A good marketing strategy will help your brand achieve epic goals and objectives. If you are thinking of opening a restaurant, you might want to consider Starbucks’ marketing strategy: what is Starbucks’ marketing strategy?
Starbucks is one of the most popular known coffee brands across the world, thanks to its phenomena marketing strategy. Starbucks’ brand awareness has struck epic heights mainly because of its commitment to market its brand consistently. Starbucks’ marketing strategy revolves around fulfilling the ever-changing needs of their customers through; the production of quality products, consistently promoting their business, pricing strategy, and strategic positioning of their brand, among other strategies. This has enabled this company to rise to a multi-million dollar coffee chain despite the harsh economic times the world has faced. Therefore, if you are looking for a good and resilient marketing strategy to employ in your business, Starbucks’ marketing strategy will undoubtedly impress you.
Starbucks Marketing Strategy
Starbucks did not achieve its success overnight. Over the years, it has been committed to consistently creating awareness of its brand by allocating a lot of resources and time to marketing. This has not only improved customer loyalty but also attracted new customers. Some of the strategies Starbucks has employed to grow its business include;
Starbucks brags about creating high-quality products to satisfy the needs of its target audience. Furthermore, just like any other big brand, Starbucks keeps on innovating its recipes and products to help it retain its position in the market.
Starbucks’ ability to craft high-quality products is what keeps people coming back. This might be driven by their premium prices. For example, their customers pay for premium coffee; this definitely has to taste better than any coffee you get at a lower price for you to retain your customers.
Strategic positioning is a form of marketing that aims to give a brand a competitive advantage by distinguishing it from its competitors. Unique positioning works by influencing the perception of consumers by communicating the competitive advantage of a company effectively.
Starbucks has positioned itself strategically as it not only offers high-quality products but provides you with a whole coffee experience in a serene environment where you can relax and which is distinct from your office and home.
Starbucks has achieved this by even going ahead and creating Starbucks Reserves to meet their customers’ ever-changing needs by providing them with a unique experience that is actually working. A brand that is positioned strategically allows you to focus on your business’s strengths hence giving you an easy time beating your competitor in those areas.
Basically, strategic positioning defines what you want customers to think of your brand when they interact with it. When positioning your brand strategically, you have to carry out intense market research to identify who is your target audience and what their needs are. This will help you design a brand and products that align with what consumers need, which is a step ahead of your competitors.
Organizations can employ various pricing strategies to market their goods effectively. This includes going-rate, premium, cost plus, and loss leader. Starbucks adopts a premium pricing strategy as the prices of its products are premium or at least higher than other brands by 25%. In the year 1990, the only coffee that was sold at premium prices was 3%.
However, this number rose to 40% by 2000 hence giving a lot of coffee brands the go-ahead to strategize their pricing. Starbucks is widely known for its collection of premium beverages and richly brewed coffee. People are willing to pay for the high prices charged at Starbucks because they believe the coffee chain offers high-quality and exceptional food and drinks.
Furthermore, most consumers believe that the higher the price, the higher the quality of the product. Starbucks has majored in this perception hence why it adopted a premium pricing strategy for the company.
Promoting the business
Starbucks makes use of different channels and platforms like ads, TV spots, and social media to promote its products and brand and launch new products. The multi-channel marketing strategy has by no doubt gained this coffee brand a lot of online and physical presence hence making this brand so recognizable across the world.
However, the consistency that Starbucks has shown in promoting its business is what sets it apart from other coffee brands. This has made the brand constantly become a lot more visible hence helping it to stand out in the minds of consumers.
It is important to note that promoting a business requires a lot of resources and time. However, when comparing Starbucks to other well-known brands like Nike and Apple, it is safe to note that Starbucks spends significantly fewer resources on marketing and promoting its business. However, due to its consistency and unique approach to using several channels, it still creates an impact.
Additionally, Starbucks has promoted its business through building brand loyalty by creating reward programs for its customers. Creating reward programs is a strategy that will not only help you retain existing customers but also attract new ones.
Starbucks has a reward program in place that offers its customers various benefits once they join. These benefits include; free drinks, free refills, discounts, rewards on their birthdays, and more. These rewards work wonders for Starbucks as they prompt their customers to spread positive information about the brand and keep them coming back.
Though the marketing strategy of Starbucks can be assumed to be complex as it entails several multi-channels, it by no doubt delivers great results for the brand. To effectively market your brand, you have to study market trends and establish what your target audience wants. This will help your brand position itself strategically by producing high-quality goods and providing an exceptional experience for your business. Starbucks has thrived in pricing its products a bit higher than most brands because of the products’ high quality. Furthermore, the brand has strategically positioned itself, making it stand out from its competitors. Lastly, for any business to thrive in this era, then having a significant social media presence is key. Starbucks enjoys a broad digital and physical presence mainly because it has channeled consistent efforts of marketing and promoting its business.
Why is marketing strategy important?
Marketing strategy is important as it helps a business achieve its objectives by ensuring it is targeting the right people with the right products that appeal to them.
How can marketing strategy help the business?
Marketing strategies help businesses by aiding them in discovering areas that they can focus on to gain a competitive advantage and enabling them to create an organizational plan that is centered on the needs of their consumers.
What is Starbucks’ digital marketing strategy?
Starbucks has built a social media presence by sharing lots of content and interacting with its customers in real-time so as to get instant feedback. Furthermore, Starbucks has an application and website, making it so accessible and verifiable to its customers.
What are Starbucks’ marketing objectives?
The marketing objective is to fulfill the needs of its consumers by creating high-quality products hence cultivating long-term connections with its consumers.