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The Success Story of Starbucks: Understanding Its Marketing Strategies

Apr 24, 2023 | 0 comments

Apr 24, 2023 | Essays | 0 comments


Starbucks is one of the most beneficial organizations on the globe. Many organizations seek to view the success of members. This is in a bid to bench mark Starbucks and become equally efficient. The main attribute of Starbuck’s success is the continuous hard work and techniques that are focused at success. Starbucks has been a force to reckon within the customer industry. Its advertising models have kept its competitors on the edge. The proper implementation of the set out techniques is also important in the organization’s success. The organization has also keenly followed the set out marketing ideas, and this among others has been the factors for their continuous success.

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P.1.1 explain the various elements of the marketing process of Starbucks

The procedure of promoting is very important in the success of an organization. To be able for the organization to grow, advertising models must be applied. Moreover, marketing must be carried out to make sure that more people in the concentrate on viewers become conscious of the business’s items or services. For an organization such as Java house, a review of the components of promoting is important, so as to determine the places to lay on more concentration. Area et al (2009p64–85) indicates that the situational analysis of promoting is one of the significant things that an organization like Starbucksshould considers in the dedication of its components of promoting. SWOT analysis of the organization will also in the dedication of the powerful factors, flaws, opportunities and threats of the organization. This could serve as the guideline on the places that the organization should concentrate on during the marketing procedure. Hence, marketing analysis is a crucial element of promoting. With regards to powerful factors, Starbucks has sound financial records and likes client dedication. On the flaws, the main raw material of the business that are; coffees, effect on the firm’s earnings. On opportunities, the organization could concentrate on expanding the company network so as to enhance revenue. On threats, the organization faces supply disruptions associated with financial, weather and community circumstances.

P 1.2 Evaluate the benefits and costs of a marketing orientation for Starbucks

According to Cruz (1999p269), in the purchase for Starbucks to continue being efficient, client concentrate is very important. The management, therefore, needs to carry out researching the industry in the coffee industry and determine the client attitudes and activities. Knowing the client activities and options will make sure that the organization can come up with items that clients are looking for in the market. Hence, industry positioning allows the organization yield earnings from the new industry that it taps in the procedure. Market positioning also allows the organization to consistency in the items that it presents in the market.

One of the costs of industry positioning is the financial constraint that is incurred during the marketing procedure. The capital required to promote the items of Starbucksis costly considering that the organization is a multinational corporation. Also, the other price is the external forces that the organization is subjected to in the various locations across the globe. The industry positioning procedure may seem costly. However, the management should consider challenge a cost-benefit analysis so as to determine whether the advantages that the organization likes are more than the costs. This will help in the dedication of the significance of the industry positioning procedure.



P 2.1 show macro and micro environmental factors which influence marketing decisions for Starbucks

In every organization, the management should take into consideration the organization environment. This includes both the macro environment and the small environment. For the small environment factors such as the costs and the coffee, extensive variety play a key role in the marketing options that the organization makes. For example, many people usually have the which Starbuckscoffee is a luxury good because of its relatively heavy price. It would be important to concentrate on this during marketing to make clients know that the excellent organization’s coffee matches the price (Pfeffer 2010p37). With regards to the coffee extensive variety, the organization is currently serving one flavor; it would be suggested to have a variety of vegetable. However, the current shift where the organization provides tasty coffee as indicates of product distinction is a commendable strategy.

In circumstances of the macro environment, there are many factors such competition, cultural factors, financial and demographic factors. The coffee industry has some powerful industry players such as McDonalds and Dunkin Water inflatable donuts. Regardless of the factor that Starbucksis the top organization in the coffee industry, it is important that techniques are adopted to make sure that the organization continues to have competitive advantages.

P 2.2 Propose segmentation criteria to be used for products in different markets

Market segmentation is important because the organization may use these segments to determine how to carry out the advertising models for the different types of marketplaces and clients. It is important come up with efficient specifications of segmenting the industry. For example, Starbucks should make sure that the segmentations of the industry are in a way that is available at all levels. In the existing day, the globalization trend has been increasing quickly. It is one of the techniques that the organization may capitalize on to enhance accessibility to its items (Sims 2007p.97).

It is of great importance to remember that the consumer industry has many items. Hence, for the Starbucks to stay the variety one player in the market, the marketing managers must make sure that the segmentation specifications that they choose are one that allows for the items to be well assigned in the market. This will avoid the product from losing its significance among clients. Hence, the managers need to measure the segments that they come up with to make sure that their items are well assigned. This could be done in circumstances variety and industry size as they are in the market. The segmentation of the industry plays an important part because it is the program used to launch its items by the organization.

P 2.3 choose a targeting strategy for a selected product/service

Starbucks is the main company of the whole legumes coffee in many marketplaces and different clienteles across the globe. The organization, therefore, needs to differentiate its items from other competitors. This will make sure that concentrate on viewers has tangible factors why they should products they were unable to develop. The investment was directed at building a new brand name. The more than two billion dollar investment is allowed Tata to purchase items from Starbucks and not from other competitors (Gilpin et al 2002p.58). Moreover, the marketing applied by Starbucks should be differentiated too. This is because every other organization is challenge advertising models so as to woo clients. Thus, the organization must come up with techniques that distinguish it from the rest in the crowd.

The techniques are focused at winning client dedication. To encounter this, client support is very important. It is, therefore, suggested that the advertising models applied by the organization are focused at improving client support. This will make sure that the clients tell or their family members and this will make a bigger pool of clients resulting in increased revenues and earnings. Each area in the market should have a different online marketing strategy so as to make sure that the strategy hosen is one that meets that particular area.

P 2.4 Demonstrate how buyer behaviors affect marketing activities in different buying situations

Luo (1999p56) indicates that customers’ buying activities are subject to both inner and external factors. Internal factors in this case refer to the tastes and options of the clients and the value or program attached to the product that they intend to buy. External factors include the professional pressure; from poverty on America’s families:Assessing our research knowledge. Journal of family members, and the facts available about the various items. Starbucks’ items, being in the coffee industry, the client activities, are really being affected by the inner factors at a individual level. Hence, regardless of the marketing done in a particular area, there could be disadvantages arising from the inner factors.

Some clients may be being affected by their health and fitness. What this implies is that some people may not be able to buy coffee and its items due to medical concerns and issues. Hence, the buying activities of such potential clients are subject to their health and fitness. It is important for the marketing department to know that the buying activities of a particular area are subject to the inner factors and external factors. Thus, clients may usually act in isolation, in the event that they have health and fitness issues, or as a team, in the event that there is stress from peers from close relatives.

P 2.5 propose a new positioning for a selected product/service

In the forefront to adopt technology had been Starbucks’ procedure of promoting its items. This is because of the appreciation of the changes being knowledgeable all over the globe. Globalization has taken charge, and the technological advancements knowledgeable all over the globe. Starbucks has offered web shops for its clients to choose and buy a variety of their items online. This improves efficiency and accessibility. This has been one of the factors why the organization likes globally recognition due to this efficient positioning strategy (Rosenzweig 2001p.97).

The organization may incorporate the various producers that it provides in the web shops. Moreover, an inclusion of the costs would also be suggested. This will be fundamental in ensuring that its clients can make comparisons with other competitors in the market. Also, in the positioning strategy, the organization could inculcate team involving activities. This is perfect because it will help build better rapport and relationships with clients that are using the web shops program. Also, it could also start up a team conservation program that will be approved by environmentalists and also indicate how the organization conserves the surroundings.



P 3.1 Explain how products are developed to sustain competitive advantage at Starbucks

Worldwide, Starbucks is the best coffee sequence so far. This has been determined on the basis of client preference. As such, the organization already likes the competitive advantages of having the title of the top coffee sequence. New clients in the market are likely to buy items from Starbucks due to information that it is the best organization in the market. The growth of the items promoted in Starbucks is purely based on high top quality and the program and value that clients are hoping to acquire from the items. The growth of the items is, therefore, extremely a few the items the client requires among the customer items (Baker et al 2006p.56).

Starbucks has also taken product distinction as a way to make sure that it gains competitive advantages over its competitors. This has been actualized through the discharge of tasty coffee. This is to make it ahead of McDonalds and Dunkin Water inflatable donuts. The tasty items have been a way to give clients a new encounter and the significance of coming back for more of the items. The product distinction strikes a distinction between the items promoted at Starbucks with those from the competing producers. The revenue since the discharge of the flavors has been on the rise.

3.2 Explain the distribution strategies used by Starbucks

For an organization to be efficient, it must have obvious and efficient techniques of distributing its items. This is because it is through obvious distribution techniques that the organization can achieve out to clients. Starbucks is a worldwide organization. As such, items are available in many parts all over the globe. The distribution applications comprise of the common organization chain; wholesalers, retailers and then to the clients. Through this main distribution path, the items are available across the globe (Hoegl et al 2012p.46).

Starbucks does not rely on a single distribution path. On the contrary, it has a hybrid of distribution applications. This is to enhance the variety of clients that the product is available to as any particular time. The organization has agreements with marketplaces and hotels on delivery of its items in these outlets. What this implies is that they have repeated orders from the organizations that have signed the agreement with them. This assures that there is a ready industry for their items at any particular time. The agreements are also a way to make sure that accessibility is improved so as to enhance client support too.

3.3 Explain the pricing strategies adapted by Starbucks

In any particular industry, the clients are really being affected by the prices in the various items. This is such that those who are very sensitive to price usually buy the cheapest items. It is, therefore, important for an organization to come up with efficient costs techniques that are beneficial both to the clients and the organization. Starbucks is a benefit making organization. What this implies is that it sees to enhance product sales through each sale (Parker 2003p.68).

There is a common which Starbucks coffee is a status product; actually luxurious. This is because the price is relatively higher than the other vegetable promoted in the market. Regardless of its price being higher, Starbucks is still the top cafe on the globe. This is because the costs strategy applied by Starbucks is very a few the excellent organizations’ product. What this implies is that regardless of the price being higher, clients still buy the items because they know the price matches the excellent organization’s product. The organization already likes product dedication from its clients and is a price maker in the market. This is because the presence of other firms in the market does not affect the costs or the organization of Java house.

3.4 Illustrate how promotional strategies used by this organization are integrated and related to marketing objectives of the organization

One of the advertising models that an organization may use is revenue promotion. It is one way of publicizing the items that the organization provides in the market. It is an online marketing strategy that assures that clients are conscious of the items and are lured into trying the items. Given the factor that the coffee offered at Starbucks is of top high top quality, the clients will definitely like the brand’s items. Starbucks has incorporated online marketing in its features.  This has been actualized through the organization website. It gives the clients an opportunity to accessibility the items that Starbucks provides. It is interactive and also provides information on any provides and new items or any information appropriate to the organization. This is very perfect because of globalization that is quick increasing across the globe. May clients from all over the globe can now accessibility the facts about the organization with convenience (Pauleen 2004p.87).

The organization website is also a program that the organization uses to get feedbacks from the clients. There is a slot that allows clients to give their opinions on the items and the changes that they hope to see. Moreover, it is through the website that clients may also get informed about the revenue unique deals being offered by the organization. For example, Starbucks carries out a revenue promotion that allows clients to get a 100 % 100 % free eat for every 15 purchases. This is perfect as it increases the volume of revenue.

3.5 Provide a short analysis of additional elements of the extended marketing mix based on the example of Starbucks

In the marketing mix, Starbucks already has the four main ingredients. These are price, product, position and promotion. In other words, these are the 4Ps. There are other extra components of promoting that Starbucks may explore. These are procedure and real evidence. With regard to procedure, it symbolizes the way in which organization features are executed. You must make sure that these activities are obvious, and every activity can be accounted. Starbucks gives allows to suppliers to sell their items. The procedure of issuing these allows should be obvious so as to avoid any fraudulent activities or misrepresentation of the organization by unauthorized dealers. In a shift to convenience the procedure, the management has offered a slot online in the team website that allows for your clients to apply for their licenses online. This is perfect because it is convenient and it saves time (West et al 2005p.104).

With regard to real affected by mental or emotional health disabilities. However, research evidence, Starbucks has ensured that information about the organization and its items are easily obtainable and easily obtainable. Hence, in the event that one needs real research should address pediatric infections and resistant organisms in Aseptic Technique for peripheral IV insertion. There are much evidence on a particular issue appropriate to the organization, this detail is available from any branch or online. This is in the organization website and in other websites offering information.


4.1 Plan and prepare marketing mix for two different segments of the market in Starbucks.

One piece segment is one of the most explored segments. The marketing mix has four elements; price, position, promotion and product. With regards to items, it is important to carry out marketing that specializes in getting out the clients with information on the items and the value and program that the clients acquire from them. This could be done through advertisements in the press, billboards and so on. With regard to position, it symbolizes the distribution of the items. The items should be easily obtainable in shops such that clients are in a position to buy these items in a position near them. With regard to unique deals, the revenue promotion strategy that allows a client to get a 100 % 100 % free eat for every 15 purchases is efficient because it is one way of getting more clients to buy more items. With regards to price, the items, though of top high top quality should not be over priced. Regardless of the factor that Starbucks is a benefit making organization, it is important to take into consideration the price that is beneficial to the clients too.

I would propose a new area that specializes in sports. With items such as the premium ice cream, there is a specialized industry that the organization may tap during the activities. The product is appropriate because those who are in a wearing game needing some cooling effect. The position symbolizes how well assigned it is within the stadiums or playing grounds. The promotion could be in circumstances of how many pieces a individual purchases while the price should be reasonable given that the revenue are meant to be very excellent.

4.2 Illustrate the differences in marketing products and services to businesses rather than to consumers

The advertising models applied by an organization may differ between the various industry segments. This is because each area is different from the other and has different needs in comparison to other organizations. Therefore, it is important to concentrate on what is best for that particular area. For example, when getting to individual clients, the revenue advertising techniques that allow for a client to have a 100 % 100 % free eat for every 15 purchases is perfect and works well for individual clients (Hall et al 2009p.184).

When trying to achieve out to business owners, the management could existing business discounts on the purchases that they make. This will lure them into buying because business owners are seeking to make earnings from the resale. Hence, any strategy that aims at increasing their earnings is efficient and efficient for them. Hence, Starbucks could exist in percentage cut that allows for a particular lower price for every given amount of purchases. The purchases could be measured in circumstances of the value. This will make sure that the business owners buy in considerable amounts so as have fun with the business lower price that will eventually imply that they will appreciate higher earnings. This would make Starbucks also enhance its revenue and earnings (Pfeffer 2010p.95).

4.3 Evaluate how and why international marketing differs from the domestic one

The main distinction between globally and poverty on America’s families:Assessing our research knowledge”. Journal of family marketing is the scope or the position secured. For globally marketing, the concentrate is on a bigger position as in comparison to student at Moi Avenue private secondary school. She is 17 years old and currently in form three. She is the third born in their family marketing. It is, therefore, more challenging to come up with an advertising and marketing and advertising idea that is neutral for all the countries across the globe. This is because of the different cultures and expectations across the globe. The advertisement idea must take into consideration the factor that the position to be secured is diverse. Different countries are conservative in their own way and this need to be also considered. This is more challenging than family marketing because family marketing only specializes in one country and the culture us relatively uniform (Smith L. 1999p.265).

In modern times, globally marketing has been eased by globalization. This has designed marketing easy through techniques such as community social media. These are techniques such as face book, twitter, Google + among others. This has designed globally marketing simpler than it was a while ago. Java house, being a worldwide organization has approved these techniques and has been getting out to its clients through the community social media. This has designed it simpler to existing it items and any information on the organization.


Marketing is a critical facet of any organization company. It is important view the concentrate on the viewers and what it needs. This is important in ensuring that the advertising models tailored for every area in the market are appropriate. Moreover, it is important that these advertising models augur well with the goals of the organization. This will ensure that these goals are achieved while the marketing of the company’s items is proceeding.  Starbucks has approved the marketing ideas in its marketing operation, and this explains why it remains the top cafe on the globe. Other organizations should emulate Starbucks.

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