Unit 1 Marketing Principles – Starbuck Coffee

21-04-17 Maddox Smith 0 comment


Program BTEC Higher National Diploma in Business (Marketing)
Unit Number and Title Unit 1 Marketing Principles – Starbuck Coffee
QFC Level Level 1


The concept of Marketing is a very important for business to be competitive in the market. The concept of marketing varies time by time. Now a day, in the concept of marketing company sells its idea, product and services depends on the need of the present and prospective customer. In the other word, we can say that the organisation makes the products according to the needs of the customers or consumer and then sell it. The Starbuck coffee has different flavour in coffee for the different age group and makes changes in its flavour time by time. To get a clear view of marketing process, I am taking the Starbuck cafe as an example to understand the concept of marketing and will show the SWOT analysis and will define the objective and the various term of marketing. The star buck’s first coffee shop was at Seattle, Washington in1971. Till today, it has approximately 2372 stores across 62different countries.

Starbuck Coffee - Assignment Help

Task 1

1.1 Explain the various elements of the marketing process

Starbuck offers a wide range of hot and cold beverage and some packed item like sandwiches, burgers and pastries. Starbuck always is putted on the first rank by the coffee lovers. Starbuck is one of the famous coffee houses in the US and UK and Starbuck is the only example among the coffee houses in which it is get to see the introduction of a new product is according to the right customer of the right age group. And it is fully aware of what to introduce in the market at which time (Wang, 2007). There are various elements of marketing in which Starbuck work as a king like these are consumer behaviour, customer orientation, marketing environment, customer satisfaction and promotional activity. In the Starbuck, customer gets a feel that he or she is very special for him the cafe. And it always offers a value added services to their regular customer with a full satisfaction and great taste. Starbuck never spent a huge amount of money on the promotional activity instead of this it believes in brand positioning and mouth to mouth publicity. To explain the marketing process of the Starbuck it is important to go through the SWOT analysis.

SWOT analysis: SWOT analysis is a marketing tool which is use to find out the assets and liability of the organisation and also explain the opportunities and threats present in the market.


  •  Largest coffee chain in the world
  • Successful positioning in the mind of customers
  • Offers the different flavours for the different age group
  • Hard working work force
  • Brand positing
  • Strong financial condition

  • Almost two third cafe are in its home market
  • Pricing policies
  • Sometime cafe had to face negative publicity

  • May have expansion in the supply of the material
  • Expansion of the coffee house in the other countries
  •  Could offer some beverages for the young age group

  • Increasing the number of competitor
  • Offering the same products at low cost by the competitors
  • Different Policies of the different countries

For an organisation SWOT analysis is very crucial because only with the help of swot analysis the organisation may get the real threat and opportunities present in the external market and strength and weakness in their internal organisation. SWOT analysis is a first step of marketing for any product of organisation. Marketing is basically depends on the organisation’s assumption and the competitor’s calculation (Jobber & Ellis-Chadwick, 2012).

Marketing objective of Starbuck: Marketing objective is outcome of the marketing activity and it is accomplished through the various marketing plan. To set any marketing objective, the organisation should be very sure that it should be realistic and specific. A clear objective always carries a strong marketing strategy. The marketing objective of Starbuck is to attract the more customers and get customer loyalty and provide them more satisfaction then other competitor.

1.2 Evaluate the benefits and costs of a marketing orientation for a selected organization

Marketing orientation is process in which the market research is conducted by the organization to anticipate the exact need and the wants of the customer of the targeted market and then make the product accordingly so that they can fulfil the need to satisfy the customer. Starbuck conducts such type of research after a small time period to find out the change in the taste of customer. Starbuck also maintain a highly customer relationship and make feel them very important to the cafe. For an example: around  2012 in UK started approach in which  if a customer visited their coffee shop and ordered coffee then they also asked their name and wrote their name on coffee cup and when the same customer came to their shop again, they wondered that local staff of Starbuck still remembered their name (Armstrong &Cunningham, 2012). This type of approach is very useful to maintain the good relationship between the customer and the organization. With this approach of Starbuck the customer got a personal feel.

Starbuck is very good in providing value added services or benefits to their customer with the help of marketing orientation . Because of market orientation, Starbuck always plans such type of offer through which it can easily attract the good number of customer at small time period which is beneficial for customer and organization as well. The numbers of the competitors are also increasing in the market; market orientation process makes Starbuck to focus on the building a long term relationship with their customer by identify the new change in the behaviour and the expectation of the customer so that the cafe can beat the competitions. Besides this, there are many benefits that Starbuck have through market orientation. These are as follows:

  • Helps in increasing the sale of the coffee offered by Starbuck.
  • Helps in getting the exact need of customer so that Starbuck can produce the same flavour of coffee.
  • Provide friendly working environment to the organisation so that the employees can feel satisfaction.
  • Helps in improving the revenue of the cafe.
  • Stable the performance of new product offered by company.

As described, the market orientation provides the various benefits to cafe by satisfying the need of the customer. In lieu of these described benefits, Starbuck has to pay a huge amount to the process of market orientation. So the cost factor of market orientation is very high. The cost associated with the element of market orientation is as follows:

  • The money spent on the research and survey to find out the exact taste of coffee.
  • The money spent on the group discussion among the expertises of market.
  • Cost associated with conducting the internal meeting.

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