Starbucks' Transforming Marketing Strategy
Starbucks has expanded and built a reputation throughout numerous nations. In 2020, there were more than 32,000 stores spread throughout multiple nations. Starbucks is predicted to be worth about US $29 billion in 2020 and hold a 39.8% market share in coffee sales in the US.Starbucks has maintained its position as one of the top coffee vendors despite the competition. Its distinctive marketing approach is somewhat to blame for this. As a result, this marketing tactic has developed a clientele that is willing to wait in line simply to purchase coffee. The marketing techniques Starbucks employed to outperform rivals are listed below.
1. A Strategic Pivot Based on Market Research
Starbucks began as a retail store selling roasted coffee beans rather than as a coffee café. Starbucks started selling drinks after Howard Schutz took over the firm. Once in Italy, Howard made the decision to change the direction of the company. After seeing how coffee was marketed there, he returned to the US to put the idea into practice. He was able to successfully naturalize the idea he observed in Italy in the US with the right preparation and approach. Starbucks has been increasingly well-known both domestically and internationally as a result of this concept.
2. Awareness
When it comes to raising awareness for its drinks, Starbucks does not play around. They make use of the fact that they are aware of how important ads are to increase consumer demand for their goods. They make particular use of this while serving their seasonal beverages, like their pumpkin spiced latte. They are well-represented on social media. Additionally, their social media advertisements are personified to address consumers directly. Additionally, Starbucks values the interaction it has with its customers on social media. Starbucks also raises awareness through its "secret menu," which becomes popular on social media, especially when younger people post pictures of their typically vibrant creations from Starbucks.
3. Customer Service
Providing respectful service to each and every one of its patrons is a top objective for Starbucks. They are aware of the detrimental effects poor customer service may have on revenue. Thus, they take care to provide warm and inviting client service.
The fact that they make sure to write the customer's name on the coffee cup is proof of their excellent customer service. The person across the room is then identified by name. On the other hand, Starbucks is well known for misspelling names on their coffee cups. Whether intentional or not, this is a great marketing move since it raises awareness through articles and social media posts about name blunders, keeps Starbucks relevant in the eyes of the public, and makes customers happy.
4. Atmosphere, More Than Just a Coffee Shop
Starbucks locations are welcoming and accommodating. You fall head over heels in love with the arrangement as soon as you step inside the store. Starbucks emphasizes the "feeling" you experience as soon as you walk into their establishment. Starbucks has established a space where patrons may come to work or study while placing coffee orders. Additionally, they offer free WiFi to patrons who come to work or study. Customers have a pleasant, long-lasting impression of this kind of setting. And this keeps bringing them back to Starbucks. This is an effective tactic that has helped Starbucks stand apart from rivals.
5. Responsibility
Starbucks prioritizes creating a positive work environment and providing good treatment for its employees. For this reason, starting in the next two years, Starbucks will pay all US employees at least $15 per hour.
In addition, healthcare and discounted stock options for company shares are provided to Starbucks employees. Additionally, Starbucks pays for its employees' tuition in an online degree program offered by Arizona State University. All of this is carried out on the theory that contented employees will likewise satisfy clients.
6. Mobile Driven Loyalty
The Starbucks app employs a distinctive approach to attracting and retaining users. Users must put money onto the app rather than being able to connect a credit or debit card immediately. Customers are drawn to Starbucks because they have effectively paid for their coffee without ever receiving it.Other advantages offered by the app include a beautiful user interface, a trackable rewards system, GPS notifications when a Starbucks is nearby, freebies, and more free benefits. The popularity of the app is evidence that the value it provides enhances customer engagement and builds brand loyalty.
7. Unique logo design
Starbucks' logo design has seen a number of revisions, but it still has the power to grab attention. When people see this logo, they will not be able to miss it. Because of the design's vivid colors, customers may unintentionally remember it. The stunning, remarkable design has contributed to Starbucks' product sales growth. Additionally, since Starbucks is associated with high society, purchasing a beverage with the emblem prominently displayed on the cup makes the customer feel proud.
1. A Strategic Pivot Based on Market Research
Starbucks began as a retail store selling roasted coffee beans rather than as a coffee café. Starbucks started selling drinks after Howard Schutz took over the firm. Once in Italy, Howard made the decision to change the direction of the company. After seeing how coffee was marketed there, he returned to the US to put the idea into practice. He was able to successfully naturalize the idea he observed in Italy in the US with the right preparation and approach. Starbucks has been increasingly well-known both domestically and internationally as a result of this concept.
2. Awareness
When it comes to raising awareness for its drinks, Starbucks does not play around. They make use of the fact that they are aware of how important ads are to increase consumer demand for their goods. They make particular use of this while serving their seasonal beverages, like their pumpkin spiced latte. They are well-represented on social media. Additionally, their social media advertisements are personified to address consumers directly. Additionally, Starbucks values the interaction it has with its customers on social media. Starbucks also raises awareness through its "secret menu," which becomes popular on social media, especially when younger people post pictures of their typically vibrant creations from Starbucks.
3. Customer Service
Providing respectful service to each and every one of its patrons is a top objective for Starbucks. They are aware of the detrimental effects poor customer service may have on revenue. Thus, they take care to provide warm and inviting client service.
The fact that they make sure to write the customer's name on the coffee cup is proof of their excellent customer service. The person across the room is then identified by name. On the other hand, Starbucks is well known for misspelling names on their coffee cups. Whether intentional or not, this is a great marketing move since it raises awareness through articles and social media posts about name blunders, keeps Starbucks relevant in the eyes of the public, and makes customers happy.
4. Atmosphere, More Than Just a Coffee Shop
Starbucks locations are welcoming and accommodating. You fall head over heels in love with the arrangement as soon as you step inside the store. Starbucks emphasizes the "feeling" you experience as soon as you walk into their establishment. Starbucks has established a space where patrons may come to work or study while placing coffee orders. Additionally, they offer free WiFi to patrons who come to work or study. Customers have a pleasant, long-lasting impression of this kind of setting. And this keeps bringing them back to Starbucks. This is an effective tactic that has helped Starbucks stand apart from rivals.
5. Responsibility
Starbucks prioritizes creating a positive work environment and providing good treatment for its employees. For this reason, starting in the next two years, Starbucks will pay all US employees at least $15 per hour.
In addition, healthcare and discounted stock options for company shares are provided to Starbucks employees. Additionally, Starbucks pays for its employees' tuition in an online degree program offered by Arizona State University. All of this is carried out on the theory that contented employees will likewise satisfy clients.
6. Mobile Driven Loyalty
The Starbucks app employs a distinctive approach to attracting and retaining users. Users must put money onto the app rather than being able to connect a credit or debit card immediately. Customers are drawn to Starbucks because they have effectively paid for their coffee without ever receiving it.Other advantages offered by the app include a beautiful user interface, a trackable rewards system, GPS notifications when a Starbucks is nearby, freebies, and more free benefits. The popularity of the app is evidence that the value it provides enhances customer engagement and builds brand loyalty.
7. Unique logo design
Starbucks' logo design has seen a number of revisions, but it still has the power to grab attention. When people see this logo, they will not be able to miss it. Because of the design's vivid colors, customers may unintentionally remember it. The stunning, remarkable design has contributed to Starbucks' product sales growth. Additionally, since Starbucks is associated with high society, purchasing a beverage with the emblem prominently displayed on the cup makes the customer feel proud.
