Table of Contents

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Company overview……………………………………………………………………….4
Task 1………………………………………………………………………………………4
Starbucks retail strategy, Target market & Environmental factors……………...…4-7
Communication, Building relationship, Target market
Buyer behavior, Environmental Influences

Task 2……………………………………………………………………………………….7
Retail mix to support the Starbucks strategy…………………………………………7-8
Location, Starbucks product, Merchandise assortment
Pricing, Advertising and promotion, Stores design

Customer service
Task 3………………………………………………………………………………………...9
Operation and organizational structure to make the business successful………..9-12
Strategy, the Recruitment, Selection and Training Policy

Organizational Structure, hierarchy

Motivation, Rewards and performance

Controlling Environmental factors

Task 4………………………………………………………………………….…………12-13
Staff operation
Purpose of trade
Recommendation & Evaluation………………………………………………………..13-14
References……………………………………………………………………………..……15

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 Preface

This report on the Case Study of Starbucks Bangladesh covers the most important
elements of retail marketing mix, environmental forces over the competition, effective
strategy, organization structure, business operation and its competitive advantages.
However at the end of the report there is an evaluation process which comes from the
documentation of selling & sales management that prefers both the theoretical and
practical viewpoints.

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 Company Overview

Starbucks is a reputed coffee company which was founded in 1971 in Seattle,

Washington. The company’s headquarter is in Seattle, Washington, USA. Starbucks
operates its business and licenses more than 8,000 plus coffee shops both domestically
in the United States and internationally. Starbucks’ mission is to provide people with the
opportunity to savor a good cup of coffee while engaging good conversation in a relaxed
atmosphere

Task - One

1.1-1.3 Starbucks retail strategy, Target market & Environmental

factors

As a marketing representative of Starbucks Company a new proposal has been offered

to open a branch in Dhaka city in Bangladesh. In this regard survey is done to know the
demand over the brand in the city. According to the parent Starbuck’s company, I have
proposed a retail mix or strategy of Starbucks coffee in Bangladesh in the perspective of
local coffee shop in this region. As I surveyed the growing coffee market in Bangladesh
I looked over different retail strategy that other coffee shops are using.

To expand my coffee business in this country I used different communication tools to

give the experience of Starbucks coffee drinks to the oriented customers. As a verbal
relation to the customer I have suggested face-to-face communication, direct
communication, presentation on cultural parties, TV commercials and so on

Understanding the buyer behavior of targeted customers is very important to make the
business successful which is also the need-satisfaction process. The following factors
influences the coffee drinkers purchase decision

 Personal influences

 Social influences

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  Psychological

The influences within the personal selling on buyer behavior include demography,
personality, motivation, ability & knowledge, perception and learning, reference groups.
Buyer behavior also involves society, lifestyle, and culture. All of the above factors affect
the Starbucks buyers who make the decision to purchase (bulk or small) or not.

Building relationship with the target customer indicates improving communication to

make sustain oriented consumer and select the possible customer who will be the main
consumer of my product. I have proposed the following way to build up relationship with
customer-

 Honesty and Candor

 Peer-Level Perception

 Patience to Allow a Relationship to Develop

 Respect

 Trust

I have tried to improve the relationship not only to the targeted customers but also the
suppliers, well-wishers, distribution channels etc.

Involving surveyed to coffee market in this country I segmented the market into distinct
groups that employed in according to flow of customers and retailers to identify groups
of customers which can be satisfied by the same retail mix. This leads to an efficient
targeting for a retailers particular offer. I also used the segmentation tools to identify the
core markets which are

 Demographic
 Psychographic and
 Behaviouralistic segmentation

I also used the following diagram to make the Starbucks coffee market effective and
successful –

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 Retail marketing Mix

Market Segmentation Positioning

Identification the Starbucks

Identification of identical
possible Customer wants &
advantages in each segment
needs
Develop and selection the
Develop the profiles of
customer’s mind, perception.
targeted customers

Identification of Target market Retail and Market planning

Evaluation of attractivity of
each specific Starbucks Develop the marketing or retail mix
segment for each segment which includes
the product, price, promotional
Selection of target Segments activities and distribution channel
of Starbucks Bangladesh

According to distinct segmentation I targeted the upper middle and middle class people.
As positioning of coffee market I noticed that people are growing their interest in
drinking coffee in every walk of lives. Having other reputed coffee shops in this country
they want new and innovative taste of products like Starbucks. People of Bangladesh
have an intrinsic trend that they follow the culture of other country mainly Western
culture. That’s why people are going to be fashionable, their trends going to be diverted
tea to coffee.

For starting the Starbucks I have gathered the information about internal and external
environment which can affect the Starbucks Bangladesh directly or indirectly.

The internal environment that affects the personal selling of Starbucks Bangladesh
depends on the internal corporate body. Micro environment influences the organization
directly which includes suppliers, consumers and customers, and other local
stakeholders. Those have identified by SWOT analysis.

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  Strength and opportunity- strong brand image, product diversification, customer
loyalty and high visibility of the products, technological advances of Starbuck’s
product or services.

 Weaknesses and threats- price competition of coffee beans and dairy,

economics crisis on GDP

Starbucks Bangladesh might also be influence by political, economic, social & cultural
and technological factors which have identified by PEST analysis.

Task - Two

2.1-2.2 Retail mix which supports the Starbucks strategy

The aims of selling Starbucks coffee in Dhaka city is to create the experience of perfect
taste of coffee for the people. Its core objective is to make the established Starbucks as
the premier supplier of the finest coffee in Bangladesh that leads to-

 To create new experience of coffee

 Introduce the Bangladesh globally

 Combination of culture

 Develop increased customer loyalty.

 Contribute good social responsibilities to stakeholders

 Engaging good conversation in a relaxed atmosphere

Starbucks, like every retailer, supports its strategy with its retail mix.

Starbucks Corporation sells brewed coffees, espresso beverages, cold blended

beverages, and food items, teas, branded coffee drinks, a line of ice creams, and so
many items as well as a line of compact discs through its retail stores.

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With regard to location, individual sites are selected in the most highly visible places
possible and centralized cities for rolling out the expansion into nearby markets. As the
location of retail Starbucks I chose primarily-

 Banani – Many university students, corporate, private bank personnel are

available here.

 Gulshan- corporate office, embassies, hotel and motel, club and modern
superstores & markets.

 Uttara- International airport, restaurants, retired army personnel,

 Dhanmondi- International institute’s students and personnel, big super markets,

restaurants

 Bashundhara- all the corporate offices and private universities are shifted there

Its merchandise assortment based on sales distribution which is composed of coffee

beverages, whole bean coffee, food items and coffee-related equipment. Stores of
Starbucks Bangladesh are corporately owned and controlled. It has designed very
attractively which are spacious so that customers can wander around the store.

Pricing is the critical issue in a competitive corporate strategy. Its product pricing is
premium, which is due to the company’s commitment to quality products and a high
level of customer service.

Its advertising and promotion budget is however, moderate. For promoting the
Starbucks Bangladesh coffee, many advertising tools have been taken to expand its
demand. These are the advertising tools such as wall paintings, billboards, street
furniture components, radio, cinema and television adverts, banners, shopping carts,
human billboards, magazines, newspapers and musical stage shows.

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Customer is the key success factors of Starbucks. Because the success of the service
organization like Starbucks depends on customer satisfaction. Customer service and
personal selling are promoted by training new appoints to deal with product related
customer complaints on the spot without having to check with a manager. We
(Starbucks) are also trained to customize each espresso drink and to explain the origins
of different coffees.

Task - Three

3.1-3.5 Strategy, Operation and Organizational

structure
In according to the parent Starbucks Company I suggested the following corporate
strategy for Starbucks Bangladesh

 Maximize market penetration or access

 Provide a relaxing, attractive social atmosphere

 Offer high-quality products

 Create a great working environment

 Achieve profitability

It will also have the business strategy which involves the extensive product line strategy,
having a range of products beyond simply the coffee beans.

In terms of recruitment and selection, Starbucks may involve in hiring employees per
day or permanent basis to compensate with the growth rate of Starbucks stores.
Starbucks might recruit the employees in this ways-

Source of recruitment

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 External

Recruitment agencies
Internal Educational
institutions(Including student)
From own staff
of Starbucks Competitors

Related industries

Recruitment practices include interviews that include coffee tasting sessions and other
practices. The hiring process is strategically aligned to the vacant positions.

The purpose of training of sales people or personnel is to create enhanced skill level,
greater self-confidence in one’s ability to perform well at selling. Our top management is
totally committed to training the sales people to grasp the best output of personnel
performance. Sometimes we support the technique to the training of new sales people
is to send them out with an experienced sales person to observe how the selling is
done.

Motivation is the willingness to make use of high levels of effort to reach organizational
goals which is also conditioned by the effort’s ability to satisfy some individual needs.
Starbucks Bangladesh involves in motivation in many ways which leads to-

 Increased creativity

 Working smartly and a more adapting selling approach

 Hard working

 Enhances of relationships

I propose to make the personnel rewarded into the following

Motivation /Rewards

Financial
Non-financial
Higher salaries
Job security
Bonus
Challenging work 10
Commission
Better Designations

Decision making power

Sales performance can be defined as the actual sales output. Actually sales
performance depends on the training, motivation and other satisfactory needs of the
personnel. Sales performance can be measured by the following

 Sales revenue achieved

 Number of order

 Sales to new customers

 Number of new customers

(Reference-Sales planning and operation, Page-492,)

Techniques to control Internal & External factors relates to evaluation of some forces.
Different types of internal and external factors influence the sales output of Starbucks
Bangladesh. Listed below are some tips to enhance a Starbucks's control environment

 Control the operating environment

 Risk identification & assessment

 Control activities of personnel

 Easy information and communication process

 Monitoring the outputs

 Employee performance evaluations

 The strategic policy has to be well-written policies and procedures
 Discuss ethical issues with employees

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  Understanding job responsibilities.

 Adaptability of management operating style and philosophy

 Competence skill needs to be enhanced

Internal organization structure of Starbucks refers how the jobs of personnel are
formally divided, grouped and coordinated as well as hierarchy refers the organizational
level of structure. It also includes work specialization, departmentalization, and chain of
command, span of control, centralization, decentralization and formalization. It is
centralized organization hierarchy. As Starbucks is a franchised based private
organization it also follows the parent Starbucks retail structure of the organizational
hierarchy. In comparison with other city of different countries Dhaka city is very small its
hierarchy could be small like flat organization which reduces the cost. Internal
organization structure and hierarchy of Starbucks Bangladesh coffee is –

General
Manager

(Owner)

Purchase & Sales Marketing &

HR & Admin
Maintenance Manager Finance

Sales man Sales man Sales man

(Baristas) (Baristas) (Baristas)

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 Task - Four

4.2-4.3 Staff operation & Purpose of trade

The purpose of staff operation is to divide the specific task and maintain a good
communication to its personnel as well as with the customers. Starbucks Bangladesh
manages its staff by giving the specific responsibility to its personnel. Store staff might
be central to the Starbucks experience and the Starbucks Bangladesh makes special
efforts to recruit and keep high-quality personnel. So Starbucks could be exceptional for
its progressive personnel policies and generous compensation packages. It will involve
the monthly and sometimes hourly basis which can have a comprehensive stock option
plan, termed Bean Stock, for every employee from top managers to store personnel
(baristas). It also spends more on training than on advertising its product. Every new
barista took basic courses in Coffee Knowledge, Brewing the Perfect Cup and
Customer Service.

Trade refers to that activity which occurs by delivering goods and services in exchange
of money. The main reason to involve the trade is making profit. For achieving many
benefits and opportunities Starbucks is going to start up which not only make the
individual interest but also creates a great opportunity for the economy. As Starbucks
Bangladesh is a business organization it might have some objectives and purposes
such as-

 Making profit considering the cost

 Contribute to the national and international economy

 Increase the brand loyalty

 Job creating opportunity

 Putting Bangladesh into the global business world

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  Reducing the unemployment

 To give the perfect taste of coffee

Actually Starbucks Bangladesh is going to start the coffee business for above and so
many purposes.

Evaluation & Recommendation

As a marketing representative of Starbucks Bangladesh I've chosen the Starbucks

Corporation on which I have done my case assignment. Starbucks Bangladesh is a
franchised based coffee company in Dhaka city. I have already discussed about the
opportunity and some barriers of Starbucks Bangladesh. In my perspective although it
has some barrier to start the Starbucks in Dhaka city there also have a big probability. It
has some limitation which creates the hindrance to run the Starbucks coffee business in
Dhaka city. Most important limitations of Starbucks are shown bellow-

 Raising the competitors in the coffee market in Dhaka city such as coffee world,
cofi 11, roll express.

 As a new one target market might be difficult although has the brand name

 Can’t have the identical concept and business expertise

 Political instability keeps down its growth

 Price factors may not support.

 Society and culture might not support the American culture

 Upscale target might not lead to make profit

 May have the limitation of distribution channel

 Collect the raw materials from abroad can involve the high cost

 The barista who makes the coffee drinkable might not experienced

 Supplier may have substitute way to supply the raw materials

 Store design and promotion can increase the expenses

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All of the above limitations might not support to run the Starbucks in Dhaka city.

In spite of having some limitations I think Dhaka city would be viable for starting the
Starbucks coffee. The potential major challenges that can face the Starbucks
Bangladesh are increased competition from other retailers with a similar industry
to the price sensitive market. Starbucks would be able to defend its position
against these other retailers because of the far-reaching initiatives which has
undertaken to sustain its brand advantage. According to its direct retailing
activities, it can set up distribution alliances with Ice Cream companies, Pepsi-Co,
and other beverages to expand its product and distribution portfolios. There are a
number of opportunities and success factors-
 Brand image

 Competitive advantages

 Core business techniques

 High quality coffee

 Delivery of coffee with specialty service
 High quality service which includes Effective Employee Training, Special
pastries, selected music, warmth and comfort
 Creating “3rd Place”
 Not at home
 Not at work
 But at Starbuck
 Well people management
 Perfect product focus
 Strategic advantages
 Appropriate location to place the coffee business
 Social support to be relaxed and amalgamate the culture
 Technological capacities to expand its broadness

From the above discussion I can draw the conclusion that Bangladesh is a developing
country and its markets suits innovative something. As a world famous coffee brands,
Starbucks can easily run its coffee business especially in Dhaka city. Because people
are emerging their needs to the globalization and trying to make themselves exceptional
within the fashionable world.

References

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Organizational behavior, Stephen P. Robbins and Timothy A. Judge, Page- 538)

Sales planning and operation, David Jobber and Geoffrey Lancaster, Page-492,)

http://www.starbucks.com.

http://www.bizjournal.com

http://www.street84.tripod.com

Self

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