Marketing Strategy of Starbucks – Starbucks Marketing Strategy: Starbucks is the world’s biggest American coffeehouse chain with 31256 locations around the world. It was established in Seattle, Washington in 1971. With the energizing idea from Howard Schultz (current Executive Chairman), Starbucks transformed into more than just a coffeehouse it became the third space between home and work. Kevin Johnson is the CEO at present of Starbucks.
Starbucks At A Glance – Marketing Strategy of Starbucks
Company: Starbucks Corporation
CEO: Kevin Johnson
Founder: Jerry Baldwin | Zev Siegl | Gordon Bowker
Year founded: 31 March 1971, Pike Place Market, Seattle, Washington, United States
Headquarters: Seattle, Washington, United States
Annual Revenue: US$19.16 billion
Profit | Net income: US$15 billion
Number of employees: 346,000
Products & Services: Coffee | Handcrafted Beverages | Fresh food | Non-food items | Packaged goods | Mugs and accessories | Gifts
Starbucks Fun Facts: There are 87,000 drink combinations available at Starbucks.
Marketing Strategy of Starbucks
Starbucks’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Starbucks? Let us discuss.
Segmentation, Targeting, Positioning – Starbucks Marketing Strategy
Starbucks employs geographical as well as socio-demographic segmentation strategies to ensure its specific kind of products are accessible to its customers in the right way.
Selective targeting is a strategy used by Costa coffee, which is available in over 70 different countries, which are geographically separate, this strategy helps the company to meet the requirements of customers and also introduce new products according to the pattern of demand.
It has chosen to position itself in a value-based positioning in order to create imaginative stimuli in the brains of consumers by offering intangible products, in addition to the primary item.
Starbucks Mission Statement
“to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time”
Starbucks Vision Statement
“To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”
“Brewed for those who love coffee.”
Competitive Advantage – Marketing Strategy of Starbucks
Reverse Supply chain integration: Controlling coffee roasting processes, buying packaging as well as the delivery of coffee across the world helps the company to maintain the quality and taste of its coffees around the world.
A wide presence: Being present in over 70 countries with its 24000+ outlets across these countries helps the company in sourcing the highest quality basic material i.e. tea and coffee beans from regions that produce coffee.
The focus on expansion in emerging areas is among the strategies that are helping to accelerate the growth of revenue of the business.
BCG Matrix – Starbucks Marketing Strategy
One of the most famous coffee brands in the world with more than three decades in business helps the company be able to understand its businesses in the most effective way and to be creative in the ever-changing market aspects. Starbucks products are the mainstay of BCG’s matrix. BCG’s matrix.
Distribution Strategy – Marketing Strategy of Starbucks
Starbucks is the biggest retailer and roaster as well as the marketer of some of the finest coffees in the world. It provides its beverages items through licensed and owned by company outlets around the globe.
It also offers a selection variety of its trademarked coffee and tea items through grocery stores and supermarket chains across the world.
Brand equity – Starbucks Marketing Strategy
In addition to the Starbucks coffee brand, it also offers items and services under the brand names that include Tazo, Ethos, Evolution Fresh, and Teavana. Since its beginning, the company was involved in a variety of CSR initiatives that have allowed the company to be connected with communities across the world.
The ethical conviction of the company has helped in retaining its staff talent by fostering their potential and also winning numerous prizes and distinctions like being among the Fortune 500’s most loved company in America (2015).
Competitive Analysis – Starbucks Marketing Strategy
Companies in this field compete on the quality of their service, convenience, and cost. The coffee culture is expanding in many developing nations. There is lots of competition among the national and local players.
Businesses in this sector compete with other eateries and coffee shops. is sold in grocery stores as well as other specialty stores in prime locations in the marketplaces.
Market Analysis – Marketing Strategy of Starbucks
The consumption of coffee across the world is increasing at a rate of 2 percent. In India, the per capita amount of consumption is about 85 grams whereas it’s 6 kg for the US. Countries in the developing world have a huge opportunity for companies operating in this field.
Customer Analysis – Starbucks Marketing Strategy
The customers of Starbucks are millennials in 15 to 45 years old who prefer to spend time with their family and friends and enjoy the blended drinks available in the stores.
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