Lê Nguyễn Hải Yến-21000542

Quách Bảo Hân-B1242012064

Phan Hầu Bích Thủy-21000045
Tăng Huế Nhi-21000665
Bùi Thị Phương Thảo-21001035
TABLE OF CONTENT
Executive Summary
I. Company Description
Company Profile
Mission
Vision
Core Value
Product Portfolio
Company highlight achievements
Market Situation
Market size
Market Growth
Market Share
Market Segmentation and Targeting
Segmentation
Targeting

II. Market Analysis

Competitors
Direct Competitors
Indirect Competitors
Positioning and Differentiation
Positioning Statement
Positioning Map
Differentiation

III. Product Analysis: Pumpkin Cream Cold Brew

Problem
SWOT Analysis
Company Objectives
Business Objectives
Marketing Objectives
Communication Objectives
Marketing Mix (Seven Ps)
Product Strategy
Product concept
Product levels
Core Product
Price Strategy
Place Strategy
Promotion Strategy
People
Process
Physical Evidence
IV. Conclusion
V. References
VI. Appendix
Appendix 1: Group task allocation & cross-marking of members’ performance
Appendix 2:
1. Microenvironment and Macro environment analysis
2. Marketing Campaign Analysis: 2019 fall seasonal campaign
Executive Summary
Starbucks Coffee Company is the top specialty coffee producer and retailer in America.
Starbucks, headquartered in Seattle, Washington, has 931 retail outlets and 75 significant
airport sites. However, in this report, we concentrate on Starbucks’ coffee. The report opens
with a brief information about the Starbucks brand, one of the most popular coffee houses in
the USA, including company profile, analysis, and its situation in the American market. The
project then provides a more in-depth investigation of competitors, customers, STDP
analysis, SWOT analysis, and marketing mix of Starbucks coffee in this specific market.
 I. Company Description
1) Company Profile
1.1 Mission
“To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a
time.” This mission statement represents the company's efforts to keep its operations
functioning smoothly. Starting with its workers, Starbucks Coffee "inspires and nourishes the
human spirit." To address this aspect of its goal statement, the organization maintains a small
corporate culture that emphasizes rapport and warmth. The "One person, one cup, and one
neighborhood at a time" component follows, demonstrating that the company makes a
significant influence on every employee and consumer. In addition, as part of the corporate
objective, Starbucks Coffee intends to develop the business incrementally, one location or
neighborhood at a time.

1.2 Vision
"To establish Starbucks as the foremost provider of the greatest coffee in the world while
retaining our uncompromising beliefs as we develop" says Starbucks' business vision. Aiming
to be the best purveyor suggests that Starbucks Coffee aspires to be the best in the world at
supplying its products, particularly coffee of the highest quality. It also refers to the "finest
coffee in the world" component. Starbucks, on the other hand, addresses the
"uncompromising ideals" component, which encompasses ethical behavior and a welcoming
atmosphere. In addition, the company fulfills the "growth" component of its goal statement,
as seen by the company's continued global development through new Starbucks shops.

1.3 Core Value

Starbucks' basic principles are expressed as a philosophy and are as follows:
- Creating a culture of warmth and belonging, where everyone is welcome.
- Acting courageously and defying the established order.
- Connecting with openness, decency, and respect while being present.
- Starbucks try our best to deliver everything we can, and hold ourselves accountable for the
results.
- Through the perspective of humanity, we are performance-driven. Finally, Starbucks is
dedicated to becoming an environmental leader in all aspects of its operations.
- Understanding environmental concerns and sharing that knowledge with our partners.
- Create inventive and adaptable ways to bring about change.
- Working hard to buy, sell, and utilize things that are good for the environment.
- Awareness of the need for fiscal responsibility for our environmental future.
- Making environmental stewardship a corporate value.
- Measuring and monitoring our progress for every project.
- Encouraging all partners to share in our mission.

1.4 Product Portfolio

Starbucks offers a wide range of handcrafted drinks, pastries, and, in certain areas, a menu of
sandwiches and salads in addition to high-quality coffee. Starbucks sells distinctive espresso
equipment and coffee brewers, as well as unique confections and other coffee and tea-related
things.

The following are some of Starbucks' products:

- Beverages: Brewed coffees, Italian-style espresso, cold blended beverages, roasted
whole bean coffees, tea products, fruit juice, sodas, and coffee liqueur. (Illustrated in
figure 5)
 - Food: Sandwich, Salads, pastries and ice creams. (Illustrated in figure 6)
- Non food items: Mugs, Travel tumblers, coffeemakers, coffee grinders, storage
containers, compact discs, games, seasonal novelty items, Starbucks card, media bar.
(Illustrated in figure 7)

1.5 Company highlight achievements

Here are some of starbuck recent awards and recognition:
● “No. 1 Best Coffee,” Fast Food and Quick Refreshment categories and “No. 1 Most
Popular Quick Refreshment Chain” by Zagat’s Survey of National Chain Restaurants
in 2009‐2011
● One of“The 100 Best Companies to Work For” by Fortune – 1998–2000, 2002–2012
● One of the “Most Admired Companies in America” by Fortune – 2003–2012
● One of the “World’s 50 Most Innovative Companies” by Fast Company – 2012
● One of the “World’s Most Ethical Companies” by Ethisphere – 2007‐2012
● “Sustainability Design Award” by Global Green USA – 2011

2) Market Situation
2.1 Market size
Same-store sales in the United States surged by 22% in the third quarter, and by 11% over the
previous two years. On average, customers spent 3% extra on transactions. The company's
loyalty program now has 24.8 million active members, up 28% from the previous year.
During the quarter, 51% of consumers were members of the Starbucks Rewards program.

2.2 Market Growth

Starbucks’ net revenue reached 24.61 billion U.S. dollars in 2021, reflecting an increase over
the previous year's total of 19.61. The global coffeehouse chain has seen a year-over-year
increase in revenue for the past decade, except for the decline in 2020 which could be
attributed to the stay-at-home measure implemented due to the coronavirus (COVID-19)
pandemic. (Figure 1)
2.3 Market Share
Starbucks still had the largest share of the coffee shop market in the United States in terms of
store count as of October 2019, with 40%. Starbucks has a significant geographical presence
across the globe, maintains a 36.7% market share in the United States and has operations in
over 60 countries. In the 52 weeks ended July 11, 2021, Starbucks was the leading ready-to-
drink (RTD) coffee brand in the United States, with a market share of roughly 28 percent.

3) Market Segmentation and Targeting

a) Segmentation:

Segment Geographic Demographic Psychographic Behavioral

- People live Age: 25-40 - Outgoing, self- - Main occasion: to take a

in cities with Gender: Male motivated, break with employees or
high living & Female ambitious, friends; to grab a snack and
Adults standards, Income: confident, beverage on the way to work
(49%) such as New Upper-Middle independent, - Main benefit: the target
York, Class determined market seeks a relaxing
Chicago, Las Occupation: - On-the-go, eat out atmosphere for socializing
Vegas, Los Young at restaurants; not during work breaks; they also
Angeles, professionals money conscious enjoy the work-friendly
Houston, San and white- - Enjoy urban style environment at Starbucks,
 Diego, collar workers and family-style allowing them to meet with
Phoenix. tables and decorate clients at the café
the store with a - Frequency: At least daily,
millennial theme. possibly twice a day
- Heavy, regular user
- Strong loyalty

Young Age: 18-24 - Study, take notes, - Main occasion: to grab a

People Gender: Male chat with friends, snack and beverage on break
(40%) & Female and meet people. from class; to focus on
Income: - Spends most time studying or schoolwork while
Upper-Middle on the internet enjoying a beverage
Class or (tablet, smartphone) - Main benefit: the target
belongs to for school market enjoys the relaxed café
richer families and entertainment environment which allows
Occupation: - Social, them to complete schoolwork
University, compulsive, driven, and study
recent outgoing - Frequency: At least every
graduate other day with friends (4 times
student. a week); could be a daily
consumer
- Heavy, regular user
- Strong loyalty

b) Targeting:
Starbucks main target market is people between the ages of 25-40 which accounts for almost
half (49%) of its total business. Starbucks targets this group by creating the “third place” to
go to between home and work by creating this unique and relaxing “experience” and
“atmosphere” as customers within this range tend to have high income and professional
careers.

Young people, aged 18-24, are the next large group that Starbucks targets. They bring in
about 40 % of Starbucks’s sales. Starbucks targets this group through the growth of
technology and innovative ideas. Starbucks positions itself as a place college students can
hang out, study, write papers, and meet people.

II. Market Analysis

1) Competitors
Direct Competitors
a. McDonalds McCafe:
McDonald's founder Ken Croc wrote the company's core proposition: "McDonalds stands for
friendliness, cleanliness, consistency, and convenience." In 1993, it made its debut in
Melbourne, Australia. There are more than 15,000 in-store coffee businesses across the world
now. The major distinction is that McDonald's is known for fast, convenient, and inexpensive
meals, but Starbucks is known for its "third place," a "affordable luxury" where customers
may enjoy blended espresso beverages with friends and colleagues away from work and
home.
+ Disadvantage of the brand compared to Starbucks/Starbucks advantage: offer less space
as well as chairs for consumers to use at place, offer less products in terms of beverage
 + Advantage: McDonald’s is significantly cheaper than Starbucks, which is a huge
advantage for them in terms of sales as consumers with all levels of income are able to
purchase.

b. Tim Hortons:
Tim Hortons Inc. began expanding across the country in 1964, then to the United States (both
of which have the most shops) and eventually to the rest of the world. It now operates over
4,800 locations, employs 6,200 people, and produced $ 3.29 billion in revenue in 2018. Tim
Hortons' value proposition is "Always Fresh," which is both a guarantee and a pledge to its
customers. Coffee is consumed in greater quantities by Hortons and Starbucks than any other
commodity.

+ Disadvantage of the brand compared to Starbucks/Starbucks advantage: Certainly,

Starbucks is much more famous than Tim Hortons. Most people agree that Starbucks
provides better experiments to their customers compared to Hortons since they
provide quality products, free internet access, and various samples for its customers to
try.
+ Advantage: One thing which mostly differentiates the two is their prices, where
Hortons is much cheaper than Starbucks. Tim Hortons is less expensive and favors
workers coming from small businesses.

Indirect Competitors
1.McDonalds
Starbucks sells not only coffee, but also tiny pizzas and other snacks to accompany it.
Starbucks is essentially a fast food restaurant when the coffee is taken from the equation. As a
result, McDonalds may be considered a serious rival to Starbucks. McDonald's is a fast food
restaurant chain founded in 1940 in the United States. It is one of the world's largest
hamburger restaurant chains, with 3700 outlets in over 100 countries.

+ Disadvantage of the brand compared to Starbucks/Starbucks advantage: Starbucks has a

wide range of tables and counters, as well as comfortable chairs and free Wi-Fi. While
McDonald's has Wi-Fi, the interior is still designed like a fast food restaurant, making it
less appealing to spend a long time there. Additionally, Starbucks has a considerably
bigger selection of drinks, including coffees, teas, branded frappuccinos, and many more,
all with a range of flavorings
+ .Advantage: McDonald’s is much faster and more convenient and serves chicken
products, cheeseburgers, sandwiches, milkshakes, desserts, salads, seafood, soft drinks,
smoothies, and a range of breakfast foods to cater to varied consumer tastes and
preferences.

2. Dunkin Donuts:
Dunkin' Donuts is an American coffee business that competes with Starbucks in the United
States, Canada, and a few other countries. The firm retains the city's blue-collar atmosphere,
which contrasts sharply with the affluent Starbucks environment. Dunkin' Donuts now has
more than 12,900 locations in 42 countries, making it the world's fourth-largest coffee chain.
Its value proposition promises to deliver fresh food quicker and with more options, all while
maintaining a high level of quality.

+ Disadvantage of the brand compared to Starbucks/Starbucks advantage: Starbucks is a

bigger company in terms of market capitalization and the number of stores globally and
the brand has also built a more premium brand, has stores that look more like a
 comfortable coffee house, has a more extensive menu, and greater product customization
than Dunkin’s Donuts.
+ Advantage: Dunkin’ Donuts offers more competitive pricing relative to Starbucks,
focusing on the middle class.

2) Positioning and Differentiation

a) Positioning Statement
For consumers who are coffee lovers that show huge interest in high quality coffee beans,
Starbucks is a coffee seller that sells a wide range of products and delivers connection
between the firm and consumers as well as a sense of belonging. Starbucks is intensely
focused on their consumers' wants and needs, and are always ready for innovations if needed
to meet their customers' needs.

b) Positioning Map

Starbucks promotes itself as a premium or high-priced coffee company that aims to sell high-
quality items to primarily young people with a good income or earning potential. Starbucks
wants to be thought of as a high-quality brand by customers. Starbucks' primary competitors,
such as Tim Hortons, have adopted a similar strategy. Mcdonald's and Dunkin Donuts, on the
other hand, have positioned themselves as low-cost, high-quality product providers.
c) Differentiation
After surveying the difference between Starbucks and its competitors, Starbucks' fundamental
strengths outweigh many factors including high-quality coffee and goods at convenient
locations, a community to enjoy the coffee-drinking experience, and a wide range of options.
Quality, service, ambiance, and culture are all factors that contribute to Starbucks'
competitiveness. Starbucks’ Mission is very clear and straịghtforward at the first sight: “is to
inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time”.
Therefore, they determine their goals at the beginning and serve the customers properly as
much as possible.

III. Product Analysis: Pumpkin Cream Cold Brew

1) Problems:
The only Starbucks drink that created controversy is the Pumpkin Spice Latte. Even though it
has been one of the most favorable drinks, it has always been subjected by the internet: a
straw man for discussions about capitalism, “basic white girl” culture, a flashpoint for
consumer anxiety over marketing, rumored to cause diabetes and cancer as it includes almost
400 calories per cup with , resulting in widespread hatred for an otherwise innocuous
beverage. Moreover, according to the Chicago Tribune, the common complaint about the
original Pumpkin Spice Latte is that it’s too sweet and too creamy. “It’s a coffee drink for
non-coffee drinkers!” or “It tastes like chemicals!” people say.

Moreover, since Starbucks’ customers love cold coffee (During the fiscal third quarter ended
June 27, cold beverages accounted for 74% of total domestic beverage sales), Pumpkin Spice
Latte-which is a hot drink- may be boring to the consumer's eyes.

Therefore, the pumpkin Cream Cold Brew is launched to solve the problems related to health,
preferences and controversial topics by having less sugar consumed, turned into a cold drink
and have less spicy flavor.

2) SWOT analysis

Strengths Weaknesses
-The Pumpkin Cream Cold Brew is far less distinct in -Imitability of products: Starbucks
flavor and less sweet nor spicy compared to the does not have the most distinctive
previous product, making the product fits better in the ingredients for the beverages as many
customers’ preference. other companies have also produced
pumpkin-flavored drinks that are also
- Lower calories included as well as less sugar unique and worth the try.
compared to the Pumpkin Spice Latte.

- Loyal customers: Starbucks has a huge amount of

loyal customers who will try their newly launched
products.

- Strong brand image and high customer service culture

that people think of when Starbucks is mentioned.
 Opportunities Threats
-The organization can earn more customers by -Highly competitive rivalry
innovating their previous product and making
adjustments aligned with their consumers’ wants, -Low Bargaining Power of Buyers:
needs, and expectations. Due to higher prices compared to
other brands, customers may easily
- Customers’ have positive reactions to the Pumpkin move from Starbucks to other brands
Cream Cold Brew publishing announcement. because of the minimal switching
costs. Individual purchases are minor
-Pumpkin Spice Latte has already created an existing in comparison to the company's total
loyal, targeted group of customers. sales and are overshadowed by these
powerful forces.

3) Company Objective
● Business Objectives
- Offering a unique experience for its consumers and making them feel good about their
purchases at Starbucks

● Marketing Objectives
- Change people's minds and thoughts about the pumpkin flavored drink that it can be a
healthy product through the new pumpkin drink.
- Remain a good relationship with customers, keep in contact, keep the connection
going by innovating products (change from hot, spicy drink into a cold less spicy
product towards the consumers’ preferences more).

● Communication Objectives
- To inform customers that their new product that are pumpkin related has less sugar
and calories that are less concerning in terms of health

4) Marketing Mix (Seven Ps)

1. Product Strategy
a) Product concept
- Consumer insight: Starbucks preferred easy and informal conversations with customers
over rigorous and complex customer surveys to capture the overall mood, analyze
customer experience, and get vital feedback.
- The relatively new Pumpkin Cream Cold Brew, which surpassed the regular Pumpkin
Spice Latte in popularity in 2020, is also returning. The new drink, which is less sweet
than the Pumpkin Spice Latte and has 130 fewer calories in a grande, joins a long list of
Starbucks' favorite fall beverages and snacks, creating a fresh cold drink for consumers to
try.

b) Product levels
- Core Customer Value:
- Starbucks’s core customer value:
+ Creating a culture of warmth and belonging, where everyone is welcome, with Starbucks'
partners.
+ Acting with daring, questioning the existing quo, and developing new methods for our
organization and each other to grow.

- Actual Product:
Packaging: Pumpkin Cream Cold Brew was packaged in cups with varied sizes which depend
on the customer’s choices. The cups are the same as any Starbucks original plastic cups with
the brand's logo and at some stores it is served with paper cups for protecting the
environment. The color of Pumpkin Cream Cold Brew is a mixture of the brown of coffee
and the white of pumpkin cream which make it become the unique color of the product.
Style: Pumpkin Cream Cold Brew has a fall seasonal themed trend which is appropriate to the
time that it was launched.

- Augmented Product:
Starbucks has offered a discount: buys one-get-one-free happy hours. This promotion differs
from previous Starbucks happy hours in that it offers a buy-one-get-one-free deal on all
Grande or bigger beverages. That means you can have a classic Pumpkin Spice Latte or the
chain's brand new Pumpkin Cream Cold Brew for free and give one to a friend.

- Core Product:
Starbucks launched Pumpkin Cream Cold Brew as an innovation for previous products, as it
offers a low calories (140 calories), less sugar added (75% of sugar is dropped) which solved
the health concerns of Pumpkin Spice Latte. Compared to Pumpkin Spice Latte, Pumpkin
Cream Cold Brew is healthier and more delicious as it is less spicy, changing from hot drink
to cold drink which fit customers’ preferences better. Customers can have a wider range of
choice to choose from the fall menu.

2. Price strategy
The price of a 16-ounce Grande Pumpkin Cream Cold Brew is $4.45. In comparison to the
Pumpkin Spice Latte, a Grande Pumpkin Spice Latte costs $4.95 and a Venti costs $5.25.
That’s some serious savings.

3. Place strategy:
There are various handy ways to enjoy Starbucks' fall menu, including ordering ahead of time
and picking up choices such as grab-and-go in-store, drive-thru, and curbside pick-up. Those
who want to order Starbucks fall favorites from the comfort of their own homes can do so
through Uber Eats.

4. Promotion Strategy
Starbucks’ Pumpkin Cream Cold Brew was first launched in the fall seasonal campaign of
2019. Starbucks is commemorating the season of pumpkin frenzy with its new Pumpkin
Love O' Meter, a fun and quirky digital pumpkin personality quiz that enables consumers to
find out how much of a pumpkin lover they truly are.
Starbucks also promotes its newly launched products on many social media platforms such as
Facebook, Instagram, and Twitter (Illustrated in figure 2 and figure 3)

5. People
People are the fifth most significant aspect of Starbucks' marketing mix, and people are the
company's employees. Because they represent the company's face, employees play a critical
role in the success of a service company. Starbucks employs over 200,000 people worldwide
and refers to them as "Partners." The organization ensures that its partners are trained in both
"Hard" and "Soft" abilities, which helps them maintain a low attrition rate and satisfied
consumers.

6. Process
Starbucks customers have the option to access products and services through the following
options:
- In-Store Seating and Dining:
+ Customers enter the store, place their order, pick it up when their name is called,
collect it, and consume it in the store.
- Starbucks Pick Up:
+ Starbucks Pickup is for consumers who prefer to order ahead of time, pay with their
phone, and pick up their order afterward.
+ They have the option of picking up their orders later or having them delivered to their
door.
- Drive-Thru:
+ Despite the fact that drive-thrus have been around for almost a decade, the segment
saw a big boost in 2020 due to the epidemic.
+ In the "Order and Verification Zone" at Starbucks drive-thrus, for example, a
bidirectional live video feed is employed.This helps to tailor the experience and bring
the 'inside' sense to the outside world.

7. Physical Evidence
Starbucks uses the concepts of servicescape and atmospheric factors to design and
personalize each of its stores to satisfy customer demands while also connecting them to the
local communities, the street, the city, and the local coffee culture in which they operate.
Significantly, the coffee company aspires to create a coffeehouse that serves as a "third place"
away from home and work, where people can rest and meet in a pleasant, homely, and
inviting setting. Starbucks locations are primarily designed to encourage customers to stay
longer, buy more, and return.

IV. Conclusion
To conclude, there is no doubt that Starbucks has successfully challenged the beverage
market in the United States as well as the global market by innovating non-stop to provide
better, higher quality products and services for their consumers. The key factor that contribute
to this success is derived from the innovative marketing strategy and advertising campaigns
that support the brand’s product on their way to gain a more positive image. However, due to
the competitive pricing strategies that many of Starbucks' competitors use, Starbucks tends to
lose marks in consumers’ point of view. Yet, this shall not be a big deal as Starbucks stated
that they want to provide a luxury-high quality coffee brand for their customers.

V. References
Marketing Essays - Starbucks Coffee. (n.d.). Www.ukessays.com.
https://www.ukessays.com/essays/marketing/starbucks-coffee.php

Lucas, A. (2021, October 28). Starbucks revenue falls short as Covid hurts China sales,
coffee chain offers mixed fiscal 2022 outlook. CNBC.
https://www.cnbc.com/2021/10/28/starbucks-sbux-q4-2021-
earnings.html#:~:text=Starbucks%20is%20expecting%20global%20same,cafes%20to
%20its%20global%20footprint

How big is Starbucks' market share in the world? (2021, August 27). Food News. Mxr3s
https://www.foodnewsnews.com/starbucks/how-big-is-starbucks-market-share-in-the-
world/

Starbucks revenue worldwide 2019. (n.d.). Statista.

https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-
worldwide/
Cornett, J. (2017). Why Brands Should Embrace National Days | Hot Dog Marketing. Hot
Dog Marketing. Retrieved from
https://hotdogmarketing.net/brands-embrace-national-days/#:~:text=These
%20national%20holidays%20aren't,actively%20participating%20in%20the
%20conversation.

Gehrke, N. (2021). Review: McDonald’s Versus Starbucks Coffee. Satellite. Retrieved from
https://neenahsatellite.com/19131/opinion/reviews/review-mcdonalds-versus-
starbucks-coffee/#:~:text=Starbucks%20offers%20a%20comfortable
%20environment,spot%20for%20coffee%2C%20for%20them.

Walsh, M. (2010). Starbucks Tops 10 Million Facebook Fans. Retrieved from

https://www.mediapost.com/publications/article/132008/

Gupta, S. K. (2019, February 18). Starbucks SWOT 2019| SWOT Analysis of Starbucks
Business Strategy Hub. Retrieved from
https://bstrategyhub.com/swot-analysis-of-starbucks-starbucks-swot/

13 Major Starbucks Competitors In 2022 (USA + Globally). (2021, November 22).

QuerySprout. Retrieved from
https://querysprout.com/starbucks-competitors/#:~:text=Dunkin

Lugo, L. (2022). Homemade Pumpkin Cream Cold Brew Recipe - Daring Kitchen. Daring
Kitchen. Retrieved from
https://thedaringkitchen.com/pumpkin-cream-cold-brew/.

Shastri, A. (2022). Complete Marketing Mix of Starbucks with 7Ps Included | IIDE. IIDE.
Retrieved from
https://iide.co/case-studies/marketing-mix-of-starbucks/.

Cash, M. (2019). Starbucks is rolling out a Pumpkin Cream Cold Brew, its first new pumpkin
coffee drink in over a decade. Insider.
https://www.insider.com/starbucks-new-pumpkin-cream-cold-brew-drink-joins-psl-
2019-8.

N/G. Marketing strategy and implementation of Starbucks free essay example. (2021,
February 22). StudyMoose.
https://studymoose.com/implementation-of-starbucks-25228-new-essay?
fbclid=IwAR3jRZUw5Ix4690WngCTGJiO0qLzYphhDfwJzcolImVMgwe5HRKdbag
0B08.

Detroit, F. 2. (2021, August 24). Starbucks' pumpkin spice lineup gets an in-store release
date. FOX 2 Detroit.
https://www.fox2detroit.com/news/starbucks-pumpkin-spice-lineup-gets-an-in-store-
release-date

Pham-Gia, K. (2008). Marketing strategy of 'Starbucks Coffe'. Google Books.

https://books.google.com/books/about/Marketing_Strategy_of_Starbucks_Coffe.html?
id=dij6ci9kM7kC

N/G. Culture and Values: Starbucks Coffee Company. Starbucks.com. (2022).

 https://www.starbucks.com/careers/working-at-starbucks/culture-and-values/.

Bhasin, H. (2021, September 10). Marketing mix of Starbucks - Digiaide.com. Digiaide.com.

https://digiaide.com/marketing-mix-of-starbucks/

N/G. Starbucks Queens Plaza Brisbane: Marketing Strategy Evaluation and

Recommendations. (2021, December 20). Ukdiss.com.
https://ukdiss.com/examples/starbucks-marketing-strategy-evaluation.php

N/G. Macro-Environmental Factors of Starbucks Analytical Essay. (2021, September

10).
Sample Essays.
https://sampleessays.org/macro-environmental-factors-of-starbucks-analytical-essay/

Grace, W. (2019). We try Starbucks’ new pumpkin cream cold brew. (Spoiler: We like it).
CHICAGO TRIBUNE.
https://www.chicagotribune.com/dining/ct-food-starbucks-pumpkin-spice-latte-cold-
brew-20190827-2rglwr7kebcwlo3xkywxfkavqa-story.html.

N/G. (STRATEGIC ANALYSIS – STARBUCKS – My Assignment Help : Samples & Case

Study Review Sample, (2013, August 30). Myassignmenthelp.info.
https://myassignmenthelp.info/assignments/strategic-analysis-starbucks/.

Goldfine, J. (2020, September 14). A brief history of Starbucks’ Pumpkin Spice Latte:
How
the cult favorite spawned memes and moral panic. Www.businessofbusiness.com.
https://www.businessofbusiness.com/articles/history-starbucks-pumpkin-spice-latte-
memes-
Rainey, C. (2022). The backlash to Starbucks’s pumpkin spice latte, explained. Vox.
https://www.vox.com/culture/2018/8/29/17791082/pumpkin-spice-latte-starbucks-
backlash-explained.

Jordan Valinsky, C. (2022). Here's when the Pumpkin Spice Latte returns to
Starbucks. CNN. Retrieved 29 March 2022, from
https://edition.cnn.com/2021/08/23/business/starbucks-pumpkin-spice-2021/
index.html.

Starbuck Porter’s Five Forces Analysis: Evaluating External Environment | Course

Keys. (n.d.). Course Keys.

Starbuck Porter’s Five Forces Analysis: Evaluating External Environment | Course

Keys. (n.d.). Course Keys. https://coursekeys.com/starbuck-porters-five-forces-
analysis-evaluating-external-environment/

‌ umpkin Spice Latte and Cream Cold Brew return to Starbucks stores across the US
P
and
Canada. (2021, August 24). Comunicaffe International.
https://www.comunicaffe.com/pumpkin-spice-latte-and-cream-cold-brew-return-to-
starbucks-stores-across-the-us-and-canada/

Juneja, P. (2015b). PESTLE Analysis of Starbucks. Managementstudyguide.com.

https://www.managementstudyguide.com/pestle-analysis-of-starbucks.htm
 MEGAN, S. (2019). We Tried Starbucks' Pumpkin Cream Cold Brew And It's So
Much Better Than The PSL. Delish.
https://www.delish.com/food-news/a28830448/starbucks-pumpkin-cream-cold-brew-
taste-test-review/.

Amelia, L. (2021). Starbucks revenue falls short as Covid hurts China sales, coffee
chain offers mixed fiscal 2022 outlook. CNBC
https://www.cnbc.com/2021/10/28/starbucks-sbux-q4-2021-earnings.html.

Slade, R., & Editor, T. (2022). Pumpkin spice is back at Starbucks, and it now comes in cold
brew form too. delicious.com.au.
https://www.delicious.com.au/drinks/non-alcoholic/article/starbucks-pumpkin-spice-
cream-cold-brew-calories/cchw6eei.

Chubbs, H. (2019). How to Get a Free Starbucks Pumpkin Spice Latte or New Pumpkin
Cream Cold Brew Today. PEOPLE.com.
https://people.com/food/free-starbucks-drinks-bogo-promo-pumpkin-spice/.

VI. Appendix 1 and 2

A. Appendix 1: Group task allocation & cross-marking of members’ performance

Name Performance Group task allocation

Bùi Thị Phương Thảo Market Analysis: Competitors (Indirect

100% Competitors), Positioning & Differentiation
(Positioning Statement); Product Analysis:
Problem Analysis, SWOT Analysis, Company
Objectives; Conclusion; Appendix 2: Marketing
Campaign Analysis.

Quách Bảo Hân Company Description: Company Profile,

100% Market Situation.

Lê Nguyễn Hải Yến Appendix 2: Micro and Macro Environment

100% Analysis; Marketing Mix: 7Ps; Positioning &
Differentiation: Positioning Map.

Phan Hầu Bích Thủy Market Analysis: Competitors (Direct

100% Competitors), Positioning & Differentiation
(Differentiation).

Tăng Huế Nhi Executive Summary; Company Description:

100% Market Segmentation & Targeting.

B. Appendix 2: Further supporting analysis and diagrams/illustrations

● Microenvironment analysis
1. Suppliers
The supplier's primary duty is to either raise the price of the commodity or threaten to
diminish its quality and quantity. Despite the fact that there is no direct equivalent for the
Arabica beans used to produce a cup of coffee, suppliers have minimal collective bargaining
Strength.

2. Marketing Intermediaries
In terms of marketing intermediates, Starbucks, like all businesses, is reliant on banks
for financial transactions and services. Because banks' processes and procedures are so
clearly defined, the company's activities are meticulously planned and monitored. Marketing
agencies' services have been used in the past, but not to the point where they have been a
source of dependency for the organization. The organization is a firm believer in positive
'word of mouth' marketing, which has shown to be effective in the past.

3. Competitors
Customers will choose to go to these coffee houses due to the product’s quality which
matches their preferences. This is a form of competition-“Product Form” in which customers
seek different features and functions in a product. Starbucks has many unique products that
others don’t provide, and others have the advantages of prices that Starbucks can’t provide.
As a result, competitors shall not be a big threat for Starbucks.

4. Publics
Of course, any organization's greatest reliance is on the media, whether social or
technological. Starbucks has only received positive feedback so far. The media is maintained
under close scrutiny so that any issues about its operations can be addressed quickly. Local
community organizations, in addition to the media, have maintained a constructive attitude.
The product on offer is one-of-a-kind and well accepted, with few complaints.

● Macro environment analysis

a. Political Factors
Starbucks' main political challenge is addressing concerns about the procurement of its raw
materials, which has drawn the attention of politicians in the West and in the countries
where it sources its raw resources. This is why Starbucks is committed to following social
and environmental norms, as well as acceptable and compliant sourcing techniques in
accordance with "Fair Trade" policies agreed upon by global corporations and governments
of developing and developed countries.

b. Economic Factors
There are also a slew of issues that have a negative impact on the business, such as
unfavorable general economic conditions, a lack of customer acceptance of new products, a
shrinking customer base as a result of recessionary effects such as high unemployment,
decreased consumer demand, and so on.Extreme competition in the worldwide market for
free trade policies or low-cost coffee providers, unstable economic conditions in local and
international markets, rising raw material prices, uncertainty about levies owing to inflation,
and currency fluctuations can all affect Starbucks' operations.

c. Socio-cultural factors
Starbucks also buys non-fat milk to serve health-conscious customers. Socio-cultural factors
focus on how customers force the industry and how the company responds to this; Starbucks
implements a CAFE agenda to address concerns about the industry's CSR (Corporate social
responsibility) to enable sustainability of coffee-bean cultivators that may create quality
benchmarks; additionally, Starbucks buys non-fat milk to serve health-conscious customers.

d. Technological factors
The integration of advanced technology is one of the most important factors in the coffee
industry because it relates to customer interaction with the business, new product
 development, quality control, marketing and advertising processes; however, Starbucks
integrates customer relationship management) systems to develop communication systems
as both consumers and employees are a major issue for the future.

At the same time, technology plays an important part in competing with competitors, such
as the integration of information technology and new equipment such as coffee bean
roasters and brewing machines, as well as the usage of Wi-Fi internet capability services.

e. Environmental factors
The company is especially concerned about ensuring an environmentally friendly
production process by focusing on sustainable solutions, such as recycling in outlets, reusing
cups, composting coffee grounds, purchasing renewable energy, developing a design to
verify retail outlets and outlet archetypes, reducing power consumption by 25%,
implementing a climate change policy, focusing on energy conservation, and so on.

f. Legal factors
Because the coffee industry is governed by several laws and regulations, Starbucks, as one
of the industry's key players with operations in 61 countries across the world, is required to
follow all of them.
This company strictly adheres to the laws of the countries in which it operates, including
labor laws (such as working hours and minimum wage rates), health-safety laws, and
customer-safety laws, among others; as a result, the company is investing another $250
million in health-insurance and spending $225,000 to resolve Consumer Protection litigation
for gift card breaches.

C. Campaign analysis
1) Campaign description
In response to such criticism of the previous pumpkin product-Pumpkin Spice Latte, in 2019
Starbucks released its second pumpkin spice beverage in response to the 2019 fall season.
The Pumpkin Cream Cold Brew is a vanilla cold brew with pumpkin cold foam and topped
with pumpkin spice, which CNBC describes as “less sweet and has a stronger coffee taste
than a pumpkin spice latte.”

2) Target audience
People who at first place are invested in Starbucks’ Pumpkin flavored products, people who
are invested in buying seasonal themed merch, Starbucks audience who have always followed
the Starbucks’ Pumpkin Spice latte controversy and are invested in the topic.

3) Communication objective
Build relationships, keep customer engagement: By recognizing a national day, it allows
Starbucks to promote awareness and encourage engagement from people to actively
participate in the seasonal conversation.

Increase product quality: Since the previous pumpkin flavor created many debatable opinions,
many people were looking forward to Stabucks’ next seasonal campaign’s product. As a
result, this campaign can be a turning point for Starbucks in getting new target customers
with the new drink, being innovative/competitive.

Creating interest: It is interesting to know that the drink has zero pumpkin involved in the
making process, which may excite people to come and try them. As a proof, many customers
have bought the previous pumpkin latte due to curiosity, which led to a huge sale of it,
recording more than 500 million Pumpkin Spice Lattes since the drink's introduction in 2003,
according to CNN Business News.

4) Determine message
The key message Starbucks wanted to spread is to dive in with the Fall season vibes, creating
new products to keep their loyal customers’ interest going and to end the controversial topics
around their pumpkin product: Creating diabetes and cancer. Moreover, with the new
innovative product - Pumpkin Cream Cold Brew- Starbucks wanted to provide their customer
wit the best quality of drink: “With each sip of Pumpkin Cream Cold Brew, you’ll enjoy the
familiar, creamy, flavor of pumpkin spice followed by a refreshing taste of cold brew, for a
cool beverage that will have you wishing it was fall all year long.”

a) Customer insights
Customers might want to participate in the season changing; or they might expect something
new, some innovations adding on previous products from Starbucks.

b) How to participate in this activity

Customers can visit their closest store starting August 27, 2019 and eventually order
themselves a cup of Pumpkin Cream Cold Brew or just order online and Starbucks will
deliver it to their house. It ended once Starbucks’ Winter season started, which was the 25th
of October, 2019.

5) Users feedbacks and reactions

People all over the internet are saying that the new pumpkin drink is changing the game, and
is way better than the old one in terms of flavor and the product image. Overall, everyone
agreed that this new pumpkin drink is easier to consume, with better taste and matched with
their wants.

a) Grace Wong, a Chicago Tribune writer

She wrote a review post about Starbucks’ Pumpkin Cream Cold Brew on August 27, 2019.
The previous one-Pumpkin Spice Latte is reviewed as having an odd sour taste to them,
which she suspects is related to how Starbucks makes it so darn sweet in pursuit of a pumpkin
spice flavor. However, the pumpkin cream cold brew eliminates that. It’s less sweet, tastes
more like coffee and certainly doesn’t have a mountain of whipped cream on top. Instead of
an aggressive pumpkin spice flavor, the drink tastes more like a mild cup of coffee with
vanilla syrup and notes of the cinnamon, nutmeg and clove, and a hint of fruity pumpkin.

Overall, Even though a Pumpkin Cream Cold Brew doesn't carry the same ring as a Pumpkin
Spice Latte, the new drink is a winner for her and even the title of the review included a
spoiler: “We liked it!” showed how excited Starbucks’ customers-them- were when they
released the Pumpkin Cream Cold Brew.

b) Clint Rainey
As she stated, “overall, it's actually really good. She and her friend both agreed it's perfect to
add to cold brew because the bitter taste of pumpkin would probably be morphed into the
bitterness of the coffee.” She also said that the manager told her that usually, the Pumpkin
Cream Cold Brew will be sold out by 10 a.m., 10:30 a.m. every day.

c) Delish Food News’ review by Megan Schaltergger

The title of this review post has already told which drink is the winner and how the audience
views the new drink Pumpkin Cream Cold Brew: Starbucks' New Pumpkin Cream Cold
Brew Is So Much Better Than The Pumpkin Spice Latte. (Image illustrate through figure 4)
“Not to throw shade at the Pumpkin Spice Latteor anything, but I can't understand drinking a
piping hot latte in 90 degree August heat. So when Starbucks announced its latest launch, a
Pumpkin Cream Cold Brew, I was more than a little excited.”, “I ordered up a few Pumpkin
Cream Cold Brew cups (not quite the same ring as Pumpkin Spice Latte, but go with it), and
let me just tell you, they looked GOOD”

6) Competitors of the drink:

a) Dunkin Donuts: Pumpkin Cream Cold Brew, Pumpkin Spice Signature Latte
b) Tim Hortons: Pumpkin Spice Iced Capp: A cold sweet and spicy beverage made with
pumpkin spice syrup and topped with whipped cream and pumpkin spice syrup
drizzle. Pumpkin Spice Muffin: A pumpkin spice flavored muffin filled with a rich,
creamy filling
c) Dutch Bros: Caramel Pumpkin Brûlée Breve

Even though Starbucks was not the one who started the pumpkin trend, they made the
pumpkin flavored drink became a trend and their pumpkin flavored drinks obtained
the highest market share among their competitors, due to the unreachable amount of
pumpkin flavored cups that Starbucks sold every year. As a result, even if other firms
created similar product concepts, Starbucks is still the leader of the product’s market.

7) Evaluation
a) Sales: In the first month they have recorded over 30,000 cups in the US, an average of
330 times per day over the past month.
b) Brand image: Increased positively, as chicago tribune- a famous, reliable news
reporting website in America- mentioned starbucks’ Pumpkin Cream Cold Brew as:
Nitro and pumpkin cream cold brews pull crowds to Starbucks: ‘The brand is healthy
and strong and growing’
c) Became a hot topic: Create discussions between buyers and among news with its new,
unbelievable records in sales, received much love from customers (Explained in detail
in part 5) ).
d) Gained positive reactions towards the pumpkin flavored product: They drowned the
false claims as well as ended the controversial topics around their past pumpkin
product.

Why this campaign worked

● People love products that are pumpkin flavored.
● Previous products of Starbucks that are pumpkin related have already created a huge
bop that paved the way for Pumpkin Cream Cold Brew to reach an already existing
group of customers.
● Starbucks is always ready to make changes to shift their products’ features towards
their customer preferences more: created innovative products from the previous one-
Pumpkin Spice Latte- a hot product, turned into a cold drink with changes in taste for
a more common preference, attracted more customers as well as created loyal ones.
Figure 1:

Figure 2:

Figure 3:
Figure 4:

Figure 5:

Figure 6:
Figure 7: