Marketing & Management - Growth Strategy of Starbucks

RUNNING HEAD: MARKETING & MANAGEMENT
Marketing & Management
Student’s Name
University Name
Author’s Note

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MARKETING & MANAGEMENT
Table of Contents
1. Original business idea of Starbucks.........................................................................................3
1.1 History of Starbucks..........................................................................................................3
1.2 Original marketing idea of starters....................................................................................3
2. Growth......................................................................................................................................3
2.1 4 P's of marketing..............................................................................................................4
Product......................................................................................................................................4
Price..........................................................................................................................................4
Place.........................................................................................................................................5
Promotion.................................................................................................................................5
3. Preferred growth strategy.........................................................................................................6
3.1 Current growth strategy....................................................................................................6
3.1.1 Brand extension...............................................................................................................6
3.1.2 Line extensions................................................................................................................6
3.2 Plans for future growth.....................................................................................................7
4. Reference List and Bibliography..............................................................................................8

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MARKETING & MANAGEMENT
1. Original business idea of Starbucks
1.1 History of Starbucks
Starbucks was initial setup as a partnership business with the first store opening in Seattle,
Washington in 1971.The idea was to sell high quality coffee beans and develop retail coffee
business. In the first phase of business, the company only sold roasted coffee beans and coffee
Brewing was not included in their business at all.
1.2 Original marketing idea of starters
The initial marketing idea of Starbucks was to develop third Marketplace which was a place
distance from office as well as home. They developed the Starbucks stores with convenience for
relaxing and engaging in conversations. This implies that the company had and unique
proposition statement from the initial business period. The second strategy what's the
development of brand loyalty by means of various customer engagement programs. They
followed the strategy of providing benefits to their customers for joining the rewards program
which included the likes of free refill, free drink, and birthday reward and so on. The offer for
free drinks helped Starbucks to get most people through their doors. The third most important
initial marketing strategy used by the company was the FOMO or the year of missing out. As
highlighted by Mohanbir, this had been a relevant business marketing strategy in the 1980s and
90s and even now. 60% of the millennial generation does impulse purchases, driven by their fear
of missing out. The marketing strategy of Starbucks employed time barred promotions as well as
seasonal or occasional menu. Taglines like avail the offer today is it might be gone extracted the
young customers always.
2. Growth