Starbucks Marketing Strategy
Prepared for: Starbucks Coffee
Submitted: Thursday, 2nd February 2012
Prepared by: • Velisya (551496) • Aktalisa Tifany (548994) • Steffany Ciputri (551288) • Gabriela Tiffany (546561)
Executive Summary
This essay discuss about how Starbucks utilizes its marketing mix in order to gain market share. Starbucks, which has been in the coffeehouse industry for 41 years, face higher competition than before. Even so, Starbucks is able to not only survive through this, but they are able to be “one of the most valuable global brands” (Theodore 2002). In its maturity stage, they are capable of expanding their consumer base despite the fact of increasing competition.
Through the augmentation of their products they could gain consumer loyalty. Starbucks uses price-skimming strategy in which they set higher price compared to others to indicate higher quality. Thus, this shows that Starbucks utilizes its pricing as their signaling device. In addition, Starbucks does not frequently use traditional means of advertising. In fact, they do not spend a lot on advertising and only depend upon their customer through their word of mouth advertising. Starbucks distributes their product widely in places that enables consumers to easily reach them and for them to reach their customers. It uses vertical marketing system in which it distributes their product through direct and indirect channel. Therefore, by using their marketing mix efficiently, Starbucks is able to increase its consumer loyalty, brand equity and also the rate of adoption.
Table of Contents
Cover Page 1
Executive Summary 2
Table of Contents 3
Overview 4
The External Environment 4
Customer Analysis & Evaluation 5
Marketing Mix 6-10
Product 6-7
Price 8
Promotion 9
Place 10
Conclusion 11
References 12
Overview
Starbucks, which first originated from Seattle in 1971, is a company that specializes on its
Submitted: Thursday, 2nd February 2012
Prepared by: • Velisya (551496) • Aktalisa Tifany (548994) • Steffany Ciputri (551288) • Gabriela Tiffany (546561)
Executive Summary
This essay discuss about how Starbucks utilizes its marketing mix in order to gain market share. Starbucks, which has been in the coffeehouse industry for 41 years, face higher competition than before. Even so, Starbucks is able to not only survive through this, but they are able to be “one of the most valuable global brands” (Theodore 2002). In its maturity stage, they are capable of expanding their consumer base despite the fact of increasing competition.
Through the augmentation of their products they could gain consumer loyalty. Starbucks uses price-skimming strategy in which they set higher price compared to others to indicate higher quality. Thus, this shows that Starbucks utilizes its pricing as their signaling device. In addition, Starbucks does not frequently use traditional means of advertising. In fact, they do not spend a lot on advertising and only depend upon their customer through their word of mouth advertising. Starbucks distributes their product widely in places that enables consumers to easily reach them and for them to reach their customers. It uses vertical marketing system in which it distributes their product through direct and indirect channel. Therefore, by using their marketing mix efficiently, Starbucks is able to increase its consumer loyalty, brand equity and also the rate of adoption.
Table of Contents
Cover Page 1
Executive Summary 2
Table of Contents 3
Overview 4
The External Environment 4
Customer Analysis & Evaluation 5
Marketing Mix 6-10
Product 6-7
Price 8
Promotion 9
Place 10
Conclusion 11
References 12
Overview
Starbucks, which first originated from Seattle in 1971, is a company that specializes on its
References: BBC News. 2012. ‘Starbucks profits rise 10%’. Retrieved January 27, 2012, from http://www.bbc.co.uk/news/business-16752929 BBC News. 2011. ‘Starbucks drops its name and the word coffee from logo’. Retrieved January 6, 2011, from http://www.bbc.co.uk/news/business-12125440. Karolefski, J. 2002. ‘Starbucks: Conquering New Grounds’. Retrieved 30 Jan 2012, from http://www.brandchannel.com/features_effect.asp?pf_id=78. Lofthouse, R. (n.d.) 2011, ‘HOW ONE BRAND CHANGED THE WORLD’ - CNBC Business. Financial & Business News - CNBC Business. Retrieved January 31, 2012, from http://www.cnbcmagazine.com/story/how-one-brand-changed-the-world/1297/1/ Moon, Youngme, and Quelch J. ‘Starbucks: Delivering Customer Service’. Harvard College. Boston: Harvard Business School, 2003. 1-20. Starbucks Company, ‘Starbucks Company Profile’ (PDF file), downloaded from http://www.starbucks.com/about-us/company-information, accessed 31 January, 2012. Tewell, K., Odom, B. & Snider, K. 2006. ‘Starbucks Marketing Plan’. Retrieved December 12, 2006, from http://www.franklincollege.edu/pwp/BOdom/SampleWorkStarbucks.pdf. Theodore, S. ‘Expanding the coffee experience: Starbucks keeps sales brewing with new products, innovation and global expansion [Electronic version]’. Beverage Industry, 2002. P. 57- 62.