Smoothies Merchandise mugs, instant coffee, etc. This product mix is a result of years of business innovation. The company also has an ongoing product innovation process that aims to offer new products to attract and keep more customers. This component of the marketing mix determines the venues at which customers can access the products.
Starbucks has used the formula of quality based product differentiation which has resulted in very high level of popularity and loyalty. Still, product quality must be considered the central pillar of its marketing efforts. Great quality has several benefits. First of all it helps with reputation management.
Great taste equals higher popularity. As a brand, Starbucks has acquired great reputation over time for the quality of its products, their flavor and for unequalled customer service. Its new focus on marketing and advertising has resulted in better sales and increased brand recognition.
Since, Starbucks is a premium brand, its customers are mainly from the upper economic strata or the upper middle class and upper class.
The brand targets people who want a peaceful space to drink coffee and Starbucks marketing and sales department fatigue away. These are higher wage earning professionals, business owners or other higher end customers in the age group mainly.
People with a fast moving life style want good quality coffee along with an environment where they can relax. Starbucks offers all these privileges at a single stop. They also play an important role in customer retention and satisfaction.
Starbucks logo is found generally on most of its merchandise. A perfect cup of coffee cannot be perfect if the cup is imperfect. Well, this is a strategy most customer focused brands employ. Traditionally, Starbucks has not relied on conventional marketing and advertising techniques for promotion.
However, it was still able to generate very high level of publicity and popularity. Apart from great looking stores where the customers can sit comfortably and enjoy a great cup of coffee amid excellent service, Starbucks has focused on the other parts of its business operations to create a unique and strong brand image.
Ethical sourcing is also an important part of its business strategy. This gives rise to an ethical image which proves favorable in terms of marketing as well as customer loyalty and retention.
The image of an ethical and accountable brand can be a major plus point in the 21st century. Customers are more loyal to brands that are environment friendly and accountable. Now Investing in Advertising Till some years ago, Starbucks was known for not investing in marketing.
All the marketing was based on its brand image and the fame it had earned by offering premium quality products.
Now, its ads are visible on television, print and other digital channels too. Its TV commercials highlight the newest and most romantic flavors available at the Starbucks stores.
However, advertising and paid promotions are not a central focus at Starbucks and compare its marketing budget with what several other celebrity brands like Coca Cola or Nike spend, it would look like spending a meager sum on marketing.
Tillits focus was to spend more on having talented people and good quality raw material than on advertising gimmicks for enormous growth. However, the budget has never touched even half a billion. Check how its marketing budget has continued to expand in the recent years. Social Media Marketing Apart from these, Starbucks markets itself from the social media platforms.
There are more than interesting and engaging videos of Starbucks brand and products on YouTube.Marketing Land is a daily, must-read site for CMOs, digital marketing executives and advertising campaign managers.
Its new focus on marketing and advertising has resulted in better sales and increased brand recognition. Positioning: Starbucks has positioned itself as a premium coffee brand that is based on an overall premium experience designed to elevate the coffee experience to the next level.
Internal Marketing Strategies Starbucks Mission Statement: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Starbucks Marketing And Sales Department. Starbucks Coffee Case History Tyler Hass Principles of Marketing Professor Bausano 10/3/ What Explains the Starbucks Success Story? Howard Schultz had the perfect plan to create a successful coffee company.
He got people to pay more for a premium coffee then to just go to a local coffee shop and pay a lot less for a cheaper coffee. Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to .
Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to .