Characteristics and Effectiveness of Marketing Communication Tools Used by Starbucks

This report discusses the characteristics, features, and effectiveness of various marketing communication tools used by Starbucks. It also analyzes the influence of consumer buying process on Starbucks' marketing communication process. Additionally, it examines the communication process applied by Starbucks in its marketing communication efforts. The report concludes with the development of a marketing communication strategy for Starbucks in Brunei.

MARKETING
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................3
1 . Characteristic, features and effectiveness of various marketing communication tools
Starbucks currently uses.........................................................................................................4
2 . Analysis of consumer buying process having a influence on Marketing communication
process of Starbucks...............................................................................................................6
3 . Analysis of Communication process which is applied on Starbucks marketing
communication.......................................................................................................................9
4 . Understanding of relevant theories, development of a marketing communication strategy
for Starbucks in Brunei. Pricing plan and Various stages of Product Life cycle.................11
CONCLUSION..............................................................................................................................16
REFERNCE...................................................................................................................................17
Books & Journals...........................................................................................................................17

INTRODUCTION
Marketing communication is a process which is adopted by companies so that they are
able to convey to their target customers about various products and services in which they are
dealing. This is a direct or indirect form of communication for persuading the customers so that
they they can have a positive stimulation towards the company. Marketing communication uses
various activities such as sales promotion, advertising, events, public relations, direct marketing,
personal selling and many other related activities(DIACONU, OANCEA, and BRINZEA,
2016). This report is based on various marketing communication tools being used by Starbucks.
Starbucks is a American company having a coffee house chain across various parts in the world.
It was founded in the year 1971, in Washington. They deal in to products such as ice cream,
coffee and bottled drinks of coffee. They are present over 30,000 places worldwide. various
aspects discussed in this report are features, characteristics & effectiveness of various marketing
communication tools which Starbucks is currently employing. Analysis of the consumer buying
process which which is having influence on marketing communication used by Starbucks. The
way in which communication process is applied on Starbucks as a global organisation. Lastly a
marketing communication strategy is developed for the various outlets of Starbucks in Brunei.
This includes a pricing plan which can be used on the product life cycle.

1. Characteristic, features and effectiveness of various marketing communication tools Starbucks
currently uses.
Marketing communication is a way that companies uses in order to give a direct message
to its target customers. These tools help organisation to promote their product and make aware
about the product in the market. It includes public relation, advertising, sales promotion, direct
selling, sponsorship, social media and so on(Pearson and Perera, 2018). The manager of
Starbucks uses different marketing communication tools to promote its brand which is described
in detail below:
Advertising: It is a non personal communication and presentation of a product, service or
idea. It is a one way and paid form if marketing communication tool.
Analysis: In context to Starbucks, the company uses media and print advertising to
target the customers. Starbucks social media campaign like Tweet @ tweet a coffee, #Treat
Receipt etc. attract a lot of customers that impact the sale and profitability of the company.
Social media advertising helps Starbucks to develop a product according to the customer choices
and preferences that will lead to customer satisfaction.
Sales Promotion: It is a tool to influence target customer to purchase the product. It is a
short term plan to increase the sale and to build customer loyalty. Sales promotion includes
discount, sampling, combo packs, rebates , direct mails etc.
Analysis: With reference to Starbucks, the manager uses these tool on continuous basis.
For instance, Loyalty cards & programs allows customer to collect points and gain rewards while
purchasing Starbucks products and services. The company also gives offer to every customer on
Friday that is Buy one & get one free product. In addition to this, Starbucks increases its sales
through seasonal sales offer, point of sales material and so on(van Tonder and Mulder, 2015).
public relation: It is an effective communication tool that companies uses in order to
build a good relationship & reputation of a brand with the public. It is free promotion that is
made by the third party.
Analysis: Public relations help Starbucks in development of positive relations between
the company and their prospective and present customers. This is a very effective tool which is
used by brands who are providing high perceived value to their customers. This technique has
been effectively used by Starbucks while not using hype of commercials in their marketing
function instead they value people apart from their profits. They focus on achieving high

sophistication in their products and the actual experience of their customers. Starbucks has
changed the trend which is being adopted by other brand in this business they are bot into
running of various campaigns as they feel this is becoming very obsolete. It has become more
necessary to update the public relations in this 21st century and use in tackling the business such
as they are using blogging & various social media platforms to build effective relations with
people.
personal selling: Personal selling is also known as door to door selling of goods &
services. The salesperson uses his capabilities and skills to conveyance the customer to buy the
product. The product is promoted by sellers attitude, appearance and product
knowledge(Zaušková, Bezáková & Grib, 2015).
Analysis: In context to Starbucks, the company more like to communicate directly to the
individual customers. They interact with customers face to face and tell them about their
different coffee drinks. In addition to this, they tell customers about their superior quality and
how their services are different from its competitors. Starbucks educates every customers about
its coffee beans and how it is harvested. This helps them in retaining customers for a longer
period of time and make a good relationship with every customer in the market.
sponsorship: Sponsorship is a tool used by the organisations to aware the people about
the services and products of a particular brand. It is done by supporting an activity, event ,
organisation financially.
Analysis: Starbucks uses many different types of sponsorship of events so as to attain a
position in the market. This brand is committed so as to sponsor various events which is having a
good motive such as various community education programs are sponsored by Starbucks.
Young talent is also promoted in such creative programs in which Starbucks tries to promote the
young artists in the Seattle stores. This is a very effective marketing tool which can be used by
Starbucks so as to promote its brand in the eyes of its customers(Semeradova and Vávrová,
2016).
Above mentioned are some of the tools which can be used by Starbucks so as to
communicate effectively with their target segment of customers. This is a tool which can be used

in establishment of effective relationships with their target segment of customers. There are
many tools which are already being used by them so as to
2. Analysis of consumer buying process having a influence on Marketing communication
process of Starbucks.
Marketing communication is a tool which is used by Starbucks to persuade their
customers so that they can make purchase of products. Consumer decision making is a process in
which the there are certain steps which is used by consumers, while they are making a purchase
decision in case of Starbucks:
Step 1: Recognition: This is the initial step of the whole consumer decision making
process in this step the consumers are willing to recognize that they are having a need for a
particular product. This is a aspect in which a stimuli is developed in a person and the response
of that stimuli in a positive manner from the point of the organisation. For example if a person is
feeling like something to drink or thirsty or has a need to fix their daily need of coffee.
Starbucks belongs to a category of products which is basically a low involvement which means
the consumers does not know what type of beverage a person may prefer or will purchase until

the person is visiting the store and evaluating various available options (Sadek, Redding and
Tantawi, 2015).
Step 2: Information search: After recognition of a need it becomes a necessary step to
search for various alternatives which may be available or search for information to satisfy that
particular need. This is a step in which information is required by the needed person. Sometimes
it may also happen that a consumer is walking down the Starbucks one of the coffee houses and
senses may get aroused, which is also a enough factor to indulge a person in purchasing of
coffee. This coffee brand provides various eye catchy promotional tools in form of
advertisements for nay new product launch or for the existing products also. They have used tag
lines such as “ happy hours” or “one free coffee day” to promote their coffee (Schielke, 2015).
Step 3: Evaluating various alternatives: After development of various alternatives in
the earlier steps it is very important for the consumers that they are able to evaluate such
alternatives based on the overall merits and disadvantages of various options available with the
consumers. In case of Starbucks, the customers may very quickly notice the uniqueness of
ambience and the quality of its products while they are making their purchase decisions.
Starbucks has a very unique Strategy that they are able to build up a contact with their
prospective customers with the help of the training given to their staff members. The staff is
highly trained in terms of the behaviour which they do with their customers, how the customers
have to be treated when they are visiting their store all such efforts on part of Starbucks makes it
a very high prestige brand in the front of its customers.
Step 4: Making final purchase: Starbucks deals in beverages it rarely happens that a
person is visiting for a coffee and is walking out without purchasing as in most cases the
consumer is already sure mentally what purchase has to be done in terms of variant of the
beverage. At this step of the consumer decision making process the consumer is sure about what
is to be purchased and the final purchase is being made. The final response of the consumer is in
the way by visiting a Starbucks outlet for purchasing of beverage. His is the most important step
as at this stage the overall effectiveness of the marketing communication process can be
evaluated. If there is positive response of their consumers in form of making the purchase then it
can be said that marketing department has been successful in the objective of the marketing
process. On the other hand, if the consumer is not making a purchase then the overall objective

of the process of marketing communication will not be achieved (Sadek, Redding and Tantawi,
2015).
Step 5: Post purchase behaviour: The post purchase behaviour is the most important
among the all five steps of the consumer decision making process. The research & variation in
the products can be noticed by any consumer in just one visit. Starbucks is a brand which offers
bets customer service which makes its consumers to visit their outlet again. Many times the
Starbucks offers their unsatisfied customers with another drink, in some cases even a free coupon
is given to the customers for free. The quality of customer service is what makes the experience
of the customers unique and best. The employees always make sure that they are able to cater to
the needs of their customers in a personal way, such that the customers feels that the Starbucks
as a brand is attending to the need of that particular person only. The CEO of Starbucks has also
given a statement that they are not in a coffee business but they are into people business.
Starbucks is a brand which is able to retained their customers for a long term period. Customers
already posses a idea in the mind related to what they have actually want in terms of products
and what are their expectations from the overall experience. This is one reason why most
customer remain satisfied with Starbucks after they have purchase their products.
Above mentioned are the steps which are related to the overall process of consumer
decision making process. Every consumer while willing to make a purchase goes through all
these steps so that they can select the best course of alternatives which are available. In case of
Starbucks there is a difference in a way that this is a brand which is having large mount of loyal
customers who are already having a very high level of satisfaction with this brand. The whole
process of consumer decision making may not take place with every customer in such cases. In
most situations this process gets limited to just two stages which are recognition of neds and final
purchase of the products. As the customer is already aware of the products which are being
offered and other attributes of the products. So, they make final purchase as soon as they feel
need of the product (Perju-Mitran and Budacia, 2015).

3. Analysis of Communication process which is applied on Starbucks marketing communication.
There are various steps in the communication process which consists of various aspects such as:
 Sender: This is the stage where the person who is willing to communicates a message.
The message is encoded at this stage.
 Message: This is the second part of the whole communication process in which the actual
message is prepared by the sender. This consist of the major part of the whole
communication process (Olejniczak and Tomorad, 2015).
 Media: This is the manner which is used to transfer the encoded message. This message
can be transferred in a written manner or in a oral way. The medium of communication
can be internet, telecommunication, e-mail, fax, post or any other medium which is
suitable for the sender is selected.
 Receiver: The receiver is one to whom the message has to be actually transferred. So
that it can be understood in by the receiver. The encoded message is decode by the
receiver and then it has to be understood in the way sender wants it to be.

 Feedback: When the receiver gives the confirmation that the message has been received
and it has been understood in the way sender wants it to be then it is concluded that
overall communication process is complete.
 Interference: This refers to various obstructions or barriers to communication which can
occur during the process of communication. Such interpretations can act as big barriers
and lead to disruptions in the whole communication process(Muhanji and Ngari, 2015).
Starbucks earlier was not a company who was willing to invest in the marketing or
promotional activities. It marketing was limited to establishment of its brand image but with the
time, this brand has started offering premium quality products. They have started many TV
commercials which are highlighting the newest flavours available at the stores of Starbucks.
They invested around $351 million in advertising and marketing activities.
Message: The message which Starbucks tries to convey in its advertisements is that they
are doing a “good deed” it is in the form of providing best quality to their customers.
Target Audience: They try to build advertising which clearly depicts to their target
customers that the product quality which is being offered by Starbucks is totally worth the
process which is paid by its customers. They also try to feature that this brand can not be
competed with any other brand offering similar products. Starbucks tries to use a story in their
television advertisements. In such a way that it persuades the customers who are watching it in
such a manner that they feel that they should go to Starbucks at that very moment and then grab
a coffee. The a major target audience of Starbucks is diverse segment of customers. Whether its
the youth, middle aged people or elderly age all are the target segment of customers for
Starbucks (Mihaela, 2015).
Communication Tools: Various communication tools which is used by Starbucks as its
integrated marketing strategy, there are various communication tools such as advertising, social
media, print media, public relations etc. Starbucks has started the concept of multi-channel
marketing techniques before other brands dealing in the similar products.
Reaching the Target Market: Starbucks uses a tool which is customer engagement in
which they try to offer their target customers in various acclivities and stages of advertising such
as offering free coffee to their random customers. They also offered people coffee ta very
reasonable price when their 100th store was launched to engage their customer also in the whole

celebration. Assessment of the target market is very important for Starbucks as they need to
make an amassment related to what is the main set of customers which they have to target when
they are using the tool of integrated marketing communication.
Starbucks has embraced the concept of multi channel marketing and integrated marketing
techniques before other brands. Foundation of Starbucks has been two fold consistent
recognition of their customers and consistent branding. It has been using very popular channels
such as they are using customer engagement as a strategy and creating a content which has a
definite meaning helps in attracting more customer. Apart from that consistent branding,
integrated content as the tools to attract more customers.
4. Understanding of relevant theories, development of a marketing communication strategy for
Starbucks in Brunei. Pricing plan and Various stages of Product Life cycle.
There are various communication strategies which can be used by Starbucks. These re
various sources which will help in deciding the various course of activities which is needed to
attract customers as compared to other beverage brands. Building a effective position in the
existing market is also a task which has to be attained by Starbucks so that 6they are bale to get a
competitive position (Lilleker, 2015).
Starbucks in BRUNEI: Starbucks has launched their store in BRUNEI to reflect as 43
years back heritage so as to embrace the local traditions of the culture. The main features include
features which allows the customers to enjoy Starbucks has a whole bean coffee the main
ingredient. This store marks the milestone Starbucks in Asia pacific region and china and is a
64th market across globe.

Strategy in next 12 months: Starbucks can use a marketing strategy so as to embrace
their presence and launch their new products in the store in BRUNEI. In case of Starbucks they
must use a strategy which is focussing on engagement of customers in their process of
marketing communication in such a way that customers can be encouraged that they can click
pictures or selfies with the coffee cups of Starbucks and post them on social media platforms,
this will help in promotion of various products being offered by Starbucks. A specialised mobile
application of Starbucks can also be designed which can help them in increasing the convenience
for their customers. Various programs such as loyalty programmes and customer reward
programs an also be initiated in BRUNEI stores which can help them in engagement of their
customers (Hänninen and Karjaluoto, 2017).
Time of starting: The overall marketing plan will be started as soon as the new store is
being launched in BRUNEI. Also, in case of existing outlets if any new product is being
launched then it is necessary that prospective customers should be made aware of the new
product. Before the launching of the store or the new variant. Starbucks should make sure that
they are able to advertise their products so that when product is launched customers are already
having information. This will help Starbucks in increasing their overall sales for their target
market (Gabrielli, and Baghi, 2016).
Finishing time: The overall strategy of Starbucks should be for a period of 12 months.
This will help them in advertising it for a limited period of time. As every strategy gets obsolete
when the customers once get familiar with the products. In BRUNEI, the overall strategy of
marketing communication should only be for a limited period of time. In case the time duration
has to be expanded then there must be change in the overall medium which is being used by
Starbucks.
Advertising to be used in 12 months: In the 12 months Starbucks can use a strategy in
which they can do the promotion by using a social media strategy to promote their products.

This is a very effective strategy in which they can market their product with the help of various
social media platforms. Such as Facebook and Instagram. Such platforms can be used by
Ways to promote: Promotion can be done by laying down direct communication
channels with the help of tools of integrated marketing communication. A culture can be created
on social media platforms in which marketing department may make efforts to interact with their
customers. Language to be used in the content has to be clear, specific and friendly. In case of
twitter language which is used by Starbucks has to be very clear and specific (Dimyati, 2015).
Pricing strategy: Starbucks has always focussed on price skimming strategy in which
they are offering their products at higher prices this helps in boosting the overall sales of the
company. Starbucks has always laid emphasis on keeping the prices of its products high which
will help them in making the customers believe that the prices of the products are high as
compared to the competitors as quality which is being offered by them cannot be find in products
of other similar brands. In case of BRUNEI also Starbucks should use a strategy which is
focussing on keeping the prices of products according to quality and product which is offered by
Starbucks (Fill amd Turnbull, 2016).

Product life cycle:
 Introduction: In this stage the product is actually launched in the market. This is the
initial stage of every product. Starbucks is not in this stage as this stage has been
achieved by Starbucks many years before when it started its store in different parts of
world.
 Growth: This is the stage when after the launching of the product its sales are increasing
in the market. This is the growth stage at which product is actually establishing in the
market. This is the most crucial stage for every product as this is the point which offers
maximum opportunity of growth to Starbucks. This is the most crucial stage as here
maximum profitability can be achieved by any brand. According to the graph also this is
the stage where maximum growth is taking place of the product.
 Maturity: At this stage sales are at the peak level. Mostly all organisations grow at this
particular point of the product life cycle. New competitors are entering in the market at
this particular stage (Çizmeci and Ercan, 2015). This is also considered as the saturation
stage for many companies. Starbucks as a brand in the present context is presently at this
stage where they have established themselves in market.
Starbucks is presently at the maturity stage in this they are trying to maintain their
revenue and sales with minimization of cost. Overall cost has to be minimized by the company
for this they are trying to make attempts such as usage of reusable cups. Customers have
developed an understanding of the products which are being offered by Starbucks such that they
are willing to order various combinations of coffee ingredients as they have understand them in a

better manner. This is the peak stage of Starbucks sales are at peak level and the brand has been
able to maximize their profit percentage.
 Decline: This is the stage at which the product is at the declining stage in which there is
no scope left whether the sales will increase. No more new variants are being added by
the brand which leads to closing down of the organisation in most of the cases. In this
stage, there is scope of no more growth is taking place.

CONCLUSION
From the above report it can be understood that there are various marketing
communication tools which are used by brand so as to market their products. They try to select a
particular tool and then use it so as a integrated marketing communication method to
communicate with their customers. With the help of various channels which are part of
integrated marketing communication a indirect communication is established with the customers
by the companies. This type of communications is very essential in understanding various
requirements and also for engagement of customers. Companies can get a competitive advantage
from the usage of a particular marketing communication tool which can help them in getting a
competitive advantage with comparison to other big brands in the external environment.
Effective communication is a method which can help in having a strong impact and influence on
the prospective customers. This can have a positive impact on increasing the overall sales of the
company. After that various relevant theories are used in the marketing Strategy in using a
marketing communication strategy in various stages of a product.

REFERNCE
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