Executive Summary:Starbucks product is a well known which provides high quality coffee & is a world leading brand contributing its largest chain in coffee industry. In this assignment we will discuss the marketing strategy being implemented by Starbucks Singapore & will look over Marketing concept, positioning strategies ,targeting strategies, competitive environment & various others factors than affects Starbucks Singapore marketing strategy. The three level of products Core, Actual & Augmented & identification of target segments shows how to be aware of their competitors & Michal Porter`s five forces contributing how to be aware of the competitors & at same time some analyzing has been done to help Starbucks to maximize their profit by understand their customer`s characteristics , needs & wants .This Assignment also focuses on the importance of customer satisfaction, thus some recommendation has been given for the improvement to attract more users from the market.However, This report may have some limitations as this report is only based on Singapore`s market.

1. Introduction:Starbucks coffee first derived in 1971 opened its first store in Seattles Pike Place Public Market with the aim of offering the world`s best coffee & finest coffee experience to the customers. Today, Starbucks is having privilege to connect with millions of customer everyday with variety of products & is the largest coffeehouse company in the world having more than 19,763 retail stores in over 59 countries. (Starbucks Corporation Fiscal 2012 Annual Q2 Report)Starbucks has created an upscale image which develops with strong coffee, nice ambience, comfort to the customers resulting in providing a perfect place where people can relax which chit-chatting or at the time of doing their work.Mission statement from the company profile:Our Mission is to inspire & nurture the human spirit one person, one cup & one neighborhood at a time & Starbucks Singapore is committed to a role of environmental leadership in all facets of our businessVision Statement: To establish Starbucks as the most recognized & respected brand in the world (Starbucks, 2012)

1.1 Needs, Wants & Demand The question here arrives is what does market need? & Answer lies in the ability of the organization to adapt to the changing nature of communicating with the customers. In order to expand their brand awareness within their target market it`s important to utilize marketing mix in terms of satisfying & converting needs & wants into demand for its target market. Product: Starbucks has potential to expand & to introduce different innovative beverages that helps in satisfying diversify needs & wants; this helps Starbucks to differentiate itself from its competitors.Price: Starbucks has attached upscale image to its brand thus their products are priced higher on the base of value based pricing resulting in emphasizing more towards in-expensive coffee rather than being perceived as expensive coffee. As per by competitors such as Mc Caf, Dunkin Donuts Starbucks pricing are quite comparable but its upscale brand ensuring to provide finest coffee in competitive pricing is accepted by general users, contributing in satisfying consumers needs & wants.Place: Sometimes for consumers Convenience is a key point & Starbucks took this into consideration hence in Singapore, Starbucks has established their outlets in every neighborhood to provide convenience to their consumers. Places such as Changi Airport, Orchard Area, Marine Area, North, South, East, West Area. (Starbucks, 2012) Promotion: Starbucks uses numerous promotional techniques in order to attract more new users & making them as their loyal customers. Such as Starbucks Card provides consumers various benefit on every purchase made through card & it also provides Starbucks free advertisement & helps in bring new customers. (Starbucks, 2012) Customers are tired of being involved into traditional advertisement & promotion techniques, but to keep on innovating & coming up with new ideas on how to reach to these customers is what need to be maintained.

1.2 Starbucks ProductProduct Levels: Core Benefit, Actual Product & Augmented Product (Kotler, Keller & Burton 2009, P342)Core Benefit: The first level is Core Product. It`s based on the core set of benefits & solutions derived to customers. In case of Starbucks Singapore, their core product is Hot, Rich and Delicious Coffee. History has shown conspicuously emphasis on their titled product quality. Even though their price is more expensive than expected, but is capable for satisfying customer with it`s rich, aromatic & delicious taste. The benefit of the product is to satisfy the consumer`s desire of drinking coffee.Starbucks offers variety of coffee & non- coffee drinks to the consumers by introducing new non-coffee drinks (summer drinks); Starbucks Singapore is experiencing & enjoying new segment market. Firm has not only introduced its new range of drinks but also has expanded its products offering to pastries, smoothies, wraps etc. to keep up with competition to attract new users & satisfy their needs.Products Selection: Coffee: 30+ blend, Single origin premium coffees Handcrafted Beverages: Fresh brewed coffee, hot & ice espresso beverages, Frappuccino coffee & Non coffee blended beverages, Smoothies, Tazo teas Merchandise: Coffee & Tea- brewing equipments, Mugs & accessories packed goods, Music, Books & Gift items Fresh Food: Baked Pastries, Sandwiches, Salads, Oatmeal, Yogurt, Parfaits, Fruit Cups. Starbucks Singapore ice cream Ready to Drinks: Starbucks bottled Frappuccino coffee drinks, ice lattes, Starbucks double shots (Starbucks, 2012) Actual Product: The next level is Actual Product Level. It is available to consumers in tangible form, expressed in terms of Product`s brand, packaging & labeling. Brand: Starbucks Singapore product branding is crucial as its aims to indicate the service & product which helps in differentiating them from the other major competitors. Brand enables to build up customer loyalty, to charge value- based pricing, reduce price comparison & easier cooperation with the mediators. Brands are most commonly used by companies to provide physical evidence of consistent standards & more particularly important is that it helps developing an ongoing relationship with the customers.

Packaging: Packaging plays an important role when products are actually being purchased. It`s the first thing that consumer sees before they made decision to consume. Packaging is one of their physical evidence. The color of cup is aesthetically in white & green giving it a pleasant design.

Labeling: Labeling is another important factor which helps Starbucks Singapore to promote their product & make it recognizable different from their competitors as well as providing information for buyers & intermediaries.

Quality: Starbucks Singapore is keen to use the finest beans from across the world to satisfy the taste preference according to different users. Ranging from America, Asia Pacific, Africa, and Arabic & Multi region blends. These finest beans around the world comes in different taste & characteristics resulting in providing more choices for the consumers

Features: Starbucks Singapore has You call it Culture enabling consumers to do any modification to the drinksAugmented Products: The augmented product comprises the totality of features of a product. It includes the core benefits and any numbers of add-on or premium benefits, which makes the product more acceptable to certain segments of the markets. The concept of the augmented product arises from the need to differentiate a generic product from those of its competitors. Brands cannot exist in the long-run unless consumers can distinguish it from others. The more distinctive a brand position, with favorable attributes that the customerconsiders important, the less likelihood that a customer will accept a substitute. After-Sale Services: Wireless connections in all retail outlets ; So that consumers can surf the internet while consuming their drinks

Adding Atmosphere to Outlets: Lighting, Music, Decoration Enhancing the customer experience (High Customer Satisfaction Zone)

Different tables & chairs: Customer who wants to relax they can choose sofa, Student or Corporate clients who want to do their work can use chairs & table made for studying

Delivery & Credit: Starbucks Singapore Card ; After 10 drinks a free drink is rewarded , Free drink if you are buying tumble using the Starbucks Singapore Cards

Socket for charging their electronic device

2. Starbucks Singapore Market OrientationOne of the most extra-ordinary famous brand outcasting in the whole world, refelecting the lifestyle of few generations is definitely Starbucks . Starbucks is the largest chain holding of coffee retails offering various range of coffees (Hot & Cold), Non Coffee drinks, Sandwiches & Snacks. It is obvious that the success Starbucks Singapore has gained today would be not possible if they haven`t chosen up well formulated marketing concept. Starbucks Singapore has adopted the Societal Marketing Concept with the goal of not only deliver great customer value but also produce benefits to the communities & environment. This conceptualization is expressed in Starbucks mission statement which is actually placed in their official website ; To inspire and nurute human spirit one person, one cup and one neighbourhood at a time & Starbucks is committed to a role of environmental leadership in all facets of our business (starbucks, 2012) Social Marketing is getting a trendy buzz word, as environmental & ecological problems are on increase. Few years ago, Starbucks Singapore was critised for wasting resource of using paper & plastic cups. In today`s time, Starbucks Singapore is the best of environmental friendly business around the world. Starbucks Singapore has announced its corporate social responsibilites in annual report for public. They started to use cups from recycled paper or biodegrable plastic. Social responsibilities is also emphaised in their coffee-bars design, posters & various promotional campaigns. (Starbucks 2012) Another core element of the orientation is to create a circle of loyal clients rather than one time buyers (Profitable customers). The ceo of Starbucks Singapore Howard Schultz explains, that a person gets more than just coffee when he/she visit Starbucks he gets great people, first rate music & a comfortable & upbeat meeting place. That`s why people around the world are willing to visit Starbucks Singapore to get to buy coffee & Starbucks Experience (Starbucks,2012) Significantly the next core element is to appear to customer needs. Starbucks Singapore does everything to achieve it`s customers satisfaction. They were the first who offered free internet at the stores & started to open store 10 minutes before the actual time to make customer feel happy & important. (Antiessay, 2012) (Kotler et al, 2009 , P20)

3. Competitors:Recently, Starbucks Singapore was not facing the level of competition as it`s experiencing today. Not too many companies like Starbucks Singapore were in gourmet coffee business. Thus, Strabucks was successful in created perception on a premium gourmet coffee. But Now, Starbucks Singapore is facing a lot of competitive issues as a lot of new firms specialized in coffee business has entered the market. Starbucks Singapore success factor has lead the many competitors to enter into market.Some of the Starbucks Singapore biggest competitors in market includes Spenilli`,Tcc, Dunkin Donuts, McDonald`s Caf. Competitors such as McDonald`s Caf & Dunkin Donuts not only have extended menu but are also have financial resources & positioning strength which threats to Starbucks Singapore profitability.McDonald`s markets it`s low price strategy.

3.1 Porter Five Forces Analysis: It is an important tool for analyzing an organizations industry structure in strategic processes. It helps the organization to contrast on competitive environment.

1. Threat of New Entrants: The threat of entry covers: Economies of scale, the high or low cost of entry, Ease access to distribution channel, Cost advantages. There will always be a continuous pressure on firm to react & adjust to the new entrants. The easier is for new organization to enter into the market the more competition is going to be there within the market.2. The Power of Buyers: Because of new entrants in the market & competitors like McDonald`s who entitles to provide finest roast coffee of sensible class for lower price, buyers can influence to bargain more compared to the bargaining power they had before.3. The Power of Suppliers: If in market there are very few suppliers then supplier bargaining power is comparably high. Although suppliers do have certain limit of power. Looking on the expansion of outlets it`s safe to say that Starbucks Singapore needs their suppliers.4. Industry Competitors: As the coffee serving industry is rising, Competitors seek advantage to attract users by reducing prices & bringing in similar products to increase the share of the market.5. The Threat of Substitutes: This occurs when product substitution is available in the market. As there is a lot beverage accessible in market, so the threat of substitute is high. (Kotler et al, 2009, P316)

4.1 Starbucks Singapore Segmenting:Demographic Segmentation:

Age: Rely more on 18 40 years Gender: Male & Female Income: Depends on Life-Stage (Relatively High) Occupation: Range from students to professional personsVALS (Value Attitude life Style): Innovators: The class of consumers at the top of vals framework. Characterized by high income & high resource individual for which independence is very important. Thinkers: These people have high resource & are motivated by their knowledge. These are rational decision making consumers and are well informed about their surroundings. Achievers: They are more likely to purchase a brand which has shown its success over time. Experiencers: The group of consumers who have high resources but also need a mode of self-expressions. Mostly characterized by young adults, consists of people who want to experience being different. (Marketing91, 2012)

4.2 Starbucks Singapore Targeting & Positioning:One of the marketing strategies of Starbucks Singapore is to focus on Broad Product Differentiation; as depending on competence & Innovation, Starbucks Singapore has establishes its competitive advantage by broadly differentiating its coffee & coffee related products from its competitors. Starbucks Singapore combines its merchandising strategy with its marketing strategy to create a distinctive broad image for its products.One of the key successes of Starbucks Singapore has been its successful projection of its stores venue for socializing contributes itself as a Third Home A place where consumer can spend time other than being at home or office & it made possible when each store was designed in terms of providing comfort level to the consumers. Starbucks Singapore operates coffee shop to hang out & relax for the one who deserves a coffee break. A wide range of service includes such as membership, programs, delivering quality service. The product innovation & store ambiance that Starbucks Singapore has implemented to its outlets is to enhance & complement the consumer coffee drinking experience. Starbucks Singapore strategy is to position itself as an upscale brand differentiate its offering not just as coffee product but also providing a unique Starbucks experience to the users & this experience has been the company selling point. (Citeman Network, 2012)

Perceptual Map

Conclusion:Success of any company is lies on proper implementation & execution of strategic marketing plan. A company may have an ideal product, but without proper positioning, target market & marketing plan any company would not be successful in the market. Whereby, Starbucks Singapore has successfully able to carry out its activity towards the commercial success. Starbucks Singapore has been able to convince customers that their stores provide more than a cup of coffee, which is Starbucks Experience. The company is able to translate Customer experience of its product into a high profitable business. Still however, there`s always a room for the improvement in order to be more innovative & productive so that product can be differentiated from its competitors. Thus, in Section below I have provided some recommendations.

Recommendation:1. Ability to Increase connection with Consumers: The one way through which Starbucks Singapore is differentiating its product is through emotional connection developed with consumers. This formal relationship has been formed by creating store atmosphere that fits the consumers & by giving proper training to employees to develop & keep on maintaining consistent personal connection with the consumers. In today`s time, what customers want is; More personnel interaction.

2. Continually improving the coffee: Starbucks Singapore has improvised a lot into their differentiation products & I recommend keep on doing that consistently. As well know Starbucks Singapore has been known as a leading brand in this fast casual industry just for its products which is coffee. Looking at increased competition Starbucks Singapore is struggling out in today`s time it`s important for the company to look deeply into their quality level of coffee, analyzing their brewing system & ability to bring out distinctive flavors of the world to the consumer.

3. Being more environmental Friendly: As in today`s time people are getting more educated, they are quite concern relating to environmental issues. As we know Starbucks Singapore has made a lot of efforts enhance their image as environmental friendly but I do believe there would be still room to develop more thus ending up in resulting as differentiating their brand.

4. Improvise more on Promotional Activities: Its important for Starbucks Singapore to improvise on aggressive promotion; as even though if it launches any new products, many of the customers are unaware of them & only gets to discover it when they patronize the outlet. As looking at current promotion techniques it`s only looking over word-to-word communication, Social sites & on selected magazines.

Proposal: Starbucks Singapore can introduce hang- on promotions in mrt & bus. Increase social media communication as it`s free of cost & it can helps in communicating Starbucks products to mass market ; which may attracts new users as well.

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Starbucks Singapore Coffee | Nanyang Institute of Management2