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Starbucks Prices and Campaign Strategies

Starbucks has always been the venue you might receive the best coffees. However, in the 1970s, one possessed to travel all the way to their only store in Seattle Historic Pike Place Market. The name Starbucks increased from the classic American book, Herman Melville's Moby Dick. Thanks to Howard Schultz, Starbucks eventually broadened out of Seattle in the 1990s. First to america and eventually out to the rest of the world. Now, Starbucks has more than 9000 locations in over 30 countries. Not just that, Starbucks now acts espresso, lattes, Frappucino and many other interesting beverages.

MARKET TARGETING

Starbucks primarily targeted young school students, interpersonal classes, and neighborhoods that might be ready to the thought of buying a $6 caffeine and hanging out with friends at their stores.

With rapid progress and enlargement, Starbucks marketplace expanded rapidly to add every individual of every age. In the international countries, they commenced targeting small towns, rural communities, ethnic neighborhoods, highway snooze prevents, etc.

In Singapore, Starbucks started their goal from the 'office' employees who would desire a good coffee while in a hurrying to work. Pursuing that, nearly every individual of each get older became their goal. However, in Singapore, we still can see that only those very sociable, well-aware of good espresso and young tend to 'hang-out' at Starbucks. We almost never see the seniors or a family group sitting down in Starbucks for caffeine.

Starbucks' online marketing strategy involved positioning its outlets as a place where consumers can spend some time other than their home or work. Each of its stores was made as comfortable and relaxing as possible. Not just that, they tried out to make it accessible and easily available where most people go to relax. For example, stores, where most friends choose to hang-out - especially the females. And, girls as we all know, are very sophisticated people who like everything good and of top-class qualityThe caffeine giant achieved the comforts through comfortable furniture and calming music. Within the last several years, Starbucks also included offerings such as cordless internet, handicapped access, complimentary literature, and common areas for collaboration. While Starbucks stores sit as locations where customers can spend time in a comfortable setting, their products are positioned at the higher end in regards to prices and quality.

PRICING STRATEGIES

Starbucks products are costed higher than almost every other brand coffees because of the image its brand carries. However, they recognized how to put a higher price yet get their targeted market to buy their coffees without thinking twice. Starbucks commenced to offer $1 bottomless 8 oz. cup of coffee, with endless refills that cost approximately 50 cents significantly less than any other Starbucks products. They also implemented "value strategies" that emphasized more on inexpensive products rather than being perceived as unaffordable to price-skittish consumers. For instance, the intro of the $3. 95 "breakfast pairings, " including popular breakfast time items matched with a caffeine, and features $2 brewed coffees instead of the more costly specialty beverages.

When quality becomes the desire of the prospective market, then costing is no longer much of an issue. That is somewhat the situation for Starbucks. They may have created such an 'experience' - the 'Starbucks experience' - that almost all of their customers get back to them because of their coffees because of the ambience, comfort and their great caffeine, even if they could easily get an almost similar caffeine for half the purchase price at some other coffee outlet.

PROMOTIONAL STRATEGIES

Starbucks has put in place numerous promotions to reach its targeted market. Among the deals that Starbucks has used is the Starbucks Cards. Starbucks Card is a method that provides customers the opportunity to promote Starbucks's products by using a referral system. When a customer acquisitions a gift cards, it not only shows brand devotion, but it addittionally supplies the company with free advertising, and brings in new customers. Starbucks also provides a card for commercial sales, which are used for extrinsic rewards showing employee gratitude for a job done well, or a gift idea to a client.

Another promotional implementation is that they deliver coffees to offices or work places without any coffee size restrictions. There are very few or exceptional coffee stores that are prepared to deliver without positioning any conditions or restrictions.

Thirdly, they charm to a diverse customer foundation by offering international teas and coffees to support those customers that are looking a taste from your home or for local people that enjoy tea.

Lastly, using aid from accomplishing a 'good deed' as a means for campaign - Starbucks plays a part in several non-profit organizations as a way to improve brand image and consciousness in local areas.

DISTRIBUTIONAL CHANNELS

Starbucks shaped some business alliances with certain organizations to help expand promote its brand. One of these alliances produced was Barnes & Noble Bookstores in the year 1993. Both companies could actually promote their brand and at exactly the same time improve their image. Starbucks also produced alliances with United Airlines in 1996 and now, their coffees are dished up on the United Airlines. Not only that, Starbucks has made alliances with many other organizations by which, it has improved upon it's branding, sales and image.

RECOMMENDATIONS FOR FUTURE DEVELOPMENTS

  1. Starbucks should continue to carry their rare and unique variety of food and drink products. New and different combos should be created frequently and the merchandise that deliver the best results should be retained and added to the long lasting menu. The type of personal equipment products by Starbucks can be expanded and offered at the retail level or on the company's site. Starbucks could introduce a type of premium fruit drinks.
  2. Starbucks could re-design its outlets at the more popular places to be much larger and cozy at the same time. They could change how big is the store that's most popular to carry at least twin the number of customers their normal shops do. These new designs should incorporate a comfortable feel for the client and encourage large gatherings. Inside the targeted areas, the new store can accommodate a tiny conference as high as 15 people. Finally, what they should achieve is the capability to host conferences, book signings plus much more.
  3. Thirdly, customers can be rewarded with free cups of espresso for accumulating a degree of points on the Starbucks credit card and coupons could be released.
  4. Another recommendation is the fact television commercials be shown creating a distinct difference between Starbucks and their closest competition. The point must be powered that premium coffee shipped from surrounding the world can't be substituted by others.
  5. Starbucks could also sponsor situations that are based on the hobbies of customers who purchase high quality products. This would include sponsoring professional golfing situations, college games, the arts and business conventions. College students, young professional people and those with an increase of disposable income should be targeted.

CONCLUSION

In summary, Starbucks has made quite a benchmark in its caffeine business through thoughtful marketing strategies. Despite not being very in advance in conditions of its service, they still are a brandname that is not comparable with any coffee brand. It is because, the atmosphere and atmosphere that one finds in a Starbucks wall socket is rarely found in any other coffee outlet. Not only that, their comprehensive and unique espresso is another very attractive online marketing strategy.

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