Introduction:

Starbucks Corporation is an American

multinational chain of coffeehouses and roastery reserves headquartered
in Seattle, Washington. It was founded in 1971, and is currently the world's
largest coffeehouse chain.
As of November 2022, the company had 35,711 stores in 80 countries, 15,873
of which were located in the United States. Of Starbucks' U.S.-based stores,
over 8,900 are company-operated, while the remainder are licensed.
The rise of the second wave of coffee culture is generally attributed to
Starbucks, which introduced a wider variety of coffee experiences. Starbucks
serves hot and cold drinks, whole-bean coffee, micro-ground instant
coffee, espresso, caffe latte, full and loose-leaf teas,
juices, Frappuccino beverages, pastries, and snacks. Some offerings are
seasonal or specific to the locality of the store. Depending on the country, most
locations provide free Wi-Fi Internet access.
History:

20th century
1970s
Starbucks originally opened in Seattle, Washington, on March 30, 1971. By
selling high-quality coffee beans and equipments related, Starbucks became a
local coffee bean retailer for the first ten years in Seattle. It was founded by
business partners Jerry Baldwin, Zev Siegl and Gordon Bowker who first met as
students at the University of San Francisco: The trio were inspired to sell high-
quality coffee beans and equipment by coffee roasting entrepreneur Alfred
Peet. Bowker recalls that a business partner of his, Terry Heckler, thought
words beginning with the letters "st" were powerful, leading the founders to
create a list of words beginning with "st", hoping to find a brand name. They
chose "Starbo", a mining town in the Cascade Range and from there, the group
remembered "Starbuck", the name of the chief mate in the book Moby-
Dick. Bowker said, "Moby-Dick didn't have anything to do with Starbucks
directly; it was only coincidental that the sound seemed to make sense."
The first Starbucks store was located in Seattle at 2000 Western Avenue from
1971 to 1976.
They later moved the café to 1912 Pike Place. During this time, Starbucks
stores sold just coffee beans and not drinks. In its first two years of operation,
Starbucks purchased green coffee beans from Peet's Coffee & Tea.
In 1973, Alfred Peet stopped supplying Starbucks and helped train their new
Roastmaster, Jim Reynolds.
Products

Starbucks' caffe lattes

Coffee cup sizes

Name Measurement Notes

Smaller of the two original sizes

Short 8 US fl oz (237 mL)
Currently only available for hot drinks
12 US fl oz
Tall Larger of the two original sizes
(355 mL)

16 US fl oz
Grande Italian for "large"
(473 mL)

20 US fl oz
(591 mL) - Hot
Venti Italian for "twenty"
26 US fl oz
(770 mL) - Iced
 Italian for "thirty"
30 US fl oz
Trenta
(887 mL) Currently only available for certain cold drinks
including iced teas, Refreshers, and cold brew

Low calorie and sugar-free products

In January 2008, Starbucks began a "skinny" line of drinks, offering lower-
calorie and sugar-free versions of the company's offered drinks that use skim
milk, and can be sweetened by a choice of natural sweeteners (such as raw
sugar, agave syrup, or honey), artificial sweeteners (such as Sweet'N
Low, Splenda, Equal), or one of the company's sugar-free syrup flavors.[105][106]
Non-dairy milk offerings
In 1997, Starbucks first offered non-dairy milk at its U.S. stores with the
introduction of soy milk.[107]
In 2007, Starbucks stopped using milk originating from rBGH-treated cows.
[108]
The company also adopted a new dairy standard for all espresso-based
drinks, switching from whole to 2% reduced fat milk.[109]
In 2015, Starbucks began serving coconut milk.[110] In 2016, it began
serving almond milk.[111] In January 2020, oat milk became available nationally.
[112][113]
The company also offers non-dairy creamers at retail in partnership with
Nestle SA.[113]
CEO Kevin Johnson said in a 2020 interview that, milk substitutes will be a big
part of reducing carbon emissions.[114] That effort has prompted vegans,
environmentalists, people with lactose intolerance and others to urge the
company to eliminate the upcharge for drinks made with dairy-free
milk. PETA encouraged sit-ins at Starbucks locations and purchased Starbucks
stock to draw attention to what they believe is an unfair charge.[115] A Starbucks
Canada spokesperson told ET Canada that customizations such as added
flavours, non-dairy beverages or an additional shot of espresso, will incur an
additional charge.[116]
In December 2020, Starbucks announced it will offer Oatly oat milk in all US
stores starting in spring 2021.[117]
Ethos water
Ethos water, a brand of bottled water acquired by Starbucks in 2003, is sold at
locations throughout North America. Ethos bottles feature prominent labeling
stating "helping children get clean water", referring to the fact that US$0.05
from each US$1.80 bottle sold (US$0.10 per bottle in Canada) is used to fund
clean water projects in underdeveloped areas. Although sales of Ethos water
have raised over US$6.2 million for clean water efforts, the brand is not
incorporated as a charity. Critics have argued that the claim on the label
misleads consumers into thinking that Ethos is primarily a charitable
organization when it is actually a for-profit brand and only 5 cents per bottle
supports clean-water projects.[118][119]
The founders of Ethos have stated that the brand is intended to raise awareness
of third-world clean water issues and provide socially responsible consumers
with an opportunity to support the cause by choosing Ethos over other brands.
[120]
Starbucks has since redesigned the American version of the Ethos water
bottles, stating the amount of money donated per bottle in the description.[121]
Instant coffee
In March 2009, Starbucks introduced a line of instant coffee packets, called
VIA "Ready Brew".[122] It was first unveiled in New York City with subsequent
testing of the product also in Seattle, Chicago, and London. The first two VIA
flavors include Italian Roast and Colombia, which were then rolled out in
October 2009, across the U.S. and Canada with Starbucks stores promoting the
product with a blind "taste challenge" of the instant versus fresh roast, in which
many people could not tell the difference between the instant and freshly
brewed coffee. Financial analysts speculated that by introducing instant coffee,
Starbucks would devalue its own brand.[123]
Coffee makers and single-use capsules
In September 2012, Starbucks announced plans to introduce the Verismo, a
consumer-grade single-serve coffee machine that uses sealed plastic cups of
coffee grounds, and a "milk pod" for lattes.[124]
In November 2012, Starbucks Verismo became publicly available, consisting of
a line of coffee makers that brew espresso and regular chocolate from coffee
capsules, a type of pre-apportioned single-use container of ground coffee and
flavourings utilizing the K-Fee pod system.[125]
In a brief review of the 580 model, Consumer Reports described the results of a
comparative test of the Verismo 580 against two competitive brands:
Because you have to conduct a rinse cycle between each cup, the Verismo
wasn't among the most convenient of single-serve machines in our coffeemaker
tests. Other machines we've tested have more flexibility in adjusting brew-
strength—the Verismo has buttons for coffee, espresso, and latte with no
strength variation for any type. And since Starbucks has limited its coffee
selection to its own brand, there are only eight varieties so far plus a milk pod
for the latte.[excessive quote][126]
Alcoholic drinks
In 2010, Starbucks began selling alcoholic beverages at some stores in the
United States.[127] In August 2014, Starbucks opened its first store
in Williamsburg, Brooklyn which by then was among 30 locations serving beer
and wine.[128]
In 2016, three locations within Toronto, Ontario also announced they were
going to serve alcohol, including up-scale appetizers like bacon-wrapped dates
and truffle mac and cheese.[129]
Starbucks ensures that the selected locations that serve alcohol are able to
accommodate the community, as well as have the space for extra seating and
storage.[129]
Fruit juices, fruit beverages, and sodas
On November 10, 2011, Starbucks acquired juice company Evolution Fresh for
US$30 million in cash and planned to start a chain of juice bars starting in
around the middle of 2012, venturing into territory staked out by Jamba Inc. Its
first store released in San Bernardino, California and plans for a store in San
Francisco were to be launched in early 2013.[130]
In March 2012, Starbucks began selling a line of iced Starbucks Refresher
beverages that contain a green coffee extract. The beverages are fruit flavored
and contain caffeine but advertised as having no coffee flavor. Starbucks's green
coffee extraction process involves soaking the beans in water.[131]
In June 2014, Starbucks began trialing its own line of carbonated sodas, dubbed
"Fizzio". The drinks required a special machine to make.[132]
Energy drinks
In January 2022, Starbucks launched a line of canned energy drinks, called
"Baya". The drink contains caffeine from the coffee fruit.[133][134]
Seasonal cups
Each year between November–January, Starbucks releases new holiday
merchandise, including new paper cups with various festive designs.[135]
Barrel-aged coffee
In March 2017, Starbucks announced the launch of two new limited-edition
specialty drinks made from beans aged in whiskey barrels at its Seattle roastery.
[136]
Starbucks's barrel-aged coffee will be sold with a small batch of
unroasted Starbucks Reserve Sulawesi beans, which are then hand-scooped into
whiskey barrels from Washington state.[137]
Oleato coffee
In February 2023, Starbucks announced it would introduce a line of coffee
drinks made with extra virgin olive oil, including lattes, shaken espresso, and
cold brews. This would not be a limited-time offering, but rather "'one of the
biggest launches we’ve had in decades,'" according to Brady Brewer, the
company's chief marketing officer. The goal was to create a new category of
beverage. Unlike other drinks, this came about because of the habits of then-
CEO Howard Schultz, who was introduced to consuming a teaspoon of olive oil
each day by olive oil producer Tommaso Asaro, whom he met in Sicily. At the
time of the announcement, the drinks were available in Italy, with plans to
introduce them to stores in Southern California in the spring of 2023 and then
the UK, Middle East, and Japan later that year.[4][5] After its
launch, CNN reported some customers reported digestive distress after drinking
this new offering.[138]
In January 2024, the company said it would introduce these beverages
nationwide.

Starbucks card and loyalty program

In May 2008, a loyalty program was introduced for registered users of the
Starbucks Card (previously simply a gift card) offering perks such as free Wi-
Fi Internet access, no charge for soy milk and flavored syrups, and free refills
on brewed drip coffee, iced coffee, or tea.[140] Each time a customer purchases a
drink, they will earn stars if they present their rewards card or scan their card
from the mobile app.[141] Eventually, these stars accumulate to allow customers
to redeem for perks such as free drinks, free add-ins, free bakery items or
selected merchandise.[141]
In 2009, Starbucks began beta testing its mobile app for the Starbucks card, a
stored value system in which consumers access pre-paid funds to purchase
products at Starbucks.[142] Starbucks released its complete mobile platform in
January 2011.[143][144] By December 2011, the number of mobile transactions
exceeded 26 million.[145]
Electricity and Wi-Fi
In August 2002, Starbucks provided free Wi-Fi in the United Kingdom,
although in the past, a Starbucks rewards card was required.[146][147]
On July 1, 2010, Starbucks offered free Wi-Fi in all of its stores in the U.S. and
Canada.[148][149][150] In August 2010, Starbucks began offering free Wi-Fi in
Germany via BT Openzone.[151]
In October 2012, Starbucks and Duracell Powermat announced a pilot program
to install Powermat charging surfaces in the tabletops in selected Starbucks
stores in the Boston area.[152] Furthermore, Starbucks announced its support in
the Power Matters Alliance (PMA) and its membership in the PMA board,
along with Google and AT&T, in an effort to create "a real-world ecosystem of
wireless power" through a universal wireless charging standard that customers
could use to recharge smartphones

The Mission Of Starbucks

Starbucks has changed from the bean roaster of the 1970’s to the coffee inspired
drink shop of today.

The original vision of Starbucks is reflected in their initial mission statement

which was:

“Establish Starbucks as the premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles while we grow.”

After Howard Schultz bought the company from its founding members in 1987
the company has focused on creating Starbucks to be the “Third Place.” The
idea of the third place is one that exists between work and home.
It was the idea of the third place that created the new mission statement for
Starbucks which is:

“To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.”

Starbucks focuses on creating that personal connection between their customers,

their baristas and their organization.
Key Takeaway: Your mission statement is the driving force behind everything
that you do for your customers, it’s the promise you want to fulfill for them.
Use your mission statement to inspire the message you want to send your
customers. Tell them exactly what you’re going to give them.
How Starbucks Caters To Its Target Audience

As you can see from their mission statement, Starbucks is all about connecting
with their customers.

But who are their customers?

According to a research report done in April 2017, the target audience for
Starbucks is men and women in the middle to upper classes who can afford
Starbucks higher priced beverages regularly.

So how do they convince people to fork over that kind of cash, when they could
just have coffee at home?

They offer their target audience an experience when they come into their stores.

By focusing on the third place and giving their customers a place to be and
interact, they make the price of the drink worth it in the eyes of their customers.

There is something comforting about ordering a good cup of coffee and being
encouraged to sit in the shop with your laptop and work. That’s the experience
Starbucks provides.
Key Takeaway: Target a specific audience. Even if your business-to-consumer
company could sell to anyone, you dilute your message and experience when
you don’t target specifically and hold fast. Define your target audience and
deliver an experience they want, every time.

The Consistency Of Starbucks’ Branding & Experience

As an internationally recognized brand, Starbucks needs to be consistent with

their branding at all times. This spans every message they send, every piece of
branded collateral they create, and every aspect of their in-store design and
experience.
The Classic Siren Logo

Let’s start with their logo and branding design.

Over the course of 47 years, the Starbucks logo alone has gone through four
different redesigns to create the iconic symbol that graces your coffee cup
today.

According to Work Design Group, when Starbucks decided to revamp their

branding in 2011, they faced a specific challenge.

By operating in 55 different countries, they needed a brand design that would

appeal to a broad audience base. Thus the latest logo was born.

Source
Later on, the words Starbucks and Coffee were cut from the cup so the brand
could potentially expand beyond coffee products.

Unbeatable Branding Consistency

That clean, modern design philosophy extends to everything they create.

From the atmosphere in their stores, to their digital content, to their advertising,
everything looks, sounds, and feels like Starbucks.

Even the cups and tumblers you can buy in the store have a clean, modern
design to them.

Source

The result? The experience you have with Starbucks always feels consistent,
whether you’re reading a social post, waiting in line, watching a TV ad, or
interacting with their brand in any way, anywhere.

I can walk into my local Starbucks and another one an hour away and have the
same experience. I know that their sizing will still be referred in the same Italian
name sizes (Tall, Grande, Venti etc.), and the coffee I order in one store will
taste the same as the other.
Key Takeaway: Keeping a consistent brand experience for your customers is
key to bringing them back to your organization and creating brand
advocates out of your customers.

Technology & A Shift In Brand Identity

Starbucks has been a distinguished mobile pioneer for years.

After identifying the smartphone revolution early on, the company launched its
first mobile app in 2009. Then, in 2011, rolled out its beloved in-app payment
feature. But by 2014, the game changed: Starbucks created mobile order ahead,
prepay, and pickup.
Source
No queue, no wait time; people adored the effortless convenience.

However, while transactions increased, the “third place,” the very notion behind
Starbucks’ existence, began to slip.

In 2019 alone, to-go orders represented 80 percent of transactions, while mobile

orders contributed 31 percent of total orders. Cold beverages, inherently more
portable than hot, were outselling hot drinks.

Clusters of coffee drinkers in conversation were no more. The communal nature

of cafés was crumbling, and with it, Starbucks’ brand identity.

Leading into 2020, company executives hinted at plans to “reinvent” or

“reimagine” the “third place” concept. Starbucks was in an identity crisis,
wanting to change but unsure of what new path to pursue.

Turning to its mobile app, Starbucks hoped to use digital technology to augment
the feeling of connection. The key to any effective customer experience?
Personalization.

The app began collecting data about individual customer preferences and
purchasing behaviors to craft unique discount offers later. Additionally, when a
customer picks up a mobile order, the app highlights the music playing in the
store.

These seemingly small personalized touches make for a holistic brand

interaction that bridges the online and physical experience.
Source

While Starbucks continues reevaluating its brand identity, it is redefining its

third space to a digital realm.
What Does Starbucks’ Marketing Mix Look Like?

Starbucks does well incorporating the four P’s throughout their marketing mix.
Let’s dive in a bit to see how they’re doing it.

Product

Starbucks’ product has to be high quality to get their target audience to justify
buying it. You’re paying for premium coffee which means it needs to taste
better than the same iced macchiato that you could get at a McDonald’s drive-
through for less.

It’s being able to craft a high-quality product every time that keeps people
coming back. Not to mention their barista promise, that if you don’t like your
drink, they’ll fix it.

Price

Starbucks sells their coffee at a premium price, or at least 25% higher than
value brands. In 1990, only three percent of the coffee sold in the United States
was sold at premium prices. By 2000, that number rose to 40% in what
the Harvard Business Review calls, “The Starbucks Effect.”
By offering customers exceptional drinks and food, Starbucks can charge more
for them. Why? Because people are willing to pay for it.

Promotion

Starbucks uses a large variety of channels to market their product from social
media to TV spots and ads. It’s their mix of marketing media that makes their
brand recognizable, and it’s the consistent message that comes across every
time that makes them stand out.
All of that promotion isn’t cheap. However, compared to other major global
brands like Apple and Nike, Starbucks spends significantly less on their
marketing and can still make an impact.

Place

Read anything about Starbucks, and they’ll probably mention the idea of
“the third place.” Their efforts to create a space where people want to come and
hang out and relax. They do this by creating a similar environment in every
Starbucks location.

Key Takeaway: By creating a premium experience, your brand can charge a

higher price while delivering better product than your competition.

The Content Starbucks Creates Highlights Their Dedication To Consistency

So we may have mentioned this once or twice already, but consistency to their
branding and their content is what puts Starbucks’ marketing strategy over the
top.
Every piece of content they publish follows the same visual and language
guidelines that customers have come to expect from the coffee giant. Take a
look at the cohesiveness between the following examples.

Social Media

Take this Instagram post for example:

The photo is bright, modern, clean, and reflective of the Starbucks brand. The
language in the post describes their new espresso shot in the same way that they
would if they were chatting with a customer in the store, short, sweet, and to the
point.

Web Page

Now let’s say that the Instagram post caught your attention. It intrigued you to
the point where you wanted to learn more. So you grab your laptop and find the
landing page for Starbucks’ brand new blonde espresso:

On that page you’ll see consistent copy, except this time you’ll find a little bit
more about why Starbucks has brought out the blonde espresso. They also help
cater to their audience and show different recipes that their customers can order
to try the new shot.
Video

Finally, as you keep scrolling down the web page, you see a video:

In the video, you see a blended version of the 16-second spots that Starbucks
created to launch the new blonde espresso. Once again, imagery, colors, and
even language match the same style and tone as the Instagram post that we
started with.

When you enter the store, you’ll also see it branded to promote their new
coffee:

Source

So what does all of this show to a fellow marketer?

Consistent messaging, imagery, and branding is key to delivering a lasting
message to your customers.

Every piece of content that was part of this campaign was flawlessly designed
and matched perfectly. From first touch to final purchase, the experience is
consistent.

That level of consistency should be part of every piece your brand creates.
Key Takeaway: Create consistent content that shares a single message across
every piece of every campaign.

7 Ways Starbucks Executes Its Remarkable Marketing Strategy (That You

Can Copy)

So now you know a bit more about what makes Starbucks’ marketing strategy
successful. So how can you as a manager incorporate some of those strategies
into your work?

Create A Loyalty Program

Starbucks has a great way of rewarding their customers who purchase their
products. The Starbucks Rewards program offers incentives for buying products
with free in-store refills, free products (after a certain amount of money is
spent), and extra offers and discounts in the store.

Not to mention, the mobile app makes it easy for customers to pay ahead and
find a store location.

Whether it’s a mobile app program or something as simple as a punch card,

try using a loyalty program to incentivize your customers to come back to your
organization.
 Repurpose Content Across Each Of Your Social Media Channels

Social media can be a powerhouse for any marketing team if used correctly, and
Starbucks is doing just that through:
1. Repurposing content
2. Interacting with their customers

Starbucks creates a lot of content. However, they make it easier by repurposing

content across their social media channels.

By repurposing, I mean breaking down a larger piece of content into smaller

sections to reuse across multiple channels.

Now, Starbucks doesn’t copy posts word for word and paste them across every
network. Each social media channel is different and requires its message.

Take a look at the following photo that was used across three of their social
media channels.

Facebook:
Source

What Does Starbucks’ Marketing Mix Look Like?

Starbucks does well incorporating the four P’s throughout their marketing mix.
Let’s dive in a bit to see how they’re doing it.

Product

Starbucks’ product has to be high quality to get their target audience to justify
buying it. You’re paying for premium coffee which means it needs to taste
better than the same iced macchiato that you could get at a McDonald’s drive-
through for less.

It’s being able to craft a high-quality product every time that keeps people
coming back. Not to mention their barista promise, that if you don’t like your
drink, they’ll fix it.

Price

Starbucks sells their coffee at a premium price, or at least 25% higher than
value brands. In 1990, only three percent of the coffee sold in the United States
was sold at premium prices. By 2000, that number rose to 40% in what
the Harvard Business Review calls, “The Starbucks Effect.”
By offering customers exceptional drinks and food, Starbucks can charge more
for them. Why? Because people are willing to pay for it.

Promotion

Starbucks uses a large variety of channels to market their product from social
media to TV spots and ads. It’s their mix of marketing media that makes their
brand recognizable, and it’s the consistent message that comes across every
time that makes them stand out.
All of that promotion isn’t cheap. However, compared to other major global
brands like Apple and Nike, Starbucks spends significantly less on their
marketing and can still make an impact.

Place

Read anything about Starbucks, and they’ll probably mention the idea of
“the third place.” Their efforts to create a space where people want to come and
hang out and relax. They do this by creating a similar environment in every
Starbucks location.

Key Takeaway: By creating a premium experience, your brand can charge a

higher price while delivering better product than your competition.

6 Ways Starbucks Executes Its Significant Marketing Strategy:

Starbucks takes a unique and forward-thinking approach to its brand and

marketing strategy. Let’s have a look at the successful marketing strategies of
Starbucks that you too can implement.

1. Usage of Social Media

Starbucks has successfully established a social media culture that any marketing
team would be proud of. Every brand’s lifeblood is defined by its content.
Starbucks’ content demonstrates the company’s commitment to consistency and
innovation. The company’s numerous social media accounts are known for their
unique branding, interactive posts, and visually appealing content.

2. Loyalty Programs

Starbucks has a fantastic way of rewarding customers who buy their products.
Customers are given “stars” as part of the Starbucks Rewards program.
Customers who earn stars receive free coffee and products. Aside from a free
treat on their birthday, there are also bonus rewards such as double star days and
access to exclusive games and offers.

Customers can check the balance of their gift cards, points, and mobile orders
via phone, website, in-store, or on the Starbucks user-friendly app. Real-time
communication across multiple channels eliminates the possibility of a
communication lapse. Customers find this omnichannel capability appealing, as
it encourages engagement on multiple levels.

3. Strategic Alliances

Starbucks has collaborated with different organizations to build and expand its
business in various nations. Starbucks collaborated with Barnes & Noble,
Nestlé, PepsiCo, iTunes, and other companies. Tata Starbucks, which first
opened its doors in India in 2012, is a joint venture between Starbucks and
India’s Tata Consumer Products. Strategic alliances are the most successful
marketing strategies for Starbucks.

Starbucks reaps numerous economic benefits from these strategic

collaborations. It aids the organization in increasing client awareness of various
products and expanding its product portfolio. This technique also makes it
easier to serve the company’s products to diverse market segments and boost
customer satisfaction. As a result, the company’s retail sales and profitability
increased.

4. In-store Marketing

Starbucks devotes a significant amount of time and resources to in-store

marketing. Starbucks stores are carefully designed to make people stay longer,
purchase more, and visit them again and again. Everything in the store, from the
lighting to the ordering counters, serves a precise purpose. In-store marketing
strategies are nevertheless the successful marketing strategies of Starbucks.

In-store marketing promotes new products and loyalty program benefits to

customers, raising awareness and increasing demand among current customers.
This contributes to the brand’s customer retention goals. The store lighting also
serves to draw customers’ attention to Starbucks merchandise, encouraging
impulse purchases.

5. Mobile App

Starbucks has long recognized that the future of retail is inextricably linked to
technology. It first released a mobile app in 2009. In 2011, it began offering in-
app payments. Starbucks introduced mobile pre-ordering and payment in 2014.
Customers who use this service can avoid waiting in line (most of the time) by
placing their favorite order from the most convenient place, whether at home or
on their way to work.

Starbucks’ loyalty program is also linked to its mobile app. With a single quick
scan of the app, you can pay and earn rewards toward savings on Starbucks
purchases. The attraction of earning prizes fast and effortlessly motivates users
to utilize the app frequently. The Mobile app is one of the most successful
marketing strategies of Starbucks.
6. Social Responsibility

Starbucks has long sought to build positive connections and impact people and
communities throughout the world as part of its mission to inspire and nourish
the human spirit. The three pillars of Starbucks’ social responsibility strategy
are community, ethical sourcing, and the environment.

Starbucks pledged to report transparently and regularly on their efforts to

improve economic conditions for coffee farmers, reduce their environmental
footprint, make positive contributions to communities, and foster a culture of
inclusion, belonging, and opportunity for all Starbucks partners. Employees at
Starbucks are referred to as ‘partners.’

What is a Marketing Mix? What are the 4Ps of Marketing?

Product

1. Coffee: Starbucks offers a variety of coffee blends, such as espresso, drip-

brewed, and cold brew. They have a range of coffee beverages like lattes,
cappuccinos, macchiatos, Americanos, and more. Starbucks also sells
coffee beans and ground coffee for customers who prefer brewing their
coffee at home.
2. Non-coffee beverages: In addition to coffee, Starbucks serves an assortment
of non-coffee beverages, including teas, hot chocolate, smoothies, and a
selection of cold drinks like iced teas, lemonades, and refreshers.
3. Food items: Starbucks offers a range of food items, such as pastries,
sandwiches, salads, breakfast items, and snacks, to complement its
beverages. The menu varies by location and often includes both sweet and
savory options.
4. Seasonal and limited-time offerings: Starbucks regularly introduces
seasonal beverages and food items, like the famous Pumpkin Spice Latte
during the fall or the Peppermint Mocha during the holiday season. These
 limited-time offerings help create a sense of excitement and novelty among
customers.
5. Merchandise: Starbucks sells branded merchandise, such as mugs,
tumblers, coffee makers, and other accessories, both in-store and online.
This allows customers to purchase items that represent their affinity for the
brand.
6. Loyalty program and mobile app: Starbucks’ loyalty program, Starbucks
Rewards, and the Starbucks mobile app are also part of the company’s
product offerings. These provide customers with a more personalized and
convenient experience, including mobile ordering, payment options, and
the ability to earn rewards for their purchases.

Price

1. Premium pricing: Starbucks sets its prices higher than many competitors,
reflecting the premium quality of its products, ingredients, and overall
customer experience. This premium pricing strategy contributes to the
brand’s image as a high-quality, sophisticated coffee provider and
associated products.
2. Value perception: Despite higher prices, Starbucks creates a perception of
value by offering exceptional customer service, comfortable and inviting
store environments, and a diverse product range. This helps justify the
premium pricing and enhances the overall customer experience. Starbucks
prices products on value, not cost. Why?
3. Customization: Starbucks allows customers to customize their beverages,
which enables them to create a personalized experience that caters to their
taste preferences. While customization options may affect the product’s
final price, it also provides a sense of value to the customers, as they can
tailor their drinks to their liking.
4. Geographic pricing variations: Starbucks adjusts its pricing based on local
market conditions, cost structures, and competition. This means that prices
for the same product may differ across different locations, countries, or
regions.
5. Loyalty program and promotions: Starbucks offers its Starbucks Rewards
loyalty program, which provides members exclusive benefits, such as free
drinks or food items, birthday rewards, and personalized offers. These
incentives help build customer loyalty and enhance the perception of value,
even with premium pricing.
6. Price tiering: Starbucks has introduced different price tiers for some of its
products, providing more affordable options alongside its premium
offerings. This strategy allows the company to cater to a broader range of
customers and remain competitive in various market segments.t
Starbucks SWOT Analysis
Place

1. Store locations: Starbucks has a vast network of stores across the globe,
with thousands of locations in different countries. The company
strategically selects locations for its stores, often placing them in high-
traffic areas such as city centers, shopping malls, office buildings, and
transportation hubs. This approach ensures maximum visibility and
accessibility for customers.
2. Store layout and design: Starbucks invests in creating a consistent and
appealing store design to provide customers with a comfortable and
inviting atmosphere. The store layout typically includes ample seating
areas, warm lighting, and elements that reflect the brand’s identity. This
consistency in design helps establish a recognizable brand experience and
ambiance for customers, regardless of the specific location.
3. Drive-thru locations: In response to customer demand and changing
preferences, Starbucks has introduced drive-thru locations, allowing
customers to purchase their favorite beverages and food items without
leaving their vehicles. This enhances convenience and caters to customers
in a hurry or who prefer not to enter a physical store.
4. Licensed stores and partnerships: Starbucks has partnered with other
businesses, such as airports, supermarkets, and hotels, to expand its
presence and make its products available to a broader customer base. These
partnerships often involve licensed stores operated by the partnering
business but offer Starbucks products and adhere to the company’s quality
standards.
5. E-commerce and mobile app: Starbucks also leverages digital channels to
enhance customer convenience. The Starbucks mobile app allows
customers to place orders ahead of time, pay for their purchases, and access
the Starbucks Rewards loyalty program. Additionally, Starbucks sells
merchandise, coffee beans, and other products through its online store.
6. Wholesale distribution: Starbucks sells its products, such as coffee beans,
bottled beverages, and single-serve coffee pods, through various retail
channels, including grocery stores and online retailers. This strategy helps
the company reach a broader audience and increase brand exposure.

Promotion

1. Advertising: Starbucks uses various advertising channels, such as print,

digital, social media, and out-of-home advertising, to reach its target
audience. The company creates visually appealing and engaging content
that showcases its products and highlights the brand’s values and
commitment to quality. How does Starbucks’ unique promotion strategy
aid in its massive success?
 2. Social media: Starbucks maintains a strong presence on social media
platforms like Facebook, Instagram, Twitter, and Pinterest, sharing updates,
promotions, and engaging content with its followers. The company uses
social media to interact with customers, showcase new products, and create
a community around the brand.
3. Public relations: Starbucks leverages public relations to generate positive
media coverage and maintain a favorable image in the public’s eye. The
company often shares news about its corporate social responsibility
initiatives, sustainability efforts, and new product launches to create buzz
and reinforce its reputation as an industry leader.
4. Seasonal and limited-time promotions: Starbucks introduces limited-time
offerings and seasonal products, such as the Pumpkin Spice Latte and
holiday-themed drinks, to create excitement and encourage customers to
visit stores. These promotions often generate significant attention and help
the company capitalize on trends and consumer preferences.
5. In-store promotions: Starbucks utilizes in-store promotional materials,
such as menu boards, signage, and point-of-sale displays, to inform
customers about new products, discounts, and special offers. These
promotions help drive sales and create an appealing in-store experience.
6. Loyalty program: Starbucks Rewards, the company’s loyalty program, is a
promotional tool to incentivize repeat purchases and enhance customer
loyalty. Members can earn rewards, such as free drinks or food items, and
receive personalized offers and promotions.
7. Partnerships and collaborations: Starbucks engages in partnerships and
collaborations with other brands, artists, and celebrities to create unique,
limited-edition products and co-branded experiences. These collaborations
generate buzz, attract new customers, and strengthen the brand’s image.

References

https://coschedule.com/marketing-strategy/marketing-strategy-examples/
starbucks-marketing-strategy
https://iimskills.com/marketing-strategy-of-starbucks/
https://www.simplilearn.com/tutorials/marketing-case-studies-tutorial/
starbucks-marketing-strategy

https://www.marketingstrategy.com/marketing-strategy-studies/starbucks-
marketing-strategy-its-genius/

https://buildd.co/marketing/starbucks-marketing-strategy

https://stories.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-
term-growth-strategy-for-a-limitless-future/

conclusion

In conclusion, Starbucks is an effective model of a well-managed company that

understands its customers and needs. The company has gradually grown from a
local coffee shop to an international brand that is dedicated to offering luxury
and convenience to its customers. Starbucks has centralized itself as a
household brand that makes the drinking of coffee desirable, increasing the
consumption of the beverage. The company also makes customers feel part of
the broader efforts of the corporation to meet their needs. Starbucks was
affected by the pandemic alongside other businesses due to the restriction on
movement imposed by various governments to protect the health of their
citizens. The company experienced disruptions to its business structure,
including decreased net profits and increased laying off of workers. The efforts
of the company to expand into newer markets were also altered due to a
shortage of funds and human capital logistics. Efforts towards restoration have
included marketing campaigns through social media, drive-thru stations, the
embrace of cashless payment, increased deliveries, and reward systems.