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Transcript of Starbucks
-Customers can comment on ways that Starbucks can improve their service
-Starbucks recognises customers creative thinking
-Can help to cement customer loyalty if ideas are acted upon
-Helps lead product and service innovation - eg. one of the first stores to offer internet capability Before: http://blogs.starbucks.com/blogs/customer/archive/2013/03/05/launched-a-macchiato-for-hazelnut-lovers.aspx
After: http://www.foxnews.com/leisure/2013/03/07/sneak-peek-starbucks-newest-drink-hazelnut-macchiato/ Products offered Services offered •Starbucks Reward Program - Green and gold status
•Starbucks Card eGift – corporate gift
•MyStarbucks Ideas – online community
•Starbucks Evenings - alcoholic beverages served after 4p.m.
•Starbucks Digital Network – can check the news, download free songs, access local information
•Square Wallet – is linked to a credit or debit card, lets you use your phone to pay, gives you a digital receipt
Social media - Facebook, Twitter, Youtube channel Starbucks' Social Marketing Channels CRM is:
-identifying, establishing, maintaining and enhancing long-term collaborative relationships with customers Service Quality Positioning Question ANSWER Question ANSWER Starbucks' differentiation strategy in action... Hot Beverages
• Coffee & Espresso (14)
• Tea & Chocolate (15)
• Other Beverages (2)
• Iced Beverages (9)
• Frappucchino Blended Coffee (7)
• Frappucchino Blended Cream (6)
• Savoury Delights (11: rolles, pies, pizzas) •Pastry Treats (3)
• Bakery (7: bagels, cinnamon swirl, etc.) • Muffins & Slices (12)
• Cakes & Small Treats (18)
• Sandwiches and Light Meals (15) Three components to Starbucks: The highest possible quality of coffee
Service with a focus on customer intimacy
Atmosphere Staff are intensively trained in:
This expectation has allowed Starbucks to charge a premium price and command top brand positioning in the consumers mind. Starbucks developed innovative service offering
Target previously untapped market with new products
High positioning in consumer’s mind
Involves consumers in decision making
We at MarCon Inc. can conclude that as Starbucks continues to grow, its ever increasing consumer market base will follow Starbucks establishes strong brand associations with its products and services
Goal of developing such a strategy is to create customer loyalty
Aims to create a calm, relaxing and stress free atmosphere
Offers free wireless as a strategy to prolong a customer’s stay
Offers high quality coffee, cakes and biscuits which they sell at above average prices
Quality and additional services entice people to still buy their coffee
To maintain that position Starbucks is innovative and uses new technology to improve their services •Differentiation strategy: involves a firm creating a product or service which is considered unique by their customers
•Differentiation strategies utilized by starbucks has lead to innovation, product flexibility, quality and customer service
•Innovative and convenient product, building brand familiarity and loyalty
•Drive through/ walk up mini shop
•Starbucks wants to be mobile, flexible and convenient-
changing the way coffee reaches the customers A seminar on the global coffee chain's international marketing strategies Customer relationship marketing is consumer-centric. Thank you for attending our seminar today.
We are more than happy to answer any questions that you may have. References Berry, L 1995, ‘Relationship marketing of services – Growing interest, emerging perspectives’, Vol. 23, iss. 4, pp. 236-245.
Fuchs, C & Diamantopoulos, A 2009, ‘Evaluating the effectiveness of brand positioning strategies from a consumer perspective’, European Journal of Marketing, vol. 44, iss. 11, pp. 1764-1786.
Ghauri, P.N & Cateora, P 2010, International Marketing, McGraw Hill Education, Maidenhead, Berkshire, United Kingdom.
Grönroos, C 1995, ‘Relationship Marketing: The Strategy Continuum’, Journal of the Academy of Marketing Science, vol. 23, iss. 4, pp. 252-254.
Ruiz, J 2012, Starbucks customer profile; Relationship marketing customer analysis, Social Media Today, viewed 6 March 2013, < http://socialmediatoday.com/joseph-ruiz/726371/starbucks-customer-profile-relationship-marketing-customer-analysis>.
Starbucks, 2013, Starbucks, viewed 10 March 2013, <http://mystarbucksidea.force.com/ideaList?ext=0&lsi=0&category=Atmosphere+%26+Locations>.
Uncles, M. D, Dowling, G.R & Hammond, K 2003, ‘Customer loyalty and customer loyalty programs’, Journal of Consumer Marketing, vol. 20, iss. 4/5, pp. 294-314. Product and Promotion Product:
Starbucks offers a variety of iced and brewed coffee and teas as well as sandwiches, wraps and dessert items.
The company uses poster advertisements, social media-Facebook and YouTube. The company intentionally does not produce mass media advertisements so to increase word of mouth communication. Question ANSWER Starbucks sells its products at a lowest possible price to increase the amount of customers Starbucks sells its products above average price but consumers still buy them because of the high quality and the additional services Question ANSWER Staff are trained in both hard and soft skills. Differentation strategy improves a firms competitiveness in a saturated market