Marketing strategy is the first step that an
organization wanted to combine their marketing goals into their marketing plan.
The purpose of marketing strategy is to focus on the right product which can
help the organization to achieve the maximum profit after doing the right
market research. According to McCarthy, marketers can draw up a good marketing
plan and improve operating results visibly by using the right combination and
variables. The 4P ‘s variable includes Price, Promotion, Product
The product defines as goods and services of the
company to the consumer or target customer. The main product of the Starbuck is
coffee. Besides that, Starbuck sell different type of coffee which are brewed
coffee, espresso hot, chocolate and teas. Some of the customer that does not
like to drink coffee. The Starbuck also provide blended beverage example Green
Tea Crème Frappuccino® Blended Crème. Besides that, Starbuck not only sell the
drink it also sells the food. The food can be uses as lunch or grab for some
snack. The Starbuck sell different type of food that in different flavor such
as bread, cake, Mini Cocktail Sausages with Nacho Cheese Sauce to fulfill
The Starbuck business management is
based on the mission concept. The mission is “to inspire and nurture the human
spirit – one person, one cup and one neighborhood at a time.”. The ingredient and
the taste of the Starbuck is same across the world. The Starbucks product can
categories into standardize or differentiate and their products are design is
based on their culture, religion, cuisine and customs of the market they
operate in. So, most of the coffee shop preferred operates their business based
on the country culture they operate in. For example, Malaysia Starbuck mostly
different with international market because they need to get the certified
“Halal” by the by Jabatan Kemajuan Islam Malaysia (JAKIM) to enter into Muslim
markets. The food and beverage that serve are safe to use to Malaysia consumer
which does not provide pork.
Most of the company has create their
business strategy just focus on the local market instead following the
international market. By focus the local market, the company must know the
business strategy of the local market whether the customer willing to purchase
the product where they are might be across the global. The customer sense and
value will increase if they taste of the beverage and food are made in local.
The food that has the local taste can make the customer willing to pay for
their lunch to taste it. When the
customer travel aboard, there might be a sense that Starbuck is the place that
need to be, this can increase the customer loyalty to the brand.
Price is the amount of money that customer to pay to
get the product. When people talk about
Starbuck, they will think the price of the them is overprice. The price is the
main factor to differentiate with the other competitor because the price of
Starbuck is slightly higher than the competitor. For example, a
Grande size of coffee cost customer about RM 10 to RM 12. The price is
relatively high compare to other coffee company such as Old Town White Coffee. People
are willing to buy a cup of the coffee because of the service and the product.
They use the high quality of the product for example Starbuck using Starbucks
Arabica beans are different from regular Arabica beans.
Besides, the price of the Starbuck is
based on the size of the cup. There has 3 size of cup which are Grande, Venti
and Trenta. There also distribute the into Short 8 fl. oz., Tall 12 fl.
oz., Grande 16 fl. oz., Venti® Hot 20 fl. oz., Venti® Cold 24 fl. oz.
and Trenta® Cold* 31 fl. oz.. The company will be done success in their
business if they able to adapt to economic
conditions in the different markets they maintain business operations in. The
company’s carry out of its pricing strategy which is focused on localization
instead of globalization. The overall pricing
objectives of Starbucks is to increase market share in each of the countries it
operates in and this is the barometer used in setting prices for each of these
market (Florence 2013). Different country Starbuck set the price
differently. They set the price is based on the local market price. This is
because the product for the international customer will perceive high value but
paying the product cheaper for the same quality. So, they will choose Starbuck
rather than other competitor by their behaviour toward the brand. The
company also adopts pricing in the sense that its high price is representation
of higher quality over other brands.
Malaysia are produce new flavor product, the customer can enjoy the drink with
half price or “buy 1 free 1” promotion. Starbucks are using “penetration
pricing” strategic to capture market share price for a new product are set
below average cost. However, Starbuck also create a new idea which called “VIA
Ready Brew”, and this product launched by a difference pricing
strategic. Therefore, Starbucks used a “skimming pricing strategy” for this
product. For example, average price old
town white coffee price is around ??? and Starbucks VIA is around RM 2.33 till
RM 2.66, obviously it is higher than other competitors. (Facebook Starbucks Malaysia, 2011).
Place is where company organize activities that make
the product available to consumers. Starbuck mostly located at the place that
surrounding in high-traffic and visible locations, such as shopping Centre,
airport terminals, and office building. In Malaysia Starbuck provide a good
environment for customer. It was popular place that customer to visit for the
gathering, meeting, study and chatting. They say that Starbucks is a place that
can help them release their stress. But due to the 21-century, they are
changing their business and using the advance technology.