method at stores, combined with famous online ordering applications in Vietnam
Starbucks is also cautious in connecting and taking care of customers The company offers a lot of incentives to build a loyal customer base There are always birthday promotions and discounts for customers with membership cards.
Large brands like this will often benefit greatly from increased presence with their target audience, and the places where the brand is present must be carefully selected to increase exclusivity.
Vietnamese, especially young people, will be strongly attracted to social networking sites In addition, the presence of Starbucks on Facebook, Instagram, or Pinterest will turn the product into a hobby that consumers can easily share with friends and family For example, Starbucks regularly offers favorable treatment through the form of likes, sharing, comments on social networks, thereby increasing the interaction rate and the coverage of the product to the users Easy to see, one of the most vital channels is through social media like Facebook, Instagram, etc. d) 2.4.5 product diversification
The continuous development of this product line is reflected through the diversification of all product characteristics, from colors, design styles to being suitable for both weather and surroundings Diversification takes place continuously with the motto "For every perfect drink, there is a perfect cup" "Whether the weather requires you to wear warm clothes or wear sunscreen, we have the perfect cup to keep your drinks warm or cool." Our reusable tumblers are made with dual-wall technology and are specially designed for every season From that design style, they create a wide variety of this product line of Starbucks. y g y , y y p
Diversifying products appeals to a broad customer base, meeting individual preferences and stimulating the desire to acquire and collect specific items among users and fans, thereby driving sales This variety ensures that each customer finds products that align with their desires, leading to increased customer satisfaction and loyalty.
Together with providing drink cup products, Starbucks also offers customers excellent consumer services and benefits Coming to any Starbucks stores, customers can have direct emotional engagement with staff
Quality is the key factor to attract more loyal customers and good services keep customers' satisfaction in order that they would raise high perception about Starbucks, hence adding more value to the company. Understanding the importance of services, before launching new stores, Starbucks had hired their staff and
20 trained them for months to ensure an excellent front-end staff that will serve not only high quality cups but also cautions and a comfortable environment
Prioritizing human resource management and strategy, Starbucks acknowledges the crucial role of satisfied employees in maximizing productivity and customer gratification Rewarding loyalty is central to Starbucks' customer engagement strategy, exemplified by their "Starbucks Rewards" program, which offers tiered membership benefits for repeat purchases Additionally, Starbucks products in Vietnam resonate deeply with consumers, evoking meaningful connections that transcend mere consumption.
Action Program and Budget
Control
The last part of the sketch is the test plan that tracks the progress of the program's implementation.Usually, targets and budgets are defined for each month or quarter Therefore, the company needs to review strategic directions in the market regularly Test the strategy to ensure that the marketing objectives,processes, and operating systems adapt to the environment Consider whether Starbucks pursues the best opportunities in terms of market, product, distribution channel, and practical capacity approach of the campaign Starbucks needs to plan strict control measures to monitor closely Product quality, brand awareness, brand image, and customer satisfaction This will allow the company to react quickly in fixing any problems that may arise Other early warning signals to watch for signs of deviation from the plan include monthly sales (segment and channel) and monthly expenses With market volatility, contingency plans aim to address rapid environmental changes, such as shifts in consumer preferences, new products, and new competition.
Media plan “Bring Starbucks experience to your home"
Marketing Goals
Generate leads increase brand awareness and grow social media presence,
We will highlight Starbucks branded Reusable Cups with billboard and magazine ads Customers will quickly see our products everywhere, making people pay attention to new products that are incredibly convenient and highly environmentally friendly. b) Implementation:
We will promote the media by KOL (Key opinion leader), and create a youtube channel specialising in making content about Reusable cups and French press coffee stools for the media plan Using KOL and creating separate youtube content for products will help reach more customers because product information will only be one and difficult to skim through
Trang Lou, an Instagram influencer with over a million followers, effectively conveys positive messages to their audience, garnering their trust and media attention Their ability to connect with their following has made them an influential figure in the marketing industry, effectively reaching potential customers for various products.
+ KOL Chau Bui: Chau Bui is an emerging young face from 2019 onwards with a luxurious and aristocratic aura that has appeared in many brand advertisements for Dior, Chanel She is enthusiastic, optimistic, and also very young Not only that, but Chau Bui has also shown a passion for his work, so he has received a lot of attention from young people at home and abroad of the GenZ generation https://www.instagram.com/chaubui_/?hl=en
Since its inception in 2011, "Tito radio" has captivated young audiences, with Ninh returning to prominence in 2015 with his food review channel Driven by his unwavering passion, positive outlook, and commitment to continuous learning, Ninh's food reviews have garnered significant recognition and established him as a trusted culinary authority among young viewers.
+ Youtube trueview (Qu ng cáo TrueView trong luồồng là qu ng cáo cho phép ngả ả ười xem l a ch n xemự ọ tiếếp ho c b qua sau 5s Nó xuấết hi n trặ ỏ ệ ướ c và trong các video khác trến YouTube và trến toàn bộ
+ Booking KOL (Key opinion leader)
Internet platforms are being used by people of all ages daily, so attracting young and middle-class or even upper-class customers is an easy thing to do Currently, Facebook and Youtube platforms are being widely used worldwide to reach young, middle, and upper-class people The world is calling the movement to protect the earth and recycle products to attract all customers to Starbucks branded reusable cups The goal is to see advertisements on Internet platforms as they surf the Web throughout the day The Facebook platform will have the highest number of viewers and the most clicks on ads The best time to reach the target market is in the evening. d) Geographic Coverage:
Leveraging internet platforms like Facebook and YouTube for advertising can effectively boost product visibility and reach the intended audience Collaborating with Key Opinion Leaders (KOLs) is also crucial, as their influence can yield significant returns by tapping into their dedicated following and establishing credibility within the target market.
30 age group and go to the young people in a more friendly and broader way Using KOLs or networking platforms like Facebook and Youtube will ensure consistency and provide greater reach e) Pattern of Scheduling:
Advertising on Internet platforms and advertising through KOL All will be operated throughout the year to push the frequency between loyal customers and the customer group who are fans of KOL The ads will appear everywhere on Facebook and will be inserted into clips on Youtube and the personal pages of KOLs from January to March and from October to December.
Reach will be built through the Internet, Billboard, magazines, and everyone uses the Internet to search for words Facebook will gain high frequency through videos and product ads, as it will appear every time people take time to surf Facebook Then people will be exposed to our ads. g) Promotion support:
Instagram will also complement Facebook, Youtube, and KOL ads Instagram's reach is also very high when combined with Facebook, Youtube, and KOL. h) Media tactics
+ Full pages, full color ad
+ Ad form: High level, transit
+ Visible Distance: The farthest distance the advertisement can be clearly see
+ Zone: central, near the airport
+ Illumination: Fully lit, soft light but easy to draw attention to the viewer
+ Reusable cups, Starbuck, cup, reusable, environmental protection, Chau Bui, Ninh eating, Trang Lou, review. i) Scheduling and cost:
Category of work Estimated cost Month
Magazine 500,000,000 January, Feb, March, October
We will have 6 peak weeks in January, February, March and October, November, December These are the months that will reach the highest frequency of reaching customers.
Our media strategy effectively engages over 90% of our target audience each quarter, utilizing a diverse array of channels to achieve an average quarterly frequency of 23.2 Internet and key opinion leaders (KOLs) have been instrumental in expanding our reach, while print magazines and billboards have contributed to increasing frequency This comprehensive approach has been implemented with a budget of 5,000,000,000 VND.
Conclusion
This article has learned, analyzed, and researched two different businesses in the same competitive market, Starbucks and Highlands Coffe, by applying the 7Ps model Thereby comparing aspects as well as seeing business goals related to the business Moreover, it also builds a complete and detailed marketing plan to achieve that marketing goal At Starbucks, with its drinkable product, a sub-segment of the brand, we can see the importance of marketing and how vital marketing planning is It has a lot of factors from the market, the goal, setting the strategy, and executing that campaign smoothly and successfully Thereby deploying a media marketing campaign, a form of marketing that is very popular in today's era Every detail of time, money and related factors need to be drawn up and analyzed to create a complete plan to achieve the grand purpose of the company In this article, our team has clearly and effectively pointed out the objectives and compared the characteristics of the Marketing 7Ps of the two companies At the same time,make a complete Marketing plan from setting goals, clearly establishing market analysis and selection,commenting on the level of competition and the company's value in the current market and segment.Moreover, it also sets specific, achievable, and measurable goals in time and numbers We have outlined an objective and transparent plan to implement the campaign Thereby analyzing the marketing strategy, including brand positioning and how Starbucks implements the differentiation strategy and applying the 7Ps marketing mix model to merchandise products A detailed table has been built showing the system to be deployed at what time intervals, who is responsible, and how the costs are spent in the campaign From the campaign that we create, we develop a media marketing plan from the forms to be implemented, the way, and the estimated cost to pursue the campaign that we have analyzed and executed well However, in this article, some content about numbers and methods has not been written and given examples clearly, and the style of expression and content is still not harmoniously combined Many details in the two plans are sparse and not precise on each activity Therefore, to demonstrate our team's efforts, we would like at least one Pass point.