Extended Essays 2021
The Marketing Mix
The marketing mix combines the 7 Ps of marketing: product, price, promotion, place, people, processes and
physical evidence. An extension of the marketing mix, public relations, from Jerome McCarthy’s
communications mix will also be evaluated. This will p rovide a detailed exploration on each area of Starbucks’
marketing strategy and is the key to analysing the extent of its responsibility for Starbucks’ failure in Australia.
Product
When expanding into Australia, Starbucks had a product-oriented approach rather than market oriented. This
can be seen in Starbucks ’ failure to consider Australia’s unique market when adapting its business model.
Starbucks failed to adapt its product when attempting to penetrate Australia’s market which led to a
devastating loss in profit. Starbucks offers 3 types of products; packaged take-home coffee, served beverages
and food, and mugs 11 . Starbucks earns most of its revenue from beverages which are not suited to the
Australian consumer; Starbucks’ menu offers sugary and artificial flavours whereas the Australian taste is
more refined and sophisticated, focused on quality coffee at a reasonable price.
The ANSOFF matrix in Figure 2 was applied to highlight any flaws in Starbucks’ marketing strategy in terms
of its product and market development in its expansion into Australia.
Figure 2 ANSOFF Matrix (Haskova, 2015)
11 Starbucks Coffee Company. (2021). Company Information . [online] Available at: https://www.starbucks.com/about-us/company-information [Accessed 17 Jul. 2021].
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