Ch. 7: Business Marketing

  

     At Starbucks you know that you would love to find it more than just at a Starbucks location but maybe at work. That is why Starbucks has been working for a very long time with being able to provide not just “Starbucks in our stores and at home – so why not at work?”. There most powerful way of doing business marketing is by partnering up with other businesses. They have strategic alliances with Barnes and Nobles, itunes as well as with Target. Both Starbucks and these alliance benefit since people will buy from both if they are a Starbucks customer. These alliance have a strong relationship commitment since they have many years working together and seemed to have highly benefited Starbucks.

While doing some research I found nothing on there alliance with barnes and noble or target but they do show there much greener and less greedy alliance like the following...

Our current Partner Networks include:

1. Starbucks Access Alliance provides a forum for partners with disabilities and allies to engage in the work of diversity, specifically accessibility, for mutual benefits to the partners and the business.
2. Starbucks Black Partner Network strengthens community connections and aids professional development for partners of African descent.
3. Starbucks Emerging Workforce Network provides the organization with flexible workplace solutions that will enable our partners to drive business results while fulfilling their personal commitments. Flexible solutions are one element in the body of work often referred to as “work/life effectiveness.”
4. Starbucks Hora del Café is dedicated to creating an environment where partners can develop professionally, build cultural awareness, and celebrate Hispanic culture while affecting the community in a positive way.
5. Starbucks Pride Alliance provides an equitable, dynamic and supportive environment for lesbian, gay, bisexual and transgender(LGBT) partners.
6. Starbucks Armed Forces Support Network supports veterans, current service members and their families
7. Starbucks Women's Development Network enhances the personal, professional and leadership opportunities for its members through education, community involvement and relationship building.

Starbucks has also been listed World’s Most Ethical Companies For the fifth year in a row, ethisphere Magazine has named Starbucks.

     Starbucks also provides coffee machines thats can be purchased for business instead of employers having a break and going out of the office they can have Starbucks right in the office and get back to work quicker. These accessory equipments are great for the office especially during rainy or cold days. All of these people have become in one way or another part of the buying center which has produced profit to Starbucks because they have either done a good job responsibly so they are marketing themselves to eco-friendly people and to businesses.

Ch. 8: Segmenting and Target Markets

     Starbucks market segmentation strategies have been to target well educated adults as a read in an article where it shoes how Starbucks uses demographic segmentation as a way of selling its products. "Starbucks is focusing on what it calls as its ‘core customers’— educated, with an average age of 42 and an average income of $90,000. About 15 years ago, Mr. Schultz said". Focusing on age, gender, sex, income, ethnic background, and family life cycle they provide for their target market as said in the article i read they also have to focus on the target markets offspring since these children most likely will be accompanying their parents to a Starbucks store and their parent s will need to feed their children. Now Starbucks is starting to put many snacks, kid friendly drinks, desserts and foods available for kids. Providing for the target market doesn't just end with providing a beverage for a 42 year old but also for proving to who come with them into a Starbucks store.

     Starbucks mainly uses segmentation strategies such as geographic segmentation where they sell in a certain are they don't sell everything in all stores exactly. especially in different countries. With its grand opening of its 500th store in the Latin America region. The company’s newest store in this region is located in Santiago, Chile. They change up stores depending on its location so that it can still have a sort of franchise owner ship but if someone from New York goes to this Starbucks they will still recognize it. 

     Positioning Starbucks products into a marketing mix influences their customers to the point that a loyal Starbucks customer will never switch to any other brand of coffee because Starbucks is s much superior item. The position that has taken over the products in the minds of customers has been both of a great marketing and also by the almost feeling of being involved with the decision making of the company. Attention is given to the customer and drinks are tailored to liking. One-to-one marketing strategy has been a very successful key for the successes of Starbucks because while ordering at least to the Starbucks i have gone to they don't just take your order they have a conversation with all of their customers and make them feel welcomed unless is a store in 42nd street were there are no chairs and its just in and out. But Starbucks understand the little simplicity that it takes just to jot down someones name and ask for the spelling sometimes... and then cater to what ever you may want even if its the longest order on the menu which is just s variation to the order this is how Starbucks is able to keep their customers happy. Having so many variations makes people feel as though the drink is made especially for them only (if their able to understand the Starbucks language) with 87,000 ways to change up a simple coffee.

     Starbucks has also been repositioning to changing people opinion of their coffee. They stand up for traders rights and make sure they have a good percentage of their coffee brought from farmers in Latin America, Africa and India. They are standing for causes like creating jobs for america by donating $5 to Starbucks ( not really sure how these help even after reading their statements) but you get a bracelet for showing your support for the cause of creating jobs for America.

http://www.youtube.com/watch?v=Muh6I1TnVg4

Ch. 11: Developing and Managing Products

     Starbucks is always innovating their inventory and changing up products discontinuing products or adding a new product or renovating a product that probably has some bad reviews or not much a good sale. Especially around the holidays Starbucks uses this time to introduce new products that are usually only sold during the holidays. Like the pumpkin spice latte which they sell a lot of during the month of november for the thanksgiving holiday and even past thanksgiving well past into december. They also introduce to their blends of whole bean coffees a Christmas blend.....which to some buyers review on the Starbucks page “has a great and different taste.”

     To introduce a new product to the Starbucks line it cant just be popped out of think air and expect customers will like it. Like most firm Starbucks has to go through marketing plans, get opinion from many others that both benefit and don't benefit from the company and then put out to the public to screen its sales for a trial period. If it succeeds than they have a done a good investment but f it doesn't it has been a lost of money but not a lost of time since now they know what kind of products there customers will and will not buy. Customers at Starbucks have the Starbucks online page to give their complaints or ideas to make a better a product and Starbucks sometimes responds to these opinion and ideas. Which is both a great marketing strategy because they see what customers like and also they are able to make the customers feel like Starbucks really cares about their customers opinion.

     Even though Starbucks is very criticized (mostly by Dunkin’ Donuts or Mcdonalds coffee drinkers) they have been developing new drinks such as instant coffees even though its not a new product for the coffee market but it is a new product for Starbucks. This instant coffee is targeted mostly towards older coffee drinker who like the lighter taste in the coffee and for those on the go. Starbucks also introduced for the holiday the B1G1 FREE Holiday drinks  “To Share in the Spirit of the Season With the Gift of a Second Beverage For Free – Let's Merry”. So if you with more than one person with you you get the second drink for free and using these smart trick will definitely benefit Starbucks knowing how nice people get around the holiday times to bad for Starbucks this kindness does not last all year.

STARBUCKS® HOLIDAY BEVERAGES:

• NEW! Skinny Peppermint Mocha – Fans of Starbucks classic seasonal beverage can enjoy a lighter interpretation of their favorite holiday treat. Prepared with sugar-free peppermint syrup and skinny mocha sauce, the new Skinny Peppermint Mocha is just 110 calories for a Tall (12 fl oz.).
• Peppermint Mocha – A seasonal favorite featuring a combination of espresso with bittersweet chocolate, peppermint syrup and steamed milk, topped by whipped cream and chocolate curls.
• Gingerbread Latte – This ever popular beverage blends the flavor of freshly baked gingerbread, with espresso and steamed milk, topped by whipped cream and ground nutmeg.
• Caramel Brulée Latte – A holiday delight, this beverage features a combination of rich caramel sauces, espresso and steamed milk and is topped with whipped cream and caramel pieces.
• Eggnog Latte – Starbucks wildly popular interpretation of holiday eggnog features rich espresso with subtle holiday spices, making it a perfect choice for a crisp fall or winter day.

Holidays for Starbucks

   "A coffee so good we can all be thankful."    

     Starbucks prepares for thanksgiving with a thanksgiving blend of coffee, Starbucks® Christmas Blend, thanksgiving gift cards and a specialty drink called the Pumpkin Spice latte which is only offered a few week before the holidays. They are also featuring the "What stories will you share over Starbucks® Thanksgiving Blend this year?" blog were they pick a story from a Starbucks customer and share it on their website. For Christmas they have many different types of coffee with different pictures in them that give you a sense of the holiday and what to expect like building snow man and then having a cup of Starbucks coffee when returning home.

                                  

Ch. 16: Integrated Marketing Communication

     For marketers at the Starbucks Company they have to be able to inform customers about Starbucks and what it offers. Promotion is key to a successful business when its not over done and just becomes a sort of infomercial. Starbucks promotional strategy goes from updating their loyal customers by email or text bout new products to enticing in new customers by mass communication promoting their products on TV commercial or by store displays. One of their biggest promotional success is having a celebrity walking around with a Starbucks cup. Starbucks has many loyal customer who will change to no other brand of coffee or tea maker because Starbucks have been so successful especially their marketers at promoting to their target market in such a way that because once their hooked they become loyal customers and have the competitive advantage that these loyal customers have the perception that they are getting the best at Starbucks.
     The relationship with Starbucks and their customer is very appreciated by Starbucks because they make sure that you are satisfied with your drink or you can get a whole new drink and sometimes even a coupon for a free drink.Online they have the My Starbucks Idea that allows customers to share their own ideas on products and new services that they would like. As for advertising according to the following article i read online "Starbucks had an advantage over competitors with this campaign because people wanted to talk about it online with their friends. "They did not have to spend millions of dollars for advertising because the millions of fans they already have on Facebook and Twitter did all the advertising for them. According to the New York Times, this campaign was the biggest marketing effort Starbucks had undertaken."

     Starbucks makes sure to grab the attention of consumers and by doing so they then promote their products to see if it appeals to them. By having the interests of consumers they start producing new products to make consumers believe that the products being sold to them its of their desire and they must take action quickly and buy it. Marketers at Starbucks have learned about society and their needs or and to make people think they need something.

http://www.grandsocialcentral.com/hustler-marketers/brand-managers/starbucks-brand-managers/starbucks-use-of-social-media-keeps-customers-coming-back