Business Strategy: The Marketing Strategy Of Starbucks

The Starbucks Coffee Chain, has great Marketing strategy which is why I choose this company. Starbucks was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker, three students from the University of San Francisco. The company first took off in 1971, in Seattle Washington. Starbucks began to expand its popularity in 1992.

I chose to place focus on Starbucks because I personally don 't like this particular coffee shop and I think it 's overpriced. but I was also fascinated by their marketing strategies which is one of Starbuck’s strengths. The marketing strategies Starbucks uses is their monopolistic advantage among its competitors, because of its popularity has kept its monopoly, and also because of it the company has found its way into

Starbucks also markets under brands such as Tazo Teas, Italia Coffee, and Evolution Fresh. Starbucks has also expanded their coffee products into supermarkets and retail stores such as Jewel. Starbucks is no longer sticking to expand into grocery markets but they are also putting in the efforts to expand into Teavana a secondary company they purchased on 2012 purchased even though the tea stores make up only a small percentage of the Starbucks brand, Teavana is one of Starbucks fastest growing brand. The supermarkets and stores carry Starbucks coffee grounds,K-cups, and ice coffee. Expanding their products onto larger stores has its positives and negatives because although by providing their customers with their products at a convenience they also risk the security of being able to handle their products. A positive is that their packaged goods make up 8 percent of Starbucks total revenues. One particular Starbucks product sold in supermarkets that has gained popularity is its K-cups it is convenient pre-packaged they come in a variety of flavors for Teas and Coffee. K-cups have achieved 40 percent margins for Starbucks in one single serving that is sold in K-cups.In 2014 the company set up a five year goal in which they would double their sales on their food items, the company plans on focusing on their lunch and dinner food items in the coffee

Starbuck’s outlook appeals to the younger generation who want to gather with friends, students and office workers who want to catch up with work or people who are adventurous at drinking coffee. Starbucks tends to locate in areas with people with disposable income. It 's known that an average starbucks customer goes to the coffee shop 6 times a month while 20 percent of its loyal customers go 16 times a month. The other reason Starbucks appeals to many people is because of their environment which is very welcoming and relaxing.

The Promotional aspect of the Starbucks is one major advantages because less than 3 percent of their revenue goes into advertising.The company is up-to-date with today 's modern technologies which is why they appeal to the younger generation. Starbucks also advertises itself on its website, and among the popular social media sites Facebook, twitter, television ads etc. Starbucks also offers exclusive memberships through email subscription that offers a variety of discounts, promotions ,and free items in exchange for customers