Marketing Starbucks Term Paper

Pages: 5 (1607 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Topic: Business - Advertising

Marketing

Starbucks is well-known not only for its coffee, but also for the way in which the company and its employees connects with their customers and their respective communities. Indeed, the company has been used as an example of how to use market strategies not only to gain customer loyalty, but also to connect with the local community. Starbucks' unique set of marketing strategies has gained for the company not only great success in the coffee industry, but also a loyal basis of fans.

According to Hanft (2007), Starbucks' use of environment forms part of its marketing success. The product wrapping, furniture and fixtures, drink names and cup decorations all combine to form the company's unique image. This attention to small things is used to connect Starbucks to every community it serves. These details are also used to make the company a success in different cultures. A large amount of research is invested in expanding ventures in order to determine what is important to the target community. This research provides the company with an in-depth understanding of its customers in terms of their values, lifestyles and needs (Hanft, 2007).

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A very interesting factor in Starbuck's strategy is its attitude towards capital and income. The company for example allows its customers to enjoy the maximum benefit from their products rather than attempting to make the maximum profit from them. An example that Hanft mentions is that customers are allowed to spend as much time as they wish on the premises, even if buying only a single cup of coffee. This provides the company with an image of relaxation and enjoyment rather than one focused solely on income and profit. The image of comfort while enjoying a cup of coffee is enhanced with comfortable chairs and couches. These create customer loyalty and culture of gathering at Starbucks while encouraging spending. With this strategy, customers feel that they are important assets to the company rather than just sources of profit. Customers are treated well, and in return feel encouraged to invest their money in the products.

TOPIC: Term Paper on Marketing Starbucks Is Well-Known Not Only for Assignment

Having originated in the United States, Starbucks is essentially an American business for American communities. The company name for example is from the novel Moby Dick, which is one of the most famous American novels. Furthermore, Starbucks also incorporates some Italian elements, such as the barista, the Italian drink names and the layout of the premises. These add to the charm of the setup.

Another very important factor in Starbucks' marketing strategy is its professed environmental consciousness paradigm. Environmentalism is an issue that has enjoyed increasing attention on a global scale, and particularly within the United States. To demonstrate their environmental consciousness, Starbucks have incorporated elements such as fair trade, soy milk, and health insurance for its part-time employees. On a similar scale, the company is also very conscious of the diversity within the community it serves. The company employs personnel from a variety of different ethnic and social backgrounds to make the company representative of the community it serves.

Apart from the strategies above, one of Starbucks' most interesting strategies is probably its parties. According to Allison (2006), Starbucks' approach incorporates not only parties, but also other person-to-person encounters in order to market their products. While the company does buy some holiday television advertising and the like, it does not spend nearly as much as other large companies on conventional advertising campaigns.

The parties are constructed on both large and small scales. An outdoor samba party in Miami for example marked the launch of the company's first juice-based drinks, while others are "glitzy," like the one at Trump Tower, involving celebrities like Miss Universe. In addition to connecting with the community with high-profile parties, Starbucks also connects with its community with smaller events, such as those it co-sponsors. One of these is Bumbershoot, an annual music and arts festival in Seattle.

In terms of community and environmental awareness, Starbucks has also been involved in nonprofit literacy campaigns and unveiling the green issue of Elle magazine. During these, free drinks were offered by the company, as the case also was on March 15, 2006, with a nationwide coffee break between 10 am and noon. Starbucks offered coffee to those visiting any store within the United States at these times.

Allison (2006) cites Ed see, the chief operating officer for Marketing Management Analytics, as saying that Starbucks has found a way to revive the marketing paradigm as it existed before mass media. Businesses were obliged to communicate directly with their community in order to introduce and popularize its products. This is one of Starbucks' main strategies. According to See, community communication strikes a personal chord that conventional advertising fails to do.

Allison also measures Starbucks' measure of success, which, as seen above, does not relate only to money. For each event, success is measured by the way in which the community enjoyed and participated in the event. Indeed, community members involved in the event provide valuable word of mouth advertising that, according to Starbucks, is more valuable than conventional advertising. The reason for this is that the community is directly involved in a fun-filled and creative way. The products are offered in a way that does not attempt to force the consumer into buying a product he or she does not really want. Instead, the community is introduced to a product on the terms of friendship. The above-mentioned elements of decor and customer relations combine with such advertising campaigns in order to deliver perceived value to the customer, as well as promoting the company's products in a non-invasive, and fun-filled and authentic manner.

John Moore (2006) agrees with other authors in his assessment of Starbucks as a company that is in touch with their customer in an authentic manner. This is one of the main elements responsible for their success. Indeed, this is so important to the company that it spends its income on existing customer experience rather than advertising in itself. In this, the company's marketing money is focused upon creating new and unique beverages as well as an in-store experience that is comfortable and enjoyable for their customers. In this, Starbucks' philosophy focuses on the experience of the customer rather than the way in which the customer can be manipulated via conventional advertising.

Another important element in connecting with the community is the "barista" connected with the company. In this regard, the personal touch is important for the company. The barista serves the coffee, and the customers experiences the personality of the company by means of the barista. This is an especially important element in the current culture of high tech cyberspace, where the personal is generally lost. Interaction is one of the most important elements of the company. In Starbucks, creating the product creates the brand rather than the other way around. The customer in this way creates the basis upon which the brand is built.

In parallel, the company attempts to be the best in its industry rather than the biggest. Companies who attempt to be the biggest generally tend to lose sight of the importance of creating quality for the customer. Quality is one of the most important elements of Starbucks, in each of its existing products, and also in each of the new products that it markets. Customer satisfaction is at the forefront of the company's success strategy. In this, the customer is the main focus of the company's success. This makes sense, as the customer is generally the source of income for the company.

Another important factor in the company's strategy is its resistance to complacency, conservatism and conceit. The company is never satisfied with the existing status quo, and shows it by continually inventing new brands. They take chances and show innovation. This makes the company and its products exciting… [END OF PREVIEW] . . . READ MORE

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