Advertising, Sales, Promotion and PR Plans

Category: Advertising, Internet
Last Updated: 27 Jul 2020
Pages: 3 Views: 184

Generally, Starbucks has invested more on public relations and service than on traditional advertising and sales campaigns. On the official website of Starbucks about service, the statement goes as: “Our Commitment to Being a Deeply Responsible Company Contributing positively to our communities and environment is so important to Starbucks that it’s one of the six guiding principles of our mission statement. We work together on a daily basis with partners (employees), suppliers, farmers and others to help create a more sustainable approach to high-quality coffee production, to help build stronger local communities, to minimize our environmental footprint, to create a great workplace, to promote diversity and to be responsive to our customers’ health and wellness needs. ” (n. p. ) In this light, Starbucks may initiate a service program in Oslo. Geographically, Norway is rich in natural resources and can serve as the theme for the Environment conservation program of Starbucks tied up with a non-governmental organization.

The CIA Factbook provides that in Norway, there is about 3. 8 million of the total population who have Internet access. Thus, Starbucks may also ride the popularity of Internet blogs. Scott (2007) argued that blogs may not be created by a journalist but those blogs can be helpful in marketing and PR because it will allow companies to

    Order custom essay Advertising, Sales, Promotion and PR Plans with free plagiarism report

    feat icon 450+ experts on 30 subjects feat icon Starting from 3 hours delivery
    Get Essay Help
  1. monitor what millions of people think about them, their product and their organization;
  2. participate in the consumers’ conversations by commenting on their blogs; and
  3. begin and shape those conversations by creating and writing their own blogs.

(p 50) H. Budget for 3 Years All the computation below only shows estimate costs for one branch of Starbucks in Oslo. The projected annual gross sales pegged at $30,686,499. 00 of gross sales as mentioned in the previous section were derived as follows:

56,048* x 1. 50USD** = 84,072. 00 USD*** x 365 days = 30,686,499. 00

*Units Sold: 10% of the Oslo Population = 56,048 **Unit Price ***Daily gross sales Assuming that Starbucks will spend .

10 cents of USD for every unit it sells, a daily budget for marketing cost will be valued at 8,407.

2 USD or an annual marketing cost of 3,068,628 USD. In addition, provided Starbucks will employ 5 Norwegian, it will spend 118,800 USD annually.

14. 85 USD* x 8 hours x 365 working days = 43,362 USD** x 5 employees = 216,810 USD

*Hourly rate

**Annual salary of one employee

To better control average store opening costs, Starbucks centralized buying, developed standard contracts and fixed fees for certain items, and consolidated work under those contractors who displayed good cost-control practices (Thompson, Shah, et. al. ). Hence, Oslo Starbucks will be able to cut store opening stores. Unfortunately, the data gathered was limited and did not provide the exact cost of opening a new store. Based on the computations above, one branch of Starbucks in Oslo will yield an annual sales of (excluding other costs, i. e. utility cost, transportation cost) $27,401,061.


  1. Bacon, D. & Pugh, T. 2003.
  2. Winning Behavior, What the Smartest Most Successful Companies Do Differently.
  3. AMACOM, USA. CIA Factbook. 2008. Retrieved December 9, 2008, from https://www. CIA.
  4. gov/library/publications/the-world-factbook/fields/2070.
  5. Davies, H. December 10, 2008.
  6. Norway's minimum wage is double that of Britain. Mirror. co.UK.  News. Retrieved December 10, 2008  from http://www. mirror. co.
  7. uk/news/top-stories/2008/10/12/norway-s-minimum-wage-is-double-that-of-britain-115875-20797382/
  8. Dutta, S. and Subhadra, K. 2003.
  9. Starbuck’s International Operations. ICFAI Center for Management Research (ICMR).
  10. Hyderabad, India. Examples of Norwegian Prices. 2004.
  11. Retrieved December 10, 2008, from http://www. pvv. ntnu. no/nuccc-2004/prices.
  12. FXConverter - Currency Converter for 164 Currencies164
  13. Currency Converter © 1997-2008 by OANDA. com.
  14. Retrieved December 10, 2008, from http://www. Hanft, A.
  15. What You Can Learn from Starbucks. Inc. com. Retrieved December 9, 2008, from http://www. inc. com/resources/marketing/articles/20050401/starbucks.
  16. Hot Drinks in Norway. 2008. Retrieved December 9, 2008, from www.Euromonitor. com/Hot_Drinks_in_Norway.
  17. Sandhu, R. 2000. Business Review Books, Marketing. Barron’s Educational Series, Inc. Hauppage, New York. Scott, D. M. 2007.
  18. The New Rules of Marketing; PR. John Wiley; Sons, Inc. Hoboken, New Jersey. Thompson, A. A. , Gamble, J. E. and Strickland III, A. J. 2006.
  19. Strategy: Winning in the Marketplace. Core Concepts, Analytical Tools, Cases. McGraw-Hill Irwin. New York, New York. Thompson, A., Shah, A., and Hawk, T. 2004.
  20. Starbucks in 2004: Driving for Global Dominance.
  21. Strategy: Winning in the Marketplace. McGraw Hill Irwin. New York, New York. Wilson, R. M. S., and Gilligan, C. 2005.
  22. Strategic Marketing Management: Planning, Implementation, and Control. Elsevier Butterworth-Heinemann. Burlington, MA.

Cite this Page

Advertising, Sales, Promotion and PR Plans. (2018, Apr 26). Retrieved from

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

plagiarism ruin image

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer