Discuss about the Business Level Strategy for Starbuck Company.
The majority of stores of Starbuck in Australia were closed due to the strategy of transformation undertaken by the company. This was made to bring revival in the performance of the company. The main focus of Starbuck’s entry in the Australian market is to meet the demand of the customers for premium coffee. The company started its business in Australia first and expanded its stores in other localities. The company owned stores were opened all across the country (Brook, 2016). The company faced issues due to lack of the customisation of product, process and for having no appropriate promotional strategy. The company could not assess the customers & culture of Australia. The assignment focuses on the development of the new strategic plan for the company for the customers of Australia.
The current strategies of the company are to win all the segments of the market in Australia. The target of the company is very specific. The percentage of the coffee drinkers those who prefer to drink at home is 72%. Starbuck Company has grabbed only 72% of the sector. Out of the 72% of this category of coffee drinkers, 67% add creamer. The company may reach 7.3% of the coffee industry if the company only targets this particular segment (digitalsparkmarketing.com, 2017).
The market study states that customers between the age group of 35-54 constitute 42% of the coffee market. For this segment of customers, coffee is the important consumption on the regular and daily basis. The customers demand the product and also prefer to pay high for the quality products. Thus it is important for the company to focus on this segment (Nielsen, 2012).
The next important target group of the company is the students between the age group of 18 to 24. The research has also found that the consumption of coffee by the students has been grown to 10%. This segment has no intact brand loyalty (Brook, 2016). The company can increase market share by targeting this segment. The focus of the company is to win the market and become the market leader.
The case study 17 focuses on the major issues faced by Starbuck in order to remain successful in the market of Australia. The company has faced following major issues related to the survival of the company. These issues are:
The above questions discussed in the case study shows that there are major issues faced by Starbuck in order to remain successful in the market of Australia. The research found the following points that are required to be taken care by the company. These important requirements are:
The focus of Starbucks Corporation is to the customers of high class who prefer finest quality coffee. The natural ingredients are accepted and appreciated by this segment of the customers. The premium quality of coffee has attracted all segments of customers such as students, middle-aged customers etc. The company’s focus on the target group with quality ingredients, quality service and taste create a brand image among the customers. The company has created brand loyal customers (Forte, 2011). The company has its own marketing strategies. The quality product of the company is promoted with the help of social media and print media. The company also offers quality products and services to the customers of Target Corporation & loyal customers in its stores.
The company has opened stores with a nautical theme. It follows the tradition of seafaring of the coffee traders. The company focuses on the significant & loyal customer base. The focus of each café is to concentrate on the customers of the limited areas.
The company has another growth strategy that focuses on preferences of the customers. The company establishes shopping centres in the locations which are tourist hubs. The destinations are created in order to attract the customers to the stores of the company, relax there and to spend their time with their friends (Peppers & Rogers, 2008). The customers can also spend some time quietly. The store of the company in Sydney’s northern beaches shows the company’s new strategy to open stores in prime tourists’ location (Gellis, 2001).
The company has developed a policy of establishing more stores in Australia. This is meant to establish Starbuck as the successful coffee chain in the country.
The company will plan to establish itself in the market of Australia with a successful action plan. The company will have the following goals for the future.
This has been found that the people of Australia are fond of using the products and services of their own country. The demand for the international products is not accepted in the context of coffee stores or coffee business. Thus Starbuck needs to make promotional strategies to attract the different segments of the customers. The word of mouths will be the right way to promote its business. The company will offer discounts to the students and young customers. This will help the company to gain the support of the customers (Brass, 2012).
The study has found that there are different segments of the market for Starbuck in Australia. Each segment has its own perceptions. The coffee shops in the institutional areas will help the company to attract students. It can easily offer them quality products and services. The coffee stores near offices and administrative buildings will help the officials to get the facility. They can come and relax (Coulter & Coulter, 2002).
This has been found that people of Australia are fond of the companies they are leading the local market. The local companies are offering coffee at a low price (Lynch, 2015). Customers are not interested in paying premium fees. Thus in order to compete with the local companies and other international companies, Starbuck requires offering discount and quality products and services.
Starbuck knows that its re-entry in the Australian market needs something special attention. Thus it has to establish coffee stores in the prime locations. The tourists’ place will be the most advantageous place. The tourists will get the quality coffee and also can stay for some period of time.
The company requires focusing on giving better facilities in comparison to its competitors. The coffee stores should be a very good place to spend some time (panmore.com, 2017). The visitors should stay for some time. Thus the company will increase its budget so that the ambience of the coffee shops will be good.
Starbuck knows that in Australia it has failed earlier. In order to sustain in the Australian market, it has to employ some new marketing plan. Instead of charging the premium fee the company should low the price of the products. This will encourage the customers to avail the products and services of the company (research-methodology.net, 2017).
There is always a need of employing good employees in the organisation. This will help the company to manage the customers well. The trained employees will help the customers to avail the services and this will help the company to grow its business.
The growth of the company shows with its revenue growth. The strategic synergy has been found all across the globe. The company with its diverse portfolio can deliver excellent results. The company has focused more on technology & innovation (Gentile, 2012). The company has also focused on the reinvigorated organisation systems that are aligned with the growth strategy of the company.
Conclusion
The study shows that Starbuck will be successful in the market for its strategies. The company has to capture to market segments and make the customers feel the importance of its quality products. The company needs to promote its products and also requires to increase its budget to win the market.
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