Categories
Global Marketing

Marketing Strategy of Starbucks

Starbucks is one of the most globally recognized coffee brands in the world. Due to its consistent brand and marketing, Starbucks has continued to grow its success in brand recognition and customer loyalty. Starbucks was founded in 1971 in Seattle, Washington by Jerry Baldwin, Zev Siegl, and Gordon Bowker (starbucks.com). By 2006, Starbucks had grown and had more than 12,000 retail stores worldwide, and now in 2022 has over 22,500 stores and a net worth of $52.8 billion. According to a research study from 2017, the target audience for Starbucks is men and women in the middle to upper classes who can afford Starbucks higher priced beverages regularly. In order to encourage customers to spend $5+ on a coffee daily, Starbucks offers an experience. By focusing on the third place, that place a customer can go to hang out other than home or work, and giving their customers a place to be and interact, they make the price of the drink worth it in the eyes of their customers (Bergstrom, 2018).

As Starbucks has continued to grow as a globally recognized brand, the branding has remained consistent from the logo to their sleek, modern designs. Lately, Starbucks has begun to utilize advertising such as the Red Cup Holiday marketing event in order to capture an even broader audience.  Additionally, one of Starbucks’ biggest driving factors in terms of customer retention was the launch of their customer loyalty program. “The Starbucks Rewards program offers incentives for buying products with free in-store refills, free products (after a certain amount of money is spent), and extra offers and discounts in the store.

Not to mention, the mobile app makes it easy for customers to pay ahead and find a store location (Bergstrom, 2018). Personally, using the Starbucks app has encouraged me to order coffee from Starbucks more frequently than I might have otherwise, especially if I have earned enough points for a free drink. Starbucks also uses marketing to offer friendly customer service across all social media platforms like Instagram and Twitter, giving customers easy access to customer support as well as keeping them up to date on new promotions and product launches. Ultimately, Starbucks has remained the leader of the retail coffee industry because it stays consistent with its brand, offers customers incentives, and engages with consumers on social media.

References

About us: Starbucks Coffee Company. About Us: Starbucks Coffee Company. (n.d.). Retrieved March 3, 2022, from https://www.starbucks.com/about-us/ 

Bergstrom, B. (2022, February 28). Starbucks marketing strategy: How to create a remarkable brand. CoSchedule Blog. Retrieved March 3, 2022, from https://coschedule.com/blog/starbucks-marketing-strategy