The success of starbuck

The success of starbuck Terms Of Reference This report was commissioned to examine the use of the marketing mix and the contribution of the design function in the success of Starbuck. This report is presented to Dr. Daniel Wade Clarke and the due date is 22nd February 2010. Recommendations are provided in the end. Procedure Organisations own literature has been used in this report. Online textbook and newspapers has been followed to complete this project report.   Nature Of The Organisation Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim wherever there is a demand for great coffee. In 1970 the first Starbucks was open. The name comes from Herman Melvilles Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the worlds finest coffees to the cold, thirsty people of Seattle. In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee Company stores in the UK. The two companies shared a common culture, focussing on a great commitment to customised coffee, similar company values and a mutual respect for people and the environment. (Source www.starbucks.co.uk ) Marketing Mix And NPDs Relation To Starbucks? The marketing mix concept is one of the core concepts of marketing theory. According to Rafiq and Ahmed (1995, p.4) that in recent years, the popular version of this concept McCarthys (1964) 4Ps (product, price, promotion and place) has increasingly come under attack in different marketing contexts. Because 4Ps do not take sufficient account of people, process and physical evidence in service marketing. In particular Booms and Biters (1981) extension of the 4Ps framework to include process, physical evidence and participants, has gained widespread acceptance in the services marketing literature. Furthermore Jobber (2004, p.21) adds to this â€Å" In services ,people often are the service itself; the process or how the service is delivered to the customer is usually a key part of the service, and the physical evidence should be considered as a separate element in the services marketing mix†. Nevertheless, there is no absolute reason why these extensions cannot be incorporated w ithin the 4Ps framework. The elements of the marketing mix are the followings; (1) Product (2) Price (3) Place (4) Promotion (5) People (6) Processes (7) Physical Evidence Product The Product decision involves deciding what goods or services should be offered to a group of customers. Brassington and Pettitt (2003, p.25) state that â€Å"it is about not only what to make, but when to make it, how to make it, and how to ensure that it has a long and profitable life†. Clearly product is the important element any company will needs to consider product features/ benefits, branding, packing and after-sales service after its development. Coffee is at the heart of Starbucks history. Starbucks sample coffees from around the world more than 150,000 cups a year. Coffee is the core product of Starbucks as defined by Brassington and Pettitt (2003, p.268) â€Å"core product represents the heart of the product, the main reason for its existence and purchase†. It is coffee which provides the functional or psychological definition of Starbucks towards its customers. Below is the diagram of Strategic thrust model, which is effective in marketing planning. Starbucks is using two marketing strategies towards their products.   First one is Product development and second is Market development. According to Jobber (2004, p.47) that product development involves improving current products or developing new products for current markets. As we know Starbucks offer convenience and non durable products in the form of coffee, when it comes to product development they are continuously differentiating their product (coffee) in the form of mild, smooth and bold categories, which increases their product line although their core product is the same. Starbucks also offer merchandise and gifts and fresh food just to increase their product range or product mix for the competitive market. This type of newness can be called new to the company, a significant innovation for the market. Furthermore Jobber (2004, p.47) also explains market development when current products are sold in new markets. This may involve moving into new geographical markets, as Starbucks has done moving into European market segments. But sometimes thes e strategies can be costly for example they have divided their coffee into three categories and they are getting their product from different regions which can be more costly then the product itself. Guardian (18th February 2009) reported that in the second half of 2008 Britain and the US fell into recession because of the credit crunch, but that so many other countries tumbled in even quicker. Germanys economy contracted by 2.1% in the fourth quarter of year 2008, Italys by 1.8%, Britains by 1.5% and Frances by 1.2%. All are significant, the worst for decades and worse than the USs 0.9% fall in the same period. Starbucks seems heavily exposed in countries such as Britain and the US, where consumer confidence and spending have shrivelled. But it also has plenty of stores across mainland Europe so no doubt they have experienced a cooling off in demand as cash-strapped consumers opts for cheaper drinks. Price Brassington and Pettitt (2003, p.392) explains price in a more interesting way according to them â€Å"price might seem to be the least complicated and perhaps the least interesting element of the marketing mix, not having the tangibility of the product, the glamour of advertising of the atmosphere of retailing†. Price however, play a very important role in the lives of both marketers and customers, and deserves as much strategic consideration as any other marketing tool because of it company receives some units for the actual product or service which is being marketed.   Starbucks main competitors are Costa coffee and Caffe Nero to compete with them Starbucks applies competition based pricing strategy. According to Brassington and Pettitt (2003, p.452) its very dangerous setting prices without knowing what is happening in the market, particularly with respect to ones competitors. There are two aspect of competition that influence an organisations pricing. The first is the structure of the market and the second is products perceived value in the market. When a product is more differentiated then its competitors product the more autonomy the organisation has in pricing it. Hence Starbucks has a range of different product they have slight advantage over their competitors and for that reason buyers come to value its unique benefits. However sometimes setting a high price then your competitors is not a good tactics. According to Times (24th July 2008) Starbucks is peddling the worst coffee at the highest prices according to a survey of the big three coffee houses on Britains high streets. The Which? Magazine survey that choosing the worlds largest coffee chain (Starbucks) instead of an independent shop for your cappuccino three mornings a week will cost you  £126 a year. Coffee Prices Starbucks Medium cappuccino  £2.29; single espresso  £1.40 Costa Coffee Medium cappuccino  £2.27; single espresso  £1.33 Caffe Nero Medium cappuccino  £1.80; single espresso  £1.25 Clearly setting high prices will not only effect Starbucks position in the market but also it will result a down turn in the demand curve. In another example The Observer (18th October 2009) reveals that at Starbucks, a slice of chocolate cake costs  £2.30 and a small English breakfast tea is  £1.40. But a pack of four cupcakes costs  £2.99 from Marks Spencer and a box of 80 Fairtrade Extra Strong tea bags is  £1.89. So clearly it is not only the core product which is expensive but also the other product range as well. Place According to Jobber (2004, p.634) â€Å"product need to e available in adequate quantities, in convenient locations and at times when customers want to buy them†. Producing products that customers want, pricing them correctly and after that made them available, is necessary for any business. But for that accurate channel strategy is very important for any business. Starbucks has their own of distribution channel. A channel of distribution is very important element. All products whether they are consumer, industrial goods or services require a channel of distribution. Starbucks apply consumer channel strategy in which producers have a direct contact to consumer. According to Jobber (2004, p.637) producer use this strategy to cut out the distribution profit margin. The consumer and manufacturer deal directly with each other. Direct selling is more effective then involvement of a distributor. The following present direct supply channel or producer direct to consumer. Starbucks has more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. Starbucks has coffee stores in every part of the UK. Guardian (21st January 2010) reveals that Starbucks UK management reckons that the chain will end the year 2010 back above 700 stores compare to its current 661 stores. However intensive distribution of the product (Starbucks stores) is not a good strategy because Starbucks has to compete in all sorts of markets in the same time, which is very costly in the current economic climate. The second most important thing, which is Starbuck lacking, is the franchisees. According to Brassington and Pettitt (2003, p.473) â€Å"A franchisee holds a contract to supply and market a product or service to the design or blueprint of the franchisor (the owner or originator of the product or service)†. Starbucks want to expand their business in the whole word a franchisee will be best available solution for them. McDon alds is an indication of the level of detail covered by a franchise agreement then why Starbucks are not following the same path as their other companies are following. National or regional advertising in addition to any undertaken by the franchisee can play an important role in building a stronger system brand identity. Promotion According to Jobber (2004, p.18) promotional mix involve advertising, personal selling, sales promotions, public relations, direct marketing, and internet and online promotion. By which we can easily made aware the target audience of the existence of a product or service, and the benefits it confers to the customers. Marketing communication is a very important element; no organisation can afford either the financial or reputational damage caused by poorly planned or implemented communication campaigns. Starbucks use all of the promotional mix ingredients to target their audience they made good use of internet and online promotion. They target their audience through social networking website such as FaceBook and Twitter. They also use YouTube for their promotion and other social campaigns. Starbucks is also using social and cultural aspect of the environment for their sale promotions and public relations. Brassington and Pettitt (2003, p.587) explains that â€Å"Social and cultural a spects of the environment will mostly have an impact on the message element of communication†. According to Guardian (2nd September 2009) Starbucks has launched a multimillion-pound ad campaign promoting its ethical values as it makes the vast majority of its UK coffee Fairtrade. Clearly they are using a social issue to make public relation with their target audience, and also Shared Planet (Guardian 2008) the Starbucks initiative launched in year 2008. Its a collection of goals, by 2015 they promise to have all their coffee ethically sourced and all their cups recyclable. Starbucks is using these issues to defend their selves against the environmental campaigners. According to Guardian (2nd September 2009) at Starbucks millions of litres of water are wasted in its coffee shops every day, contradicting its much-boasted green credentials. An investigation by the Sun revealed that over 23.4m litres of water are poured down the drains of 10,000 outlets worldwide due to a policy of keeping a tap running non-stop; Which is totally unfair because on oneside Starbucks run its campaign to save the earth and on the other side they are doing things which are against their campaign. People Brassington and Pettitt (2003, p.28) describes that services often depends on people to perform them, creating and delivering the product as the customer waits.   It is dependent upon people and interaction between people. Rafiq and Ahmed (1995, p.7) adds that â€Å"Marketing managers therefore need to manage not only the service provider-customer interface but also the actions of other customers†. For example, the number, type and behaviour of people will partly determine the enjoyment of a meal at a Starbucks coffee store. Therefore observation of everything in the surrounding of stores environment is very important for any organisations. Especially it is more important for Starbucks because they are their own producer and retailer so anything lacking in the consumer attraction can easily put a bad image on Starbucks brand name. If there is any need for training it will be the best solution for getting service delivery from employees. Processes Processes are all the administrative and bureaucratic functions of the organisation. In the process mechanisms there are flows of activities by which services are acquired. Marketers, therefore, have to ensure that customers understand the process of acquiring a service (Rafiq and Ahmed, 1995, p.7). Performance of the product can be separated from the customer but on the other hand, the customer cannot be separated from an experience good. Therefore his degree of involvement in the process of interaction is always high towards the final product (Moorthi, 2002, p.266). Adding to this by Brassington and Pettitt (2003, p.28) marketer also has to think carefully about how the service is delivered, and what quality controls can be built in so that the customer can be confident that they know what to expect each time they consume the service product. In Starbucks there are number of process mechanisms, which involve customer serving, telephonic customer services, online shopping, and Starbucks reward card. Well designed processes are needed as the service is delivered to ensure that the customer gets through with minimum fuss and delay and that all elements of the services are properly delivered. Process is all about quality improvement of any service which Starbucks provide. Physical Evidence   Physical evidence in the Booms and Bitner framework refers to the environment in which the service is delivered and any tangible goods that facilitate the performance and communication of the service. Physical evidence is important because customers use tangible clues to assess the quality of service provided (Rafiq and Ahmed, 1995, p.7). The physical environment itself is instrumental in customers assessment of the quality and level of service they can expect, for example in Starbucks stores. In fact, the physical environment is part of the product itself. The need for offering physical evidence is high. In the case of Starbucks the intangible (Service delivery) comes first and the tangible (final product coffee) later. Newness of the environment (Starbucks Stores) can also have a positive effect on customers purchase decision. Starbucks announcement to redesign its stores in UK will put a positive effect on their brand name as well as their customer involvement (Guardian October 20 09). Conclusion Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim wherever there is a demand for great coffee. Starbucks exclusively divided their product in to three categories, which increases their product line, Starbucks also offer merchandise and gifts and fresh food just to increase their product range or product mix for the competitive market. This type of newness can be called new to the company, a significant innovation for the market. Starbucks is also involved into new geographical markets, as Starbucks has done in Europe moving into new market segments. But sometimes these strategies can be costly. Starbucks apply competition based pricing strategy. Hence Starbucks has a range of different product they have slight advantage over their competitors and for that reason buyers come to value its unique benefits. Starbucks is peddling the worst coffee at the highest prices according to a survey of the big three coffee houses on Britains high streets. Starbucks has their own of distribution channel. However intensive distribution of the product (Starbucks stores) is not a good strategy because Starbucks has to compete in all sorts of markets in the same time, which is very costly in the current economic climate. National or regional advertising in addition to any undertaken by the franchisee can play an important role in building a stronger system brand identity. Starbucks use all of the promotional mix ingredients to target their audience they made good use of internet and online promotion. Starbucks is also using social and cultural aspect of the environment for their sale promotions and public relations. Starbucks is using these issues to defend their selves against the environmental campaigners. Starbucks needs to focus on their because they are their own producer and retailer so anything lacking in the consumer attraction can easily put a bad image on Starbucks brand name. If there is any need for training it will be the best solution for getting service delivery from employees. Starbucks needs continuous improvement of their processes mechanism. Physical evidence is important because customers use tangible clues to assess the quality of service provided. Starbucks announcement to redesign its stores in UK is good strategy which will put a positive effect on their brand name as well as their customer involvement. References Booms, B.H. and Bitner, M.J. (1981), â€Å"Marketing strategies and organization structures for service firms†, in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 47-51 [Accessed: 20/02/2010] Brassington, F. and Pettitt, S. (2003) Principles and Practice of Marketing: 3rd Edition: Pearson Education Limited [Accessed: 17/02/2010] Jobber, D. (2004) Principles and Practice of Marketing: 4th Edition: McGraw-Hill International (UK) Limited [Accessed: 17/02/2010] Kotler, P. (2003) Marketing Management 11th Edition: Pearson Education Limited [Accessed: 17/02/2010] Moorthi, Y.L.R. (2002), â€Å"An approach to branding services†, Journal of Services Marketing, Vol.16 (3), pp.259-274 [Accessed: 21/02/2010] Rafiq, M. and Ahmed, P.K. (1995), â€Å"Using the 7Ps as a generic marketing mix: an exploratory survey of UK and European marketing academics†, Marketing Intelligence Planning, Vol. 13 (9), pp. 4-15 [Accessed: 17/02/2010] The Story of Starbucks [online] http://starbucks.co.uk/en-GB/_About+Starbucks/ [Accessed: 15/02/10] Times Online, (24th January 2008) Best coffee on high street? Not Starbucks by Nico Hines [on-line] http://www.timesonline.co.uk/tol/news/uk/article3245914.ece [Accessed: 18/02/2010] The Guardian, (6th October 2008) Starbucks wastes millions of litres of water a day by Angela Balakrishnan [on-line] http://www.guardian.co.uk/uk/2008/oct/06/water.drought [Accessed: 18/02/2010] The Guardian, (5th October 2008) Starbucks to redesign shops [on-line] http://www.guardian.co.uk/lifeandstyle/wordofmouth/2009/sep/18/starbucks-rebrand-branding-coffee [Accessed: 18/02/2010] The Guardian, (November 2008) Regular or decaf ? America decides [on-line] http://www.guardian.co.uk/lifeandstyle/wordofmouth/2008/nov/04/foodanddrink1 [Accessed: 18/02/2010] The Guardian, (18th February 2009) Starbucks row: Its off the boil almost everywhere by Ashley Seager [on-line] http://www.guardian.co.uk/business/2009/feb/18/starbucks-britain-failing-economy [Accessed: 18/02/2010] The Guardian, (2nd September 2009) Starbucks ads trumpet Fairtrade move by Mark Sweney [on-line] http://www.guardian.co.uk/media/2009/sep/02/starbucks-fairtrade-advertising [Accessed: 18/02/2010] The Observer, (18th October 2009) Dinner party too costly ? Let them eat cake by Huma Qureshi [on-line] http://www.guardian.co.uk/money/2009/oct/19/dinner-party-costly-eat-cake [Accessed: 18/02/2010] The Guardian, (21st January 2010) Starbucks legend delivers recovery by thinking smaller by David Teather [on-line] http://www.guardian.co.uk/business/2010/jan/21/starbucks-howard-schultz [Accessed: 18/02/2010]

Data Base Management

Data Base:It is the collection of data regarding an individual, group of people working together, a department in an organization or an organization.[1]Types of Data Base:Depending on the number of people, database is classified into 4 types.1.  Ã‚  Ã‚  Ã‚  Ã‚   Personal Database:   It is for an individual or single user.2.  Ã‚  Ã‚  Ã‚  Ã‚   Workgroup Database:   If the employees number is in between 10-15 people.3.  Ã‚  Ã‚  Ã‚  Ã‚   Department Database: It is for 15-50 employees.4.  Ã‚  Ã‚  Ã‚  Ã‚   Enterprise Database: If the no of employees is more than 50 people.Database Model:A Database Model is a visual plan for building a database. It focuses on representing the data as the user actually sees it, bridging between the concepts that make up real-world events.Raw DataThis is the process in which, raw data is collected and is converted into information which is the filtered raw data. Then, the information is described in the proper form called as the meta data which is the data description and this data is collected to form a database. So, database is the organized collection of related data.Data Definition:One very important role of a database management system is to maintain the data definitions for each table and columns in the database.   Each piece of data must be assigned a name, a data type (e.g. date, alphanumeric, numeric) and a mandatory/optional status.[2]Architecture:There are three levels in the design architecture of the database.1.  Ã‚  Ã‚  Ã‚  Ã‚   User design:   It can be used by any no of users. It is operational database.2.      Logical design: It is the logical structure of database. It is irrespective of the hardware or other things. It concerns only with logical structure.3.  Ã‚  Ã‚  Ã‚  Ã‚   Physical design: It concerns with the hardware requirements of the data base. It is not related to either the user or the logical structure.There are different types of DBMS products: relational, network and hierarchical etc but the most commonly used database management system by most of the commercial organization is the Relational Database Management Systems (RDBMS).Data Structures: Data structures (fields, records, files and objects) optimized to deal with very large amounts of data stored on a permanent data storage device (which implies relatively slow access compared to volatile main memory).Database Project:The database project would be developed in different stages like1.  Ã‚  Ã‚  Ã‚  Ã‚   Initiation which includes the gathering and defining the data and their types.2.  Ã‚  Ã‚  Ã‚  Ã‚   Planning of the requirement and how to generate the required outputs.3.  Ã‚  Ã‚  Ã‚  Ã‚   Design which includes two parts1.  Ã‚  Ã‚  Ã‚  Ã‚   Physical Design: Gathering the hardware requirements.2.  Ã‚  Ã‚  Ã‚  Ã‚   Logical Design:   Designing the logical structure of database.4.  Ã‚  Ã‚  Ã‚  Ã‚   Implementation in which we provide the required data to the database.5.  Ã‚  Ã‚  Ã‚  Ã‚   Maintenan ce: It includes the proper co-ordination of the input and the  Ã‚  Ã‚   requirement.Maintenance:The database project will be maintained using a repository server which provides all the required data and logical functions that are used in the project.Deploy:It is a process of delivery of the output obtained in the project to the client who sends the feed back depending on the report he receives.References:Encyclopedia:Data base management systems, Retrieved 12:06, 17 December 2007.https://en.wikipedia.org/wiki/DatabaseBook:Robert V.Henry, Data Base Management System.Internet blog:1. Information Technology Toolbox, Inc. (1998-2007)2. Database Management systems.[1] Encyclopedia:  Data base management systems, Retrieved 12:06, 17 December 2007.https://en.wikipedia.org/wiki/Database [2] Information Technology Toolbox, Inc. (1998-2007)http://database.ittoolbox.com/

Dracula As A Symbol Of Male Power - 1622 Words

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Dracula embodies male power through his social position, Jonathan Harker in his journal recounts a conversation he had with the Count when he speaks of his family lineage ‘the pride of his house and name is his own pride, that their glory is his glory, that their fate is his fate’ (Pg.52) The Count represents an ancient family line that embodies male power, especially during the time that Dracula was published where the higher social classes ruled. 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Marginalization As A Social Problem For Decades Essay

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This research paper will present the history of hate crime law, the scope of the problem, the theory and psychology behind hateful/prejudicial behaviors, characteristics of perpetrators and victimsRead MoreCyclical Oppression Of New Zealand : How One Of The Fairest?1699 Words   |  7 PagesMaori population has been unable to escape this cycle of poverty for decades, with 58.4% of the Maori population falling below 60% median equivalent disposable income before structure compared to 37.8% of Pakeha. These numbers change after government transfers are included, but there are â€Å"substantial differences in the poverty reduction efficiency, at both poverty levels, with PÄ kehÄ  having a far greater pover ty reduction from social security transfers than MÄ ori.† This inability of the government toRead MoreGlobalization: The Route to Global Destruction Essay675 Words   |  3 PagesgGlobalization?h is a very uneven process, with unequal distribution of benefits and losses. The problem is that of who gains and loses from the potential benefits. This imbalance leads to polarization or separation between the few rich countries or individuals that gain benefits, and the many other countries that lose out or are marginalized. Globalization, polarization, wealth concentration and marginalization are therefore linked through the same process. In this process, investment resources, growthRead MoreThe Demographic Changes in the US1438 Words   |  6 PagesDemography is the science of human populations and their change over time, and the United States Census reveals important demographic changes decade-by-decade that affect politics, government and public policy. One of the most impor tant demographic trends is that the U.S. has become a far more multicultural and multilingual society than it was in 1960, due in part from changes in the immigration laws in 1965 that abolished the quota system of the National Origins Act that favored European immigrantsRead MoreNeoliberalism And Its Impact On Social Work Practice1466 Words   |  6 Pagesthe 1970’s and 1980’s after advocates supported the economic liberalization policies such as the rule of the market, cutting public expenditure for social services, deregulation, privatization, and eliminating the concept of the public good. Neoliberalism has had a significant affect on social work practice over the decades. There are strategies social workers as well as individuals can use to challenge neoliberalism. The rule of the market by liberating free enterprise or private enterprise resultedRead MoreOppression Of The Catholic Religion794 Words   |  4 Pages Many people might not have known that oppression is present in regard to religion. There have been many times over the past decades were overt forms of oppression have been present when a dominant religious group takes over a subordinated group. In a reading this week, Christian Privilege is talked about. This type of privilege surprised me because I did not even know it existed. The reading talked about how dominant religious would punish individuals who went against their religion and tried to