Starbucks is one of the best coffee and snack bands around the world. Established in 1971, this brand is continually providing premium coffee drinks to its customers for 47 years! This brand now has 12440 shops worldwide over 75 countries. The current new worth of this company is now nearly $85.1 million. The mission of this company which is one person, one cup and one neighborhood at a place with premium experiences. And to reach its services to every corner of the world, this company has developed some marvelous marketing strategies that supported it to claim the top position.
4Ps or Marketing Mix of Starbucks
Product Strategy of Starbucks
Product of a brand refers to the value it can offer to its customers. Product is the primary thins based on which other strategies are takes by a business.
Starbucks has made its brand image with its premium coffee and drinks. As a result, it became a go-to-place for people where they can find superior quality cups of joy. It has over 1000 varieties of food items including, coffee, smoothies, cookie, tea, muffins, pastries, doughnuts, fresh fruit juice, blended beverages and many more. From breakfast to late-night cravings, this brand has every food solution for its customers. It also recognized the current demand of the people and presented them with nonfat milk items. And this brand is continuously innovating new food items to keep up the craze in the market. Some of its popular innovations are Frappuccino, Iced Flat white, Peppermint Mocha, Gingerbread Latte, Tazo Zen etc. When this brand started to serve teas in their menu, it promoted that though brand localization strategy. Besides drinks, other snack products of its brands are equally popular. Starbucks is determined to make every coffee known as a distinct brand of its own.
Price Strategy of Starbucks
Price determines the negotiable value between the seller and buyers against the cost. Prices are set after evaluating the brand position and market demand among the customers.
Starbucks is known for its premium service and premium products. As a result, they’ve developed a premium pricing strategy as well. The prices of their products are generally higher than the market price. But that’s what Starbucks is. Because these brands mainly target the premium section of the society who are willing to pay higher costs for superior service. In 1990, it sold its coffees 25% higher than the market value and still doing that. But there’s wasn’t any serious complaint against this practice of this brand. Because this brand isn’t justifying their higher price just by premium quality products, they make sure people can feel the warm and welcoming environment only by entering their shops. From taking the order, taking sips of the drink to leave the place, every moment feels magical, and this brand has made sure of that. Although this brand doesn’t impose its higher price on customers illogically. The cost of their food items varies geographically based on the ability of the people of each country and locations.
Place or Distribution strategy of Starbucks
Place and distribution refer to how much availably a business can ensure to its customers. The policy is to make the appearance to the people as much as near as possible.
The quality of this brand can ensure all the food items mainly because of its fantastic supply chain management system. This brand uses a direct channel of distribution with the farmers and collects the finest coffee beans. Also, the global presence of this brand is solid. It has over 12000 shops all over the world. This brand has opened its stores in every city possible and in a way that people can easily find those shops. And the internal environment of each shop is top-notch. The “Third Place” positioning strategy of this brand made people have a place where they can relax over a soothing and warm musical environment and relax with their loved ones. They find Starbucks as another essential place to go after their home and office. And this type of placement has only been endured by Starbucks. Also, people don’t need to go to only its shops to have their drinks and snacks. People can find their products through other channels as well. And the new online service has made another breakthrough for this brand placement among the people.
Promotion Strategy of Starbucks
Promotional strategy is through which a business makes itself known and accepted among the people. The firmer and frequent promotional campaigns of a company, the more hype it can ensure in the market for a long time.
Although Starbucks is already made a sustainable position in the market, it still has to make constant efforts for promotional activities. During 2015 and 2016, this brand has invested nearly $350 million on the marketing campaigns. This brand also got into partnerships with local companies to make their local presence more engaging. Recently this brand also made another partnership with Nestle, and researchers in the market are expecting something better and more spectacular from this new venture. Starbucks also has its reward programs for the existing customer to keep their loyalty towards the brand. This brand uses its great content to create a storytelling environment during promotional activities. It uses multi-channel promotional strategy and energetically active on every social media though contests, hashtags, and other offers. During every occasion, this brand comes with its seasonal offers and menus. Starbucks never loses a chance to attract its customers in innovative ways.
Recommendations for Starbucks
Starbucks is always made a sharp brand image among people. Although the premium pricing strategy is one of its identity, it can start to offer a moderate level pricing given to the situation of this world. The pandemic situation has already taken this world into a recessional era, and there’s no way to say when we’ll recover from it. And it’ll affect those premium target markets of Starbucks as well. As a result, the profit and sales margin of this brand can fall to a great extent. That’s why it’ll be better to take steps for that situation as soon as possible.
Related
- Competitive Advantages of Starbucks
- PESTLE Analysis of Starbucks
- Leadership Qualities – Style, Skills, and Traits of Howard Schultz
- Best Financial Calculators
References
- https://www.joshmeah.com/starbucks-marketing-strategy-15-extremely-actionable-ideas-for-restaurant-marketing/
- https://coschedule.com/blog/starbucks-marketing-strategy/
- https://www.locusassignments.com/solution/unit-4-marketing-strategic-concepts-starbucks
- https://www.referenceforbusiness.com/history2/54/Starbucks-Corporation.html
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