Through the course of the marketing plan assignments, my team and I have gained invaluable knowledge in Starbucks’ marketing operations. Furthermore, these marketing tools are not only applicable in the context of Starbucks, they can also be applied in many organisations.

The first important insight that I have gained is the ability to identify Starbucks’ segmentation, targeting and positioning. In the past, I always believed that the products that Starbucks offer are for the general group of consumers. However, by analyzing its STP, Starbucks is seen to customize different products towards a specific group of customers. For example, they offer healthier products such as coffee with low fat milk, frappachino without whipped cream to consumers who are more health conscious. This new range of healthier products have become increasingly important to Starbucks’ operations, as the society is seen to be shifting away from an unhealthy diet. Thus, Starbucks can be seen to segment this group of consumers and position itself with a healthier image.

The second insight that was really useful was the ability to identify and apply Starbucks’ marketing mix. We realize how Starbucks can price its products at a much higher cost as compared to its competitors and yet still manage to retain its consumer loyalty. Also, we learn how Starbucks utilizes strategic locations to make its stores more visible. In addition, Starbucks promotional efforts are seen to be very effective in attracting customers from all walks of life. Last but not least, we learn that products of superior quality must be offered by Starbucks.

Our group have gone one step further by identifying a target group of consumers that Starbucks should focus on. We have identified that Starbucks should concentrate their efforts on the younger group of consumers. Although this might seem unorthodox and difficult (young consumers only make up 2% of Starbucks’ revenue), we believe that this investment would reap huge returns in the long run.

In conclusion, the marketing plan assignments provided a unique and valuable learning experience for everyone to apply their marketing knowledge. By fusing the practical applications with our theoretical knowledge, our marketing skills will improve for the better.

This is a blog post in response to Visarut Kasemsupapun‘s post on October 9, 2013. In this blog post, Visarut clearly depicts the difference in sales volume of the iPhone 5s and the iPhone 5c.In addition, he mentions that the more affordable iPhone 5c is targeted to lower income customers, as compared to the more affluent customers that the iPhone 5s is targeted towards. I agree to his comments to a certain extent. Yes, the iPhone 5c might have a different target market, but instead of lower income customers in the US, it might have been targeted towards foreign customers instead. With Apple trying to gain market share in the overseas market, it might be more realistic for them to target a larger group of consumers, especially in places where the average income is much lower than other consumers.

In conclusion, the iPhone 5c and 5s have very different target markets. Consumers in the US might be somewhat indifferent towards the two models, but in other parts of the world, there are in fact huge differences.

On a separate note, there are additional features that the iPhone 5s offers, which are not available on the iPhone 5c. A better camera, processor and storage capacity are just some of the features that makes the iPhone 5s more attractive. In my opinion, the iPhone 5s’ target market is towards their loyal customers and ‘Apple Fans’. This is because the release of iPhone 5 was less than a year ago and consumers who are looking for a decent phone would not be willing to purchase the iPhone 5s just after a few months. Thus, loyal customers will see this new and improved phone as a ‘need’ instead of a ‘want’.

IKEA’s marketing operations have been rooted in the concept of the 4 Ps. However, being an international retailer in the furniture industry, it is seen that their 4 P’s do differ in various regions.

Firstly, the way it prices its products do differ in different countries. All along, IKEA’s philosophy is that it would price its products at low prices in order to attract more consumers. However, this philosophy was difficult to implement when IKEA expanded into  

China. There was plenty of confusion as their prices were not low enough as compared to their competitors, but were seen by the middle class as too low to be a ‘westernized’ product. As such, IKEA priced its products according to their consumer base and income levels to ensure that they are affordable.

Secondly, the products that it offers varies from place to place. In the US, consumers favored larger beds and bigger wardrobes but in Asian countries, the furniture on sale has to be significantly smaller, due to the smaller sizes of Asian homes. In countries like Singapore, houses are much smaller than those in Sweden and thus accommodations to the local market over there has to be made.

Thirdly, the store locations (place) have usually been in places that are in the suburbs so that rent might be lower. However, they would be situated near the highways so that it is easily accessible by car. This concept worked well in Europe but it failed badly in China as most people commuted by public transport. Thus, IKEA began to set up their stores close to rail and bus networks in order to reach out to their Chinese consumers.

Lastly, IKEA’s product catalogue as a means of promotion posed huge challenges in China as well, as it provided a means for competitors to imitate their products. However, once it began advertising on the Chinese social media and micro blogging website Weibo, its brand awareness surged significantly.

In conclusion, it can be seen that IKEA has adapted well to alter its marketing mix when it entered the Asian markets.