The Role of Marketing at Starbucks Coffee International

THE ROLE OF MARKETING AT STARBUCKS COFFEE INTERNATIONAL
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The Role of Marketing at Starbucks Coffee International
In order to come up with an effective marketing strategy, Starbucks Coffee International has to analyze its internal and external environmental factors. This is achieved using analysis tools such as; SWOT analysis, PESTLE analysis and Porter’s Five Force Models. In turn, the findings can be used to devise appropriate strategies that would enable Starbucks to achieve its objectives.
The PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis would be relevant in assessing the external factors affecting the performance of Starbucks Coffee International. This is because it provides detailed information on the level of threats or opportunities which the organization stands to face from the macro-environment. In turn, the evaluation provides findings which are necessary for the purposes of decision making and strategic planning (Gillespie, 2007). In terms of political factors, Starbucks is faced with markets that are regionally integrated and developed infrastructure. The integrated markets are an opportunity to Starbucks since the increase its potential market base globally. When governments develop infrastructure within their country’s boundaries, they provide an incentive for the company to expand. This can be achieved easily since Starbucks would be able to reach its suppliers and consumers with ease (Wrigley & Lowe, 2014). However, the company faces bureaucratic red tape in most developing countries. This makes it difficult to access new markets in such regions and hence, it creates a threat to the company’s expansion.
The company is also faced with economic factors which have the potential to either limit or expand its operations globally. These factors include; increasing labor costs, high growth rate of developing countries and decreasing unemployment rates. With declining unemployment rates, most people have access to income. It is this income that enables them to be customers at Starbucks Coffee and generate revenue for the company. Also, there is more revenue available in the markets as more countries develop. These two factors create an opportunity for Starbucks to tap and fully exploit. However, the increasing labor costs imply that the firm has to spend more when paying its suppliers. For instance, in the event that coffee bean farmers demand more pay, the firm has to appropriate compensate them so as to retain its suppliers (Roper, 2012). This increases its expenditure (cost of production) and is perceived as a threat to the performance of Starbucks.
The social factors influencing Starbucks Coffee environment involve; widespread coffee culture, increasing number of the middle class and the growing rate of health consciousness. For a fact, Starbucks has increased its provision of a variety of healthy products (Simon, 2011). As such, health-cautious consumers are attracted to the shops which sell Starbuck products. Over time, there has been an increase culture of coffee consumption. The coffee lovers like it specially brewed and designed for them according to their preference. This provides an op...