Q4. (6 Marks) [CLO 2] Before developing Marketing Plan, a Market Analysis is req
ID: 349583 • Letter: Q
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Q4. (6 Marks) [CLO 2] Before developing Marketing Plan, a Market Analysis is required to be done. Read and analyze the following scenario on Starbucks, and conduct a SWOT Analysis for the same. You are required to write any one contributing factor in each of the four quadrants of the grid. Starbucks Starbucks (formally known as Starbucks Corporation) is the world's largest coffeehouse chain, operating over 20,000 locations worldwide. Since the chain's foundation in Seattle in 1971, Starbucks has been serving up hot and cold beverages (primarily coffee) as well as snacks. Their products are of excellent quality, seemingly environmentally friendly, and relatively consistent between locations While Starbucks might be known for their frappucino and big chocolate chip cookies, they don't exactly have the most unique market. Plenty of other coffee shops, chains or otherwise, provide similar products and only lose out to Starbucks' big name. While Starbucks does have many coffeehouses across the globe, most of them are located within the US. There are plenty of regions where profitably branching out is a possibility, including India, Central Europe, and some regions in Africa. Selling their own branded products in stores other than their own would be aExplanation / Answer
SWOT analysis of starbucks
One contributing factor for Strengths - They provide very high quality rich products to their customers. They do not just sell products, they sell experiences. They provide an atmosphere of peace where people can come to spend quality time with their friends or even have business meetings.
One contributing factor for Weakness - It is relatively expensive as compared to their rivals that provide similar products. Due to this factor many people do not even try their products or even if they do, they are not able to come back soon enough. That is why they do not have many dependable customers.
One contributing factor for Opportunities - The current management of Starbucks has presently focussed on the US market. There are other countries like India where they can expand their operations and earn greater profits. Currently they sell their products exclusively at their stores. If they partner with other outlets, they can increase their profitability.
One contributing factor for threats- As starbucks has a limited range of the type of products that they sell to a limited customer base, it becomes all the more important that they do not lose their current customers. Starbucks has primarily invested in selling Coffee, Tea and Snacks due to their likeability to their young customers. If for some reason the taste of these young fickle minded customers changes or they opt for products from other outlets that provide similar quality products at the fraction of the prices from Starbucks, then the entire unique selling point of selling experiences to their customers would fail entirely.
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