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MediaOptionsStarbucks.pptxMedia Options: Starbucks, Inc.
MKT/571 Professor Roberto Ancis
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Vision Statement
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“To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”-Starbucks Incorporated
Goal and Objective
To illustrate traditional and new media options for Starbucks Coffee, and show an understanding of the target audience and effective communication.
Contents
Traditional media option
New Social Media Option
Reach
Differences in Content
Channel
Brand Strategy
The Traditional Media Types
Television Broadcasting
Radio
Billboard
The four basic traditional media types are: print, television broadcasting, radio, and billboards. Each has been used for many decades and continue to be used frequently by businesses and organizations wishing to market to consumers. Though each of these are effective the most prominent and prolific in its results is the print methods as they entail such board ranges of use an associations.
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Traditional vs Social Media
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New Social Media Type
Businesses can use social media to engage with potential customers, answer questions, share upcoming news and release targeted advertisements.
Speed of communication from companies to customers is faster with social media (Rocha, Jansen, Lofti, & Fraga, 2013)
Companies can respond to problems and comments from consumers quickly and directly
Examples of social media sites include: Facebook, Twitter, LinkedIn, Instagram, Pinterest, Youtube, etc.
Starbucks Twitter Contest
Starbucks encourages people to find a third place, meaning a place outside of work and home to go to
Starbucks will use Twitter as a social media marketing platform for its simplicity and volume of users
Starbucks will conduct a contest using Twitter and the hashtag #favoriteplace
The contest will be for customers who will take a photo of their Starbucks and their favorite place to enjoy it
After a month, Starbucks will hold a vote on the top ten most like photos
The winner of the contest will receive free Starbucks for a year
Reach
60 Million Customer Per Week
18,000 Stores
60 Countries
Primary target market is men and women aged 25 to 40…
Which accounts for almost half (49 percent) of its total business
Starbucks also targets young adults, aged 18 to 24, which, in total, equals about 40 percent of Starbucks’ sales.
Starbucks sells itself as a place students can hang out, study, write term papers and meet people. Also included in Starbucks’ target audience are kids and teens, which make up a large part. Customers age 13 to 17 account for only 2 percent of Starbucks’ sales, but most items for kids are purchased by the parents. “Whether the focus is on the steamed milk that Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated, whipped cream topped coffee drinks that are so popular with teenagers, kids and teens form a large part of Starbucks business. Kids go there with their parents; both mother and child leave with cup in hand.
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Reach
Starbucks’ appeals to different consumer age groups through hip, contemporary design that is in line with its advertising and decor, and consistently works to keep its products current as “status symbols”
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Differences in Content
Traditional media:
Generalized content
Viewed by a wide range of demographics
Difficult to change or update once complete
Digital media:
Personalized content
Can be targeted at specific demographics
Easily changed or updated
When using traditional media, such as television and printed advertisements, the content needs to be more generic and tailored to cover a wider range of demographics.
Digital media can be made specific for a small demographic or individual. Companies can view browser data and advertise only the content a customer wants to see or is likely to purchase, which can be very effective.
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Channels
Retailers
Company Owned business
Import and brand as their own
Digital purchasing
Office coffee suppler
Airlines and hotels
Starbucks has a number of different ways for which they may reach the consumer base. First being the retailers and company owned businesses. Which for instance you can find a number of instant or premade drinks at super markets. Company owned businesses sell all of their products. One advantage Starbucks has is that it imports its coffee and brands it as Starbucks. With connections to airlines and office suppliers they are able to effectively market to a wide range of the market (Helmikuuta 2012).
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Channels’ competition
Horizontal
Vertical
Intertype
Different forms of power
Reward
expert
Starbucks is able to compete in all three forms, horizontal, intertype and vertical with utilizing a range of power. With limited advertising, decisions being made from the top down, and ranking first in the industry with sales per employee. Starbucks is able to meet competition through offering a wide range of products, and with expert level expertise (Chapman 2013).
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Starbucks Brand Strategy
Focused Differentiation
Serve Niche Buyers
Unique Capabilities
Focused Differentiation- Starbucks Coffee is focused on Differentiation to ensure that they stay up to date and innovative with their products, and keep consumers happy. Ensuring that they can provide a seasonal taste of various flavors is important to the corporation, and the R&D department is an essential asset to make this happen (McNamara, 2015).
Serve Niche Buyers-Starbucks is very prestigiously proud of their products, as they have become a large successful organization they serve niche buyers than rivals. By which has increased the productivity, advertisement, and the appreciation of the products by the buyers purchasing the products. Which includes all ages, all nationalities, and economic groups (McNamara, 2015).
Unique Capabilities- Starbucks has had various unique capabilities in the method they introduce their products and serve them as well. Which includes certain products in the season, like in the winter for Christmas they have a peppermint mocha, tea, or latte which is enjoyed by various consumers. They have a variety quality design features which also includes brewed coffee that is descent, convenient fresh products, caramel cappuccino, tea packaging services. These products are easy to handle just in time , and ready to drink and their also under the fair trade policy (McNamara, 2015).
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Starbucks Brand Strategy
Positioning Strategy
Competitive Advantage
Company Operated by Retail Stores
Positioning Strategy-Starbucks positioning strategy is customer based, which allows them to give the best customer service around the countries and in each store (McNamara, 2015).
Competitive advantage- Starbucks holds onto their sustainable competitive advantage in terms of their customer satisfaction as well as their employees satisfactions by taking surveys and comments from them and considering changes for new opportunities (McNamara, 2015).
Company Operated by Retail Stores- Also the brand strategy for Starbucks locations is operated by a store manager, all the sales profits are deposited into the Starbucks accounts. Each retail store gets audited by the corporate finance team to ensure that sales continue to grow, and bring profits (McNamara, 2015).
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Summary
Starbucks uses its marketing mix as a way of developing its brand image and popularity. With the strongest brand in the industry, the company shows how an effective marketing mix supports brand development and business growth. Starbucks also changes its marketing mix over time, thereby emphasizing the need for the business to evolve its various aspects to maintain competitiveness.
References
Rocha, T. V., Jansen, C. S., Lofti, E., & Ribeiro Fraga, R. (2013). An Exploratory Study on the use of Social Networks in Building Customer Relationships. Revista Brasileira De Gestão De Negócios, 15(47), 262-282. doi:10.7819/rbgn.v15i47.953
Helmikuuta. 2012. Starbucks Distribution Channel. Retrieved from http://thecoffeeteam.blogspot.com/2012/02/starbucks-distribution-channel.html
Logan Chapman. April 2013. Starbucks Marketing Channels. Retrieved from https://prezi.com/xeip9klbnuu_/starbucks-marketing-channels/
Cave, J. (2016). Digital Marketing Vs. Traditional Marketing: Which One Is Better? Digital Doughnut. Retrieved from www.digitaldoughnut.com
Caramela, S. (2016). Let’s Get Personal: 3 Things Consumers Want in Digital Advertising. Business News Daily. Retrieved from www.businessnewsdaily.com
