Starbucks Maximizing Commerce and Marketing Strategies
Starbucks is one of the most famous companies in the world. Due to successful management strategies, promotion, and quality of the product, the company is represented in numerous countries across the globe. Starbucks is the company that has competitive advantages in comparison to the rivals. The organization is centered on three major aspects, namely new ideas, new products, and new experience for the visitors of the coffee shop (Davila et al. 36). The ability of Starbucks to adapt to current market needs and seek for improvement and progress are beneficial for the company’s success and prosperity.
Young adults and adults are the target group for Starbucks. The target audience of Starbucks is well-represented by people who value technological progress and are fans of social media, people from middle and upper social classes, and health conscious (Schultz and Yang 71). The unique products that satisfy the needs of the target group of the organization include drinks and pastry.
As a matter of fact, the majority of people lead a busy lifestyle, however, wants to enjoy the atmosphere and receive aesthetic satisfaction not only from the place but the purchased product as well. Smoothie, refreshers, tea, and coffee that are sold in the coffee shops are unique and unordinary. People with different tastes and preference, moreover, people who are on a diet can find something that will satisfy their needs.
Starbucks is a customer-centered business that has already created a personal philosophy of lifestyle and spreads its beliefs and values to the public. In order to get better involved in the issue, Starbucks product levels should be taken into consideration. There is a Starbucks lifestyle in the core. Premium coffee, equipment for making coffee, comfortable and authentic layout of the coffee shops, collectibles (world-popular mugs and thermos), and Starbucks brand belong to the actual level. Furthermore, free Wi-Fi, special Starbucks card, in-store download of the music are essential factors of the augmented level.
The marketing mix of the organization corresponds to the position of Starbucks in the market. The company successfully uses marketing mix to promote and foster development and progress of the organization (Schultz and Yang 71). The marketing mix involves place, product, price, and promotion. The product includes beverages, pastry, and small presents (such as mugs and instant coffee).
The menu of Starbucks is the result of constant work, creativity, and business improvement. As for the place, it is worth stating that Starbucks products are easy to access as they are represented in cafes, retailers, online websites, and applications. The organization is catching up with the progress and adjusts to the current market needs. Promotion is an integral component of Starbucks’ strategies, namely advertisement, and public relations (Burkhalter and Wood 54). As for the prices, it should be stressed that it is one of the company’s generic strategies as the prices are higher than the prices of rivals. However, the company follows the principle that high price is related to high quality.
Starbucks was not focused on the delivery service until the time the executives realized that despite high prices on beverages, the demand for beverages will remain high, and the customers are likely to support the delivery system. Jonathan Baskin, the member of the consulting firm that helps Star backs to innovate, states that delivery service might consequently change the concept of the business as Starbucks is selling not just coffee, the company aims to provide people with unique atmosphere in their coffee shops (Horovitz par. 3).
Nowadays, Starbucks focused their attention on the implementation of business to business delivery service. Different organizations can cooperate with Starbucks and provide employees with beverages and food from Starbucks. The primary rivals of the company, namely McDonalds and Dunkin’ Donuts, have not established the business delivery system, and it means that Starbucks is one step ahead (Horovitz par. 5).
Food and beverages from Starbucks can be delivered by a third party, the one that delivers pizza or gourmet meals. Providing clients with a comfort is the primary objective and concern of the company, and thus, they have decided that the priorities should be shifted as the clients will appreciate the business to business delivery service. This decision was beneficial for the revenues of the company as Starbucks is now becoming an everyday brand that fulfills the desires of the clients and cares about their comfort (Horovitz par. 7). The products of Starbucks are easy to deliver as the package with stopper eliminates the risk of spilling, and that is, the company has a competitive advantage.
The company is orientated on the needs, desires, and requirements of the consumers. Thus, Starbucks is sure that constant improvement and progress are essential for prosperity. New types of beverages and pastry can always be found on the menu. Moreover, the company thinks about the needs of the customers and adjusts to them. For example, free Wi-Fi, so that people feel comfortable being in the café. The target group of customers is people who are on a diet or lead a healthy lifestyle. Starbucks can make and sell protein bars with caffeine. The bar will provide a human body with a needed amount of amino acids that are essential for the modern human. In addition, the company can develop diet line of desserts made of fruits and vegetables.
Burkhalter, Janee, and Natalie Wood. Maximizing Commerce and Marketing Strategies through Micro-blogging. Hershey: Business Science, 2015. Print.
Davila, Tony, Marc Epstein, Joan Kiddon, Larry Light, Monique Reece, Robert Shelton, and Michael Tasner. How to Innovate in Marketing. Upper Saddle River: FT Delivers, 2013. Print.
Horovitz, Bruce. “Starbucks Delivery: Experts Say It Can Fly.” USA Today, 2015. Web.
Schultz, Howard, and Dori Yang. Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time. New York: Hyperion, 2012. Print.