Starbucks Marketing Strategies

This assignment analyzes various marketing strategies that Starbucks can implement to enhance its brand presence. It explores the potential of organizing unique events, introducing new products tailored to customer preferences, leveraging social media platforms, and employing a targeted marketing approach based on customer segmentation.

Understanding Marketing
Events

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Definition of special events and it's classifications.................................................................1
2. SWOT analysis of Starbucks..................................................................................................2
3. (a) Role of marketing mix.......................................................................................................3
3. (b) marketing strategies...........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing events are mostly focused to escalate sales of product, many companies are
using event marketing in which they design an event to make a contact with customers to
increase their interaction with organisation (Erragcha and Romdhane, 2014). In it an organisation
provides details of products and services by these campaigns. This report is based on Starbucks
which is large coffee chain in the world and they are famous for their quality and ambience of
their outlets. This report is having details on special events and basis of classifications. A SWOT
analysis will be conduct in this by which strength, weakness will be identified. Marketing mix a
huge influence to make company's products and services more valuable, this report will provide
a discussion on role of 4p's in marketing (Armstrong and et. al., 2015). At last it will provide
segmentation, targetting, positioning, risk management and other marketing strategies which can
help to company to make a better promotion in the targeted market.
TASK
1. Definition of special events and it's classifications
An event has an motive for an organisation can be stated as a special event, many of
companies are using this to improve their brand promotions in a particular geographical area. In
case of Starbucks they can use this as a marketing event by which they can increase their
customers interaction which finally improves their customers. By this Starbucks can make a
positive image among target market and it can help them to make a better services by knowing
their customers acceptations. These special events can classify in to these categories which are
defined under here:
Major events: It is a type of event which is well organised for multiple days and which invites
huge number of guests. This can be used by Starbucks to provide a knowledge of their workings
in a particular market which can help to company to make a better impression to their targeted
consumers by providing this (Pereira, Rodrigues and Ben-Akiva, 2015). Company can use
seminars to provide informations to a large number of customers in a day and seminars can be
organised by company for a couple of days.
Moderate events: More than 1000 guests invited in a particular event are covered in this
category, most of the events organised by company are covered in this because they are having a
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huge customer database and this is a minimum number of guests for company, conferences are
covered in this section.
Minor events: As company haves a strong customer database so it is essential for them to make a
classification in between their consumers according to their regular visits and they can conduct a
meeting with them to consult with their guests to evaluate what are their loopholes on which they
have to work.
2. SWOT analysis of Starbucks
STRENGTHS
 Wide range of diversified products
 Global market presence
 Brand name
 Customer loyalty
 Strong financial foundation
WEAKNESS
 High product pricing
 Lack of focus on internal market share
OPPORTUNITIES
 Product range expansion
 New delivery channels
 Distribution agreements
 Technological advancement
THREATS
 Competitions
 Consumers trending towards healthy
ways
 Political and cultural issues.
 Fluctuation in prices of products.
Starbucks have positioned themselves as highly respected brand by distinguishing their products
and giving them competitive advantage. It has range of diversified products and international
market presence. It also has strong financial position.
Strengths : Starbucks has wide range of diversified products, global market presence,
established and developed brand name, patent, logo, websites, company operated retail outlets,
customer loyalty and strong financial foundation which is not been of either of the competitors.
Weakness: Due to high product pricing and lack in focus on internal market it lacks a
major market coverage internally thereby giving its competitors an advantage of capturing local
market\ internal market.
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Threats: For every business a major threat is its competition, so as with Starbucks. The
competitors are Dunkin' brands, McDonald's McCafe, other coffee shops, restaurants,caffeine
based products etc. another threat for Starbucks is market saturation and unpredictable
fluctuation in the prices of the products in developing countries leading to brand switching by
Consumers (Chen, Kim and Yamaguchi, 2014 ). The consumers also trend towards healthy
ways and away from beverages and cakes. Political and cultural issues in foreign countries also
acts as threat for the company.
Opportunities: The opportunities for the company are expansion in the product range,
retail operations, distribution agreements, new delivery channels and technological advancement
by launching self service machines.
3. (a) Role of marketing mix
Marketing mix is a phrase used for the choice that an organisation or company makes in
the process of bringing its product or services to the market. 4P's was first expressed by E.J
McCarthy in 1960 and according to him it is best known way to define a market mix. The main
component of the firm's marketing plan is identified through its market mix. The company can
be ahead of its competitors implanting a better marketing mix.
The 4P's are as follows:
 Product or services
 Place
 Price
 Promotion
As being a leading coffee house chain the marketing mix need to be very precise and well
evaluated so that it could support the companies current industry position. Starbucks uses it like a
way of developing its brand image. Starbucks also changes its market mix from time to time so
as to maintain competitiveness and thereby emphasizing needs of business.
Product of Starbucks: Starbucks continuously innovate its product so as to capture more
market. At present the Starbucks has following products:
 Coffee
 Tea
 Pastries
 Frappuccino beverages
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 Merchandise (e.g. coffee mugs)
This product mix is achieved by business innovations over the years. The product is developed
keeping in mind their specific target market or section of the society (Bahadir, Bharadwaj and
Srivastava, 2015 ). From merchandises to beverage items this market mix is very large in range
for Starbucks.
Place: This market mix determines about venue from where the customer can access its
products. Starbucks own coffee houses and cafes is the major place from where the Starbucks
sells its products.
Some of the places from where Starbucks sell its products are:
 cafe
 online store
 Starbucks app
 Retailers
These days online stores are source for some of its products. Starbucks sell some of its
merchandises through retailers.
Price: Starbucks products are of slightly higher value as compared to its competitors
products. People generally pays high for the quality and brand what Starbucks provide
(Solomon, 2014). To somehow maintain the its premium brand value the pricing is done on the
higher side.
Promotions: Starbucks generally promote its product using various advertisements. The
communication strategy and impact on the minds of target audiences are taken care of during the
promotional advertisements (Baker, 2014). It advertises its product using television, newspapers
and internet. Starbucks cards are used as a tool for increasing the customer relations.
3. (b) marketing strategies
Starbucks can use marketing strategies which can help to them to maximise their profits
in a short time of period which are given under these points:
 Segmentation: As they have a huge number of customers so they can make a segment in
these to make a better product and services to that particular segments. They can make a
psycho-graphic segment in their customers and according to this they can make a better
product as per taste of their different consumers (Hollensen, 2015). Life style, personal
interest and opinions can be base to make segment in market. So they can organise an
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event to identify different test and interest and according to this they can make change
and also they can create a new variety in their coffees.
 Targetting and Positioning: Starbucks can target their market by making a classification
taste and personal interest, better targetting is based on criteria size, difference, money,
accessible and benefits for each category. As they have made market segment on the
basis of taste so they can make a better targetting by making change in their taste and by
increasing range of coffees to each type of customer segment (Schmidt, Spann and
Zeithammer, 2014). For an example some customers demands more creamy coffee and
some demands plan coffee without fat so they have to make new varieties according to
this. Positioning is an element in which customers makes a comparison of products to
their rivalry. Starbucks has to use functional positioning in which they can full fill desire
of their customers by their products.
 Monitoring and Control by risk management: It is essential for the company to make a
proper risk analysis. So as they want to improve their marketing so it is essential to them
to make a proper evaluation of needs of their customers and their workings against
customer demands. Their marketing managers has to make a proper analysis of market
needs and they have to take feedback of regular guests against their new product range.
 Other marketing strategies: It is essential for the company to make a better change in
products and services so they have to use modern marketing concept, according to this
company can increase their new product range as per customer demands and they can
make essential changes in their products and services by which they can provide
maximum customer satisfaction (Erragcha and Romdhane, 2014).
CONCLUSION
Above presented report has been concluded about different types of events which can be
organised by Starbucks to increase their marketing activities. Many companies are working in
this market so it is essential for them to make a differences in between their products and
services by which they can increase their effectiveness compare to other companies. They are
having huge brand name by which they can easily attract new customers towards them. New
product range can help to include new customers. Starbucks has use advertisement by electronic
media which is an effective medium to communicate but they have to use social media also
because it is a contemporary need. Marketing strategy can help to company to make a better
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communication with customers with new products. Segment as per customer taste can help to
them because taste is a must thing in a eatable product.
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REFERENCES
Books and Journals
Armstrong, G. and et. al., 2015. Marketing: an introduction. Pearson Education.
Bahadir, S. C., Bharadwaj, S. G. and Srivastava, R. K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics.
Journal of International Business Studies. 46(5). pp.596-619.
Baker, M. J., 2014. Marketing strategy and management. Palgrave Macmillan.
Chen, W. M., Kim, H. and Yamaguchi, H., 2014. Renewable energy in eastern Asia: Renewable
energy policy review and comparative SWOT analysis for promoting renewable energy
in Japan, South Korea, and Taiwan. Energy Policy. 74. pp.319-329.
Erragcha, N. and Romdhane, R., 2014. New faces of marketing in the era of the web: from
marketing 1.0 to marketing 3.0. Journal of Research in Marketing. 2(2). pp.137-142.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Pereira, F. C., Rodrigues, F. and Ben-Akiva, M., 2015. Using data from the web to predict public
transport arrivals under special events scenarios. Journal of Intelligent Transportation
Systems. 19(3). pp.273-288.
Schmidt, K. M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing
strategy in monopolistic and competitive markets. Management Science, 61(6),
pp.1217-1236.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Online
Event Marketing. 2012. [Online]. Available Through: <http://www.marketing-schools.org/types-
of-marketing/event-marketing.html>. [Accessed on 18 July 2017].
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