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STP ANALYSIS

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by

Berfu Caner

on 10 December 2014

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Transcript of STP ANALYSIS

STARBUCKS
Year 1971
University of San Francisco
Jerry Baldwin
Zev Siegl
Gordon Bowker

MARKETING MIX
4Ps

SWOT ANALYSIS
Image by Tom Mooring
STP ANALYSIS
STARBUCKS AND FRAPPUCCINOS
POSITIONING
SEGMENTATION
Businesswomen and businessmen
Children
College students
Every individual with high income
HISTORICAL BACKGROUND
Demographical Segmentation
Age and Income
Geographical Segmentation
Where does Starbucks open their stores?
Psychographical Segmentation
Adventerous people
TARGETING
Point of Difference
“Third place”
Quailty
Various Types
Easily Accesible
Positioning Map
What is the difference of Starbucks Frappuccino ?
PRODUCT
Frappe + Capuccino

10 Types of Frappuccino or Limitless types of Frappuccino?
PRICE
Value based pricing
Price insensitive customers
Price range between 8,50TL and 12,75TL
PLACE
Starbucks Retail Stores
Bottled Frappuccinos in USA
Starbucks Online Store

PROMOTION
Starbucks Card
Open-air Activities
Public Relations
Product Placement
Sales Promotions
Social Media
SOCIAL MEDIA STRATEGY
mystarbucksidea.com
frappuccino.com
Facebook
Instagram
Twitter

IT IS NOT ABOUT COFFEE
IT IS ABOUT CUSTOMER!
STRENGTHS
Strong market position
Earned more than 60 million dollars in 2004
(20% belongs to Frappuccino)
Higher quality and varieties for products
Care about product quality, avoid standardization
Location and design of stores
Target office buildings, campuses, downtowns
Warm atmosphere

WEAKNESSES
Cost of product
Be preffered to lower costs instead of premium costs

American/European coffee taste cannot be fit with other cultures
Flavor of other cultures’ coffees clash with Starbucks coffee

Problems about international operations
Closed six Starbucks’ stores closed in Tel-Aviv because of Shalom Coffee Company

OPPORTUNITIES
Market expansion
Biggest opportunity for Starbuks is China(Shanghai and Beijing)


Technological advantage
Shows how many calories and which nutrition are in the chosen product

New distribution channels
Mobile Pour
in US
Not spend their time to buy coffee or find location

THREATS
Copy cat competitor brands
Copy cat Starbucks product

Have many competitors
Caribou Coffee, Dunkin Donuts, McDonalds


Changing consumer’s wants
Avoid coffee and cream because of preferring healthy lifestyle

Third place opportunity
Friendly employees
Employees work hard to develop and promote their brand
Cope with competitors in different ways
Idea diversities

CONCLUSION: Customer service is more important strategy than other ones.

STRATEGIC IMPLICATIONS AND MANAGERIAL INSIGHTS
LOGO AND NAME
Pequod (Moby-Dick)
Starbuck
Coffee Bean
Seattle’s Ports
Mermaid
Emblem changes until now
STARBUCKS TODAY
17000 shops
Food
Coffee
Soft Drink
Desserts
PRODUCT, COMPETITIVE, CHANNELS AND LOGISTIC REVIEW
PRODUCT BACKGROUND(FRAPPUCINO)
Frappe + Cappuccino
George Howell’s
The Coffee Connection
1994-1995
Today 27

STARBUCKS VS DUNKIN DONUTS
Survey about taste
dunkinbeatsstarbucks.com
Working class Americas choice
STARBUCKS VS MCCAFE(MCDONALDS)
McCafe McDonalds attack in coffee sector
Frappuccino to frappe
Commercials-Hipsters and intellectuals prefer Starbucks(snobby)
unsnobbycoffee.com
Billboards
Sport activities
STARBUCKS VS CARIBOU
Caribou-second non franchised coffee firm
Caribou-low commercials
Highlights quality of beans
Targets-adults and young adults
Mountain Lodge Theme
CHANNELS AND LOGISTICS
Online shop
6 roasting plants
17000+shoes
Daily needs
70000delivery
Good logistics partner
Menlo logistics in Thailand
Full transcript