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Starbucks

Presented by: Alex Arellano Luis Mendoza Maurice Hinrich Thomas Dimitriou November 21, 2013 Practicum #8 Bus 306-01. Starbucks. Entering a Foreign Market. Agenda. Company Background Introducing Venezuela Marketing Mix Integrating The Four P’s Timeline Long Term Planning

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Starbucks

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  1. Presented by:Alex Arellano Luis Mendoza Maurice Hinrich Thomas Dimitriou November 21, 2013 Practicum #8 Bus 306-01 Starbucks Entering a Foreign Market

  2. Agenda Company Background Introducing Venezuela Marketing Mix Integrating The Four P’s Timeline Long Term Planning Learning Outcomes

  3. Company Background Established in 1971 in Seattle’s Pike Place Market The largest coffeehouse in the world Operates in 62 countries Current stock value is $80.15 “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

  4. Venezuela USA: GDP: $15.94 trillion (2012 est.), Country comparison to the world: #2 Tax: 15.6% of GDP Population below poverty line: 15.1% (2010 est.) Median Age: total: 37.2 years Male: 35.9 years female: 38.5 years (2013 est.) Venezuela: GDP $408.5 billion (2012 est.), Country comparison to the world: 34 Tax: 28.7% of GDP (2012 est.) Population below poverty line:31.6% (2011 est.) Median age: total: 26.6 years, Male: 25.9 years female: 27.3 years (2013 est.)

  5. Marketing Mix

  6. Product Product is the value(s) that Starbucks can offer to customers variety of drinks beans sourced from all over the world strong brand recognition great atmosphere

  7. Product Adaptation Taste and atmosphere Breakfast combo Dual product adaptation

  8. Place • The place involves aspects of transporting and storing goods and how to make them available to the customer. An adequate distribution system is essential. • Distribution: • - Caribbean coast roughly 9 miles away from Caracas • - Major distribution via ports of La Guaira and Puerto Cabello and the • international airport of Maiquetía • - 3rd most dangerous city in the world, including risk for piracy and robbery • - No regulations on distributionwhich allow suitable distribution system • - National agriculture allows purchase of local coffee beans and other related ingredients

  9. Channel

  10. Price The amount of money charged for a product or service. Must reflect a supply and demand relationship Most important element of the marketing mix Only mix that generates a turnover for the organisation

  11. Promotion

  12. Integrating Price Adopting pricing strategies $1=6.29 Venezuelan Bolivars Small cup of coffee $1 Specialty drinks $3.75

  13. Integrating Product Taste/quality same as other Starbucks Renovation, decoration planning starts mid-March and finishes by September Sold at the right price Right place Hiring/Training

  14. Integrating Place -Variable channels: -Medium trial agreements with clear performance objectives -Register within 60 days of incorporation with the Superintendency of Foreign Investment (SIEX) -Foreign companies are permitted without restriction to purchase real estate

  15. Integrating Promotion Media Reaching customers Heavy on advertising, social websites, sales promotions Selecting tourists, upper class Message Three effective keys to communicate message Attend St John the Baptist festival

  16. Timeline location

  17. Long Term Planning

  18. Sources Central intellegence agency. (n.d.). Retrieved from https://www.Cia.Gov/library/publications/the-world-factbook/geos/ve.Html Doing Business in Venezuela. (2011). Commercial guide for us companies. Retrieved from http://photos.State.Gov/libraries/venezuela/19452/pdfs/2011_- _doing_business_in_venezuela.Pdf Kotler, P., Armstrong, G. (2012). Principles of marketing. New York, NJ: Prentice Hall. People of Venezuela. (n.d.). In Republica de Venezuela. Retrieved from http://www.Republica-de-venezuela.Com/about-venezuela/people- of- venezuela.Php Pricing Strategies. (n.d.). In Learning marketing. Retrived from http://www.Learnmarketing.Net/price.Htm Revision Theory. (n.d.). In The times100 business case studies. Retrieved from http://businesscasestudies.Co.Uk/business- theory/marketing/marketing- mix-price-place-promotion- product.Html#axzz2lfdhg900 Starbucks is Looking South. (2002, August30). Retrieved from http://articles.Latimes.Com/2002/aug/30/business/fi-starbux30 Starbucks Home. (n.d.). Retrieved from http://www.starbucks.com

  19. Learning Outcomes

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