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

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.