Starbucks E Marketing Strategy

Starbucks has reinvented itself numerous times over the past 40 years and continues to experience substantial growth and contractions. They started as a small company, with its first location in Seattle’s historic Pike Place Market in 1971, and today, “there are more than 21,000 stores in 66 countries.” They have grown from not only selling coffee, but also offer a wide selection of teas, specialty drinks, pastries and an assortment of sandwiches for breakfast, lunch or dinner. They have also diversified their product offerings to include a wider variety of coffee beans, drink ware, and equipment to make coffee or tea at home.

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Also, Starbucks generally locates its outlets in central spots like train stations and significant parts of the neighbourhoods because these spots are easily accessible for everyone in a particular community.

Starbucks chooses international business partners based on the following items: shared values and corporate culture, strong multi-unit retail/restaurant experience, dedicated human resources, commitment to customer service, quality image, creative ability, local knowledge, brand-building skills, and strong financial resources. To date, Starbucks has expanded into a diverse range of international markets that have fulfilled these criteria. Starbucks coffee retail locations are currently in the following countries: Australia, Austria, Bahrain, Canada, Germany, Hawaii, Hong Kong S. A. R., Israel, Japan, Kuwait, Lebanon, Malaysia, New Zealand, Oman, Beijing, Shanghai, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Spain,

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.

Starbucks has set a new standard in what the world sees as far as retail industry for ubiquity. The have become so big so fast that the premium status has been lowered to that of a common franchise. Their primary competitors today seem to Dunkin’ Donuts and McDonalds. Coffee is a daily habit for many people no matter what social level, economic status, or gender you hold. Starbucks tries to create or sell a certain type of lifestyle. This lifestyle is appealing to college students who go to locations to work or study or to people who want to reconnect with friends and family over a cup of coffee. Starbucks offers their customers many benefits and perks for not only buying their products but for staying and creating a comfortable atmosphere. Most locations offer free internet access and wireless charging stations for your phones or device. Because this generation seems to be very tech savvy an app also allows customers to order and pay for their item on the phone so they are ready for them right when they arrive. Starbucks also offers a membership program at no cost. These memberships also come with perks such as free drinks on your birthday and exclusive discount on food or

There were many contributing factors to Starbucks’ success in becoming the leading coffee brand worldwide. Starbucks value proposition was to provide a ‘live coffee’ culture. The primary value included providing high quality coffee to consumers all around the world. They controlled the greater part of the Supply chain from the growth of coffee beans to the dissemination in retail stores. This was done to ensure superior quality as compared to other brands in the market. The second value was to provide the befitting atmosphere keeping interior design as a critical factor. With most of their coffee stores located in high-visibility places, it proved to be convenient and provided the inviting environment to ordinary customers who wanted to escape

Starbucks employs the product, promotion, place and price method of marketing. They place great emphasis on their products and have established themselves

Location is another growth opportunity factor. Parnell noted on page 153 that, “The organization should be located where skilled labor, suppliers, and customers are readily accessible” (2006). Starbucks stores are located in many large department stores including Target. Locating in department stores and other high traffic areas is a smart move for Starbucks. Universities and colleges would be another place for Starbucks to open stores. More international locations are also emerging. Global corporate strategy is discussed on page 97.

The company introduced Wi-Fi capabilities in its outlets already. Internet is important to the consumers. They can now surf the web and do work while sipping Starbucks coffee. This is an added value to the brand. It enhances the overall consumer experience

The company was also rewarded as the 67th rank in the Best Global Brands of 2015. They have been placing their stores in the significant locations of the city plus giving those customers the ‘Starbucks Experience’. The range of products and service offered by Starbucks caters the needs for all age groups of their target market. Starbucks also came up with customer rewards program when makes them to Starbucks repeatedly. Weaknesses

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

Starbucks shoots segments at Hotels, Grocery Stores, Schools, Businesses, Industries Cafeteria and Airlines. Starbucks opens its coffee shops around the world, such as in Brazil, Russia, Romania, and puts its first Starbucks logo in Cairo Egypt.

Starbucks has become one of the most iconic brands in the world. The coffee house is known for their friendly baristas, crafted coffee drinks and inviting ambiance. The Starbucks application is used to save and reload card funds, also they have recently started the mobile ordering option where

can order and pay for their drinks in a flash while stacking up rewards for each purchase made. This Strategy has significantly drawn people to Starbucks due to its highly anticipated services, products, and marketing strategies that differ from most fast food restaurants. The next service is the Starbucks webpage where the customers can go onto the site and view product and also make purchases. This service is quite excellent for those that want to checkout items online through the site, because it incorporates a similar process as the application on your smartphone. Starbucks also incorporates equipment and drinkware to their massive line of products. First their Drinkware consists of cups and mugs that are affordable to the customers. These cups come in many colors and aesthetic values, which make people interested in purchasing. Starbucks had the right idea when they decided to manufacture these cups out to their customers because not only were they a huge success for the business, but it also made Starbucks distribute more merchandise. Cold cups, which were from stainless steel containers. These containers made a rise once the popularity rose for other merchandise. These containers were sold very often to customers and once again made a surprise since it was from the same line of cups and mugs category. As more popularity grew in their products so did the equipment used to make customers coffee. First Starbucks decided to manufacture coffee makers, presses, and expresso