Starbucks Marketing Strategy

Starbucks Marketing Strategy

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  University of SouthAsia, Lahore Marketing Strategy of Starbucks Principle of Marketing Section - A Presented by: Tayyab Zia Instructor: Mr. Adil Khushi
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  Starbuck Marketing Strategy ValueProposition The value proposition of Starbucks focused on a brand strategy that was comprised of three components. The brand strategy was best captured by the phrase “live coffee”. • The first component was simply the coffee. Starbucks offered the highest- quality coffee in the world and controlled much of the supply chain as possible to help insure that. • The second brand component was service, or what was also referred to as “customer intimacy.” This included simple things such as remembering someone’s name or drink order. • The third brand component was atmosphere. Starbucks stated that people came for the coffee but stayed for the atmosphere. Therefore it was important to provide a comfortable atmosphere that allowed a sense of community. All of these things combined led to a compelling value proposition. 1
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  Starbuck Marketing Strategy Price •Higher than others • Starbucks started with a low cost range at few outlets to maintain competition Marketing mix – 4P’s Product • Coffee • Beverages • Ice-cream Placement • Cafés (Commercial Markets) • Online Store (Starbucks App) Promotion • Social Media • Sales Promotion • Free Samples 2
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  Starbuck Marketing Strategy3 on Ansoff Strategy
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  Starbuck Marketing Strategy4 50% 40% 2% Adults age 25 - 40 Young adults age 18 - 24 Children age 14 - 17 Age above 40 Market segmentation Geographics Main Cities of Targeted Countries Demographics Age Gender Income Children (14-17) Young Adults (18-24) Adults (25-40) Matured (Above 40) Male Female Middle Income (Rs.25,000 – Rs.40,000) Higher Income (Above Rs.40,000) Source:ColomboPageNews Desk,Sri Lanka. 8%
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  5 Age group: 18– 40 Lifecycle: Young and adults Gender: Male and female Occupation: College students, Corporate sector employees, executive, and professional positions Income: (Social Class) Middle and higher income earners Targeting Strategy of Starbucks Starbuck Marketing Strategy
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  Starbuck Marketing Strategy6 Price high Price low Low perceived quality High perceived quality Positioning
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  Starbucks Marketing Strategy Questions? Letus know! 7