Marketing Aspect of Starbucks
MARKETING ASPECT OF STARBUCKS 2
Write the Marketing section of your project paper.
Marketing (to include market and environmental analysis)
Marketing and sales management
Market analysis
Service or product line
Topics to include:
identify the main products/services
analyze the marketing and marketing strategy of the firm,
discuss the products, product mix, and product strategies, and
discuss the sales methods employed to create revenue
Marketing Aspect of Starbucks
Marketing is an essential aspect of every business opportunity. Effective marketing helps
companies to establish competitive advantage and target customers strategically. Starbucks is
known for its strategic marketing ads that capture the minds of consumers globally. This is an
essential competing of its marketing mix that drives and sustain the success of the company. This
has allowed the corporation to differentiate its products according to diverse customer needs
creating and sustaining its brand image globally. Starbucks is one of the leading and largest
producers of coffee globally in the coffee and snacks industry. Starbucks’ business is
strategically located in diverse locations and divisions or regions and ensures that the generic
competitive strategies and growth objective are achieved effectively.
Starbucks Products
Starbucks Corporation is known for its unique coffee. Starbucks not only stands for is a
good cup of coffee but also the passion for delivering through quality services and products. The
MARKETING ASPECT OF STARBUCKS 3
corporation image is built through its principal product, which is the coffee specialty. Therefore,
all several coffee variations are component of the portfolio of the company product. Other
products include coffee-related equipment and accessories, teas, complementary non-food
products and food items such as coffee mugs. The exceptional experience of Starbucks relies on
customer-driven marketing strategies that understand the strategic significance of segmenting
company target markets, product differentiation in order to protect its current customers from
deserting to competitors. The product categories of Starbucks corporation, therefore, include
“coffee-portion pack, coffee-whole bean or bulk, teas, creamers, sweeteners and syrups, instant
beverage, juice and specialty drinks, waters and sports drinks, single serve K-cup, Flavia or
Alterra, soda, cups and lids, paper goods and janitorial and snacks (Nair & Weber, 2017).”
The Marketing and Marketing Strategy of Starbucks
The marketing strategy of Starbucks focuses on the product and place elements of the
marketing mix. The marketing mix has seven components, which include price, place, product,
people, promotion, process, and physical evidence. The corporation has a unique marketing
strategy starting right from its unique product variations. Starbucks has differentiated its brand
from competitors through the premium quality of the organizational coffee. Wei (2016), “from
its humble origins in Seattle, the brand has expanded throughout the world to become one of the
leading coffee retail brands worldwide.” The company has used the strategy of quality based
product differentiation resulting in very high levels of loyalty and popularity.
Nonetheless, the company whole promotion strategy and marketing strategy are not
depended on the product only, but it is similarly exclusive in other aspects of its promotion and
marketing strategies. Quality of product is the central pillar of Starbucks’s marketing strategies.
MARKETING ASPECT OF STARBUCKS 4
For instance, the company uses phrases like, “great taste equals higher popularity.” This has
enhanced product reputation, recognition and brand image globally. As a brand, the company has
acquired great recognition over time for its product qualities, flavor, and unmatched customer
services. Therefore, strategies of marketing take place at company stores and through brand
merchandise. Besides, essential customer services have ensured added value to the positive
reputation of the company brand. The modern marketing and advertising strategies have resulted
in improved sales and increased recognition of company brand (Nair & Weber, 2017).
The positioning strategy is one of the central components of marketing strategies of
Starbucks. The company has positioned itself as a premium brand of coffee that was based on the
entire premium experience structured to elevate the experience of coffee to the next level.
Besides the unique coffee product, the value of a brand proposition also relies on the impressive
experience of customers and attractive store environments, which drive fatigue away, and creates
premium space for customers for relaxing (Ottman, 2017). Therefore, positioning, targeting, and
segmentation are the main marketing strategies of Starbucks. The corporation uses demographic
and geographic segmentation strategy to make its specific type of offerings to targeted
consumers accordingly. Thus, selecting targeting strategy, us applied by Starbucks to cater to the
needs and requirements of the customers and introduce new products as per the pattern of
demand.
Furthermore, the company has positioned itself on value-based positioning for creating
imaginary stimulus in the consumers’ minds with their intangible offerings along with its unique
coffee product (Nair & Weber, 2017). The brand merchandise is an essential component of brand
marketing and ensures customer satisfaction and retention. The marketing strategy of Starbucks
is based on quality differentiation of coffee and tea, excellent customer services, creating real
MARKETING ASPECT OF STARBUCKS 5
customer value, consistent brand experience, high brand equity, high focus on customer
retention, excellent brand merchandise, use of unconventional techniques for branding and
marketing, image of an ethical brand, advertisement investment and good quality products and
services. The chief marketing mix components are products and their prices (Ottman, 2017).
Products, Product mix, and Product Strategies
Starbucks provides high-quality products. According to Capon & Go (2016), “Starbucks
provides the highest importance to the quality of its products and avoid standardization of their
quality even for higher production output.” The company provides premium coffee as its unique
product and complementary products such as differentiated coffee, snacks, tea and other products
and services that enhance consumer loyalty and satisfaction. Starbucks coffee is a worldwide
acclaimed coffee brand boasting about its quality and charges a high premium based on this
unique product attribute. The company provides a premium product mix of high-quality
beverages and snacks. This has allowed brand equity to be built on offering the finest quality
coffee and associated products. The company is the leading provider of coffee chain brand
worldwide through unmatchable and unbeatable experience for various products. The company
has specialized in coffee but offers other product categories in its marketing mix. This allows the
attraction of all types of consumers (Ottman, 2017). The product mix is categorized from roast,
format, caffeine unflavored and flavored products. Product strategies have allowed the company
to differentiate its products resulting in a very high level of loyalty and popularity. According to
Gillespie & Riddle (2015), “the company uses Porter’s model to compete based on specialty
products and uses its intensive growth strategies to support expansion as well as focus on market
penetration.”
MARKETING ASPECT OF STARBUCKS 6
The Sales Methods Employed by Starbucks to Create Revenue
Starbucks uses different sales methods in order to create and grow its revenue. The
primary sales method used by the company is the pricing strategy for profit maximization. The
management believes that high price increases profit margins. Besides, value-based pricing can
boost margins and create revenue for the company. The company is a master of employing
value-based pricing in order to create revenue (Nair & Weber, 2017). The company uses
customer and research analysis to strategies on the targeted price increase that captures the
highest amount of customers.
Moreover, the company introduces price hikes to determine how much consumers are
willing to spend in order to generate maximum profits. The company uses a strategic product
mix and ensures that there are right customers and the right markets for its products. The sales
methods also involve product versioning and price communication in order to manipulate
consumer perceptions.
MARKETING ASPECT OF STARBUCKS 7
References
Capon, N., & Go, F. (2016). Frameworks for Market Strategy: European Edition. Routledge.
Gillespie, K., & Riddle, L. (2015). Global marketing. Routledge.
Nair, A., & Weber, T. (2017). borjo coffeehouse: Franchise, Independence, and
Starbucks. Entrepreneurship Theory and Practice, 41(5), 861-875.
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Wei, C. (2016). MARKETING STRATEGY FOR SETTING UP AN OWN COFFEE SHOP IN
CHINA: Using Starbucks as a case study.
