Marketing Analysis : Marketing Mix

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3.0 Marketing Strategy 3.1 Marketing Mix The portion of Strabucks marketing is reflecting the social aspects of their customers, while the other portion is focused on rebranding of their locations. Starbuck 's marketing mix(4P 's) indicates the importance of this marketing tool as a way to ensure that the firm promotes the right product at the right place and with right pricing. 3.1.1 Product/Service The customers demand Starbucks to be innovative. Starbucks is focusing on the food side of the business. It would be very beneficial for the Starbucks to focus on their in-store items or baked goods. The test locations have already started to follow on this trend, and have provided positive feedback and results. Starbucks is continuing…show more content…
3.1.2 Price Starbucks follows a premium pricing strategy. This pricing strategy takes advantage of the behavioral pattern of people to purchase more expensive products on the basis of the perceived correlation between high price and high value. The company’s coffee products are more expensive than most competing products, such as McDonald’s Premium Roast. Through this pricing strategy, the company maintains its high-end specialty image (Greenspan, 2015). Starbucks is not only a high-priced coffee shop but it offers a combination of quality, authority, and relative value. Starbucks sets its prices on the basis of a simple idea: high value at moderate cost. When people feel that they are getting a good deal for their money, they are more likely to pay a higher cost. Quality is key. Starbucks has to maintain strict quality controls in its coffee sourcing as well as in its customer service and related products to justify its costs (O 'Farrell, n.d.). Starbucks ' pricing strategy also depends on how it positions itself as an authority on coffee, which is allowing the company to charge premium prices. Thus, when Starbucks introduces new products at higher prices, consumers are willing to pay extra without even having tried the products because they associate the Starbucks name with high quality (O 'Farrell, n.d.). Starbucks also
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