In this team assignment report, we had chosen Starbucks Company as the title for Integrated Marketing Communication research. An Integrated Marketing Research strategy will be included to promote the company, product range or product and improve on the current strategies used. The Integrated Marketing Communication programs include creative strategy, media planning strategy, broadcast media strategy, print media strategy, sales promotion strategy, public relation and publicity and etc. A situational analysis of Starbucks Company and some of the objectives of IMC strategy should be included in the report. Nevertheless, monitoring, evaluation and control are included for Integrated Marketing Communication programs to meet the objectives.
Starbucks is recognized as the most successful coffee chain store in the past few years. It has operated its business from a coffee bean seller to one of the world's most familiar coffee houses. Throughout the years, Starbucks has expanded its business in both locally and globally. Starbucks has grown into an organization famous for its coffee houses, where customers can purchase food and beverages as well as packaged whole bean and coffee drinks. The instant coffee market in Malaysia is an attractive marketplace to go into the growing coffee culture locally and Starbucks has launch a new instant coffee product that is uniquely placed against its competitors.
There are millions of people around the world thrives on their morning, afternoon and some evening for their cup of coffee by walking in to Starbucks. Although the pricing of a Starbucks coffee is considered as an overpriced coffee but it brings people to Starbucks stores across the world in day and after day. Starbucks is currently one of the top contenders and stiff competition in the coffee industry. Starbucks has expanded into many different markets in the recent past and has succeeded greatly in doing so.
Company Profile Analysis
Starbucks Company story began in 1971 with a single store in Seattle's Pike Place Market. The Seattle-based corporation name is comes from Herman Melville's Moby Dick which is a classic American novel about the 19th century whaling industry. This name is created that reflected the quirky nature of the company's founders. It is seems to be appropriate for a store that imports the world's finest coffees to the cold, thirsty people of Seattle.
Today, there are more than 17,000 retail stores in 55 countries connecting with customer everyday with the exceptional products. Starbucks is in a growth market of the specialty coffee industry, it has a good relative overall position that it is playing now. It has established itself as the world's leading retailer, roaster and brand of specialty coffee in this industry. The premier roaster and retailer of Starbucks specialty coffee in the world strive to bring both our heritage and experience to life.
Starbucks, the company which ranks amongst the world's top 100 global brands has an impressive record of sales and profit growth. This can refer in appendix table 1. In the table 1, shown that it has the highest total net revenues, operating income and total stores opened in the year of 2006 as compare in between year 2002 to 2006. Starbucks achieved a sales turnover of $7.8billion, an increase of 22% compare on 2005, and operating margin of 11.4%.
Starbucks in Malaysia of the named of Berjaya Starbucks Coffee Company Sdn Bhd is a company that jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. There are Starbucks stores operating throughout Malaysia and it is committed to offering customer the world's finest coffee while enriching Malaysian's lives one cup at a time. On 17 December 1998, the first Starbucks store is opened at KL Plaza in Jalan Bukit Bintang, Kuala Lumpur. There is a Starbucks stores listing in the Starbucks Malaysia website.
Starbucks began operate to give consumers a different kind of feeling about drinking coffee. People can get a different kind of experience that one a regular barista would expect. Starbucks physical store environment is built around brightly lit cafés with comfortable seating, the aroma and taste of coffee. It is also being regard and differentiate itself as more than just a coffee shop. The friendly staff of Starbucks, bustle of customers and the relaxing background music in the shop has make them position its brand as a lifestyle of choice that people willing to spend time in that away from work and home. Starbucks is the third place between work and home where most of consumers agree for this statement. It is also a great place people to meeting up for conversation and a sense of community.
Starbucks set to be an outstanding and different kind of company which not only celebrated their coffee and the rich tradition but also brought a feeling of connection between people. To inspire and nurture the human spirit by one person, one cup and one neighborhood at a time is Starbucks Company's mission. This is the principles of how we live that every day. Most of the customer walk in to Starbucks store to chit chat or meet up more than work. This is because it is a neighborhood gathering place that is become a part of the daily routine in our life.Quality is the key goal for Starbucks company that both in product and experience. Starbucks is passionate about ethically sourcing each of the finest coffee beans, roasting them with great care and improving the lives of people who grow them.
Starbucks corporate objective is to become the most recognized brand of coffee in its market and industry throughout the world. In order to achieve this goal, Starbucks Company increase market share in the existing markets and open new stores in new markets. Becoming a leading retailer and coffee brand is the Starbucks retail objective by selling their first quality coffees and related products to their target markets. Starbucks also provides a superior level of customer service to their customer therefore a high degree of customer loyalty can be build between Starbucks and customers.
There is a wide range of products choices in Starbucks Malaysia stores. Beverage is the main product in Starbucks store. Coffee, espresso drinks, tea, blended drinks, coffee mugs and other coffee accessories are selling in Starbucks stores. Starbucks has an innovative idea for their coffee creations, from a hot Caramel Macchiato to a Java Chip Frappuccino. This is how they differentiate themselves from the competitors. Tazo Tea drinks, hot cocoa juices and bottled water is offer for the non-coffee drinkers. Starbucks also offers seasonal specialty beverages to be served during the holidays such as the Gingerbread Latte and Peppermint Mocha.
Starbucks also serve an incredible variety of handcrafted coffee and espresso beverages. Espresso, caffe Americano, caffe latte, cappuccino, caffe mocha, caramel macchiato and brewed coffee are under classic café latte category in Starbucks store. In addition of the beverage order, customer can customize their own drink by adding foam, milk, espresso shots, syrups and whipped cream. Customer also can let the staff know what temperature they want for their beverage like latte a bit hotter and so on.
Furthermore, cool and chilling delicious beverages also selling in Starbucks store. This can help to quench customer thirst and find the refreshing relief in one the beverage. Some special cool beverage are iced caramel macchiato, iced caffe mocha, iced caffe latte, iced Americano, iced coffee, tazo iced tea and iced chocolate. All this beverage is made with different kind of the ingredients and mixed together become another delicious beverage to be served for customer. The refreshing treat of beverage creates smoothness effect to customer.
Another refreshment drink where can find in Starbucks store is Tazo Tea. The beverage includes chamomile, mint blend, English breakfast, earl grey and green tip. Frappuccino blended beverage is a special drink in Starbucks store where customer can choose their favorite blended drink in coffee, crème or tea. Raspberry blackcurrant Frappuccino blended beverage and mango passion fruit Frappuccino blended beverage are the blended juice that with a refreshing combination of fruit juice and Tazo Tea blended with ice.
Moreover, donuts, muffins, cake and other snacks that are alike are being display and served in Starbucks Malaysia store. All this products are quite popular that ordered frequently by customers to go with a cup of Starbucks coffee. Healthy sandwiches and salads are served as lunch. Starbucks merchandise, like coffee mugs, and coffee in packages are the products that are not immediately consumed at the spot. A regular Starbucks customer normally will purchase a coffee mug or tumbler at the Starbucks store. This is because it helps the customer to save RM2 whenever purchase any beverage with their own tumbler at any Starbucks store. It is also create the same kind of coffee at home to get a consumption experience that matches the one at Starbucks.
In addition of products, Starbucks also offers services beyond the stores such as Wireless Internet services and newspapers available for customers to enjoy while relaxing in the store. Starbucks services also include the creation of a very cozy, home-like atmosphere that invokes social interaction. This relaxed and friendly atmosphere in Starbucks store enhanced by the way customers are treated by Starbucks staffs.
Current IMC analysis
Starbucks more emphasized and focus their advertising on "word of mouth" strategy. This is also called as viral marketing. It is means that customer had try on the Starbucks beverage and spread it to their friends, family and etc. This let the high quality of Starbucks products and services speak for themselves. Starbucks believe that connecting with their customers and focusing on their in-store experience is more valuable than any advertisement or mass marketing. Once a customer is satisfied with Starbucks beverage, it is more effective when they personally promote their brand. This is because a pleased customer who will return and will remain their loyalty to the brand. Starbucks focused on utilizing their current customers to attract new ones.
Next, Starbucks focused on promotion strategy that has intimate communication strategy relates to consumers at a personal level. In order to maintain a relationship with customers on a personal level, they stayed away from mass marketing and mass media outlets those strategies. Starbucks avoid television commercials, radio station commercials, magazine ads, banners ads and etc. Starbucks did not have any roadside billboard banners that advertise their products and services.
Furthermore, the only form that Starbucks using now for their advertising of IMC strategy publicly is press release on their website. It is one of the public relations or mass media that Starbucks presented online their information and updated news. Most of the Starbucks news are released or issued three months before the product is launched. This is the way Starbucks tell their customer the upcoming new beverages, foods, services and etc.
Starbucks also utilizes direct marketing as their current IMC strategy. Advertising on Facebook, twitter, in store posters or chalkboards and sending out emails are the examples of Starbucks direct marketing. Starbucks also has a presence in social media. There is a community website like Facebook is created by Starbucks. It is a place where Starbucks can collect suggestions and feedback from customers. Starbucks also can update their latest promotion, products, services, merchandise and etc in Facebook. This is can create a two way communication between Starbucks and customers. It is also create a "community atmosphere" among premium coffee lovers.
Starbucks introduced the Starbucks card for the customers. It is a stored-value card for customers to use and reload. This offers customer better and greater convenience when they make a purchase at any Starbucks store in Malaysia for their beverages, foods and etc. Customers just need to quick swipe the card when they purchase anything. This Starbucks card provides customers a lot of benefits and it can refer in Starbucks Malaysia website.
Besides that, sales promotions such as coupons are sent using online mailing list, as well as provided to their customers in Starbucks store about the informational pamphlets, brochures, flyers and cards are also included. The email communications between Starbucks and customers is happen regularly where messages are appropriately paced, visually oriented and interesting information about the products Starbucks offers.
Integrated Marketing Communication Objectives
The Starbucks main IMC objective is create brand awareness. Although the target market of Starbucks consists of middle-age men and women, usually middle to upper class. This is because this group of customer more willing or likely to purchase Starbucks coffee compare to the other. Starbucks need to expand their target market by letting more people know and aware of this brand and purchase the product. Starbucks should not only concentrate serving their existing customers but also come out with some marketing plan to attract their new customers. This also helps Starbucks expand their market in this industry.
Another IMC objectives are create and increase the brand loyalty toward Starbucks. There is a stiff competition in this coffee market and industry. Customers can easily switch to other brand when one thing turns them down. Starbucks should be better than any of the competitor. The relationship between customers and Starbucks should be long term and keep connecting it by get all the updated information, promotion and etc. Starbucks card is a great start for Starbucks customer continues purchase their products because of the benefits that a customer could get from it compare to other Starbucks competitors.
In addition, increase the sales of the Starbucks company is one of the IMC objective. Starbucks used some of the IMC program to push the sales of the stores throughout Malaysia. When more of the IMC program being release, the more possible of higher sales revenue to be achieve. Although Starbucks is in the market or industry for quite a long time, but sales of each of every stores is their main focus to success. The profits that generate from the sales could create a benefit for Starbucks staff as well.