Starbucks Marketing Report: Place and Promotion Strategies Analysis

This report provides an analysis of Starbucks' marketing strategies, with a specific focus on the place and promotion elements of its marketing mix. It begins with an introduction to the Starbucks brand and its global presence, highlighting its success in various markets. The report then delves into Starbucks' place strategy, examining its distribution channels, including coffeehouses, online stores, and mobile apps. It also discusses the challenges Starbucks has faced in certain markets, such as Australia. The promotion section explores Starbucks' various promotional strategies, including communication, interpersonal relations, advertising, and the use of technology and social media. The report also mentions the importance of customer experience and the use of promotional methods like the Starbucks card. The conclusion summarizes the key findings, emphasizing Starbucks' successful targeting of premium customers and its use of various promotional channels to increase sales. The report also acknowledges the importance of adapting to local cultures and conducting market research for effective marketing strategies.

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Marketing

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Introduction about Starbucks
Marketing concept is said to be the philosophy that the companies sues in order to analyse the
customer’s needs. According to the different needs of the customers, company make
decisions. Starbucks proved to be successful coffee shop chain across the several parts of the
World. Starbucks has around 24500 outlets ion China, USA, South Korea, and Japan. It is
majorly famous for its roasted coffee followed by quality, customer experience, and taste. In
the further section, discussion is carried on the place and promotional element of the
marketing mix.
4PS of Starbucks (Place and promotion)
Place: Starbucks has wider market reach by having presence in more than around 70
countries. It has taken the license of around 5000 locations from which maximum outlets are
available in USA. Starbucks sell its products with the help of coffeehouses (Gupta, Nagpal
and Malik, 2018). However, it has also started offering some of its products with the help of
online store. As compare to this, mobile app also allows the customer to effectively place its
products online so that they can easily get the drinks and food. It sues different places for
doing the distribution of its product. The major distribution channels are online store, Cafes,
retailers, and Starbucks app (Krishna, 2018). Mostly; it sold its products with the help of
Starbucks Cafes. However, it has also started using the internet in order to offer some of its
products with the help of online stores. Besides this, it also allows the customers to place
their order through Starbucks App. In different parts of the World, it has opened its outlets. In
spite of this, it has not reached to that many customers that it should reach (Honack and
Waikar, 2017).
In Australia, Starbucks has faced several issues due that which it has also accumulated the
loss of around $143 million. Due to several reasons, it has faced in Australia such as
sophisticated coffee culture in Australia (Tisdell, 2017). IN Australia, public also do not feel
that they have enough knowledge regarding their product selling. In Australia Starbucks has
entered in the quite competitive market. Due to this, it is clear that Starbucks can also add
more outlets in order to add more customers in its brand.
Promotion:

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Starbucks uses the several promotional strategies. It usually promotes its product with the
help of communication and interpersonal relations. Advertising is also included in its
promotional approach. In every country, it has become popular with the help of word of
mouth advertising (Honack and Waikar, 2017). It tends to provide the best customer
experience by encouraging the people to spread positive words. It also uses several
promotional methods such as television, internet, and print media. It has also done the best
use of technology for ensuring promotion such as “Tweet-a-Coffee” campaign. In its
promotional policies, it has also included the Starbucks card for providing the customers to
get freebies (Mattila, 2010). Due to this, it has ensured the higher importance of the
advertising, public relations, as well as sales promotion. In addition to this, it also ensure the
communication with the help of Twitter. Therefore, the company is using several social
media sites. It has also started the several foundations in order to promote its brand, the
foundation that are started by Starbucks is helping the community (Hanif and Rodrigues,
2018). In Australia, Starbucks has failed because it was not able to do the enough advertising
in the mass media; it has also failed to ensure the communication of its brand (Lovelock and
Patterson, 2015). In order to improve its performance, it can research the market of Australia
properly and can make the changes accordingly. Therefore, proper research and development
will help it in bringing the major changes and remove the issues.
Conclusion
In the limelight of above discussion, Starbucks has opened its several branches in different
parts of the World. By targeting the premium customers, it is successfully running its
business. In spite of this, Starbucks has also failed to assess the local culture in Australia.
Besides this, it uses several promotional channels that help it in increasing its sales. The
major promotional channels that are used by Starbucks include Television, advertising as
well as public relations. By giving emphasis on the wants and needs of the target market, it
tends to deliver the more value as compare to its competitors. In this way, its marketing mix
elements shows the core advantage of advertising, public relations, word of mouth publicity,
as well as sales promotion.

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