Singapore Starbucks Marketing free essay sample

According to Singaporean social commentator Francis Yim, â€Å"Coffeehouses are a sign that Singaporeans have achieved the status of a developed nation and we are breaking new ground in the area of becoming a cultured society. † In the past during the construction of Singapore, Singaporeans did not have the time to enjoy their cup of Java. The first Starbucks coffee outlet in Singapore opened on December 14, 1996, in Liat Towers, with the help of BonStar Pte. Ltd. Bonvests is an ideal partner for several reasons. Bonvests has acquired expertise in running food businesses, like the local Burger King chain. They also know and understand the local consumer market, government regulations, and the local real estate market. 2. 1. 2 Singapore influence on Starbucks Marketing Starbucks chose Singapore for its entry in the Southeast Asian market because of the highly â€Å"westernized† ideas and lifestyles it had adopted. Some have described Starbucks as being another American icon, like McDonald’s. Slowly, but surely, gourmet coffee bars have been penetrating into the food scene in Singapore. It is estimated that Singaporeans drink more than 10,000 gourmet cups a day. In addition, the market in Singapore has tremendous growth potential. In addition, the market in Singapore has tremendous growth potential. According to Bruce Rolph, head of research at Saloman Brothers Singapore Pte. Ltd. , â€Å"People should increasingly focus on Singapore not as a mature market with low earnings and growth potential, but as a uniquely positioned beachhead to get leverage over what’s happening in Asia. † Finally, the Singaporean market still has no clear leader in the specialty coffee industry. This meant that Starbucks had a good chance to become one of the top contenders in this market, and gradually Starbucks has become the biggest chain of gourmet coffee outlets in Singapore. Starbucks has also capitalized on big internet savvy culture in Singapore. Singapore has one of the highest tablets and smartphones users, so Starbucks uses online marketing aggressively to reach out to its consumers. The Starbucks app is one of the more powerful features in their marketing arsenal. Once the app is downloaded one can use the phone to pay for products, reload funds on a card, and find stores. 2. 1. 3 Commitment to the community and its influence on the brand image Despite becoming extremely profitable, Starbucks has not lost sight of being socially responsible. Starbucks has contributed to local communities, by encouraging their partners to become responsible neighbors and active participants in the places where they live, work and play. It is an important part of Starbucks company’s culture and values. For example, on 14th July 2012, Starbucks did an event – ‘A Very Special Walk’ (Pathlight School’s annual fund raising event working with Autism Resource Centre (Singapore) ), which Starbucks do it yearly. This supports projects that integrate people with autism into mainstream society. Another example would also be ‘Bare Your Sole – A Barefoot Charity Walk’. This project supports hildren and adults who live developing countries disaster-stricken places, raising much needed funds for projects to improve these peoples living conditions by building homes and fighting poverty. Starbucks also contributed to the event providing coffee refreshments and sponsored beverage vouchers for all parti cipants as a gesture of saying Thanks. 2. 2 Starbucks micro environmental force (Competitor factor) Competition is steadily growing against Starbucks each year as the industry grows. Despite the opportunities that exist for Starbucks in Singapore, there are still obstacles that Starbucks must overcome to be successful in Singapore. With Starbucks’ entry into the Asian market, bigger retail stores, like Suntec Dome Holdings, are already gearing up for a coffee battle. However, smaller companies like Spinelli are welcoming Starbucks’ entry. One of Starbucks’ biggest competitors, Suntec Dome Holdings, has already established itself in Singapore. Spinelli, a smaller competitor, also plans to expand into the region. With these plans of expansion having been completed by the year 2000, Spinelli will be potentially a major threat to Starbucks. More well-known coffee spots to Singaporeans are Coffee Connection and Coffee Club, which are also direct competitors of Starbucks. The customers that go to Coffee Connection and Coffee Club like the atmosphere and the service they receive there. Starbucks will need to turn some heads and create the brand equity they need to stay in competition with their competitors. However, they do have an advantage entering this market. Starbucks packages a coffee-drinking experience that the Singaporeans want, both trendy and American. Starbucks has more outlets than all its competitors put together. In addition Starbucks has a considerable number of 24 hour outlets; this gives them an edge when it comes to marketing. Starbucks has also located it outlets at prime locations including major commercial centers, malls at almost all major residential areas and all leading shopping centers across Singapore. Starbucks also emphasize on societal marketing concept by committing to the environment. Starbucks practices in reducing waste from its operations and recycle, in order to Starbucks preserve the earth’s natural resources and enhance the quality of lives around the globe. Starbucks actively seeks opportunities to minimize its environmental impact and help create a healthy planet. In the Starbucks environmental mission statement, one of the commitments stated was, â€Å"Recognizing that fiscal responsibility is essential to our environmental future. † For example, Starbucks are making their stores as green as they can by using responsible building materials and energy efficient designs to reduce environmental footprint, by using LED lighting, evaluating its store design, equipment and operations to identify ways to continue to reduce the amount of water Starbucks use, and recycling in stores. These factors let Starbucks to outshine and compete with its competitors. 3. STARBUCKS CONSUMER PERSPECTIVE BUYING BEHAVIOUR Maslow hierarchy of needs, use these terms of needs to describe the pattern that human motivations generally move through. Starbucks practices Maslow’s hierarchy of needs by approaching employee motivation, based upon the fundamental tenets of producing a great work environment, treating everyone with respect and dignity, equitably, and challenging people to be their best. These fundamental tenets are translated into specific actions in Starbucks’ training approach, benefits package, work/life program, and partner relations mechanisms. Specifically, the training programs are sculptured to equip its employees, whether baristas or managers, with the knowledge and skills necessary to provide excellent customer service. 3. 1 Cultural factor Starbucks has set up it’s outlets as a semi casual place meetings, designed with a rich warm colour scheme, alternative music, organic-looking art, and baristas in green aprons. Everything about the interior of a Starbucks, from the warm aroma to the casual couches, screams â€Å"comfort†. These made people from various demographics to come to Starbucks and held small meetings or a casual chat, and still feels calm and relax. 3. 2 Social Factor Starbucks is viewed as a global brand and often attracts people looking for a quaint coffee place to have conversations or meetings. Customers feel a part of this polished crowd equal to the expats when at starbucks. 3. 3 Personal Factor Starbucks staff members are trained on how to deliver good genuine service to their customers, engaging in short conversations with their customers while they wait in line for their orders, and remembering preferences for the regular customers. This gives the customers a sense of belonging. 3. 4 Psychological Factor Singaporeans like to indulge in luxury and well known foreign brands get more attention. Consuming products from an outlet like Starbucks not only fulfills the need to high quality coffee, but also gives the customer a feeling of being a part of the developed country / society.