Strategic marketing plan for starbucks in australia
Starbucks currently stands out as the largest coffee company in the world with tens of thousands of stores across more than 60 countries in the globe. The company was incorporated in 1971, and it currently deals in brewed coffee, espresso-based coffee, and it is also involved in roasting and retailing whole bean coffee products among other spices and tea (Jianfei, 2014). Regardless of its wide geographical coverage in many global markets, the company is still putting more effort towards advertising and marketing to solidify its position in the markets it has already penetrated and also in new markets that it is yet to exploit. One of the markets that the Starbucks Company has not yet fully exploited is the Australian market. The company opened its doors in this country in 2000, and since then it has only managed to open and operate 34 shops, in Melbourne, Sydney, the Gold Coast and Brisbane.
The population that consumes most of this coffee are people who are above 18 years. It has been noted that the older people who are above 40 years have reduced their overall consumption, given the fact that more than 60% of the coffee consumed in 2018 was consumed by those who are aged between 18-39 years old. While older people have been reducing the amount of coffee they consume, it has been noted that the amount consumed by children below the age of 18 years is also increasing steadily. In this regard, the popular consumption of coffee in Australia could be restricted to the age of 39 years and below. This age group indicates that most people who are likely to consume coffee in Australia are those that work for long hours given that the energy levels below 39 years of age are quite high hence the longer working hours.
In the context of the tourists, it is also important to note that a good number of tourists consists of the millennial generation (Skinner, Sarpong & White, 2018). These are people aged between 18 and 40 years, and this fits in with the fact that this is the age group that consumes the most coffee in the world. One of the essential features of the millennial generation is that it is a consumer generation with a high propensity to spend due to their love for leisure (Pyöriä, Ojala, Saari & Järvinen, 2017), and together with the love of this generation for coffee, Starbucks can effectively exploit this market to its benefit. Marketing by segment. The e-commerce of Starbucks kicked off some four years ago in 2015.
The international market of Starbucks is made very much viable by online platforms such as Amazon. Through Amazon, one can get the Starbucks mugs, roasted coffee beans among other Starbucks related products. Through online platforms like Amazon, Starbucks could search and find new business opportunities in countries like Australia among other countries in the world with less exploited markets. Still, in the context of international wholesale, some airlines are known for serving Starbucks coffee, like Alaska airlines. In this regard, the company could also partner with Australian airlines to serve and sell their coffee. The consumer confidence index of customers on Starbucks is significantly low, and this could be due to the low popularity of the product in Australia. Most people in Australia own coffee making machines, and as a result, they may prefer making their coffee than buying the instant coffee.
The fact that most people do not visit retail stores operated by coffee companies could be a factor that may affect the sales of a particular brand. Apart from the Australian GDP that contributes a lot to the sales of Starbucks coffee, the consumer confidence index does some damage to it. In this context, this plan will aim to increase the popularity of Starbucks products. A number of strengths and weaknesses also faces Starbucks. The first strength is the reputable name that the company has earned over time hence pitting it as one of the companies with a stable brand in the United States and the world all over. The other strength is that the company has a stable management team which has increased its efficiencies in some of its endeavors.
The management of the company is characterized by an evolving leadership style that has enabled Starbucks to maintain sustainability and profitability without sacrificing its workforce (Schultz and Gordon, 2012). The last strength that Starbucks has is that it extensively uses technology in a number of its operations, and this has earned it operational efficiencies to some extent. The threat of new entrants into the coffee market in Australia could be considered to be moderate, and this is because of the high cost of building a brand and also the moderate cost of the supply chain and that of doing business. Segmentation and positioning. Having looked at the situational analysis, the marketing by segment, and latest research, the primary target market for Starbucks in the Australian market will be the millennial group.
The type of segmentation will be demographic given that the main target market will be aged between 22-39 years, it will target both the males and female and lastly the lifecycle stage targeted will be the newly married couples with no children, or just bachelors and spinsters. In targeting the millennial generation in Australia, the Starbucks coffee company will be using a mono segment positioning to target the premium customer segments only. Billboards will be located closer to airports to communicate to the millennial tourists, and some will also be erected closer to social amenities like stadiums and parks that are frequented by the millennial generation. The other old advertisement method that will be used is the issuing of free samples to potential customers.
The company will use popular airlines in Australia and give free samples of Starbucks coffee to travellers. This may be instrumental in attracting both domestic and international audiences. References. Available at: https://ijbssnet. com/journals/Vol_5_No_6_1_May_2014/6. pdf [Accessed 16 Mar. McAdam, J. Australia and Asylum Seekers. and Järvinen, K. The Millennial Generation. SAGE Open, 7(1), p. Schultz, H. Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time. Meeting the needs of the Millennials and Generation Z: gamification in tourism through geocaching. Journal of Tourism Futures, 4(1), pp. Tourism Research Australia. The Economic Importance of Tourism in Australia’s Regions. [online] Ecotourism. com/statistics/866543/australia-domestic-consumption-of-coffee/ Growth of tourism GDP in Australia from the financial year 2001 to 2017 From; https://www.
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