Ch. 10: Product Concepts

     Products at Starbucks have been advertised in such a way that customers that buy Starbucks will not even dare to compare its products to any other offers like Dunkin Donuts or McDonalds. Starbucks has changed he coffee concept at it used to be and is integrating a much younger target market into their marketing strategies. From providing coffee from a free trade agreements with various countries in South America and Africa as well as in India. This Consumer product can be seen by their consumer as a specialty product even though it’s not because to loyal Starbucks consumers there is nothing compared to what they get or the quality that they perceive they are receiving from Starbucks products. Marketers at Starbucks have done a great job with this because it’s a luxury that even though through hard time people are not willing to stop drinking or eating Starbucks products.

     The superiority perceived from Starbucks products is off an action that you can’t get anything that competes to them anywhere but a Starbucks store. The company has created a large selection of products not just coffee. They have extended their product line depth from adding syrups to the coffees to different spices, Candy like peppermint, and milk. They provide smoothies, Frappuccinos, bottled water, organic juices, and soft drinks, to carton milk and animal crackers for kids as well as a long line of desserts. At some locations Starbucks offers food that can be eaten at the store such as sandwiches soups, pizza and many more products. So Starbucks has not just stuck to coffee but they have expanded and are offering everything from making your own coffee at home with coffee machines, grinder, and coffee mugs, thermos, to keep your coffee hot to reusable cups for cold drinks. They have meals for breakfast lunch and dinner which are all “made with high-quality, simple ingredients. So all the goodness you taste is real food, simply delicious.”  

     Starbucks has just modified some of their products instead of introducing new ones such as the caramel Frappuccinos now they make salted caramel Frappuccinos as well as their hot chocolate they now make salted hot chocolate which according to the baristas are supposed to bring out their flavors more. The Starbucks brand has been brought to the point where Starbucks advertising team have decided to switch there logo from just having the image of the Greek mermaid instead of having the image the word “Starbucks”. People are able to recognize the brand name so well they don’t even need the words to know what store it is.

Ch. 18: Sales Promotion and Personal Selling

     Starbucks may be pricey but they don't have the need to always be on an aggressive promotional campaign. They have amped up their campaigns but not on a level to which you will feel like they are promoting their products everywhere. They give coupons or 50% off here and there throughout the year but most people when talked about Starbucks know what price to expect and that most likely you can’t go online for a coupon.

     Starbucks offers some promotion as was their “happy hour” a few months back which offered frappuccinos half off and custom made to your liking. The purpose of this promotion is to get people in the store during their less traffic hours from 3-5pm and it showed to be a great way to get customers in. The also ran a nationwide “Free pastry day” promotion which offered free pastry with the purchase of a coffee drink from when the store opened until 10:30 a.m. or until all the pastries ran out. Another offer they had was the purchase a drink in the morning and bring in your receipt after 2pm for $2 off any cold drinks. But most of Starbucks promotion is done in store displays and has greatly paid off especially during the holidays when they may add a few drinks to their menu and promote that drink even more like the “pumpkin spice latte” now during this fall season. They have spread the word about their products now through TV commercials , social networks like Facebook, twitter and even text. One of their new selling features is partnering up with apple and providing a list of free downloads at any Starbucks store nation wide with free wifi. there is also an app for that customers with a Starbucks card will be able to pay from their smartphone instead of using cash, credit or debit cards.

     "One of the things we're consistently hearing in this day and age (is), even though budgets are tight, they still don't want to give up life's little luxuries," said Brad Stevens, vice president of customer relationship management at Starbucks. "They consider Starbucks one of those luxuries." Plus with barristas like the ones at Starbucks are in itself a way of promoting Starbucks. They treat individuals like human beings from getting their names on a paper cup even though sometimes not spelled correctly like in my case spelling my name “erica” but still they make you feel like your going into more than just a store its a caffe were they know what you normally drink and recognize you when you walk in if your a loyal customer. Having such a welcoming environment and good personal selling tactics is what makes Starbucks have such loyal customers.

     Starbucks does not only market for a profit for themselves but also for the help of others. They are very into giving back to the community as is their new campaign "beginning October 4, purchase a specially-marked bag of Gold Coast Blend® – Morning Joe Edition that features a $5 donation sticker to DonorsChoose.org. You will be able to direct the $5 to a public school project that inspires you."

Ch. 15: Retailing

     As I entered a Starbucks store its like walking into a entirely different atmosphere. Im very used to it but for a new customer its an experience very different from your regular spot to get a cup of coffee. Instead of a walk in walk out place Starbucks store is more of a walk in sit down and feel the Starbucks experience. They have done a great job in creating such an atmosphere and luring in new customers while preserving loyal customers.Starbucks is the place to go when on a college break you can stay for as long as you want by just purchasing one product but mostly a beverage not to much a pastry.       

     But there has recently been a change to this. more and more often i have noticed that as soon as you finish your drink someone passes around asking if they should throw out you cup or whatever garbage you may have, in a a very polite way but giving you the hint that "since your done you should go". This was never the case before. and now im noticing this more and more specially to those customers who have children or using a computer. 

     They want customers to just go into the store feel the mellow environment sort of a like a an italian caffe and try a different beverage with there imported coffees and teas but to make sure that you return into their "inviting"               

So yes they do provide free wifi, comfortable and inviting couches, plugs to charge your laptop or other devices but then again have a no loitering sign have started to pop up in many of there stores except for the stores i recently sit in there more in stores with these comfortable couches instead of just the chairs and table. So even though as a ironic as there statements may be "We aim to offer our customers a ‘third place,’ a place between work and home to relax, meet friends and just be themselves over a great cup of coffee.” but only until you finish your drink.

http://www.starbucks.com/about-us/company-information

Ch. 17: Advertising and Public Relations

     The two most effective ways that Starbucks uses marketing is by word of mouth which is more trustworthy than commercials because its not a company representative that is trying to say everything nice about Starbucks but a person you may trust and know  which is why third party endorsements have definitely worked for Starbucks. 

Shrek 2

     One of my biggest surprise was seeing them advertise for kids because even though their target market are adults from 25-56 years old somehow Starbucks marketing has been advertised in movies for kids such as Shrek 2. Even though they don't 'supposedly' advertise to kids somehow their store logo got into a children's movie and knowing kids and how curious they can be most likely their going to ask their parents to take them to Starbucks since Shrek went there as well.

     Marketing Specialist at Starbucks has made their logo branded which makes it known by everyone without it even having to say 'Starbucks'. The majority of the United States population recognizes the logo and this is a great marketing strategy since consumers now have raised the companies brand because is very well known and customers have the perception of a higher quality products against Starbucks competitors makes it a great form of branding because consumers think they are buying better value of the products sold at Starbucks. Which all lead to new customers and with their ability to expand so fast higher profit which leads to higher stocks profit since people recognize that Starbucks is a well branded company.

Miley Cyrus

     Starbucks focused a lot in spreading out their companies name by word of mouth just recently they have made commercial adds but what they mostly work for is to be recommended to their product by someone consumers know. Or they can take an opinion leaders and make advertising with them as Starbucks has taken a lot of advantage from in being in many box office hits such as which pictures of them are showed below they go from You've Got Mail, Miss Congeniality, Austin Powers: The Spy who Shagged me, The Devil Wears Prada, and many more. As well as  on TV shows such as "Sex and the City".  Seeing your favorite artist or actress sipping on a cup of Starbucks beverage may give you the motive to go and get some yourself.

Kim Kardashian

     They also have the advantage that many celebrities always enjoy one Starbucks and have free advertising form him in an article I read on Miley Cyrus while being in New York "Miley expressed her fondness of Starbucks coffee, told over 135,000 of her Twitter friends that she was out wandering around at night looking for a store and after finding it, had her picture taken holding the coffee and posted it online. Instant 7 figures worth of promo and publicity for Starbucks, for free. Celebrities seem to enjoy and Starbucks can to be any happier since celebrities as young as Suri Cruise, Katie Holmes and Tom Cruise Daughter to Disney Stars such as Miley Cyrus, Selena Gomez and Vanessa Hudgens to world wide known singers like Madona and Reality TV stars like Kim Kardashian and many more that can be seen in the link provided. Celebs that Drink Starbucks 

Maid of Honor

        




      

Selena Gomez

Vanessa Hudgens

The Devil Wears Prada

Miss Congeniality 

Ch. 6: Consumer Decision Making

Knowing a consumers wants and need is a key point in a marketers way of business. Marketers have to learn as much as they can about their target market which are adults age 25-54 mostly with children, including their environment, who they would rely on for opinions and their culture. Starbucks has fulfilled any marketers dream to be able to capture the attention of their target market and make sure to keep them loyal to the Starbucks brand by making them the most important aspect in the Starbucks company. Consumers behavior has to be fully analyzed as to what they need and how fast can workers at Starbucks prepare it for them especially in major cities that have a much larger population. The importance of the consumers decision making process has to be thoughtfully recognized and be able to fulfill the wants of the customers by learning what affects their decisions in purchasing a product.

         Starbucks has to stimulate customers to want their verity of products even thought they did not enter in a new market they entered in a market that had already been out. They took an old idea and provided it in the United States first and modernized it as they became more profitable and well known. By providing a refreshing make it your self frappucchino blended beverage on a hot August day and a hot vanilla latte to warm you up on a cold and windy day in December. The “Starbucks experience” then is what keeps customer staying loyal to the brand.People have the experience of sort of having a say in what goes into their smoothie or coffee drink and having it their way going consumers more attention and providing them with what they want from what kind of milk to a sweetened, lightly sweetened or unsweetened drink. They also offer a great environment to drink or eat a Starbucks product and also be able to do some work, homework, read a book or meet up with some friends which also includes free wifi.

        The consumers post-purchase evaluation process is the most important five steps taken by consumers to purchase a product at Starbucks since all the research and the variation of products they offer can all be done in a store. Also Starbucks gives a good motive for customers to return because if for any reason you are unsatisfied with your drink you are offered another drink and even given a coupon for a free drink. The customer service in Starbucks is outstanding at making sure that the customer receives what they ask for in a personal way which makes a customer feel like they are the only person Starbucks is attending and cares for. Howard Schultz the Starbucks Chairman and Chief Global Strategist told Fortune Magazine “We aren’t in the coffee business, serving people. We are in the people business, serving coffee”. They make sure that customers know they are not “only out for their money” but also to satisfy them.

Apart from personal evaluation of a Starbucks store consumers are able to get opinions from friends, family or coworkers that can recommend the to Starbucks this group is called the routine primary membership group which consumers most regularly get in contact with. Instead of a secondary membership group which involves a bigger verity of recommendations and opinions as it come to acquaintances that are not all that close such as clubs or professional groups. Starbucks focused a lot in spreading out their companies name by word of mouth just recently they have made commercial adds but what they mostly work for is to be recommended to their product by someone consumers know. Or they can take an opinion leaders and make advertising with them as Starbucks has taken a lot of advantage from in being in big movies such as The Devil Wears Prada, 13 Going on 30, Miss Congeniality, Sex and The City, License to Wed, Maid of Honor and many more top box office hits. Seeing your favorite artist or actress sipping on a cup of Starbucks beverage may give you the motive to go and get some yourself.

        

      This chapter covered many important key terms that marketers at my company have been able to equipped themselves with the information they need to successfully capture new customer and have loyal customers to the Starbucks brand name.