Keynows

 Developing the New Brand You will be launching your new brand over the next 2 units. Because you have completed research on competitors—including a Top 100 U.S.-based brand—and received feedback from your colleagues, you have enough information to introduce your brand.

Part 1: Competitive Analysis

In this portion of the brand launch, you will cover the following areas:

• Industry/category analysis
• Competitive analysis (positioning map)

Part 1 of the Individual Project should be 2.5–3 pages in length. Be sure to cite your resources.

Part 2: The Strategy

The strategy will now become more apparent as you begin this section:

• Brand strategic plan (vision/objectives/strategies/tactics)
• Target customer segmentation analysis
• Customer insight (Primary research is required in this case because the brand is fictitious.)
• Brand essence/equity elements

Part 2 of the Individual Project should be 3–4 pages in length. Be sure to cite your resources.

Your assignment should contain a cover page, an abstract page, and a reference page in addition to the body. The body of the paper should be 6–7 pages in length, starting with a brief 1-paragraph introduction and ending with a short conclusion. The entire submission will be 11 pages in length. Please use template attached.

APA Papers

1

1

Unit 1 Individual Project

Vianna Jaramillo

American Intercontinental University

Professional Application

March 15, 2021

Abstract

The paper begins with an introduction that provides a brief overview of the selected brand. This section is followed by a competitor selection section, which determines the current ranking of the selected brand in the best global brand rankings. It also discusses the company’s 4ps of marketing and how they contribute to customer attraction and retention. The subsequent segment investigates the brand’s background including how it brands the products, how it markets them and even selling. This is followed by a section titled “Main Research”, which provides information on how to collect the data used in this article and its demographic information. A list of survey questions is also provided along with an analysis of the results. The conclusion of this article summarizes the main points discussed.

Professional Application

Introduction

Starbucks is an American organization that is well known for its bean coffee. The Company has been in the industry since 1971. The company’s leadership has steered it to become a global leader in the coffee shop industry. Starbucks is currently under the leadership of Kevin Johnson, who takes over from Howard Schultz.

Part 1: Competitor Selection

One of the best global brands ranked in the top 100 in the year 2020 is Starbucks. The brand ranks 56th, with an estimated brand value of 11,246. In the previous year, the brand ranked 48th, which means that its attractiveness dropped by 6 places. Despite the sharp decline in the ranking, Starbucks coffee is still one of the best brands in the world. Its country of origin is the United States because its headquarters is in Seattle, Washington. The organization’s website is

https://www.starbucks.com/

.

Analysis of products.

Starbucks organization as a brand is well informed of its customers’ diverse needs. To meet these needs, it is highly innovative in products. Some of the products offered by the company include coffee, tea, merchandise, Frappuccino, smoothies, and baked goods.

Analysis of price.

Starbucks is known for its high-quality pricing technology. Target customers believe that the high price of the product translates into high value. Contrasted to its closest rivals, Starbucks’ products are more expensive. Through the premium pricing strategy, the organization has been able to retain its premium brand perception and image.

Analysis of distribution.

The organization has a very clear strategy on how customers can easily access the product. The many avenues for Starbucks’ products include coffeehouses, mobile apps as well as through retailers. The organization has traditionally relied on cafes, but over time, it adopted technology and offered products to customers through online stores (Greenspan, 2019).

Analysis of promotion.

Promotion, as an important part of the marketing mix, is related to the technology used by the company to disseminate products and company information. Starbucks’ promotional mix consists of public relations, mainstream and social media marketing, sales promotion as well as word of mouth marketing.

Part 2: Brand Background

Starbucks as a brand adopts an efficient and outstanding strategy to market its products. First, the company has adopted an efficient and excellent technology to differentiate itself from its competitors. One of the pillars of product marketing is product quality. The company’s products have a superior image in the market due to the great taste and quality. The company’s products have unique and outstanding flavor that makes it easy to market (Munson, 2013). Second, the company positions itself as a premium distributor, so it focuses on how to be consistent in premium brands. In addition, the shops where customers can get products are carefully designed to create a feeling of relaxation and enjoyment. Starbucks Coffee sells its products through multiple channels. For example, it has a brick coffee shop where customers can walk in and enjoy the product. Second, it has online stores to reach customers who are far away from the physical stores. The customers can order the products online and have them delivered to them. It also utilizes retail stores to increase the ease with which customers can access the products.

Identify all brand elements.

Starbucks branded its products to reflect the upper class of society where it is positioned. The market segmentation and target market are also a vital factor that explains the company’s success in marketing its products. According to a study conducted in 2018, it was found that the average age of Starbucks customers is 42 years old, and the income is approximately US$90,000. The firm’s

products are available on each of its products. The attractive appearance of the product can also shape its image and increase its brand value. The customers are usually attracted to the products by the outstanding packaging. This implication is that the competitors must devise techniques of branding their products uniquely to match the standards of Starbucks.

Profile two direct or indirect competitive brands for points of parity.

Starbucks’ direct brands include Dunkin’ donuts and McDonalds. The two companies provide companies with direct competition because they deal with similar products. For example, McDonald’s offers snacks such as hamburgers, drinks, sandwiches, desserts, all-day breakfast, and salads. The food provided by Dunkin Donuts includes hot decaffeinated coffee, flavored coffee, bagels, iced coffee, muffins, and donuts. The aspect of direct competitors implies that they offer similar products, distribution channels and pricing strategies. The implication is that each organization must find its areas of distinction for it to succeed in the market and industry at large (Team A.T. 2019).

Profile two direct or indirect competitive brands for points of difference.

Starbucks also has indirect competitors. Some of Starbucks’ indirect competitors include The Republic of Tea, Twining’s, and Tazo among others. The Republic of Tea is a private company located in California that offers nearly three hundred types of tea. Due to its unique tea flavor, the organization has obtained reliable certifications worldwide, with annual sales of approximately US$20 million. Some of The Republic of Tea’s famous brands include pumpkin spice black tea, joy black tea as well as hot apple cider, among others. On the other hand, the products offered by Tazo Tea Company include Tazo Zen green tea and Juniper mint honey. Tazo Tea Company is owned by Unilever based in Kent, Washington. Both the direct and indirect competitors offer stiff competition to the company regardless of their size (Best Global Brands, 2020).

Part 3: Primary Research

The concept of buyer behavior includes actions and decisions taken by individuals when purchasing products and commodities for group or individual use. There are different factors that come into play when a person is making a purchase decision. Some of these factors include the pricing of the products or services, the ease of access, the quality of the products as well as the brand image of the seller. There are different types of buyer behavior. Common behaviors include complex buyer behavior, diversity-seeking behavior, habitual purchasing behavior, and reducing disharmony in purchasing behavior. Habitual buying behavior applies to the situation where customers buy products for daily use. Due to the nature of Starbucks coffee pricing, customers will use inconsistent factors to reduce purchasing behavior. This issue is a type of buying behavior where customers are highly involved and carry out intense research because of the high prices involved or the fact that they are infrequent buyers of the product or service. Organizations have put in a lot of effort to ensure that less loyalty-seeking behaviors are reduced. For different reasons, customers are used to switching from one brand to another. Common reasons include lack of variety, high prices, low quality products, and even dissatisfaction (Sydorenko, 2020).

Data Collection.

Companies can use different data collection techniques to collect data about the use of their products and their customers. Some of the common techniques include interviews, questionnaires, observation, and surveys. The Starbucks marketing team relies on two methods to collect data about the buyer behavior of its customers. These methods are interviews and surveys. Regarding the survey, the team designed twelve survey questions and managed them face-to-face with the interviewees. Some of the team members visited the various physical stores of the company and randomly administered the questions to the customers who were at the site. Other members approached respondents outside Starbucks’ stores. The data was collected over a period of one week, most of the time in the evening. Face-to-face surveys are more effective and productive than other forms of surveys. The researcher just asked the interviewee a question and waited for an immediate answer. In addition, the researcher can determine whether the respondent is willing to answer the question. It is also possible for the respondents to seek clarification from researchers and therefore, the data collected has high levels of accuracy (Elswick, 2017). Interviews are also used for data collection. The team identified several customers and conducted interviews directly. Researchers were able to get prompt answers and clarified any issues that needed clarification. The researchers target young professionals and the elderly. This event implies that teens and children were not interviewed.

Profile two direct or indirect competitive brands for points of parity and difference.

·

How frequent do you visit a Starbucks physical store or order a product online? -A few days in a week

· Are you accompanied by other people as you go to Starbucks or do you go alone?
-Accompanied at times but mostly alone

· How would you rate Starbucks environment and atmosphere in relation to those of close rivals like McDonalds and Dunkin Donuts? – Excellent

· Do you visit other brands other than Starbucks? Which ones? -I rarely visit other brands

· Do you think Starbucks incorporation offers varied products that meet the diverse needs of the customers? -There is room for improvement

· Do you believe Starbucks’ pricing strategy matches the industry prices or do you think close competitors offer fair prices? -I think its prices are relatively higher compared to those of rivals like McDonalds

· How would you compare the quality of services in our organization with regards to staff friendliness compared to that of other companies in the industry? -Warm and friendly

· Do you prefer enjoying your pastry and beverages at the store or do you grab-and-go? – Sometimes grab-and-go and others I enjoy them here

· Starbucks offers more promotional packages than McDonalds and Dunkin Donuts, do you agree or disagree? – Strongly disagree

· How frequent do you utilize Starbucks technology such as Wi-Fi and Mobile application? Very often

· Do prices determine whether you will buy from Starbucks or from competitors? – No, I go for the quality

· Which area do you think the organization should improve on? – diversify the pastries

Primary research results.

Respondents

Gender

Age

Employment status

1

Female

22

Working

2

Male

46

Employed

3

Male

34

Employed

4

Female

29

Employed

5

Male

60

About to retire

6

Female

35

Working

7

Male

44

Employed

8

Female

52

Employed

9

Female

27

Employed

10

Male

53

Employed

11

Female

60

Voluntary retirement

Analysis.

Based on the responses provided by most of the respondents, the premium pricing technique of Starbucks does not deter them from purchasing from Starbucks. Most of the customers went for quality rather than the price. Second, customers sometimes enjoy drinks alone, and they even prefer to grab the drinks and go home. The implication is that although the company has an excellent environment, it can improve it to attract many customers at its physical stores.

Conclusion

Starbucks has been in this industry for a long time, which means it has acquired a lot of knowledge and expertise on how to deal with customers and their needs. The organization has adopted various strategies that have given it a competitive advantage in the industry. Its premium pricing technology has always been one of the ironic strategies to maintain its success. This event is because the customers associate it with quality products.

References

Elswick, S. E. (2017). Data collection: Methods, ethical issues and future directions. New York: Nova.

Greenspan, R. (2019, February 27). Starbucks Corporation’s Marketing Mix (4Ps) Analysis. Retrieved March 15, 2021, from https://panmore.com/starbucks-coffee-marketing-mix-4ps-analysis

MUNSON, C. (2013). ETHICAL PRODUCT SOURCING IN THE STARBUCKS COFFEE SUPPLY CHAIN. Place of publication not identified: FT PRESS.

Sydorenko, N. (2020, November 9). What is Buyer Behavior: Definition, types, patterns, and analysis. Retrieved March 15, 2021, from https://snov.io/glossary/buyer-behavior/

Best Global Brands – 2020 (Interbrand): Ranking The Brands. (n.d.). Retrieved March 15, 2021, from https://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=37

Team, A. T. (2019, March 05). 15 Major Starbucks Competitors List & Indirect Competitors. Retrieved March 15, 2021, from https://www.madsjunction.com/marketing/starbucks-competitors#:~:text=Some of the above Starbucks,Starbucks enjoys distinct competitive advantage.