marketing plan for starbucks星巴克市场分析Word格式.docx

1、BeierholmGroup members: Cristina Alexandra Grindei, AlishaKhatri, Yunjing Lu,List of Contents1.Introduction. 32.Problem formulation.33.Methodology and Limitation.34.Macro and micro Analysis.4-4.1 Country profile.4-4.2pany profile.5-4.3 FinalDecision.75.Remendation.7-5.1 Entry mode.7-5.2 Segmentation

2、 and target market.9-5.3 Suggested position and location.10-5.4Suggested Value chain.116.Conclusion.127.Reference.138.Appendix .141.Introduction:Starbucks Corporation has been the most successful coffee chain in the past years. The pany has focused on creating a network of stores in US while opening

3、 new locations around the world. Nowadays, the recession is effecting the economy of the entire world badly, no exception for the coffee market. Starbucks, as the coffee chain giant, is seeking for a new market in order to keep the leader position in the industry. Meanwhile, at the other side of the

4、 world, in India, a country known for the tea consumption, coffee is being more and more popular. According to Euromonitor International, in 2009, the total volume of coffee in the Indianmarket was 44,209.8 tones, the fifth largest coffee consumption country in the world.So is India a possible futur

5、e market for Starbucks?2.Problem formulation:Starbucks is considering going to India.How can Starbucks enter the Indianmarket?Is India an attractive market for Starbucks?What could be the best entry mode for Starbucks in India?3.Limitation and Methodology:The limitations of the project are the page

6、limit and the restriction in contacting the pany.Regarding the pany data, the limitation is in focusing on the entire product range of Starbucks, so as a consequence we have choose to focus only on the two main products: coffee and tea.We have applied secondary data sources/quantitative data sources

7、. The research method was the desk research. The theories used in the project are: the micro and macro analysis, the SWOT analysis, the entry mode analysis, segmentation and positioning, target market and value chain. We have used the theories to create an overview of the subject field and apply it

8、for solving the project problem formulation.4.Macro and micro analysis4.1 Country profile Economy In 1991, the Indian economy experienced a dramatically growth after the government liberalized number of industries open to foreign investment, loosened approval requirements and allowed majority foreig

9、n equity ownership. The economy hada growth rate of 5-7% in average since 1991 till 2007, butan industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.1% in 2009 （Appendix 1）, but it is still second highest growth in the world among major econo

10、mies. Ine The ine per capita of Indians increased by 14.2% in 2006-2007. Per capita ine at current prices was estimated at Rs29,642 in 2006-2007, pared to Rs25,956 for the previous year. As a result of the increase in total ine, the mean annual disposable ine also increased by almost 150% from 1995-

11、2007.Government and laws The introduction of VAT in India has been a key development. In April 2005, it was the vat was implemented in at a standard rate of 12.5%. This new system Businesses will consequently have to raise prices to pensate for higher production costs and this will affect consumer s

12、pending.petitive landscapeInternational panies such as Nestle India and Hindustan Unilever are the leaders in the coffee industry in India. Domestic players such as Tata Coffee or Barista Caffee are active in fresh ground coffee. No other domestic player was able to bee established as an Indian bran

13、d with their presence restricted to the southern states in India.Geographics and Demographics India is the second most populated country in the world with a population of about 1.03 billion people. The age structure of India looks like this: 0-14 years: 30.5% （male 187,197,389/female 165,285,592）15-

14、64 years: 64.3% （male 384,131,994/female 359,795,835）65 years and over: 5.2% （male 28,816,115/female 31,670,841） （2009 est.）“Geographically speaking, India is located in South Asia in the EasternHemisphere. There are 25 states andNew Delhi is the capital. The national language is Hindi and about 83%

15、 of the population speaks it. Otherthan that, India has 18 official languages primarily associated with the different states”. 4.2 pany profile Starbucks was established in 1971, Inspired by coffee bars in Milan, Italy, Howard Schultz wanted to introduce the coffee bar culture to America. Starbucks

16、mission statement is to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our unpromising principles while we grow”.ExpansionStarbucks has grown at incredible rate since the opening of its first coffee bar. Now Starbucks has more than 16,000 retail outl

17、ets in more than 50 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports.Starbucks specializes in quality coffee and other related beverages. “They sell quality coffee, Italian-st

18、yle espresso beverages, cold blended beverages and plementary food items, a selection of premium teas and coffee related accessories and equipment”Swot analysisThe Starbucks brand gives the pany a distinct petitive advantage over lesser known coffee brands. However, Starbuckss business is highly sen

19、sitive to changes in customer traffic, and the current economic downturn would put downward pressure on the panys margins. Therefore we need to analyze the panys performance, both internal and external. An excellent tool for that is SWOT. （Appendix 2）Current financial situation The general financial

20、 performance for Starbucks in 2008 was declining from previous years. The pany recorded revenues of $10,383 million. Although the sale was increased in the last 4 years, the net profit ine has decreased with 53.1 percent over 2007. Year2008200720062005Sales10,383,0009,411,4977,786,9426,369,300Net In

21、e315,500672,638564,259494,467Starbucks operates in three segments: the US, international and global consumer products group. However, the pany reported its revenues by product type in 2008. The Four Categories are:BeverageFoodCoffee-making equipmentand otherWhole bean coffees64.2 %14.5%11.8%9.5Durin

22、g the year 2008, the beverage division recorded revenues of $6,663.3 million, an increase of 10.5% over 2007.The food division recorded revenues of $1,511.7 million in 2008, an increase of 13.4% over 2007.The coffee-making equipment and other division recorded revenues of $1,220.2 million in 2008 an

23、 increase of 7.4% over 2007. The whole bean coffees division recorded revenues of $987.8 million in 2008, an increase of 8.2% over 2007.Global ResponsibilityStarbucks is mitted to being a deeply responsible pany in the munities where it does business aroundthe world. The panys focus is on ethically

24、sourcing high-quality coffee, reducing its environmental impactsand contributing positively to munities. Starbucks Global Responsibility strategy and mitments are integralto the panys overall business strategy. As a result, Starbucks believes it delivers benefits to the pany andits stakeholders, inc

25、luding employees, business partners, customers, suppliers, shareholders, munity membersand others. 4.3 FinalDecisionConsidering India a very attractive and growing market and the analysis of the country and pany profile, we have decided that Starbucks should enter the Indian market. We will analyze

26、furthermore the strategies Starbucks should apply in order to enter the Indian market.5.Remendation5.1 Entry mode Starbucks international strategy adapts to different markets to satisfyneeds and requirements from every market, respecting its cultures and traditions. In order to enter Indian market,

27、we are going to use the Root entry mode （Appendix 4）. The model is divided in four groups: Internal, external factors, desired mode characteristics and transaction- specific behavior. Under the four groups there are 16 factors.We have decided to only look at most relevant factors for Starbucks, whic

28、h are international experience, product differentiation advantage, intensity of petitionand Market potential.Market potential:India has bee one of the most exciting economies in the world with a huge increase in foreign investment and consumers who are willing to spend and spend. Due to massive outs

29、ourcing on the part of foreign panies especially from the United States, educated Indians are now presented with exciting career opportunities, excellent pay, and the confidence to spend more money. Time magazine reports that these new consumers mand $10.5 billion in cash to burn. There could not be a more suitable time for the Starbucks to enter the Indian market. International experience:Starbucks is operating in more than 16000 locations in over 50 coun