Starbucks Marketing Strategy Case Study

Starbucks founded in Seattle in the year 1971 and at that time it was one of the first US coffeehouses that quickly became known among the people because of its high quality roasted, whole bean coffee. Starbucks has the key aspect for its great awareness in the people i.e. it’s brand-centric marketing strategy since the time of its establishment. Starbucks has been focusing, working and maintaining its distinct identity among their customers and services for its high-quality sustainable coffee and in store comfortable environment.

Thus, we will discuss about the marketing strategies of Starbucks globally for achieving their marketing objectives in all of the company marketing principles.

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Marketing Mix Analysis of Starbucks  

Marketing mix (4Ps of marketing) of the Starbucks supports their goals and objectives of the marketing. This leads the company position to become the leading coffee house chain in the world. The marketing mix of the company is the part of the marketing plan that comprises product, place, price and promotion. Starbucks marketing mix helps them to create brand image and popularity. It is very clear to see that how an effective marketing strategy supports marketing mix of the Starbucks brand and helps them to achieve business growth as a multinational company.

  • Product: Starbucks has the premium quality coffee products aims for high standards. Their innovative services in their products allow them to provide outstanding value to the customers with higher satisfaction. It categorizes their products in 8 types of drinks and 7 food categories to stand in the competitive edge and satisfy the customer’s needs. They are constantly evolving their products in flavored coffees and tea. In order to identify the customer’s specific needs, they also launched non fat milk products. As a matter of fact, Starbucks is one of the prominent coffee retailers who offer seasonal products having Frappuccino coffee in the summer and latte in the Christmas. Company always ensure their quality control measures and richness in their brand by including high quality ingredients. Therefore, the company employees always make sure they must stick to the company’s mission and goals.
  • Price: Price of the products determines the quality and value. Starbucks is on its focus to provide high value to the customers by delivering them quality bean coffee and assuring that their employees and staff must get involved in the effective and efficient training programs. Despite of its expensive coffee products, the company still creates an environment where customers can enjoy their coffee. Pricing strategies of Starbucks started to enhance their competitive edge when they offered 1$ bottomless cup of coffee which can be allowed to refill any number of times and thus made it less expensive than any other products. In order to make people buy their expensive products, Starbucks pricing strategy focuses on the correlation between high price and high value. Therefore, they are maintaining their high end specialty image and satisfactory customer experience.

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  • Place: This aspect of the marketing mix helps to know which locations and areas would be better to sell the products at what prices. Starbucks provides their products at cafes and coffeehouses. As in the US, we can find Starbucks stores in any neighborhood areas with the high traffic. It clearly indicates that Starbucks strive to open their stores in the highly visible and happening locations. However, Starbucks now develop its mobile app services online to reach more and more customers. This mobile app service allows customers to place their orders online more conveniently and makes them to get foods and drinks. Therefore, it shows how company is adapting to the times and technologies and market conditions.
  • Promotion: This aspect of marketing mix helps the company to spread awareness of their products to generate revenue through customer satisfaction. Starbucks sell their products in all over the world in many populated countries. The promotional strategies of the Starbucks follows some of the best practices such as
  1. Word-of-mouth marketing
  2. Advertising
  3. Sales promotions
  4. Public relations

The word of mouth marketing helps the company to provide best customer experience through encouragement of people in promoting business. Starbucks also developed their promotional methods into television, print media and online marketing.

Starbucks Digital Marketing Strategy

Starbucks gives much importance to online marketing and advertising practices. Thus, Starbucks digital marketing strategy creates the opportunity to deliver the products of the customer’s choice and raising their brand awareness through campaigns, merchandising and more.

  • Social Media Marketing:

Starbucks has been promoting their brands and products through social media platforms like twitter, Facebook, YouTube and instagram. In order to drive promotional strategies online for the customers, the company keeps updating their content through posts like photos, videos and more. Through using their demographic data to target particular audience, starbucks has been focusing on paid social media campaigns. Thus, creative content can help them drive brand recognition and brand equity.

Starbucks unconventional marketing strategies have social media techniques of establishing consumer connection. Creating real customer value. Near no or less use of traditional methods for marketing (till some years ago; now it is using a mixed strategy). Good quality products and customer service – higher word of mouth marketing.

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  • In store marketing: For customer retention, starbucks focuses on in store marketing strategies. The brand began as free provider of WIFI in all of their stores in 2002, which creates influence on consumers to stay longer in the stores even after the purchase which eventually helps to attract more customers and create better connections among the potential customers.
  • Mobile App marketing: The organization has first released their loyalty programs in 2008 which now turned into Starbucks Rewards. Starbucks has created their mobile application 2009 just after the launch of loyalty programs. The app helps the company to optimise their customer base and enhance customer’s experience with their product delivery. Also allows the company to track the loyalty points and gifts of the Starbucks Rewards members.

Starbucks Marketing Strategy 2020

In the Starbucks 2020 marketing strategy, the company is now focusing more on the customer satisfaction through quality products to stand out from the competitors. The major objectives of Starbuck’s overall marketing strategy are listed under below:

  • Premium quality of Tea and coffee to differentiate the company based on the quality.
  • Advanced customer service
  • Customer Orientation
  • Enhanced brand experience consistently
  • Using unconventional methods for marketing and branding
  • Creating an image of an ethical and reliable band
  • Merchandising their brand
  • Focusing on the high brand equity
  • High word of mouth marketing through excellent quality products and services

Thus, this Starbucks global marketing strategy shows that company focusing on developing, promoting and creating high brand value for their potential customers in all over the world.

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