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Starbucks Marketing Strategy

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Eunji Summer Lee

on 11 November 2013

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Transcript of Starbucks Marketing Strategy

Specific Marketing Strategy
Starbucks Marketing Strategy

Market Niche
What specific marketing appeals does this store use to reach its target audience?
Starbucks Target Audience
Starbucks Marketing Trend
Differentiation Strategy
"concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals' products."

'My Starbucks Rewards'

"A Cup of Coffee" coin
Free Wifi
Mobile Application
With the app you can scan to pay working like a gift card, earning Stars toward My Starbucks Rewards with its use.
Square, Google Wallet, Isis are not nearly as popular as Starbucks app.
The App accounted for 500 million payments showing again the effect of incorporating technology especially with Millenials.
Based on Jim Harvey's speech structures
Summer Lee Andrew Tanggara Daniel Sigerich Dylan Sajuti Guy Harper
Male & Female Aged 25 to 40
49% of Starbucks' Sales
Hip and Contemporary Design
3% Annual Rate Growth
Aged 13 to 17
2% of Starbucks' Sales
Aged 18 to 24
40% of Starbucks' Sales
College Students
Social Networking
Mobile Application
History of Starbucks

Starbucks uses technology to their advantage by putting free wifi in everyone of their stores, this specifically targets Millennials, the age cohort of 18-29 years old.
This group is one of Starbucks largest target markets as stated earlier 18-24 year olds makes up 40 percent of their sales, and the Millennials are even a larger percent of their sales than that.
Free Wifi
How its implemented and its Proven Sucess
Millennials are even a larger percent of their sales than that. 75 percent of Millennials have a social networking page, 25 percent more than any other generation, (generation X 30-45 just 50 percent) (https://medium.com/how-to-succeed/c76fb1231fbb)
This shows how important the internet is to our generation, and having the convenience to sip a cup of coffee and get to check your Facebook at a place with free wifi. This gives the incentive for people our age to consistently go to Starbucks every month.
A 1999 estimate showed that 70% of customers were internet users, and today the estimate has exceeded 90% (Hoovers).
The most frequent customers average 18 visits per month, whereas the typical customer visits five times per month (Moon).
Global Market
Marketing Strategy
Premium Products

$7 Starbucks "Grande"

"Geisha", hard-to-grow beans
Costa Rica Finca Palmilera
Customer-friendly firm

"We're in the business of human connection and humanity, creating communities in a third place between home and work."-Howard Schultz
Eye-catching Logo
Jerry Baldwin, Zev Siegel and Gordon Bowker opened a store called Starbucks Coffee, Tea and Spice
Howard Schultz was hired as Director of Retail Operations
In 1986 Howard Schultz decided to start the Il Giornale
18,000 Stores in 62 Countries
Own Hear Music Label and Ethos Bottled Water
Promote Fairly Traded coffee products and Recycling
Present Day
Kids and Teens
Young Adults

"Liberating the siren"
Starbuck Holiday Red Cup
Works Cited
Works Cited
Honigman, Brian. "How Millennials Are Shopping: 20 Interesting Statistics & Figures." Medium. Medium, 5 Aug. 2013. Web. 24 Oct. 2013.
Moon, Youngme, and John Quelch. Starbucks: Delivering Customer Service. Harvard College. Boston: Harvard Business School, 2003. 1-20.
O'Farrell, Renee. "Who Is Starbucks' Target Audience?" Small Business. Demand Media, n.d. Web. 23 Oct. 2013.
Olivarez-Giles, Nathan. "Starbucks Is Reportedly Dominating Mobile Payments in North America." The Verge. N.p., 4 June 2013. Web. 23 Oct. 2013.
Schoultz, Mike. "Starbucks Marketing Strategy … Making Social Media a Difference Maker." Digital Spark Marketing. Digital Spark Marketing, n.d. Web. 24 Oct. 2013.
"Starbucks Corporation." Starbucks Case Study. The McGraw-Hill Companies, n.d. Web. 23 Oct. 2013.
“Starbucks Corporation.” Hoovers, Inc. 2006. 4 Dec. 2006.
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