UNIVERSITAS INDONESIA MARKETING ANALYSIS ON...

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UNIVERSITAS INDONESIA MARKETING ANALYSIS ON STARBUCKS INDONESIA (Analisa Pemasaran pada Starbucks Indonesia) NON MAKALAH Written by: Ignatius Andhika Satrio Nuswantoro 1006805984 Supervised by: Nadia Andayani FACULTY OF SOCIAL AND POLITICAL SCIENCE COMMUNICATION MAJOR INTERNATIONAL PROGRAM JAKARTA JUNE 2014 Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

Transcript of UNIVERSITAS INDONESIA MARKETING ANALYSIS ON...

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UNIVERSITAS INDONESIA

!MARKETING ANALYSIS ON STARBUCKS INDONESIA

(Analisa Pemasaran pada Starbucks Indonesia) !!!!NON MAKALAH !!!!!!!!!!!!

Written by: Ignatius Andhika Satrio Nuswantoro

1006805984 !Supervised by:

Nadia Andayani !!!FACULTY OF SOCIAL AND POLITICAL SCIENCE

COMMUNICATION MAJOR INTERNATIONAL PROGRAM !!

JAKARTA JUNE 2014

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

ABSTRACT

! Starbucks Indonesia will be the subject of the paper. The competition among coffee traders require analysis in order to u develop the marketing planning. The purpose of this paper is to examine Starbucks Indonesia environment by using SWOT, PESTLE and Marketing Mix theory. This paper will elaborate the overview about Starbucks Indonesia and the good situation inside the Starbucks Indonesia which is represented from the paper result. At the end, this paper recommends that Starbucks Indonesia should do some special program for Indonesia market and use the traditional identity from Indonesia, to make it closer to Indonesian community. !Keywords: Indonesia, Coffee, Coffee Shop, SWOT, PESTLE, Marketing Mix !

ABSTRAK ! Starbucks Indonesia akan dipergunakan sebagai subjek penelitian. Ketatnya persaingan dalam penjualan kopi memuntut adanya sebuah analisa untuk mengembangkan perencanaan pemasaran dan kampanye komunikasinya. Tujuan dari penelitian ini adalah untuk menguji lingkungan Starbucks Indonesia dengan menggunakan analisis “SWOT”, “PESTLE” dan “Marketing Mix”. Penelitian ini akan memberikan gambaran umum dari Starbucks Indonesia dan memaparkan kondisi Starbucks Indonesia yang stabil tercermin dari hasil penelitian. Penelitian ini juga menyarankan agar Starbucks Indonesia mengadakan program khusus untuk Indonesia dan menggunakan identitas tradisional Indonesia agar semakin dekat dengan pasar Indonesia. !Kata Kunci: Indonesia, Kopi, Kedai Kopi, SWOT, PESTLE, Marketing Mix !!!!!!!!!!!!!!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

PART I

INTRODUCTION

! In 1971, the first Starbucks store was opened in Seattle, Washington. The first Starbucks

store was located at 2000 Western Avenue and then it was relocated to 1912 Pike Place in

1971-1976. At that time Starbucks only sold coffee beans and brewing equipment as the main

products.

The success of Starbucks today begin when an entrepreneur named Howard Schultz

joined at 1982 as Director of Retail Operations and Marketing (Starbucks, 2008). He had a

brilliant idea for company to sell coffee and espresso drinks. Moreover, Starbucks got a big

success, which made people in Seattle become coffee crazy. After that Starbucks also opened

many stores inside and outside Seattle but still in USA market.

Back to 1990s, Starbucks started to reach world market, and Japan was the first outside

North America store. Not only Japan, but Starbucks also open the store in Korea, Mexico,

Russia, South Africa, and Indonesia. Moreover, the first Starbucks store in Indonesia was

opened in May 17th, 2002, in the hand of Mitra Adi Perkasa (MAP) who won the Master

License of Starbucks.

Today, Starbucks has more than 68 stores in Indonesia and Starbucks will always

continue to expand the business market across the Indonesia archipelago. Furthermore,

Starbucks already open the store not only in Jakarta, Bogor, Depok, Tangerang, and Bekasi

(Jabodetabek) but also in other big cities such as Bandung, Surabaya, Semarang, Yogyakarta,

and Bali. As usual Starbucks in Indonesia open in mall, airport, office, and other public areas.

According to Starbucks Indonesia Facebook Fan Page (2010), Starbucks Indonesia has

been serving Indonesian customer for more than 12 years since its first opening in 2002.

Started from a beautiful store in Plaza Indonesia, Jakarta and until now Starbucks has became

one of the Indonesia’s market leader in coffee store business. However, Starbucks Indonesia

still has many competitors in the market and it actually could lead some problem to occur.

In summary, Starbucks is a huge coffee sensation that is really success on the world

market. Moreover, it also happened in Indonesia since its first debut in 2002. However, the

researcher sees that Starbucks Indonesia still has a big question on “How Starbucks Indonesia

could maintain their existence as a coffee store market leader, against the new competitors and

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

new competitions in the Indonesian market?” and through this study, the researcher will try to

come up with some recommendations that could be used to solve the problem.

1.1 Corporate Direction

In general, Starbucks mission is to inspire and nurture the human spirit – one

person, one cup and one neighbourhood at a time; furthermore, Starbucks also has a

mission in term of Environmental that is committed to a role of environmental

leadership in all facets of Starbucks business (Starbucks, 2010). Moreover, according to

Starbucks Global (2011), Starbucks also has some basic principles to support its

company mission:

(a) Our Coffee: It has always been, and will always be, about quality. Starbucks is

passionate about ethically sourcing the finest coffee beans, roasting them with great

care, and improving the lives of people who grow them. Starbucks cares deeply

about all of this; their work is never done.

(b) Our Partners: Starbucks is called partners, because it is not just a job, it is their

passion. Together, Starbucks embraces diversity to create a place where each of us

can be our self. Starbucks always treats each other with respect and dignity. And

Starbucks holds each other to that standard.

(c) Our Customers: When Starbucks is fully engaged, Starbucks connect with, laugh

with, and uplift the lives of Starbucks customers – even if just for a few moments.

Sure, it starts with the promise of a perfectly made beverage, but Starbucks work

goes far beyond that. It is really about human connection.

(d) Our Stores: When Starbucks customers feel this sense of belonging, Starbucks

stores become a haven, a break from the worries outside, a place where you can

meet with friends. It is about enjoyment at the speed of life – sometimes slow and

savoured, sometimes faster. Always full of humanity.

(e) Our Neighbourhood: Every store is part of a community, and Starbucks takes our

responsibility to be good neighbours seriously. Starbucks wants to be invited in

wherever Starbucks does business. Starbucks can be a force for positive action –

bringing together Starbucks partners, customers, and the community to contribute

every day. Now Starbucks sees that their responsibility – and Starbucks potential for

good – is even larger. The world is looking to Starbucks to set the new standard, yet

again. Starbucks will lead.

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

(f) Our Shareholders: Starbucks knows that as they deliver in each of these areas,

Starbucks enjoys the kind of success that rewards their shareholders. Starbucks is

fully accountable to get each of these elements right so that Starbucks – and

everyone it touches – can endure and thrive.

Beside that, Starbucks has some commitments to fulfil their mission and

encourage their success in international market and in each country market:

(a) Understanding of environmental issues and sharing information with our

partners.

(b) Developing innovative and flexible solutions to bring about change.

(c) Striving to buy, sell and use environmentally friendly products.

(d) Recognising that fiscal responsibility is essential to our environmental future.

(e) Instilling environmental responsibility as a corporate value.

(f) Measuring and monitoring Starbucks progress for each project.

(g) Encouraging all partners to share in Starbucks mission.

In the other case, Starbucks Global (2011) elaborates about the concept of

Starbucks responsibility on some vital parts in their business unit and for the

success movement, such as:

(a) Community: As good neighbours Starbucks gets involved with local efforts to

bring people together and create positive change whenever Starbucks can.

(b) Environment: Starbucks is finding ways to minimise the environmental

footprint, tackle climate change, and inspire others to do the same.

(c) Ethical sourcing: Starbucks is committed to buying and serving the highest-

quality, responsibly grown, ethically traded coffee to help create a better

future for farmers.

(d) Wellness: Starbucks dedication to wellness means supporting policies and

efforts to improve the health of our communities in addition to offering

balanced food and beverage options to the customers.

(e) Diversity: By welcoming a diversity of people and ideas to their business,

Starbucks creates more opportunities for learning and success that benefit

customers, partners (employees) and suppliers.

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Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

1.2 Inside The Starbucks

1.2.1 Corporate

Starbucks Company is one of top company since Starbucks first

movement in 1990s era, which has many stores and branches in Indonesia and

all around the world. Moreover, Starbucks really concerns on quality terms, not

only about coffee or other product, but also concerns on quality of workers,

baristas, and work atmosphere. Starbucks Global (2008) refers to its workers as

a partner and it does successfully creating good work atmosphere on each

store, furthermore to some extent, it also affects on customers who come to

Starbucks.

Starbucks’s good work atmosphere is actually a reflection from the

Starbucks mission statement, in which it is implemented on the five Starbucks

value, those are be welcoming, be genuine, be considerate, be knowledgeable,

and be involved. Moreover, the all five Starbucks values encouraging good

performances for Starbucks partners.

Talking about Starbucks partner, the company actually has several

required criteria for each potential candidate who want to joint in the company

(Starbucks Indonesia, 2008). The specific requirement for Starbucks Indonesia

is completing six semesters on the bachelor degree (part-time) or just graduate

from bachelor degree (full-time). Beside that, the candidate has to join and pass

coffee seminar and training, also English linguistic ability for unspoken

English countries.

Starbucks company also allowed customers to share their idea for

Starbucks development. All idea of customers are collected on http://

mystarbucksidea.force.com/. Some ideas come up like new beverages, in store

entertainment, or certain social and commercial programs. After all, the most

voted idea will be the recommendation for the next Starbucks innovation.

1.2.2 Product and Brand

Starbucks main products are coffee beans, coffee drinks, brewing

equipment, and almost all people in the world know that. It shows the positive

brand awareness of people toward Starbucks, in the other word, people have

big awareness on Starbucks. Some of Starbucks beverages are very well known

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

and become legend among the coffee beverages such as Caramel Macchiato,

Frappuccino, and other more.

Another case on Starbucks is about coffee beans production. It comes

from many coffee plant countries in the world, for examples: Brazil, Vietnam,

Columbia, and Indonesia (Starbucks Global, 2011). Besides that case,

Starbucks customers also concern about price of the product, and in general

they accept it. However, Starbucks still has to think it again for Indonesian

market. In summary, the all Starbucks products have a good quality, well

recognised by the people, and it is a very good opportunity for Starbucks

movement.

1.2.3 Customers and Market Review

(a) Market Demographics

Geographic

Targeted area for Starbucks Indonesia is people or societies in Indonesia,

especially people who live in big cities.

Demographics

- Age : According to Abplannalp (2007), there is no

specific age category

- Gender : Male and female

- Marital Status : Single or married

- Income : 1.000.000 rupiahs and above per month

- Occupation : Students and workers

Behavior Factors

- Customers enjoy refreshing outside their home, such as go to certain

place

- Customers like to enjoy coffee in certain place such as in café

- Customers tend to enjoy coffee along with listening music and reading

books, magazines, or newspapers

- Customers enjoy gathering with friends or relatives in café

- Customers have modern lifestyles that includes some recreation at

least once a week

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Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

(b) Market Needs

In general, customers want Starbucks Indonesia to fulfil the following

important things:

- High quality coffee

- Appropriate price of coffee products

- Well-designed store and facility

- Free Wi-Fi service

- Eco-friendly products

(c) Market Trends

People in big cities like to go outside their home looking for the place

for refreshing and they also like to gather in café to chitchat. Moreover,

nowadays most of people in big cities like to use notebook or laptop for

browsing along with enjoy drinking or eating something.

(d) Market Growth

- Growth of Indonesia economical condition

- Growth of restaurants business in Indonesia

- Growth of coffee café in Indonesia (new competitors)

(e) Competitors Review

There are two kinds of competitors, first one is direct competitor and

indirect competitor, and in fact Starbucks Indonesia has both of them.

Starbucks Indonesia direct competitors are:

International competitors

- McDonalds: International famous fried chicken fast food and

become the biggest brand from USA.

- Dunkin Donuts: International famous doughnuts, sandwich, coffee

beverages, and chocolate beverages brand from Massachusetts,

USA.

- Krispy Kreme Doughnuts: International famous doughnuts store

and now also sell coffee drink, originally from California, USA.

Indonesia national competitors

- Kopi Luwak

- J-Co

- Excelso

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

- Coffee Bean

- Coffee Toffee

- Embargo

Local competitors

- Progo Coffee: Located in Bandung, West Java, Indonesia

- Banaran Coffee: Located in Ambarawa, Central Java, Indonesia

Indirect competitors

- Solaria: An Asian and traditional Indonesian food restaurant

- Pizza Hut: An International Pizza restaurant.

- Hoka-hoka Bento: A Japanese food restaurant.

!!!!!!!!!!!!!!!!!!!!!!!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

PART II

THEORETICAL FRAMEWORK ! In order to determine the best possible marketing planning and strategy, every company

must have the situation analysis as the benchmark to be considered (Luther, 2011). Generally,

the situation analysis for a marketing analysis should covers two aspects of company

environments, the internal and external analysis, in which also known as SWOT analysis

(Blythe, 2006). Internal analysis of a company examines the strengths and its weaknesses,

whereas the external could help a company to spot the opportunities and threats in the market.

Besides that, the deeper understanding towards the internal and external situation could also

be examined through PESTLE analysis and Marketing Mix (Malhorta, 2010). In this case,

PESTLE will help the company to draw the big picture of certain targeted market or country

in general. Hence, the Marketing mix analysis will be the guidance for a company to

determine the right strategy in general (Sheehan, 2011).

2.1 SWOT

Armstrong, Kotler, and Saunders (1999) explain that SWOT could help a

company to determine every strength, weakness, opportunity, and threat points as a

strategic audit. The strengths and weaknesses in the SWOT analysis would not list all of

the good and bad things of the company, otherwise a company should be able to spot the

good strength points and bad points which related to certain condition or strategy

benchmark. By successfully defining the strengths, weaknesses and strategy benchmark,

a company could use those attributes as the filters to shortlist the opportunities provided

by the market, as well as aware towards the threats from competitors, trends, or market

situation in general.

2.2 PESTLE

One of the most popular analysis to understand the external market is PESTLE,

because it covers some important elements, such as: Political, Economic, Social,

Technology, and Environtment understanding. Besides that, PESTLE analysis is a

strategy that could help a company to understand the market situation, market

development, and the trend (Houben, Lenie & Vanhoof, 1999). Lancaste and Raynolds

(2013) elaborate that PESTLE analysis also become the fundamental macro-

environmental understanding for every marketing planning strategy to have a strong

framework towards the 360 degrees of life aspects. Moreover, PESTLE analysis could

also be a good informations for a company to be aware of the political situation or

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

market situation in general, in which it could help to build a good marketing planning

strategically and operationally.

2.3 Marketing Mix

Marketing mix is one of the popular marketing strategies that is suitable for

almost all marketing case. Armstrong, Kotler and Saunders (1999) describes marketing

mix as a important step to develop a strong idea in modern marketing. Besides that,

marketing mix is also a set of tactical marketing tools that could build good perceptions

and actions towards the targeted customers. Marketing mix consist of four variables of

marketing, which also known as ‘four Ps’ or Product, Place, Price, Promotion and

sometimes distribution is included (Chris, 2009). In their book, Armstrong, Kotler and

Saunders (1999) refer that product is basically anything that is offered by the company

to its customer. Every company will make a decision on the money value of each

product marketed, in which known as price. The next variable is place, which referred

as location where the product will be marketed. All of three variables mentioned will

not work perfectly without the support from promotion as the important action variable

that will define the strategy to make the customer aware and purchase the product

(Russel, 2010).

!!!!!!!!!!!!!!!!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

PART III

RESULT AND DISCUSSION

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3.1 PESTLE Analysis

3.1.1 Politic

Political stability is an important condition for a country, in which it can

influence almost all life aspects, especially for economy aspect. Today, there is

no political event that is really important in Indonesia. Nevertheless, the

Barack Obama bilateral visit as the president of United State of America on

November 2010 led some trend occurs, for the example America fever.

America fever gives some positive impacts on USA brands that are

marketed in Indonesia, because the Barack Obama bilateral visit success on

creating Indonesian awareness toward almost all USA stuffs, for the example is

USA brands. Furthermore, It is really a rare and extraordinary opportunity for

Starbucks Indonesia as one of US brand to gain customers also more awareness

on Starbucks.

3.1.2 Economy

Indonesia is rich a country, which has some diversity in it, such as

cultural diversity, religion diversity, and racial diversity. Nevertheless,

Indonesia also recognizes economical diversity, which means diversity in the

economical condition. In the other words, it is talking about high-middle

condition and middle-low condition. In fact, the majority of Indonesia is in

middle-low economical condition; it affects on people purchasing power.

Therefore, almost all Starbucks Indonesia customers come from high-middle

people and commonly they recognize Starbucks as premium coffee brand. In

the end, it is good opportunity for Starbucks Indonesia to stay longer in

Indonesia market.

3.1.3 Social and Cultural

Today, Indonesia is in inequality condition; the numbers of middle-low

people are bigger than high-middle people and sometimes that condition leads

a social problem called social gap or social inequality happens. Nevertheless,

the numbers of high-middle people in Indonesia are not that small. As we can

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

see in the big cities, a lot of people like to go shopping and spend their money;

it is known as consumerism trend in Indonesian society. So that, Starbucks

Indonesia does not need to worry about the social condition in Indonesia,

because Starbucks Indonesia still has many customers and potential customers

from the high-middle people.

In the other case, people in Indonesia have a tradition to drink coffee in

the morning or in the daily life activities. The other current tradition in

Indonesia is hanged out together with friends or family in café or restaurant. In

the end, the Indonesia social condition is appropriate to Starbucks market as a

international premium brand of coffee drink.

3.1.4 Technology

Technological factors have to be considered by Starbucks Indonesia,

because Starbucks Indonesia customers come from high-middle people and

most of them are technology literacy people. Today, customers prefer to choose

a store or café that has free Internet or free Wi-Fi service, so they can browsing

or do their work while enjoying their beverage and food. Beside that, new

technology in payment methods such as flash card, debit card, and credit are

also important to be provided in store. Not only that, another technology stuffs

like entertainment in store and modern coffee machine also important for

Starbucks Indonesia; furthermore, it can build positive images and customer

awareness toward Starbucks Indonesia. And until now, Starbucks has success

on fulfilling all the customers technological needs.

3.1.5 Legal

An Indonesian Law that can be related to the Starbucks Indonesia

problem here is the Law Number 8 year 1999 (UU No. 8 tahun 1999) about

Consumer Protection. The consumer protection law concerns on rights and

obligations of consumer and business subject. In general, the business subjects

have to concern on all aspects of consumer need and prohibit them to do wrong

or bad. Moreover, the consumer protection law should be a guideline for

Starbucks Indonesia to get more success in Indonesia market.

3.1.6 Environment

Nowadays, focus of environmental issue is still in global warming and

climate change problem. It requires all companies in all work-field to create

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

and use eco-friendly product. In fact, Starbucks has been doing an eco-friendly

program since couple years ago and it called StarbucksTM Shared PlanetTM,

Starbucks is trying to develop more environmentally friendly cups and working

hard to expand recycling program in an effort to reduce the waste Starbucks

creates; customer can use tumbler and Starbucks will give 3.000,00 rupiahs

discount. Beside that, Starbucks also concerns on energy saving, water

conservation, and green building. In the end, StarbucksTM Shared PlanetTM is

still running and it will always support the environment better condition.

3.2 Marketing Mix

3.2.1 Product

Starbucks Indonesia offers product with highest quality of coffee in diver

beverages variant, and it is offered to satisfy the customers. To the customer

who does not like coffee, Starbucks Indonesia also provided variants of Tazo

Tea and orange juice. In order to get high quality on services, Starbucks

company regularly train the barista. Besides that, Starbucks also has fresh food

that can accompany beverages order; brewing machine; also authentic

Starbucks merchandise. And just for recommendation, Starbucks can produce

mug or tumbler with batik ornament or other traditional ornament on it.

3.2.2 Price

Starbucks will give an assurance to the quality of its product and

services. Based on that, price will be set appropriate with the quality and region

economical condition. For the example, prices of all beverages and food in

Starbucks Paragon Semarang are 5000 rupiahs lower than in Jakarta or

Bandung. Moreover, customer will pay the money in proportion to the value

that they get and customer will get benefit higher than the cost they spend.

3.2.3 Place

Starbucks Indonesia strategic place and easy to get for the comfort of

customers. It is located near to office, school, and airport. But, Starbucks

Indonesia has to pay attention more in the stores that located too close each

other. For the examples are Starbucks stores in the Grand Indonesia Mall,

Starbucks stores in Central Park Mall, and Starbucks Stores in terminal 2

Soekarno-Hatta International Airport.

!Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

3.2.4 Distribution

PT. Mitra Adi Perkasa (MAP) is the only one agent for Starbucks in

Indonesia market. In the other words, MAP has the original license from

Starbucks company for Indonesia market. After that, MAP will offer the

Starbucks franchise or retailing it.

3.3 SWOT Analysis

3.3.1 Strengths

• Well-recognized Brand

The Starbucks coffee brand is the most well recognized coffee brand in the

world also for the Indonesia market. With its strong brand awareness from

its consumer, Starbucks even has its own loyal consumers.

• Branches Everywhere

The expansion of so-called blanketing the area with stores proven to be

succeeded and has made this coffee shop ubiquitous and has increased the

level of satisfaction of its consumers.

• Attractive, Comfortable and Entertaining Stores

Well-equipped with comfortable chairs, wireless internet connections, and

even selection of music, make Starbucks as one of the cosiest hangout place

for having a discussion with friends, searching for inspiration a and even

rendezvous spot.

• Innovative Ways to Attract Consumers

Innovations on its products including Technology Innovations, ex:

Starbucks Express, new varieties of coffee and pastries each month and also

have a special service such as the ability to burn your own music CD from

the sample online music you hear in the counter.

• Starbucks was one of the Fortune Top 100 Companies to Work For in 2010.

The company is a respected employer that values its workforce (Fortune,

2010).

• They have strong ethical values and an ethical mission statement as follows

such as committed to a role of environmental leadership in all facets of

Starbucks business.

!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

3.3.2 Weaknesses

• Expensive Price

Being positioned as a premium coffee brand, an average price of a cup of

Starbucks coffee is considerably expensive. 30.000,00 rupiahs in averages

for a cup of coffee will make its price-sensitive buyer will look for other

brand that is cheaper but offer the same value (ex: Coffee Bean, Kopi

Luwak, Excelso, Embargo, Coffee Toffee, J-Co).

• High Employee Turnover: Part time job and to many employees.

Nowadays, working in Starbucks has not been the greatest experience ever

again. Since the pay of the workers doesn’t come close with the daily

workload they have to handle. This thing wills also affecting on Starbucks

reputation. With their premium brand positioning, they supposed to have

delivered its employee a better salary.

3.3.3 Opportunities

• Opening new stores in some cities in Indonesia

Local investors interest to open Starbucks store in their own city, because

Starbucks has good prospect in business.

• Joint Venture with the other well-known brand.

3.3.4 Threats

• Target of terrorism, as a symbol of free-market capitalism; besides that,

Starbucks is originally from USA and it is sensitive for some community in

Indonesia

• Self-cannibalism: because so many stores close together. For the examples:

There 2 Starbucks stores in Grand Indonesia Mall, also 2 stores in Central

Park Mall.

• New entrants and “same level” competitors in the market.

!!!!!!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

PART IV

CONCLUSION AND RECOMMENDATION

! In the introduction part, the researcher mentions a questions about Starbucks Indonesia

on “How Starbucks Indonesia maintain their existence as a coffee store market leader, the

emergence of new competitors and new competitions in the Indonesian market?” and in fact

all the findings above show that Starbucks has been very success brand in Indonesia which it

actually became a really good sign to easily answer the question. However, to be always in the

top, Starbucks Indonesia actually only need some extra strategy to make people pay more

attention toward Starbucks Indonesia. In the end, the researcher comes up with some

recommendation and suggestions for Starbucks Indonesia to be always sit on the top of the

competition:

(a) Special Program for Indonesia

Actually, almost all Starbucks events and promotions today are issued from Starbucks

USA. In fact, Starbucks Indonesia customers enjoy it, but sometimes customers tired on it,

and need something that more traditional or feels like in own home. Furthermore, Starbucks

can use some national moments to do their promotions such as up size, redemption card,

voucher. And the examples of national moments like national Independence Day, national

batik day, and other more.

(b) Use Traditional Identity

Starbucks Indonesia can add some Indonesia traditional icons on the store decoration or

placed on other things. Batik is the simple way to done with it, moreover Starbucks Indonesia

can add batik pattern on the baristas clothes or it can be ornaments in the wall. All of them can

make the customer give attention more to Starbucks Indonesia because Starbucks is also a

part of Indonesia.

!!!!!!!

Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

!ACADEMIC REFERENCES

!Abplanalp, C. (2007). Starbucks: A Trend in Action. [online] Retrieved from: http://

www.radford.edu/~cabplanal/academic_course_work_files/Starbucks%20Case%20Study

%20-%20Presenters.pdf [Accessed on 01/02/2011 at 17:43].

Armstrong, G., Kotler, P. & Saunders, J. (1999). Principles of Marketing. New Jersey:

Prentice Hall Inc.

Blythe, Jim. (2006). Marketing. London: SAGE Publications.

Chris, H. (2009). Marketing: A Critical Introduction. London: SAGE Publications.

Fortune (2010). 100 Best Company to Work For. [online] Retrieved from: http://

money.cnn.com/magazines/fortune/bestcompanies/2010/full_list/ [Accessed on 01/02/2011

at 03:04].

Houben, G., Lenie, K. & Vanhoof, K. (1999). A knowledge-based swot-analysis system as an

instrument for strategic planning in small and medium sized enterprises. Decision Support

Systems, 26 (2), pp. 125–135.

Lancaste, G. & Reynolds, P. (2013). Marketing: The One-Semester Introduction. London:

Taylor and Francis.

Luther, W. (2011). The Marketing Plan: How to Prepare and Implement It. New York:

AMACOM.

Malhorta, N. (2010). Review of Marketing Research. New York: Sharpe.

Russel, E. (2010). The Fundamentals of Marketing. Lausanne: AVA Academia.

Sheehan, B. (2011). Marketing Management. Switzerland: AVA Pub.

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Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014

NON-ACADEMIC REFERENCES

!Starbucks (2008). A Brief History of Starbucks. [online] Retrieved from: http://

www.starbucks.co.id/en-US/_About+Starbucks/History+of+Starbucks.htm [Accessed on

30/12/2010 at 16:22].

Starbucks (2010). Starbucks Company Profile. [online] Retrieved from: http://

assets.starbucks.com/assets/company-profile-feb10.pdf [Accessed on 12/28/2010 at 14:40].

Starbucks (2011). Our Starbucks Mission Statement. [online] Retrieved from: http://

www.starbucks.com/about-us/company-information/mission-statement [Accessed on

12/31/2010 at 13:20].

Starbucks Global (2008). Become a Starbucks partner. [online] Retrieved from: http://

www.starbucks.co.id/en-US/_About+Starbucks/Job+Center.htm [Accessed on 01/03/2011

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Marketing analysis…, Ignatius Andhika Satrio Nuswantoro, FISIP UI, 2014