Starbucks Case Study
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Starbucks is the worlds largest coffee company. Strarbucks operates worldwide initiated in 1971 by Jerry Baldwin, and Gordon Bowker in Seattle, Washington. Starbucks simply does not merely stick to its coffee roots it as well offers caters a number refreshment items with its entertainment division. Starbucks operates 16,868 cafes including 12,700 in the United States, Canada and the UK (Schofield, 2008).
Target Market
Company success is largely been associated to socialized networking. Starbucks cafes are mostly visited by business talkers. The Starbucks Corporation has always put effort not to promote its products, but rather inculcate the desire of having the Starbucks experience in its customer base (Gibson, 2008). Starbucks is often professed as an affordable luxury by some however, on the other hand this allows for a more premium product from Starbucks. Initially the target market was the white collared, sophisticated individual with the passage of time new strategies have evolved and low budget and class friendly outlets have been established, maintaining its initial strategy in its original form.
Industry Trends
Starbucks was initially not very famous choice in coffee, Starbucks however changed its marketing strategy entering into the small and large enterprises hitting a saturated market. Starbucks is the total coffee supplier and retail market in the United States. The organization is popular because customer friendly service, it began to organize its music and book events adding Wi-fi connections to its customers at all of its cafes just like home or office (Ferguson, 2002).
Marketing Goals
Linking its marketing as a global presence
Budget friendly items
To accomplish its mission statement of environment friendly policies as a result of which they are continuously recycling waste
Work in collaboration and with pace with licensed stores and emerging markets
Marketing Strategies
To become the finest coffee retailer globally, while maintaining its originality and working strictly according to the principles of the organization.
Price maintenance policies
Gathering a wide range and different classes of customers by diversifying the stores with a diverse product range
Maintain the focus of profitability keeping pace with future presence
Marketing Mix of Starbucks
Products
Its coffee range includes espresso and drip brewed coffee including whole bean coffees
Hot and cold drinks
Snakes including, sandwiches, Panini, pastries and salads
Mugs, tumblers and CDs
Products at all outlets are branded
Price
Price is regulated according to customers response
Coffee, which is the main dealing is being sold in different sizes that are short, tall, grande, venti and trenta. The customer can choose according to his or her budget.
One drink cost around $3.00 to $4.00
Snakes vary in price range
The company revises certain low price offers like $1.00 coffee with unlimited refills at 50% of the orginal price.
Placement
The company caters in most location in UK, USA, and Canada
Operating in more than 50 countries on all continents. With a grass roots level in Africa
Promotion
In this world of IT the company believe in word of mouth promotion rather than electronic media advertisement
Product branding helps the company send less on its promotions
Seasonal induction of items are considered the main source of customer attraction
Coffee is transported to offices free of charge
Starbucks Marketing Mix
In order to maximize their brand awareness and establish themselves as the most recognized and respected brand in the world and within their target market, Starbucks implemented a well-integrated marketing program that would utilize a marketing mix (product, price, place, and promotion) that would satisfy the needs and wants of its target market. The four elements of marketing mix that Starbucks utilized are as follows:
Product: Starbucks product-mix expanded from 30 varieties of whole bean coffees to eco-friendly cappuccino, coffee makers, and other Starbuck paraphernalia. Its product offerings have also expanded beyond pastries and coffee to oatmeal, smoothies, and wraps to keep up with the competition and satisfy more customer needs.
The company has also been constantly introducing new products, such as “Instant via Ready”