Starbusk's Marketing Plan in Cambodia

Starbucks’ 2009 Marketing Plan
Executive Summary

Starbucks Corporation is the largest company in the world which has its branch 43 countries and become the most respect and well-known company in the world. Starbucks plan is to look up the third world country to increase its market share in order making more profit. According to Starbucks research showed that Cambodia is excellent place that it should invest company to other third world countries. Starbucks will open its head branch office in Cambodia in the beginning of 2009. Therefore, Starbuck need a solid marketing plan which necessary to archive its marketing objectives.

The 2009 Starbuck Marketing Plan in Cambodia is not looking up profit in its initial year; however, its marketing objective is e to increase Market Share and Expand Consumer Awareness between 40 and 60 percent in Phnom Penh territory over 2009 planning period.
The sale revenue is $500,000 where the profit margin stays in approximately between $0 and $5000. The requirement of marketing budget will be $100,000. There would be details information as below:

Market Situation

Starbucks Market’s Definition: is the business that mainly sale coffee with providing quality and service, and there are more products of coffee related items and bakery.

Starbucks Target Market: Starbucks target customer is mainly focus on the wealth people who generally drink coffee in the modern shop, and their expected focus on maximizing quality, service, and something new (innovation). According to research, only 20 percent of the customers within Phnom Penh territory who generally are the potential customers drink coffee in the modern coffee shop. Starbucks mission is to catch up 10 percent of its potential customer in its 2009 planning period. Starbucks potential target market will specialize extremely on Men from 18 that have middle income and high income who want drink coffee with maximizing quality and service.

Market Trend: Even though financial crisis of the world, but it does not affect the buying behavior of the customer because it is general habit that customer need to drink coffee everyday.

Product situation

Coffee: Starbucks offers coffee lovers a selection of coffees from around the world. Starbucks coffee buyers personally travel to the coffee growing regions of Latin America, Africa/Arabia and Asia/Pacific to select the highest-quality Arabica beans. When these quality beans arrive at one of the company’s four roasting facilities, starbucks professional roasters pursue the art of creating the rich signature Starbucks RoastTM. This dark roast is not just a color. It is the cumulative result of expert roasters knowing coffee and bringing balance to its entire flavor attributes.

Coffee & More: In addition to quality coffee, Starbuck features a variety of hand-crafted beverages, Tazo*teas, EthosTM water, pastries and, in some markets a selection of sandwiches and salads. Starbucks merchandise includes exclusive espresso machines and coffee brewers, unique confections and other coffee- and tea-related items.

Competitive Situation
Starbucks major competitors in the coffee market are Sentiment, Presco, and Lucky. Each competitor has a specific strategy and niche in the market. Sentiment is an example that it offers a lot of products of coffee and more related products which covering the whole price range. It plans to dominate the market by pricing strategy and expand a heavy advertising.


Microenvironment situation

Economy: As the survey conducted by ministry of economy and finance (MoCaF) reported that Cambodia economic will growing up at least 7 percent even though there are instability economic due to financial crisis, so this is the significance of Starbuck to operate its invest.

Law concerning on business investment: For these several year, National Assembly (N.A) have made and adopted many commercial laws and Intellectual Property (IP) Rights laws such as
· The Law Concerning on Marks, Trade Names, and Acts of Unfair Competition
· Law on the Patents, Utility Model Certificates and Industrial Designs
· Law on Copyrights and Related Rights
· The law on the Management of Quality and Safety of Products and Services
· Law on Commercial Rules and Register and Law
This law is necessary for the current investor like starbucks to concentrate.

Government Regulation: Government plays important roles in the body which to regulate and maintain the stability of society as well as the business aspects. More importantly, one aspect of Cambodia Government Policy is to motivate investors to invest in its own country.

SWOT Analysis

Opportunity/Threats
The main opportunities facing Starbucks’ line are:
· There are few major competitors in the market.
· Since 1998 Starbucks formed a joint-venture partnership with Urban Coffee Opportunity. Now there are more than 114 Starbucks stores developed by UCO in cities that include Los Angeles, New York, so it will developed in Cambodia as well.
· Receive many awards which become the most respect and well-known brand in the world.
The main threats facing Starbucks’ line are:
· Financial Crisis bomb from USA which spread all over the world.
· 95 percent of domestic customers still do not know what Starbuck is.
· Cambodia still poor country which has not very much rich people.

Strength/Weakness Analysis
The strength of Starbucks:
· Starbucks’ name is the most respect and well-known brand in the world and a high quality and service image.
· Starbucks is massive corporation which have solid management, technique, and huge budget for investment.
The weakness of Starbucks:
· Starbuck is the new entrance in market which have lack market information
· Even though Starbucks is the famous brand in the world, they seem a new company as local people do not know about Starbucks yet
· Financial crisis that Threat Company invest abroad.

Issues Analysis
In this section of the marketing plan, there will be use the SWOT Analysis to define the main issues that the plan must consider which basically following:
· In the beginning of operation, should it sell only coffee product or more?
· Should it advertising its brand before entering market or after?
· Should it expand more budget to marketing research in order to get more concrete information about market and competitors or not?




Financial Objectives

In order to make an effective and efficiency at the beginning, Starbucks General Manager has clarified that each its departments must deliver a good financial performance. Starbucks’ Marketing Manager on the other hand has a special mission which set its objective are to produce only net profit about $0 to $5000.

Marketing Objectives
· Achieve total sales revenue of $500,000 in 2009
· Expand consumer awareness of the Starbuck brand from 40 – 60 percent
· Catch up Market Share about 10 percent the 50 percent of its potential customers

Marketing Strategy

Target Market: particular emphasis on Men buyer from 18 to more
Positioning: maximizing quality and service
Product line: add two-lower priced model to attract customers
Price: price somewhat above competitive brands
Service: quick and widely available service
Sale promotion: make two new events with promotion campaign that focus on luck draw prides and coupons discount
Marketing research: expand $15,000 Advertise on TV, Radio, Billboard, and so on.

Action Programs

Starbucks will carry out its marketing strategy as following:
· Before opening its central store at January 1st,2009 in Phnom Penh two weeks, Starbucks will expands its advertise on TV (including CTN, Bayon, TVK,…), Radio (98FM, 103FM, and 107FM,…), and Billboard (Somdech Hun Sen Garden, Chry JangVa Bridge,…). Mr. Sombo Sok, promotion manager will response this project at a planned cost $4500.
· January 1st, 2009, the ceremonies of celebrating new central Store will be take place. There will be invited many special guests including Managers of companies/NGOs, businessmen/women, government officers, and so on. There will be the lucky draw contest event which including many prides such as: 1st pride is one Honda Dream 2009 Motor, 2nd pride is three months free coffee drink at Starbuck, 3rd pride is Sony TV 29 inches. Mr. Tep Virak Marketing Manager will handle this event and assist by Mr. Sombo Sok, the Promotion Manager and Mrs. Chan Sophea, the Production Manager at estimate plan cost $10,000.
· March 8, 2009, the Khmer New Year celebration, Starbucks will establish the promotion event take place in Phnom Penh. This event will discounts to customer that buy a cup of coffee at Starbucks will get one free cake. If a group of customers buy three cups of coffee, they will get extra 10 percent of three cups discount coupons. If a group of customers buy 5 cups of coffee, they will get extra 15 percent of 5 cups discounts coupons. In addition to this event, there will be a small concert joining, but we have invited some famous singers’ superstars to make a surprise and excitement. Mrs. Chan Sophea, the Production Manager and Mr. Sombo Sok, the Promotion Manager will be responsible for this event at planned cost $ 7,000.
· September 9, 2009, there will be a concert event which calls Triple Nine Concert Event (999 Event). Starbucks Coffee Corporation will be the main sponsor in this event. Mr. Keang San, Distribution Manager and Mr. Sombo Sok, the Promotion Manager will responsible for this event at planned cost $5000.