Student: Truong Vu Phong Lan
29 June 2012
GRENOBLE GRADUATE SCHOOL OF BUSINESS
ADVERTISING and MARKETING COMMUNICATION
Msc Marketing 5 _ 2011-2013
Starbucks is known as the biggest global coffee company all over the world with its chain of more than 17,000 stores in approximate 57 countries currently through its company-owned stores and licensed retail stores (Starbucks, 2011). The first store of Starbucks was first located in Seattle’s Pike Place Market, America, in 1971 with its mission settled at the very soon stage “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2012). The company is well-known and successfully expanded over the world because it has provided a totally different kind of service for customers to enjoy comfortable and relaxed environment in each Starbucks store, which is called the third place between work and home, with their friends or quietly while having the best cups of coffee here. In order to describe the friendly atmosphere at Starbucks stores, the company has said: “It’s not unusual to see people coming to Starbucks to chat, meet up or even work. We’re a neighborhood gathering place, a part of the daily routine – and we couldn’t be happier about it” (Starbucks, 2012). In 2009, along with the expansion of economic crisis and especially the strong development of McCafé, the same business model of coffeehouse chain as Starbucks under the support of McDonald’s brand name, Starbucks therefore come up with a new advertising campaign to recruit the attentions from its new customer segmentation (the young people) via social networks that started on mid of May 2009 in six major cities of the U.S (Claire, 2009). The campaign, emphasized Starbucks coffee quality as its main idea toward intended customers, was run through online tools (Youtube, Twitter, and Facebook) with the support of outdoor and print ads in order to hire customer attention as well as remain their loyalty (Claire, 2009). CONTEXT ANALYSIS
Starbucks, with its very beginning objective to be a third place apart from work and home, has been chosen by its customers to inspire their spirits by enjoying good drinks while reading newspaper, chatting with friends or even talking to Starbucks staffs in the stores. People come to Starbucks do not just to buy drinks or cakes but to buy the environment this coffeehouse chain providing. They enjoy the time at Starbucks stores as a place to refresh their mind after a whole day of working or to start a new day. The store atmosphere and staffs who are able to be very flexible to response customers’ requirements with the policy “Just Say Yes” are considered as two of three main factors bringing successes to Starbucks (Youngme, 2006). Those things this company providing its customers make Starbucks different from the other competitors to retain customer loyalty over the years. However, it seems this style of Mr. Howard Schultz (chairman, president as well as C.E.O of Starbucks) being more suitable for the elderly than the young people nowadays. In a research Starbucks generated in 2002, it was showed that the attraction of this coffee store was not towards the new customer generation with only 25 out of 100 grades for Starbucks based on overall opinion and 26% of them thought this organization had highest quality coffee (Youngme, 2006) whereas the established customers rated for 44 grades and 41% respectively (exhibit 1). This campaign was raised among the difficult situation of Starbucks when its sales were reported to reduce by 8% in the first three months of year 2009 (Claire, 2009). Meanwhile, McDonald’s promoted their new sub brand McCafé employed full use of medias including Television, print, radio, billboard and web ads with the huge expense of more than $100 million (Claire, 2009). Starbucks, instead of facing directly with McDonald’s in the same kinds of media, chose different...
Please join StudyMode to read the full document