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.
Starbucks is known for lots of things: great coffee, friendly baristas, and a near-complete takeover of practically every street corner in America. Did you know it’s also known for it’s killer social media strategy? It’s true! Take a look at some of these stats: 37.32 million Facebook likes 6.56 million Twitter follower 7.7 million Instagram fans 2.86 million Google+ followers 239K Pinterest followers 32K YouTube subscribers Facebook Those numbers are staggering but well-earned. There’s no doubt Starbucks is crushing social media, but how do they do it? Let’s take a look. Interestingly, the Starbucks social media management team doesn’t post Facebook updates all that often. When they do, however, they’re usually eye-catching and ultra-clever. The posts strike a good balance between fun contests, helpful tips for the java-loving crowd, and subtle sales messages to its customers.
Twitter Starbucks has a fascinating and unique approach to Twitter updates -- they don’t do them all the time rather strategically! Fans who connect to the company on Twitter to catch the latest news and updates are in for a surprise. The team does post unique content but also uses the Twitter as a service to reach out to customers talking about their in-store or product experiences. All Tweets are directed at specific Twitter users who’ve “spoken” to Starbucks in their own timeline, sometimes with a complaint or negative feedback. The Starbucks team checks in several times a day and encourages dissatisfied customers to get in touch with the company for follow-up using a Twitter-specific email address. It’s an unorthodox but smart approach to deal with customer complaints before they have a chance to get out of hand. Pinterest and Instagram
A big part of the coffee culture is about beautifully decorated espressos and fancy cups to drink your favorite cup. Starbucks really shines on visually-oriented social sites like Pinterest and Instagram where they can post appealing beverage-related eye candy. The company maintains several Pinboards featuring tea rituals, coffee gadgets, and soothing spaces to get cozy in while you sip. Instagram, on the other hand, is an assortment of cool images related to the coffee community and culture.
WHAT STARBUCKS KNOWS ABOUT SOCIAL MEDIA
Getting customers is good. Keeping customers is great.With over 21,000 stores in more than 65 countries, its a safe bet that anyone with even a passing interest in coffee already knows Starbucks exists. The company has reached critical mass in terms of advertising so its challenge at this point is keeping customers loyal so they’re not swayed by competitors with similar offerings. The Starbucks social media team is great at offering the customer service of local coffee shop on a grand scale over its social media channels. Even though they’re a huge company, they still give customers individual attention, which no doubt goes a long way toward keeping them coming back for more.
Coffee is made for socializing. One of the reasons behind Starbucks’ social media success is that drinking coffee is a social activity. People love to meet over coffee, bring each other coffee, swap stories about coffee, and build coffee acquisition into their morning routines. By extension, sharing the coffee-drinking experience is a natural fit for platforms like Twitter and Facebook. In a classic case of “build it and they will come,” all Starbucks has to do is create places for coffee drinkers to congregate online and they will happily oblige.
Consistent branding is key. No matter what Starbucks social platform you visit, the Starbucks touch is evident. The company’s social channels all have the same look, feel, and tone as their stores. Although the marketing team takes a slightly approach from Twitter to Instagram to Facebook, the content is consistently unified around the company’s mission, message, and goals. Whether you’re a fan of the Starbucks product line or not, their social media success is undeniable. As with every other aspect of the company, their attention to detail and customer-centric messaging is what makes their social outreach some of the best in the business.
Market Penetration. Starbucks Coffee’s main intensive growth strategy is market penetration. This intensive strategy supports the firm’s growth by maximizing revenues from existing markets. Starbucks already has presence in 65 countries around the world. To maximize revenues and growth in these current markets, the company applies the market penetration intensive strategy by opening more company-owned stores. Starbucks also applies this intensive strategy for growth through licensing for merchandise and franchising in some countries, such as the Dominican Republic.
Market Development. Starbucks Coffee uses market development as its secondary intensive growth strategy. This intensive strategy supports the company’s growth by generating revenues in new markets or market segments. For example, Starbucks Coffee plans to enter more countries. These countries are mostly in Africa and the Middle East. In this intensive strategy, Starbucks grows by expanding its global reach.
Product Development. Starbucks Coffee also uses product development as a secondary intensive growth strategy. This intensive strategy involves creating new products to gain more revenues. Starbucks continues innovating its product mix. For example, after the firm acquired The Coffee Connection, it started offering Frappuccino at Starbucks cafés. The company also introduced sodas in 2014. Through such new products, Starbucks grows through this intensive strategy.
Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better. It was true when the first Starbucks opened in 1971, and it’s just as true today. Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later. In 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. Our missionto inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.
