Posted at 11.24.2018
Starbucks began as a tiny coffee shop in 1971. The founders contains Gerald Baldwin, Gordon Bowker and Ziev Siegl who exchanged their ideas and launched their first store at the Pike Place Market in Seattle. In the early 1980s Howard Schultz joined Starbucks and has later felt the necessity that Starbucks needed to market themselves. He wanted to make a brand image that could attract customers and help those to differentiate their caffeine store from other opponents. Schultz frequented Italy and was 'impressed with their level of popularity and culture. ' He thought it might be smart to bring the espresso pubs, lattes and mochas to Seattle. Throughout the years Schultz has managed to differentiate Starbucks, creating a very strong brand image in the most unique way in American's intellects, getting its competitive edge through the comforting physical environment that they modify encouraging the lounging experience. Schultz successfully embedded the fact that their outlets are actually a 'third place' for folks (which came among home and work). Repeating this, Starbucks now has efficiently changed out of Seattle and go global having more than 6000 outlet stores about the world (in approx. 30 countries).
Over the past year or two there's been an increase and globalisation. Companies found it much easier and better to move internationally and operate in new markets. All of this has made it possible because of the growth in technology within the last couple of years. Schultz has tried to extract the maximum amount of use as it can from the advantages of technology. Starbucks was able to use technology to help them using their marketing strategies, research and development, production etc. With regards to their products espresso outlets where constantly redesigned as new ways of making drinks where employed. Installing 'verismos' machines help improve the quality of these espressos and keep maintaining it when serving it to its customers.
If our companions can do their job well and their technology not limiting them then in the long run you have a happy customer. " -Sang Choe (In-store Technology).
Starbucks used technology to boost their process and therefore gain their competitive edge at reducing the time considered for customers to put their order and get their drink (reduce the variety of dissatisfied customers). The internet has managed to get easier for Starbucks to market its brand as well as utilize it 'as a search tool' when it comes to employing people in international marketplaces.
Other small supplementary services Starbucks uses technology to differentiate and add value because of their customers has been the first ever to introduce Wi-Fi with their coffee outlets, were regarded as the first cyber cafes. Starbucks also has its network which offers 'music downloads superior reports and entertainment. ' Their iPhone program to produce your own beverage has hit more than 2million downloads as soon as it was presented. This all has helped them stick out and be not the same as the huge competition of caffeine shops which exist not only in the us but in other international marketplaces.
Every company that blueprints to enter into international markets employs the Marketing Information System. The above mentioned flow chart shows us how any typical internationally accepted company moves about in creating a online marketing strategy when moving to new market segments.
A Market Information System is a 'place of methods and practices used in analyzing and handling marketing information, collected continuously from resources outside and inside of a firm'.
Starbucks first will spend a lot of time in gathering information about a market it could want to start to. They take into consideration the channels, rivals that exist, the political, legal and monetary conditions that are faced for the reason that country. Here they try to discover any possible reason as to why it may or might not exactly be a good idea to invest in launching an outlet. Some instances that fall under this research was the Starbucks Logo issue that happened in Saudi Arabia. The logo design was considered 'unacceptable' to Saudi Arabia's expectations. Starbucks did manage to edit their custom logo with time to make it appropriate to marketplaces which had similar issues over their prior old custom logo.
Starbucks also confronted another issue when it was included with opening coffee shops in Israel. Starbucks being an 'iconic American company' made them realize that 'they were a focus on in Israel. ' The business found that it would not be considered a good notion because they feared that a person of their stores would be bombed and concluded as 'a risk' to open up in Starbucks.
After concentrating on the different dimensions of the potential marketing environment Starbucks uses various methods to pool in information from Internal Record System (extra history data) and Marketing Research system (main data) which would help them analyse and interpret the accumulated data in the form of Marketing Brains Systems (making sense out of statistics etc) and Marketing Models. Collectively Starbucks can finalize in making their marketing decisions (three types: strategic, control and functional).
http://ie. starbucks. com/en-ie/_About+Starbucks/Record+of+Starbucks. htm
http://florence20. typepad. com/renaissance/2005/07/technology_inno_1. html
http://www. businessdictionary. com/definition/marketing-information-system. html
http://www. freerepublic. com/focus/news/669098/posts
http://www. globalexchange. org/campaigns/fairtrade/coffee/662. html