The Starbucks logo on the white cup itself is enough for advertising. Most everyone who walks with a Starbucks cup in hand is basically a walking billboard. They also use the Starbucks website to promote new drinks or other products.
Promotion
Starbucks offers many promotions whether it's there Half Price Happy Hour, Happy Mondays, Morning receipt promo, Holiday Specials or the promotions you receive through their Starbucks Rewards. Of course the promotions are usually durning certain days and times they still find a way to offer their customers a way to save money. The promote these offers by e-mail, or by the Starbucks Mobile App.
Along with your ordinary Starbucks coffee shops, Starbucks also has a B&N Cafe inside Barnes and Noble. A combination of Book and a cup of Coffee is one of the best friends in the world. Choosing the Retail Mix
Product Unlike Regular Starbucks coffee shop, B&N cafe have limited flavors and types. The target of this store is book shoppers who think about drinks with book, not a regular customer. If their goal is just drinks, They will move to another regular Starbucks coffee shop. As a result, B&N cafe has basic and popular menu from regular Starbucks coffee shop.
Promotion B&N Cafe has a special discount for Barnes and Nobles members. If you have Membership card for Barnes and Nobles, you can get 10% discount on your items. Place When you rest at home, you may read books with a type of drink. However, if you could not find a book to read at home you can visit a B&N cafe and you can find what ever book and bring your own coffee without charge. There is no better place than a cafe, but a cafe with books is way better. Not to mention the coffee smell and the comfortable seating to relax in a hectic city.
Presentation Even if you did not know B&N cafe is a type of Starbucks, you would recognize it by the interior design and the employees and their very similar Starbucks look. B&N Cafe looks almost the same as a regular Starbucks stores, but B&N cafe's atmosphere is more homier than others. The time you stay at a B&N does not matter as it would at a regular coffee shop.
When an individual buys a product, there is a process which occurs for making their decision. This is the consumer decision-making process, which includes: recognition, information search, evaluation of alternatives, purchase, and post purchase behavior. Now not all of the steps are exactly necessary or even taken. For example, a person may not even purchase the item or some consumers may not need to do the information search. Starbucks' consumers rely mainly on the recognition step and even the information search if it is a new consumer. When a person is thirsty and needs their daily fix of coffee, they are responding to their stimuli. An individual can be walking by one of Starbucks' coffeehouses and their senses become aroused, which could be enough to indulge in a coffee, or morning beverage/treat in general. If a consumer needs the information search, they can receive this information from word of mouth. Many of Starbucks' loyal customers speak very highly of the brand and the quality of the coffee. Even though the price points are about $2.00 or more than say a Dunkin' Donuts coffee, Starbucks' locations are more convenient to have access to then one of their competitors. Now within the decision-making process, perception of a specific product is considered by marketing managers. Perception is a process all people take part in as we move through the course of events in our daily lives. When we meet people, make business decisions, evaluate performances, or pass judgments, our perception surrounding such events helps us persuade our next course of direction. Starbucks focuses on their employees and the effects they give on the consumer, as mentioned in previous blog posts. Starbucks has been successful in modeling guidelines to direct employee behavior and shape corporate perception to help in its success. Consumers perception must start from the perception employees view about the company. If the employees decide this is the place to be for them, then the energy will be given to the consumer and they will return. The consumers' post purchase evaluation process is probably the most important out of the five steps taken because it requires the decision of whether or not to buy that particular item again. This decision to purchase a product at Starbucks, because of all the research and the variation of products they offer, can be done in one store visit. Starbucks gives a good motive for customers to return because if you are unsatisfied with your drink, then you will be offered another drink and even given a coupon for a free one. Again, the customer service in Starbucks is what makes the experience. The employees make sure that the customer receives what they ask for in a personal way which makes a customer feel like they are the only person Starbucks is attending to and caring for. As Howard Schultz, CEO, stated to Fortune Magazine, “We aren’t in the coffee business, serving people. We are in the people business, serving coffee."Starbucks' consumers rely mainly on the recognition step and even the information search if it is a new consumer. When a person is thirsty and needs their daily fix of coffee, they are responding to their stimuli. An individual can be walking by one of Starbucks' coffeehouses and their senses become aroused, which could be enough to indulge in a coffee, or morning beverage/treat in general. If a consumer needs the information search, they can receive this information from word of mouth. Many of Starbucks' loyal customers speak very highly of the brand and the quality of the coffee. Even though the price points are about $2.00 or more than say a Dunkin' Donuts coffee, Starbucks' locations are more convenient to have access to then one of their competitors.Now within the decision-making process, perception of a specific product is considered by marketing managers. Perception is a process all people take part in as we move through the course of events in our daily lives. When we meet people, make business decisions, evaluate performances, or pass judgments, our perception surrounding such events helps us persuade our next course of direction. Starbucks focuses on their employees and the effects they give on the consumer, as mentioned in previous blog posts. Starbucks has been successful in modeling guidelines to direct employee behavior and shape corporate perception to help in its success. Consumers perception must start from the perception employees view about the company. If the employees decide this is the place to be for them, then the energy will be given to the consumer and they will return.The consumers' post purchase evaluation process is probably the most important out of the five steps taken because it requires the decision of whether or not to buy that particular item again. This decision to purchase a product at Starbucks, because of all the research and the variation of products they offer, can be done in one store visit. Starbucks gives a good motive for customers to return because if you are unsatisfied with your drink, then you will be offered another drink and even given a coupon for a free one. Again, the customer service in Starbucks is what makes the experience. The employees make sure that the customer receives what they ask for in a personal way which makes a customer feel like they are the only person Starbucks is attending to and caring for. As Howard Schultz, CEO, stated to Fortune Magazine, “We aren’t in the coffee business, serving people. We are in the people business, serving coffee."An advantage marketing managers take into consideration when selling a product and making sure the consumer continues to buy the particular product is looking into specific primary or secondary membership groups. Consumers are influenced by people around them, whether from their similar cultures, values, personalities, attitude, etc. Starbucks focuses a lot in spreading their brand name by word of mouth. They have some commercial ads but what mostly works for them is to be recommended by someone consumers know. They also take opinion leaders, which by textbook definition is an individual(s) who influences the opinions of others. Starbucks does this by being featured in many shows and movies. This has helped them grow their credibility and gain return customers.
" To create distinctive Starbucks experience in the face of rapid growth "
Starbucks is the worlds largest coffee retailer with 22,000 stores in 66 countries in the world. 11,o68 stores are placed in the US - it leads to a total store number of almost 16 600 stores. Throughout the whole world, Starbucks sticks with it common goals and company culture ( Global marketing standardization/"One product,One Message Marketing Mix"), while product offerings are modified to local taste. For instance, Starbucks in Germany does not offer the exact same breakfast items that are offered in the US simply because bagels or some other items are not typical for breakfast in Germany. Starbucks enters the foreign market mostly through licensing arrangement's or joint ventures with local retailer. Some of the international coffee houses are also company owned or operated. The first international coffee house were launched in Japan with the help of a Japanese retailer SAZABY.INC in 1996. The company is concerned about their international neighborhoods just the way they are in their own country. It is highly important for Starbucks to carry their "mission"- to be more than just a coffee house - out of the US.
“We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day.” Howard Schultz
Additionally, the company committed themselves to support their international communities with "Starbucks- Shared Planet" .
"Starbucks is dedicated to supporting communities around the world – where we live, where we work and in the countries where our coffees are produced."
Overall, Starbucks as the world largest coffee house brand still earns the most of their revenues and positive feedback from their native costumers. One major point that hinders many consumers to buy at Starbucks overseas is the high price that the company charges. For example in Germany people have to pay for a small Frappuccino 4 Euros which is almost 6 US Dollar. The same Frappuccino cost in the US 4 Dollar.
Starbucks'target market is mainly adults, men and women, from the ages 25-40. This consists of almost half of Starbucks'consumers and grows at a rate of 3% annually. Even though this is the majority of Starbucks' business, the consumer also ranges from young adults 18-24 (40%), which grows at 4.6% annually, and even kids and teens 13-17 (2%), which most products are bought from the parents.
A main reason why Starbucks is so successful today and continues to grow is because the people of the company takes many factors into account. These include: social, demographic, economic, technological, political and legal, and competitive factors.
The people within the Starbucks company, management and staff, feel they have a responsibility to give back to the community. Ever since they opened their first store in 1971, they dedicate themselves to show a balance between profitability and social conscience (social factors). There is a whole area behind just the coffeehouse where they offer community service, create jobs for those in need, and youth action programs to prevent violence among young adults. They are also very involved in keeping the Earth green and certain environmental factors, such as recycling and reducing waste, energy, water, and climate change. Starbucks - Environmental Responsibility Because Starbucks is a global company and is expanding the retail stores throughout the world, they focus on all demographics. Although the prices of their products are more than say a street cart, they do provide some low-cost items for those who still want the quality of their coffee. That said, if we take a look at the average income of an American household in 2011 (Per Capita Personal Income U.S.), it was calculated to be $41,663. That suggests that Americans can buy specialty coffee drinks from an expensive, quality-oriented organization such as Starbucks. This also covers certain economic factors Starbucks faces.
Starbucks has kept up to date with the technological factors. For instance, they developed the Starbucks card, which is basically a pre-paid reward card. This keeps repeat customers and as a person bumps up rank in the program, they receive greater benefits. Everything is stored within the system and when a Starbucks employee sees a customer with the Starbucks card, special treatment is delivered.
Political/Legal factors, which affects Starbucks as a company, include the stability of the countries where Starbucks purchases its coffee and natural resources. They receive their coffee beans from countries all around the world, even places that have many natural disasters: tsunamis, earthquakes, and wars. If any of these events occur in a country where they are expecting their coffee from, Starbucks may not be able to produce coffee and profits will drop. Also, Starbucks is environmentally friendly, as stated earlier. They have to consider how to protect the brand aspect in everything they do, from providing a living wage that makes it to farmers and have production with low pollution rates.
