A. To expand the possibilities within the current market and enter new markets, Starbucks Coffee Company should implement the specific strategy which is oriented to the successful product promotion.
According to the recommended strategy, such points and aspects as the brand image, customers’ loyalty, effective advertising with the help of the Web and media resources, the necessity to strengthen the company’s position within the market, the accentuation of the trends and innovations should be examined, discussed, influenced, and improved. In spite of the variety of the tasks which are determined for resolving, it is possible to use only one complex program to implement the promotion strategy which is known as the promotional mix.
This product promotion program traditionally includes all the necessary components to respond to all the points of the chosen strategy. Basing on the product promotion program, Starbucks can improve the situation in the sphere of advertising, brand image, direct marketing, sales promotion, and public relations. From this point, the product promotion program or the promotional mix is the most effective method to implement the strategy which is necessary for intensifying the development of Starbucks Coffee Company.
1. Starbucks develops according to the definite product promotion program. The recommended strategy to concentrate on the brand image and advertising along with stating the current position within the market and entering the other markets is based on operating the new approaches to the used product promotion program with accentuating more details and improving the current variant according to the requirements.
That is why, the sales promotion managers, product managers, and public relations representatives are responsible for developing the effective strategy and its further implementation with references to the product promotion program.
2. The initiative group, the members of which develop the strategy and control its further implementation, should be discussed as the group which is in charge of the implemented programs. That is why, much attention should be paid to predicting the program’s results.
The new approaches to advertising or to increasing the company’s position in, for instance, gourmet coffee market should be effectively developed, especially, when Starbucks orients to the new promotion strategy where the advantages of Starbucks in comparison with the industry’s competitors are accentuated.
B. The product promotion program can be discussed as the financially feasible one because the funds for its implementation are fixed before starting the promotion company. The proposed strategy to accentuate the role of advertising and brand image with references to preserving the quality of the product and service can be considered as the improved variant of the used program.
The definite accents in the program are shifted and the new approaches are required. Nevertheless, the changes in the program’s financing will be insignificant, and they will be based on the redistribution of the provided funds.
Pro forma budgets should be developed in order to predict all the possible variants of the program’s realization and its results. In this situation, pro forma budgets can be used to control the effectiveness of the strategy’s implementation and program’s realization, basing on the expectations and real results. It is possible to state that the priorities and timetables are also appropriate to individual programs and small companies.
C. The new standard operating procedures should not be developed, and the quality control used for the current program can be realized basing on the procedures which were worked out earlier.