Starbucks Marketing Plan Essay
This marketing plan aims to bring the Starbucks experience to the Kingdom of Norway located in Northern Europe with an estimated population of 4,644,457 in July 2008. It is one of the wealthiest nations of the world that combines free market activity and government intervention. Norway is richly endowed with natural resources and is dependent on its oil production and international oil prices, with oil and gas accounting for one-third of exports.
Domestic economic activity is the main driver of growth in Norway and will continue to be as consumer confidence remains high and investment spending in the offshore oil and gas sector strong (CIA Factbook, 2008). At present, Starbucks Coffee has not branched out to any parts of Norway or to its neighboring countries Finland, Sweden and Denmark. Starbucks Coffee, one of the leading retail businesses in the coffee industry, earned in excess of $600 million in 2004.
It is a global coffee brand built upon a reputation for fine products and services. Driven by their ethical mission statement “’Starbucks is committed to a role of environmental leadership in all facets of our business”, it is recognized worldwide as an employer that highly values its workforce and was listed as one
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The company’s mission statement, “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow,” will be challenged in this plan as the author attempts to identify and provide feasible strategies to enter the Kingdom of Norway, specifically its capital Oslo. The 2001 Statistics of Norway provides that Oslo has the highest restaurant sales and highest households’ income (Statistics Norway, 2001). B. Goals and Strategy
The primary goal of this marketing plan is to share the Starbucks experience to the Norwegian crossing the borders of American and European culture. Purposely, this strategy will include intensifying the interpersonal and symbolic behavioral differentiation that is distinct to Starbucks (Bacon and Pugh, 2003). These two differentiations include: 1) employees’ individual skills and attitudes that arises from the heart and not from policy, and 2) alignment of Starbucks message with the customers’ values. In April 2008, the study Hot Drinks in Norway showed that hot drinks market continued to develop at a steady pace in 2007.
The trend was towards a more continental drinking pattern for coffee. It comprises drinking espresso throughout the day, cappuccino in the morning and latte during the lunch-break. This is the case not only in cafes and bars, but also at home, as the purchase of espresso machines has become popular. It applies not only in the major cities, but also in smaller towns and villages. During 2007 this trend made a strong impact on sales, and although these types of coffee are mainly popular amongst the younger generations, they are also starting to be appreciated by the older generations.
In this light, the first Starbucks in Oslo can positively project a market share of at least 10% (56,048) of the total population which is estimated at 560,484 (CIA Factbook). In financial terms, a projected $84,072. 00 of gross sales a day based on a $1. 50 per cup of coffee sold to the 10% target market share. This projection may double in the next two years after establishing Starbucks in Oslo and branching out to other territories of Norway.