marketing-plan-for-starbucks星巴克市场分析

1FinalProjectThegrowthstrategyofthecompanyStarbucksinChina“Wearen’tinthecoffeebusiness,servingpeople,Weareinthepeoplebusiness,servingcoffee-------------HowardSchultzCEO2014FALLHFT4653Groupmembers:DuxiziMoanqiLiuyijinYanjieChenmin2ListofContents1.Introduction……………………………………………………………………………………………………..….32.Problemformulation………………………………………………………………………………………..….33.MethodologyandLimitation………………………………………………………………………………..34.MacroandmicroAnalysis………………………………………………………………………………..…..4-4.1Countryprofile……………………………..………………………………………………………………....4-4.2Companyprofile…………………………………………………………………………………………….....5-4.3FinalDecision…………………………………………………………………………………………………..75.Recommendation……………………………………………………………………………………………………….….7-5.1Entrymode………………………………….…………………………………………………………..……….7-5.2Segmentationandtargetmarket……………………………………………………………….……….9-5.3Suggestedpositionandlocation………………………………………………………………………..10-5.4SuggestedValuechain…………………………………………………………………………………..…..116.Conclusion………………………………………………………………………………………………………..….127.Reference……………………………………………………………………………………………………….…….138.Appendix………………………………………………………………………………………………….…….……1431.Introduction:StarbucksCorporationhasbeenthemostsuccessfulcoffeechaininthepastyears.ThecompanyhasfocusedoncreatinganetworkofstoresinUSwhileopeningnewlocationsaroundtheworld.Nowadays,therecessioniseffectingtheeconomyoftheentireworldbadly,noexceptionforthecoffeemarket.Starbucks,asthecoffeechaingiant,isseekingforanewmarketinordertokeeptheleaderpositionintheindustry.Meanwhile,attheothersideoftheworld,inIndia,acountryknownfortheteaconsumption,coffeeisbecomingmoreandmorepopular.AccordingtoEuromonitorInternational,in2009,thetotalvolumeofcoffeeintheIndianmarketwas44,209.8tones,thefifthlargestcoffeeconsumptioncountryintheworld.SoisIndiaapossiblefuturemarketforStarbucks?2.Problemformulation:StarbucksisconsideringgoingtoIndia.HowcanStarbucksentertheIndianmarket?IsIndiaanattractivemarketforStarbucks?WhatcouldbethebestentrymodeforStarbucksinIndia?3.LimitationandMethodology:Thelimitationsoftheprojectarethepagelimitandtherestrictionincontactingthecompany.Regardingthecompanydata,thelimitationisinfocusingontheentireproductrangeofStarbucks,soasaconsequencewehavechoosetofocusonlyonthetwomainproducts:coffeeandtea.Wehaveappliedsecondarydatasources/quantitativedatasources.Theresearchmethodwasthedeskresearch.Thetheoriesusedintheprojectare:themicroandmacroanalysis,theSWOTanalysis,theentrymodeanalysis,segmentationandpositioning,targetmarketand4valuechain.Wehaveusedthetheoriestocreateanoverviewofthesubjectfieldandapplyitforsolvingtheprojectproblemformulation.4.Macroandmicroanalysis4.1CountryprofileEconomyIn1991,theIndianeconomyexperiencedadramaticallygrowthafterthegovernmentliberalizednumberofindustriesopentoforeigninvestment,loosenedapprovalrequirementsandallowedmajorityforeignequityownership1.Theeconomyhadagrowthrateof5-7%inaveragesince1991till2007,butanindustrialslowdownearlyin2008,followedbytheglobalfinancialcrisis,ledannualGDPgrowthtoslowto6.1%in2009(Appendix1),butitisstillsecondhighestgrowthintheworldamongmajoreconomies.IncomeTheincomepercapitaofIndiansincreasedby14.2%in2006-20072.PercapitaincomeatcurrentpriceswasestimatedatRs29,642in2006-20073,comparedtoRs25,9564forthepreviousyear.Asaresultoftheincreaseintotalincome,themeanannualdisposableincomealsoincreasedbyalmost150%from1995-2007.GovernmentandlawsTheintroductionofVATinIndiahasbeenakeydevelopment.InApril2005,itwasthevatwasimplementedinatastandardrateof12.5%5.ThisnewsystemBusinesseswillconsequentlyhavetoraisepricestocompensateforhigherproductioncostsandthiswillaffectconsumerspending.Competitivelandscape1FactbookCIA2Datamonitor/Database/bononline3Euromonitor/Database/bononline4Euromonitor/Datebase/bononline5Euromonitor/Database/bononline5InternationalcompaniessuchasNestleIndiaandHindustanUnileveraretheleadersinthecoffeeindustryinIndia.DomesticplayerssuchasTataCoffeeorBaristaCaffeeareactiveinfreshgroundcoffee.NootherdomesticplayerwasabletobecomeestablishedasanIndianbrandwiththeirpresencerestrictedtothesouthernstatesinIndia.GeographicsandDemographicsIndiaisthesecondmostpopulatedcountryintheworldwithapopulationofabout1.03billionpeople.TheagestructureofIndialookslikethis:0-14years:30.5%(male187,197,389/female165,285,592)15-64years:64.3%(male384,131,994/female359,795,835)65yearsandover:5.2%(male28,816,115/female31,670,841)(2009est.)“Geographicallyspeaking,IndiaislocatedinSouthAsiaintheEasternHemisphere.Thereare25statesandNewDelhiisthecapital.ThenationallanguageisHindiandabout83%ofthepopulationspeaksit.Otherthanthat,Indiahas18officiallanguagesprimarilyassociatedwiththedifferentstates”6.4.2CompanyprofileStarbuckswasestablishedin1971,InspiredbycoffeebarsinMilan,Italy,HowardSchultz7wantedtointroducethecoffeebarculturetoAmerica.Starbucksmissionstatementisto“establishStarbucksasthepremierpurveyorofthefinestcoffeeintheworldwhilemaintainingouruncompromisingprincipleswhilewegrow”.ExpansionStarbuckshasgrownatincredibleratesincetheopeningofitsfirstcoffeebar.NowStarbuckshasmorethan16,000r