Starbucks Strategic Marketing

The report analyzes the strategic marketing of Starbucks, its marketing activities, and the impact of digitalization and new media on the firm. It provides recommendations for improvement.

Running head: STARBUCKS STRATEGIC MARKETING
STARBUCKS STRATEGIC MARKETING
Name of the Student
Name of the University
Author Note

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Executive Summary
Strategic marketing has always been an important topic for discussion and the manner in which
these trends have changed considerably can be stated to be commendable. With the new age,
media and digitalization have gone through new trends and this has had a huge impact on the
different business enterprises. Therefore, it is for this purpose that any organization is required to
ensure that their strategic marketing goes well. The aim of the report is to highlight the case of
marketing and highlight the manner in which the marketing of the firm, Starbucks has undergone
through a change with respect to modern trends of new media and digitalization.

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Table of Contents
Introduction......................................................................................................................................3
About the company..........................................................................................................................3
About their marketing activity.........................................................................................................4
Analysis of the trends and changes in their strategic marketing with challenges...........................5
Suggestions......................................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The primary aim of the report is to evaluate the recent theoretical concepts and models
which relate to the subject of strategic marketing in order to ensure that the theoretical
knowledge is converted to practical experience (Abratt and Bendixen 2018). Hence, through this
report, the case of Starbucks shall be analyzed as it presents a successful case of marketing in an
organization. Moreover, the manner in which the different activities of the organization have
been affected by the digitalization will also be discussed. Lastly, the latter half of the report will
represent certain recommendations based on which Starbucks can improve its operations and
increase the brand value in the future.
About the company
The Starbucks Corporation is an American coffee organization and coffee house chain
store. The firm was found in Seattle in Washington in the year 1971. At present, the company
operates around 28218 locations around the globe. Earlier, the company distinguished itself from
other coffee houses with respect to quality, taste and the customer experience while making the
concept of darkly roasted coffee very popular (Starbucks.com. 2018). However, presently, the
firm makes use of automated espresso machines in order to ensure efficiency and the safety of
different operations. The company serves various cold and hot drinks, whole coffee beans, and
instant coffee, expresso, and caffe latte as well as tea products. Recently, with respect to the
health consciousness trends, various fresh juices, Frappuccino beverages as well as other chips
and cracker items will also be offered. Since its inception, the brand has grown considerably,

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and opened in various locations outside of North America as well. Over the years, the brand has
changed its positioning in the market and has been often said to have lost its charms.
About their marketing activity
The marketing activities of the Starbucks can be stated to be quite extensive in nature
with the differentiation strategies like quality based differentiation having been used. Moreover,
as believed by Boncheck (2016), a support to the different marketing strategies, the company
makes use of excellent customer service. The main aim of the company is to provide a consistent
brand experience to the different customers (Proctor 2014). Hence, in order to ensure success in
the long run, the brand tends to use an unconventional technique for branding as well as
marketing (Collis and Montgomery 2008).
Moreover, the main differentiation offer which is made to the customer is made on the
basis of the excellent brand merchandise whereby the firm provides a wide range of offers to the
different customers. In addition to this, the brand maintains an ethical image of its products in
front of the different customers and indicates on the creation of a real customer value
(Taecharungroj 2017). Earlier, the organization was making use of the traditional means of
marketing, however at present it tends to make use of a mixed strategy whereby it ensures that it
makes use of both social media techniques as well as the traditional techniques (Boncheck 2016)
In the social media perspective, Starbucks is aware of the power of the media and for this
reason it has taken considerable moves to ensure that the organization has made adequate
presence in platforms like Facebook, Instagram and Twitter (West, Ford and Ibrahim 2015).
Additionally, Collis and Montgomery (2008), has mentioned that Starbucks despite the change in
the social media platforms and other marketing techniques believes that the word of mouth is the

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best technique of marketing and that the good quality products as well as services of the
company will speak for itself.
Analysis of the trends and changes in their strategic marketing with challenges
Starbucks owes it success to its popular business techniques which it has applied over the
past few years and the change in its marketing strategy can be stated to be the most sophisticated
in nature whereby it converted a commodity to a destination (Payne and Frow 2014). The firm
makes use of multiple forms of the media to build the loyalty of the different consumers at large
and has portrayed the image of the coffee shop as a place which fills the gap between the house
of a person and the work. One of the most popular strategies of Starbucks is the creation status of
a third place. According to Porter (2015), this means this is a comfortable hangout possibility for
the people and displays the place as an area for conversation and a sense of community. For this
purpose, the place has painted its stores and other destinations in a similar manner and
categorizes it as a zone for coffee and some quality time.
Holt (2016), has mentioned that another transition as adopted by Starbucks is its
increased importance provided to the customer loyalty. Starbucks understands, that as
competition between the different organizations have increased considerably, it thereby becomes
very important for all the firms to ensure that they make an offering to the consumer which is
unique and inspire loyalty (McDonald 2016). Hence, Starbucks has an access to a large number
of loyalty programs for its customers whereby a free item is provided after every 12 transactions,
it ensures that customers visit the store regularly. Moreover, in addition to this, according to
Dobbs (2014), Starbuck`s marketing strategy has been greatly impacted by digitalization and the

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company has had to make the use of various social media marketing techniques to give out
complementary messages to the different customers and to enable them to share their Starbucks
experience with the different customers.
Impact of the change and challenges faced
Although Starbucks has focused its marketing strategy well however, due to the transition
between the traditional marketing techniques to the present, it has been impacted in the following
manner:
 Complaints: Sharing of complaints against the company has become relatively easier on
the social media platforms due to the rise of the digitalization and new media and hence,
if any complaint is received on a platform like Twitter against the firm, its effect can be
witnessed throughout the firm (Kotabe and Helsen 2014). Hence, the complaints have
been a common problem and impact.
 Competition: Secondly, Dobbs (2014), states that originally through the word of mouth
advertising technique used by Starbucks, would be beneficial and sufficient but as the
digitalization and the use of new media has expanded the information available to the
customers to a greater extent, the competitors like Café Nero and other brands have
become popular too.
Suggestions
Therefore, the following ca be recommended to Starbucks:
1. Ensuring a supportive support system at the Social Media

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Holt (2016) states that when any firm is marketing with the help of a social media
technique, it is required to take considerable steps in order to ensure that it is successfully able to
plan ahead and ensure that it does not receive any backslash (Chernev 2018). Hence, the posts of
the consumers need to be analyzed and provided a response to immediately.
2. Make use of the digitalization techniques
With the changing times, it becomes important for the business to adjust and hence, in a
similar manner starbucks is required to ensure that it engages in the usage of various
digitalization techniques which shall ensure the success of the firm in the long run (Banerjee
2017). It can make use of visual reality and extensive new media influencers so that the
popularity of the stores can be maintained (Porter 2015).
Conclusion
Therefore, from the given analysis it can be rightfully stated that marketing forms an
essential aspect of any organization and in order to be successful, the firm is required to ensure
that it engages in extensive marketing practices which shall ensure that the firm is being
successfully able to conduct its business. The report undertook the example of Starbucks as a
firm and traced its marketing journey throughout the years with a special reference to the
problems it has faced due to digitalization and the new media. Certain recommendations have
been provided.

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References
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing (pp. 16-40). Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Kotabe, M. and Helsen, K., 2014. Global marketing management. Pearson
McDonald, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing
imperative. Journal of Service Management, 25(2), pp.213-227.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Starbucks.com., 2018. The Best Coffee and Espresso Drinks [online]. Available at:
://www.starbucks.com/ (Accessed on : 29 Sept. 2018).
Taecharungroj, V., 2017. Starbucks’ marketing communications strategy on Twitter. Journal of
Marketing Communications, 23(6), pp.552-571.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
Porter, M.E., 2015. March 1979 How Competitive Forces Shape Strategy. Harvard Business
Review https://hbr. org/1979/03/how-competitive-forcesshape-strategy accessed February, 16.

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E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Holt, D., 2016. Branding in the age of social media. Harvard business review, 94(3), pp.40-50.
Collis, D.J. and Montgomery, C.A., 2008. Competing on resources. Harvard business review.
Boncheck, M., 2016. How to build a strategic narrative. Harvard Business Review, pp.1-3.

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