Starbucks Marketing Strategy - ESL

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Kyle & Patricia
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    17-Oct-2014
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by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)August 2009 - UC Irvine - Grade: A+This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.

Transcript of Starbucks Marketing Strategy - ESL

Kyle & Patricia

Starbucks Coffee Company

Starbucks Coffee Company - Profile

Founded in 1971, in Seattle - selling high-quality green coffee

beans ;

Howard Schultz joins Starbucks in 1982 – starts to provide coffee to fine restaurants and espresso

bars;

1984 – 1st store coffee bar concept;

Today: almost 17,000 stores in 49 countries (11,000 in U.S.);

Revenues: 9% whole beans coffees + 12% equipment + 15%

food + 64% beverage

Starbucks Subsidiaries

Starbucks Coffee Company - Subsidiaries

Subsidiaries: Starbucks Coffee Company, Tazo Tea Company, Seattle's Best Coffee, Torrefazione Italia, Hear Music and Ethos Water.

Tazo Tea Company founded in 1994 tea manufacturer and distributor purchased by Starbucks in 1999

Seattle's Best Coffee

began in 1968 as an ice cream parlor/coffeehouse

known as "Stewart Brothers Coffee“ till 1991.

purchased by Starbucks in 2003

Torrefazione Italia

also founded in Seattle in 1986 espresso, coffee and baked goods also purchased by Starbucks in 2003

Ethos water brand of bottled water with a social mission :

“Helping children get clean water“ began in 2001. purchased by Starbucks in 2005 approximately $0.05 to $0.10 of the retail

price ($1.80) goes to charity

Hear Music

retail music concept and record label began as a catalog company in Massachusetts in 1990 purchased by Starbucks in 1999

Current artists: Anjulie, Paul McCartney, Joni Mitchell, Sia, James Taylor, Hilary McRae, Carly Simon, John Mellencamp and Antigone Rising

Competitors

Holds a dominant position in the specialty coffeehouse market

no single clear rival in the sector

closer competitors: other specialty coffee shops, doughnut shops, restaurants

More intense competitor: McDonald's - became a rival in 2006. Upgraded to coffee, has 14,000 stores in the U.S. and world wide expertise .

The Coffee Market

STARBUCKS EXPERIENCE - 4 P’s

Product – What Starbucks can provide for me?

Tangible ProductCoffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products

Core Product: services provided in store Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection

Augmented Product: intangible service Interaction with customers

Tangible Product

Tangible ProductCoffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products

Core product

Core Product: services provided in store Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection

Augmented Product

Augmented Product: intangible service Interaction with customers

Placement

Coffee store

Supermarket, restaurants and bakeries

Online store

High price and high quality

Price = cost + profit

1 + 1 > 2

Perceived-value pricing strategy

PricePrice

Promotion

“We always figured that putting people before

products just made good common sense.”

Sales

Advertisement

Merchandising

Social media

Corporate Social Responsibility

“We always figured that putting people before

products just made good common sense.”

Sales

Changing prices

Free coffee in determinate period

Receipt as coupon

Online coupon

Cards

Special offer in website (buy 2 and get 1 free / special discounts)

Merchandising

Social Media

Corporate Social Responsibility(CSR)

Green Stores: Building greener stores

Purchased renewable energy

Greener Cups: The quest for the 100% recyclable cup

THANK YOU!

OBRIGADO!

謝謝 !