MARKETING

Marketing Techniques of Starbucks



Marketing Techniques of Starbucks

Introduction

The Starbucks Corporation was founded in 1972. The company was formed in Seattle, Washington by Gordon Bowker, Jerry Baldwin and Zev Siegel. Initially, Star Bucks Corporation was only a coffee marketer. Afterwards, the company expanded its bean sales to restaurants and coffee bars. In 2007, the company had 115,000 employees. Starbucks provides high-quality finest coffees along with an unforgettable customer experience. The company offers coffees at competitive prices.

Discussion

Starbucks and Its Competitors

When Starbucks was busy in the design and launch of different products and the extension of its stores, its competitors were playing well in the market of the coffee. In 2006 McDonald's introduced a new coffee. McDonalds promoted this coffee as premium roasted. The consumer reports revealed that this coffee introduced by the McDonald's was better than the coffee of Starbucks. McDonald's development of the product was not only restricted to this, but they also introduced a new product line with the name of McCafe. Moreover, McDonald's and Dunkin' Donuts also took measures to reduce the operational cost by using an automated process. This automated procedure of making coffee was much more efficient and cost effective than the process used by the Starbucks. Another important factor is price. The prices of the coffees of McDonald's and of Dunkin' Donuts were comparatively lower than the prices of the coffee of the Starbucks (James, 2006).

Target Market of Starbucks

During the initial phases of development for Starbucks, the target market of the company was identified as affluent, well-educated, white-collar patrons. With the passage of time, the marketing research team of the company identified and recognized the new target market. In included young people who belonged to a lower income bracket than established customers. Nevertheless, the original target market of the company has not disappeared but it has been expanded. This expansion is in terms of the demographics of company's stores. For instance, the store at Southern California started to cater to a number of Hispanic customers (Moon et al, 2003).

Market Needs of Starbucks

The aim of Starbucks is to create a unique experience for its customers. The company wants to provide its customers with an experience that suits their on-the-go schedule. Starbucks provides its customers with a place where they can sit and relax (Gia, 2009).According to the senior vice president of administration, people come at Starbucks for coffee, but it is ambience that makes them stay.

The ...