Starbucks Marketing Strategy
Starbucks Information
Starbucks Target Market
Starbucks Competitors
Starbucks Marketing Mix
The description of the company's history, accompanied by present marketing practices, allows one to describe Starbucks' marketing strategy as being that of a differentiator. As previously mentioned, coffee is sold just about everywhere, as such, Starbucks has to make itself standout as a company that is not only selling a cup of coffee, but an experience. In order to achieve this, the company has been trying to differentiate each store within the company by having it represent the specific needs of each community in which it is located. Individual stores serve as a medium for each community, and as an extension of the community's values and ambitions.
This section will explain in detail what differentiates Starbucks from its competitors. The evaluation will consist of analyzing the marketing concepts, principles, and strategic tools that Starbucks utilizes in differentiating themselves. After creating a SWOT analysis for Starbucks, we will show how the company can reduce some of the weaknesses that could pose a threat to it. This will be followed by discussion on the greatest areas of resistance Starbucks faces - both internally and externally, and the forecast of the affects Starbucks will experience if it continues with its current operational methods.
As stated earlier, Starbucks is a company that has differentiated itself by convincing consumers that it is selling more than a cup of coffee. Further, their brand image is associated with a sense of community activism. Starbucks feels that if they can identify with customer's societal endeavors, they would be differentiating themselves on these principles. Five decades ago, General Electric stated, "the marketing concept holds that the planning and coordination of all company activities around the primary goal of satisfying customer needs is the most effective means to attain and sustain a competitive advantage and achieve company objectives over time." (Mullins, Walker Jr., Boyd Jr., 36). This statement made over fifty years ago still holds true today. A company's ability to adapt to changing markets wants and needs is a key to its survival. Starbucks is a great example of a company that has done a tremendous job in this area. The company managed to maintain the wants and needs of the customers at the top of its list, and through a differentiated strategy earned incredible revenues from a readily available commodity, coffee.
Starbucks is selling an easily accessible tangible product, but has evolved into a company that is doing much more than that. There is also a philosophy and an image Starbucks is attempting to promote through its products. The company is heavily involved in public relations, promoting an image of a responsible company that has the resources to make good on its promises. Starbucks promotes ethical sourcing, environmental stewardship, and community involvement and goes as far grading itself on the company's website ("FY 2008 Global Responsibility Report"). The company boasts of being ethically committed to all stakeholders in the business - from the coffee bean farmers to the issues of climate change. Starbucks maintains that being ethical is a top priority of the organization. Starbucks is also very much involved in community activities. The company sent 2,000 volunteers to Louisiana to help locals get their lives back on track after Hurricane Katrina, and in several communities laid sod, and planted over
1000 trees ("FY 2008 Global Responsibility Report"). As one volunteer said, "Starbucks is all about the human connection" - this statement is a powerful representation of what the company represents. The focus on the greater good of the customers is what Starbucks wants to be known for. Starbucks wants its customers, and potential customers to perceive them as a company that has a positive impact on the world. This is one of the ways Starbucks is using marketing concepts to strengthen its marketing strategy of a differentiator.
Starbucks SWOT
Starbucks Analysis
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