Marketing Analysis of Starbucks - Case Study Example

Starbucks Name Course Name and Code Institution Name Date Table of Contents Introduction 2 Why Starbucks 3 Marketing of Starbucks 4 How Starbucks is experienced by consumers 5 Conclusion 6 References 8 Introduction The characterization of global consumerscape is based on a vast array of global cultural, economic and technological flows. These flows provide connection of different consumer cultures in a very complex manner. More often than not, global cultural flows results in the re- appropriation of cultural practices in their places of origin following a sanctioning process in the western hotbed of consumer culture production. The re-appropriation involves a servicescape which is seen as unutilized ability of a consumerscape which is utilized when consumers alter the resources in their surrounding that is made for their own purpose. Under servicescape the consumption behavior of consumers is shaped by how the physical and material setting are built and designed. The servicescape is transformed by into a consumptionscape by consumers when they act manipulate the resources of servicescape to achieve their own purpose. To do this, consumers engage in construction of experiences which are in line with their themes of life and projects. They use this to connect culturally embedded meanings and rituals. Why Starbucks Starbucks is a global coffee and coffeehouse chain. It has over 16,858 stores in over fifty countries. It sells drip brewed coffee, in addition to espresso based hot drinks, coffee beans, hot and cold drinks, salads, sandwiches, Panini, snacks, pastries and other items such as tumblers and mugs. Starbucks is chosen for two main reasons (LePla et al., 2003). First, Starbucks is set in a strategic environment that is boost to the firm’s business. The store design of Starbucks is qualitative and this enhances the firm’s commitment to quality coffee products. Second, the firm has directed its energy towards management of consumer satisfaction as a global strategy. This entails what is drunk by the consumers, the interaction between consumers and the store workers, the aroma of coffee in the air, the environment in which the store is set, music played in the background which provides entertainment to consumer and the overall ambience of the Starbucks stores. Starbucks is a renowned brand which connects emotionally with young, professional and upwardly mobile market. Starbucks has a disciplining space and is oriented toward lifestyle. This separates Starbucks from other coffee shops. The model used at Starbucks encourages participatory line movement which ensures efficiency and production. Starbucks has established a productive syntax which ensures that a high yield of drinks is produced within a limited time. Starbucks has become a space of self actualization. Starbucks is experienced in three ways: people, place and product. Customer connection is experienced via people (Glyn & Alistair, 2009). The new automatic machines at the firm are faster and encourage personal connection between the baristas and the customers are the core of Starbucks experience. The stores are designed to take on a more streamlined feel to encourage efficiencies. Approach at Starbucks results in emotional connection with customers and encourages customers to share in the success of the Starbucks business (Michelli, 2007). Marketing of Starbucks The marketing strategy of Starbucks differs from conventional marketing strategies. Starbucks does not use conventional advertisement such as billboards, posters or newspapers. The following are some marketing strategies that Starbucks has employed. First is the "perfect cup of coffee". Under this strategy emphasis is placed on product quality. The rich, delicious taste and aroma of Starbucks products are known to satisfy customers even if they are slightly more expensive. The second strategy is the "third place". This marketing strategy involves creation of alternative place for workers to go after leaving work or home (Keller, 2002). The creation of this relaxing and unique experience and atmosphere has been instrumental to the marketing of the firm's products and attraction of customers. The third marketing strategy employed by Starbucks is "customer satisfaction. The firm has set itself apart by ensuring that the customer experiences satisfaction from the time he/she enters the premises of the firm up to the time the customer leaves the store. This ensures that the consumers feel the uniqueness of enjoying their Starbucks coffee experience. Another marketing strategy employed by Starbucks is "creating a Starbucks community". This involves creation of a community around Starbucks brand. This entails encouraging customers to write about their experiences with Starbucks on the website of the firm. The firm also works hard to ensure that it personally joins in the discussion. "Smart partnerships" is another marketing strategy used by Starbucks (Schmidt & Chris, 2002). The firm has been involved in creation of strategic partnerships which have helped it to grow its business and to increase its sales. Starbucks employs "Innovation" as a marketing strategy for its products (Ind, 2004). The firm has been involved over the years in devising ideas which are both innovative and creative to enhance the quality of their products and services. This has seen them add various innovative coffee flavors and new food products on menu. The innovativeness and creativity has also seen the firm become one of the first firms to offer internet capability in their stores. The final marketing strategy employed by Starbucks is the "brand marketing". This is usually 3focused on word of mouth advertising in addition to allowing the high quality of their products and services to speak for themselves. This strategy has made the firm to be successful for many years. The marketing strategies employed by this firm has enabled it individualize each of its outlet based on the surrounding communities. How Starbucks is experienced by consumers Consumers of Starbucks products have a feeling that they are emotionally connected with the firm and that they share in the success of the Starbucks business. Starbucks consumers feel that Starbucks is a warm, comfortable and pleasurable place. They feel that the business ambience is given a detailed attention they (consumers) value most. The customers have a common and shared felt sense about the Starbucks brand and the stores. Most customers of the firm feel that the experience at Starbucks is like a mini-vacation. The background music, pleasant colors, comfortable furniture and the right amount of lighting at the store make the customers to long for it after living the place. The customers feel that Starbucks brew excellent coffee, has friendly people and a relaxing atmosphere. They also feel that the menu provided at the store is extensive and anyone can easily find something to satisfy them. The feeling of some consumers is that the Starbucks name is itself tempting to coffee consumers and that anyone who likes coffee will enter its stores with high expectations (Schroeder et al.2006). However some consumers feel that the rapid expansion of the firm threatens the existence of local small coffee shops. In addition, some consumers feel that the Starbucks products are highly priced and that in some stores the service delivery is not to the standards expected by customers. Conclusion The characterization of global consumerscape is based on a vast array of global cultural, economic and technological flows. More often consumers engage in construction of experiences which are in line with their themes of life and projects. They use this to connect culturally embedded meanings and rituals. Starbucks is a global coffee and coffeehouse chain. Starbucks is set in an environment that 1is a key strategic tool for the company. The quality of Starbucks' store design, that is layout, furnishings and lighting, reinforces the commitment of the company to fine coffee products. In addition, the global strategy of Starbucks focuses on the management of the consumer experience. This has seen the firm adopt unique marketing strategies such as perfect cup of coffee, third place, customer satisfaction, creating a Starbucks community, smart partnerships, innovations and brand marketing that are geared toward consumer experience. The marketing strategies employed by this firm has enabled it individualize each of its outlet based on the surrounding communities. As a result Starbucks has become a space of self actualization for coffee lovers. References Craig, J. 2004. The Starbucks Brandscape and Consumers’ (Anticorporate) Experience of Glocalization, Journal of Consumer Research vol. 31, pp. 631-645. Glyn Atwal and Alistair Williams 2009. Luxury brand marketing – The experience is everything! Journal of Brand Management 16, 338–346. Ind, Nicholas, 2004. Living the Brand. London, UK: Kogan Page Limited. Keller, Kelvin. 2002. Strategic Brand Management: Building, Measuring, and Managing Brand Equity (2nd Ed). New York: Oxford University Press. LePla, F. Joseph, Susan V. Davis and Lynn M. Parker, 2003. Brand Driven. London, UK: Kogan Page Limited. Michelli, Joseph, 2007. The Starbucks Experience. New York, NY: McGraw-Hill. Schmidt, Klaus and Chris Ludlow, 2002. Inclusive Branding. New York, NY: Palgrave MacMillan. Schroeder, Jonathan E. and Miriam Salzer-Moerling, 2006. Brand Culture. New York, NY: Routledge. Read More