Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Effects of sales promotions on consumer behavior
Chapter 3 impact of sale promotion on consumer buying behavior
Chapter 3 impact of sale promotion on consumer buying behavior
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Effects of sales promotions on consumer behavior
As I would hate to admit it, I was a mindless consumer. Not long ago, I would regularly
get caught into the advertiser’s web of promotions and exclusive events. Likewise, this does not
exclude Starbucks. There was a time back in high school where I was swayed by Starbucks
constant promotions which motivated me to continuously buy their products. Not only did I stop
by every morning on my way to school to grab myself a cup of joe, but I would frequently
encourage my friends to hang out at Starbucks after school as well. All for what you ask? To
collect loyalty program stars.
This establishment has created a strong foundation into enticing current customers to stay
and future customers to join through crucial segmentations in which
…show more content…
helps the Starbucks business find out who their target customers are based on their needs, as well as know how one behaves towards a product. With these demographics, Starbucks uses it to entice customers to their company through their website and phone app by displaying their high-quality coffee, promoting their most wanted drinks, and encouraging consumers through loyalty programs. Showcasing the many different drinks Starbucks offers on their online menu, Starbucks includes many options that quenches one’s fix. Starting from multiple espresso flavours, they included blended beverages such as Frappuccino’s, targeting sweet tooth’s, Teavana refreshers for people who don’t want caffeine, and customizable drinks. Because of this, the website was the reason I was lured into being a Starbucks fanatic as their website was able to exhibit the many choices for me to choose from depending on my mood for the day. After stepping into many Starbucks branches, I almost immediately notice the comfortable and warm modern feel franchises in the Richmond Hill and Waterloo regions exhibit. Commonalities I have noticed 2 were their low dangling lights, radiating dim yellow rays that balances their chocolate wooded furniture and sofas, sat beside cream coloured walls which hung aesthetically pleasing art. Creating a cozy effect, Starbucks has created a place for teenagers, adults, or the elderly to talk in a relaxing setting or to catch up on work. Starbucks explained their shop concept having “a trend-setting style that is comfortable and welcoming” (Starbucks) which I would say it was an accurate statement. Not only do their website array their many refreshments and concepts but, Starbucks have created a coffee shop that expands the limitation of out coffee experience. As a person who is lactose-intolerant, I can change my milk to lactose free milk and I can ask for less sweetener, more caramel, plus one more shot of espresso in my Venti Iced Caramel Macchiato.
Compared to Tim Hortons, Starbucks also displays many attractive photographed drinks that
tempt coffee consumers to visit their café. Likewise, the baristas live up to the perfectly
photographed expectations as the appealing appearance of the drink charms me to visit again.
In addition to a hospitable coffee shop, Starbucks created a loyalty program by which you
can earn star points to gain access to benefits such as free birthday rewards, free in-store refills,
and access to exclusive events and offers through their trendy phone app. For every dollar spent,
one will get 2 stars and the more stars collected, one can climb up from the green status to gold
status. Through their loyalty star rewards that is accessible through the Starbucks app, as many
as 11 million active members (fortune) have been enticed to maintain or achieve the gold status
where one is able to enjoy anything on the menu for free. Not to mention their marketing strategy
of constantly emailing me double star days and discounted drink promotion codes lured me
into consistently reloading my card to participate in such events. Overall, I would say their marketing scheme does work. Even if one is not intrigued by their reward system, by downloading the app, one can pay for their drink on their mobile device or order ahead and pick up their drink while 3 skipping the lines. With the total of 11 million active users, many have chosen to go to Starbucks instead of Dunkin’ Donuts as mobile app payment (6 million transactions a month) and skip the line payment (1 million users) was more convenient (Kline). Within the months of downloading this application, I have also seen myself within the 6 million transactions as I have found myself using the mobile payment methods because it is more convenient than Tim Hortons. Thus, this strategy draws me into this establishment more often than other coffee franchises. Although Starbucks is known for their high-end prices of coffee, approximately five dollars for a medium coffee compared to two dollars at Tim Hortons, one would believe their coffee would be high quality as well. It doesn’t mean their coffee is bad, it’s decent. In my opinion, I would go to Starbucks if I need a boost of caffeine and a new choice of flavor. I’m no coffee expert, but I find Starbucks a bit over average. Compared to Tim Hortons, I find their Double Double flat and dry while Starbucks coffee tastes a bit more round and well-balanced. I tried many of their flavours, to Mocha, Caramel Macchiato, Iced Coffee, and to their specialty drinks such as, Eggnog Latte and Peppermint Mocha though, I find that their drinks are not geared towards creating a strong fresh coffee taste. Rather, their specialty drinks are covered with milk and sweetener, reducing the taste of coffee beans but is there for caffeine reasons. Starbucks states, “Exceptional coffee can only come from exceptional beans” (Starbucks: coffee quality) to indicate they produce the highest quality standard of coffee contrasted to other corporations such as Tim Hortons. But to my evaluation, I do not find a point in having so much effort in creating ‘exceptional beans’ if it will be covered by sweetener. I have yet to try their Americano or their shot of espresso to evaluate their coffee beans, but their Mocha’s and Macchiato’s seem to have either a bit too much milk or water which unfortunately dilutes some of the coffee’s taste. 4 In short, Starbucks have set a standard for me as their vast number of drink options, calm cozy café setting, quality coffee, and convenient coffee experiences have raised my expectations. They created a website and phone application that attracts new and old customers back by updating consumers about new specialty drinks, promotions, and information about their varied high-quality coffee beans. As one of the top coffee chains worldwide in 2015 (Statista), their website and phone app has made a big contribution to their success. Whenever I’m craving coffee, I simply log into my Starbucks app and purchase a new flavour I have yet to try. I believe that as a result of this marketing tactic that they would be first for years to come.
Throughout the company’s historic growth, one thing has remained constant: the commitment of its franchisees to providing personalized and convenient business solutions and a world-class customer experience. Industry
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
We will donate portions of each Café’s proceeds to a philanthropic cause that is relevant to the community around it. Studies show that “Seventy percent of students say they are more likely to buy from a brand that supports a charitable cause”(Bell). College students are likely to support and remember the brand of a coffee shop that supports a local-specific cause, as opposed to a generic corporate attempt at philanthropy.
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
Starbucks case study: background 1971-87; private company 1987-92. (1997). McGraw-Hill Companies. Retrieved March 20, 2007, from the McGraw-Hill Companies website: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html
"Rewarding everyday moments". The Starbucks Mantra clearly implies that they are not selling just coffee. They claim to be selling the coffee experience. Their coffee bars that sell specialty coffee also gives customers an ambience where they can be themselves. Starbucks advertises themselves as the third place between home and office, where you can escape, reflect, read, chat or listen. They have become the largest player in the coffee industry and is still looking for avenues to expand themselves.
Starbucks takes their partners very seriously as well as their well-being. This is apparent in the rewards Starbucks offers to their partners. Starbucks has what they refer to as, “Your Special Blend” which is offered to part-time and full-time partners. Starbucks offers comprehensive health coverage, a highly competitive 401(k) program with company matching, a stock equity reward program, education benefits including tuition assistance, free coffee, and paid vacation (Your Special Blend: Rewarding Our
By giving away some of the most lucrative bonuses and promotions, it has succeeded as a contender for the top spot as
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
We served best quality food to satisfaction of buyer. Our main weakness is we provide better than other cafe but other competitor in lowest price.
The once small coffee house in Seattle, Washington has now turned into the most prominent coffee company in the world. Some people would say a trip to Starbucks is a treat, others it has become a daily ritual. It was able to grow into such a successful company because of the experience they made for each customer that walked through their doors. Offering a variety of high quality coffees to people all over the world and giving them the home away from home atmosphere. By staying true to their company mission statement, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”, they were able to stand out more then any other company, and ultimately reach success.