University of London Magnum Company Marketing Campaign & COVID19 Report Markets and marketing report file contains the information required to complete the

University of London Magnum Company Marketing Campaign & COVID19 Report Markets and marketing report file contains the information required to complete the following task and the other file Starbucks report is example of it has to be completed. The marketing report:
Starbucks
Anna, Sarah, Ibrahim & Hapreet
Background
Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was
founded in Seattle, Washington, in 1971.
Starbucks in the UK: In May 1998, Starbucks successfully entered the European market
through its acquisition of 65 Seattle Coffee Company stores in the UK. The two companies
shared a common culture, focusing on a great commitment to customized coffee, similar
company values and a mutual respect for people and the environment.
Starbucks Products and Services
Services: Cafes, Roadside Roll-out, Drive Thru, Starbucks on the Go.
Coffee: More than 30 blends and single‐origin premium arabica coffees.
Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee
blended beverages, Vivanno™ smoothies and Tazo® teas.
Merchandise: Coffee‐ and tea‐brewing equipment, mugs and accessories, packaged goods, music, books
and gift items.
Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups.
Consumer Products: Products in 13 countries (Austria, Canada, China, Denmark, Germany, Ireland, Japan,
Korea, Mexico, Norway, Spain, UK and U.S.) in three categories:
Coffee and Tea: Whole bean and ground (Starbucks and Seattle’s Best Coffee brands), Starbucks VIA®
Ready Brew, Tazo® tea filterbags and tea latte concentrates.
Ready‐to‐Drink (RTD): Starbucks® bottled Frappuccino® coffee drinks, Starbucks Discoveries® chilled
cup coffees,Starbucks Doubleshot® espresso drinks, Starbucks Doubleshot® Energy+Coffee
drinks; Seattle’s Best Coffee® Iced Lattes, Tazo® bottled iced and juiced teas.
Starbucks® Ice Cream: Super‐premium coffee and coffee‐free flavors.
Aims and mission
STARBUCKS MISSION:
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
STARBUCKS VALUES
·
·
Creating a culture of warmth and belonging, where everyone is welcome.
Acting with courage, challenging the status quo and finding new ways to grow our
company and each other.
·
Being present, connecting with transparency, dignity and respect.
·
Delivering Starbucks very best in all it do, holding itself accountable for results.
Starbucks is performance driven, through the lens of humanity.
Competitor
According to the Statista ranking of the leading coffee shop chains in the United Kingdom (UK), based on
number of stores, Starbucks placed the second among the country.
Starbucks is the only non-British company in the ranking, yet the number of Starbucks stores in Great Britain is
higher than in any other European country. The brand has seen an increasing
number of licensed stores opening in the UK, while the number of company operated stores has been falling.
Customers Segments
Starbucks have considered the various segments and have decided on the customers based on the
segment. The segments that can be served by Starbucks are as follows
●
01
Demographic segmentation
02
Geographic segmentation
03
Behavioral segmentation
04
Psychographic segmentation:
Age – Starbucks targets audiences between the age of 20 and
60.
● Life-cycle stage – Bachelors, married couples with no children,
married couple with children and older married couples are
considered as an important segment to serve.
● Occupation – Employees, students and professionals are
considered by Starbucks.
● Located all around specially in upscale locations:
○ Near offices
○ Near many college campuses
● People who love to sip coffee frequently
● People who believe in sipping coffee and spending quality
time in a peaceful and calm atmosphere
● People who want to sip coffee, pull their laptop out and start
working
● People who want to sip coffee and chat with their friends or
family
● Lower class can’t afford to come down and taste their coffee
● Middle class and upper class people would prefer to come down
to taste coffee
PESTE analysis:
●
➔
Political
Brexit
○ Free trade agreements ̣(FTA) between Europe
and UK have been negotiating
○ Trade deal between UK and other countries
outside the EU is improving
These deals link to tariff between UK and the EU and
between UK and non-the EU countries member . So,
the price of tea and coffee cup is affected due to the
distribution fee from roasting manufacturing.
Economic
●
➔
The fluctuation in price of raw material
The profit of Starbucks also suffers under this change
Commodities
Unit
2015
2017
2019
Cocoa
$/kg
3.14
2.03
2.34
Coffee, Arabica
$/kg
3.53
3.32
2.88
Tea
$/kg
2.71
3.15
2.57
●
➔
Coronavirus outbreak:
○ Share price decline dramatically due to the
shutdown of business activities
Starbucks is under the financial pressure
PESTE analysis (cont):
Social
Technological
Environmental
●
●
●
The change in consumer behaviour:
prefer healthy goods and products of
companies which respect the
environment
●
As a result of Cov-19 pandemic,
○
Self-isolation and social-distancing is
recommended by government to all
people
○
New policy to shutdown pubs,
restaurants and cafe shops, except
takeaway store, to avoid virus-spread
●
●
Starbucks adds drinks or food which are
good for customer’s health. Its stores
also encourage customers bring reusable
cup by charging 5p for each paper cup
Starbucks’ market shares decrease due
to closing stores
●
●
●
●
●
●
Artificial Intelligence – more use of
robot in workplace
Capability of Internet connecting
Social media is ubiquitous
Payment apps is used widely
Starbucks utilize robot in roasting
and packing its materials.
They set up Wifi at all their stores
which allows customers to work
while they taste their drink at the
shops.
They also create their accounts on
social media such as Facebook and
Twitter. They also launch mobile
payments which includes features
such as order ahead services
●
The effects of climate changes and
global warming:
○
Almost 80% of land currently used
to grow arabica coffee will become
unsuitable by 2050.
○
The quality of coffee will also not
safeguard to be good and satisfied.
○
The farmers’ life is also affected
negatively
Starbucks cooperates with the coffee
producers by donation supports or
applying science and technology in
process in order to motivate the farmer
continue producing and ensure the
quality of coffee in site of climate change
SWOT analysis: Strengths
●
Brand recognition all over the world for its premium quality coffee.
●
Strong market position as sales are increasing in steady rate.
●
Continued operating efficiency and strong growth leading to superior financial performance.
●
Loyalty reward based mobile application.
Starbucks use loyalty rewarding app which awards you points based on money you spent in
Starbucks.The app rewards members get other benefits like free in-store refills, special member
offers/events, and the ability to pay by phone and order ahead.
SWOT analysis (cont)
Weaknesses
●
Price relatively higher than competitors due to premium quality.
●
Dependant on American operating segment.
69% of Starbucks revenue comes from America in 2019 which means American
segment produces the large majority of Starbucks cash flow. It can adversely
effect other segments of business if it fails to produce desired revenue.
SWOT analysis (cont)
Opportunities
●
●
●
Global coffee market is rapidly increasing
especially in asian pacific
eg. China, India etc
As RTDs market is expanding, Starbucks has
opportunity to expand its business globally in
RTDs market.
The trend to consume healthy and
environmental products. Starbucks can diverse
kinds of customers by healthy or vegan food
and drinks as well as encouragement to use
reusable cups
Threats
●
Price increase in raw coffee beans.
The price of coffee beans may go up or down which
can affect the starbucks profitability. (e.g Weather
causing short of coffee beans in market)
●
●
●
Price wars between competitors.
Unstable situation of Brexit
Financial crisis due to coronavirus outbreak
Market Growth
High
Boston Matrix
Low
Starbucks
Low
Market
Share
High
Reference list:
1.
International Center for Tropical Agriculture. (2015).Climate change: Arabica coffee faces a roasting. Retrieve from:
https://blog.ciat.cgiar.org/climate-change-scientists-pinpoint-the-worlds-most-vulnerable-coffee-zones/
2.
GOV.UK. (2020). Coronavirus (COVID-19): what you need to do. Retrieve from: https://www.gov.uk/coronavirus?
gclid=CjwKCAjwnIr1BRAWEiwA6GpwNR8co7EdzrqJau3_jiad2fzki9_3xSkjEsCJb1Jmz7THmZI8LJzReRoCY1kQAvD_BwE
3.
Starbucks Coffee Company. (n.d). Starbucks Company Profile. Retrieve from:
https://www.starbucks.com/about-us/company-information/starbucks-company-profile
4.
Starbucks. (2018). Starbucks rolls out 5p paper cup charge to all stores across Britain. Retrieve from:
https://stories.starbucks.com/emea/stories/2018/starbucks-rolls-out-5p-paper-cup-charge-to-all-stores-across-britain/
5.
Starbucks. (2019). Annual Report. Retrieve from: https://s22.q4cdn.com/869488222/files/doc_financials/2019/2019-Annual-Report.pdf
6.
Starbucks. (2019). How Starbucks is helping farmers weather climate change. Retrieve from:
https://stories.starbucks.com/stories/2019/working-with-farmers-to-combat-a-changing-climate/
7.
Starbucks® UK. (n.d). Mission Statement. Retrieve from: https://www.starbucks.com/about-us/company-information/mission-statement
8.
Starbucks® UK. (n.d).Company Information. Retrieve from: https://www.starbucks.co.uk/about-us%2Fcompany-information
9.
Stastita. (2019).Leading coffee shop chains United Kingdom (UK) 2016, ranked by store number. Retrieve from:
https://www.statista.com/statistics/297863/leading-coffee-shop-chains-in-the-united-kingdom-uk-store-number/
10. The World Bank. (2020). Commodity Prices. Retrieve from: https://www.worldbank.org/en/research/commodity-markets
11. Ullah, W. (n.d).Marketing Analysis of Starbucks. Retrieve from: https://www.academia.edu/14896368/Marketing_Analyisis_of_Starbucks
MARKETS AND MARKETING – XFX0027 – SUMMER 2020
The brief for the assignment is to choose a company with a well-known brand and create a
marketing campaign based on your research of the business environment in which it
operates.
Your assignment should be based on Brand and Market Position improvement OR brand
maintenance of current position taking into consideration the new economic
environment post-Corona virus
Written Report:
A1 Apply relevant economic analysis to business economic and marketing problems
A2 Analyse internal and external environmental factors affecting organisational marketing,
The consumer and business decision making process
A3 Develop the skills to identify relevant business economic and marketing factors and
processes involved in producing a marketing plan
A4 Segment, target and position consumer and business markets
A5 Integrate key marketing and business economic knowledge and skills to create a
business report
K6 Have a knowledge and understanding of marketing research and marketing strategy
The written plan is 3000 words in total and should be submitted in a marketing plan format
through Turnitin. The exact date and time will be given to you later.
•
The report should be presented in a proper marketing report format
•
The assignment will cover all the criteria and therefore 100% of the overall mark.
•
The assignment should cover the following key points:
An analysis of the macro and micro marketing environment in which the brand exists
The business economic objectives you feel are appropriate based upon your research
and analysis of the macro and micro marketing environment
The marketing objectives you have set
The marketing communications strategy to achieve these outcomes
The overall desired outcomes of your campaign
How you will be marked
We are looking for evidence of an understanding of the basic concepts of marketing and
economics within a real business environment. Students who demonstrate this
understanding in their assignment will pass
We are looking to see you apply concepts correctly in the situation found, students who
simply repeat chunks of the textbook and students who simply “theory dump” without
evidence of real understanding and application will not pass
Top mark students will show critical awareness, compare and contrast, and otherwise
show insights into the concepts and ideas and their application and up to date examples
with recent references that show extra reading.
As a guide, marks will be awarded for the assignment as follows:
Sound research of the company’s situation
25
Critical analysis including use of relevant models and
relevant objectives defined
25
Appropriate marketing campaign
30
Creativity
10
Report/ planstructure
5
Clarity of expression
5
Total
100
Assessment Guidance
The answer should be no longer than 3000 words – you will be penalised if you exceed
this amount
You must reference any and all research done for this assignment and provide a
bibliography, using the APA6 referencing system to support your references
You are required to provide an electronic copy through Turnitin before midnight on the day
of submission
Failure to provide proper references and a bibliography will result in a loss of marks and
could result in being given a ZERO grade for plagiarism
Layout
(Start with stating Marketing Plan for ……., name of module, name of tutor, your
names and student numbers)
Second Sheet should be contents, so use the headings below, these are not included
in your word count.
Executive Summary –
Objectives of company (Mission/Vision)
Customers – which segments
Competitors – who are their main competition
What goods/services do they produce
Internal/External analysis –
PEST/SWOT/Boston Matrix
Marketing objectives –
Ansoff’s matrix
Product
Place
Price
Promotion
Summary – The summary could be something like …
Due to the information gained, it has been decided to introduce a new product to the existing
market which will increase the product range and therefore increase sales and enable the
organisation to carry on meeting its vision which is to “Inspire and innovate every athlete.”

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