Starbucks has spent significant time and resources to distinguish themselves and their products from any other coffee retailer. The logo on the cup represents a quality product, and the company has turned to social media to as a resource to differentiate themselves from their competitors. The first factor that accounted for Starbucks’ success in securing its market share is the strong marketing campaign. Starbucks utilizes many different social media outlets that allows the consumer to share their experiences and tag their location while reaching new customers. Second, Starbucks is a place for everyone. They offer products that appeal to the old and young equally. Third, the company has taken a strong commitment to their social responsibility and how they can impact the communities where they operate. Fourth, the ambiance of the stores is a draw to customers. The patrons know the environment is rich and it sets Starbucks from other coffee shops. Lastly, Starbucks is always convenient. There are stores set up all around, so customers don’t have to look hard to get their favorite specialty drinks. It makes them constantly accessible and spreads the company name globally.
The core product concept of Starbucks is to provide a product and service that satisfies the consumer’s needs and wants. The actual product is centralized around coffee, even though the product line expands far past those parameters. The augmented products include Starbucks membership rewards and the ability to customize the drinks to the specifications of the customer. The potential products include a vast option to provide new food and beverage options that meet the demands of the customers. An example would be a healthy shake option like a fruit smoothie. The potentials are unlimited. The product line width is the central focus of the company. Starbuck’s core width is coffee. The length is the many different types of coffee options they provide. The depth includes hot and cold drinks, along with teas and coffees. The product line strategy is to offer new specialty drinks to attract new customers. For example, Starbucks has seasonal drinks around the holidays which are a huge draw for the consumers. Also, their holiday strategy the company offers refreshing beverages that are designed for warmer weather, like spring and summer. The product line strategy is to provide products that will make customers want to stop at their stores.
The strategy of Starbucks is represented in their mission and changed over time. When they were founded, they wanted to provide an excellent coffee to their consumers. Now, their focus is to inspire the human spirit, with every cup of coffee they serve. The company strives to distinguish their product as a highly respected, top-ranked brand. The branding strategy is based on their logo of a twin-tailed mermaid that is surrounded by green. There are very few consumers who could see the logos and not know the company. The company’s statement ‘uniquely Starbucks’ represents the brand and differentiates it from their competitors. The advantage of their branding strategy is that the corporation has built their reputation with every cup of coffee served. Social media only enhances the brand by customers tagging the company and sharing their beverages in pictures with their followers or friends. The disadvantage of Starbucks branding strategy is that they depend on their past success. The brand needs to continually reinvent itself to meet the changing demands of the consumers and to promote the changes that society prioritizes.
Starbucks is growing fast, internationally. They need to have a well-organized marketing efforts to manage their existing products while providing new products. The company needs to continue to tell their story in new methods. Their advertising, social media and store campaigns need to focus on building their new product line. The development teams need to share their new lines with the marketing department so the marketing department can promote it before its release. It allows the hype to be built and the customers to be informed of what to expect from their favorite coffee shops. The marketing efforts need to be geared towards their market and also promote what they are doing for their community. It will not only promote the company name but also show consumer’s their commitment to corporate social responsibility. The existing product is well-known by the regulars; however, Starbucks can still promote these beverages to reach new clients. For example, a nice cold frappuccino would be an excellent way to attract new customers on a warm summer day.
Starbucks is currently at the maturity stage of product life style. The company has established their core line of hot and cold beverages; now they depend on introducing new products into the mix. The company has not reached the decline stage, and they are doing everything they can to keep the product line fresh and new. The marketing mix implications of being in the maturity stage are that Starbucks needs to continue to focus on product differentiation. The company needs to focus not only on reaching new customers but appealing to their existing customer base. The product strategy is to continue to build the Starbucks name and to separate themselves from their competitors. The pricing strategy is to keep their high-end products that Starbucks is known for while still providing a lower price alternative to compete with the new competition. The distribution strategy is intensive. The corporation needs to create a means for customers to choose their products over other brands. Finally, the communication strategy is to promote their corporate social responsibility while emphasizing how their product is better than others on the market.