Starbucks Marketing | Marketing Strategy of Starbucks

by Shamsul
Marketing Strategy of Starbucks
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Starbucks Marketing | Marketing Strategy of Starbucks


Founded in 1971, this famous coffee-based chain; Starbucks was initially in the business of retailing, roasting whole bean and coffee, tea, and spices. Starbucks Marketing is very effective and currently, it is operating in 70+ countries and has become very successful in making connections with its customers across the global network of 24,000+ retail stores.

Important Factors in the Marketing Strategy of Starbucks:

Targeting, Positioning, and Segmentation:

 Starbucks uses a combination of demographic and geographic strategies for the segmentation of its particular offerings for its customers. A selective targeting-based strategy is being used in geographically separated 70+ countries for its product, Costa coffee. This strategy has helped the company to cater needs of its customers and introduces various new products according to the demand.  This coffee chain has positioned itself as a value-based company; it creates an imaginary stimulus through intangible offerings with their main product.  Its mission is to nurture and inspire the human spirit, one cup, one person, one neighborhood for one time.

Competitive Advantage | Starbucks Marketing

Backward integration of this supply chain was to control the roasting, packaging, purchasing, and coffee distribution around the world while maintaining the taste and quality of its coffee in the world market.

BCG Matrix | Starbucks Marketing

 It’s being worldwide famous and a business experience over 3 decades has helped this company to develop better business understanding and innovate new methods with changing market. All of its products are the stars in the BCG analysis matrix.

Distribution Strategy | Starbucks Marketing

 As a roaster, retailer, and marketer dealing with the world’s best coffee chain, it provides an offering of beverage products with the help of its various company-owned or different licensed stores across the globe. It also provides its variety of trademark tea and coffee products in grocery and different supermarket or store chains across the world.

Brand Equity | Starbucks Marketing

 This brand is not only limited to coffee but also sells services and goods under different brand names like Tazo, Evolution fresh, Ethos, and Teavana. Its involvement in various CSR activities since the brand’s inception has helped the brand to connect with across-the-world communities. Company ethical believes have helped it greatly in retaining through talent nurturing and various won awards and a position of the most admired American company in its home country, according to fortune 2015.

Competitive Analysis | Starbucks Marketing

 Competition in the industry is based on basic but important factors like quality, service, price, and convenience. Coffee culture has been picked up in a variety of developing nations and keeps making progress which offers great competition between local, national, and international players. Companies in the coffee business have different types of competitions offered like other restaurants, ready-made packed coffees in grocery or any stores, and prime location specialty stores.

Market Analysis | Starbucks Marketing

Coffee consumption has been growing around the globe at a 2% rate. In India consumption of coffee

Per capita is nearly 85 grams and this value is 6 kg in the US. Developing countries are a great potential investment for any industry/ company.

Customer Analysis

Its customers are usually millennial, 15-45 years age group people enjoying hangouts with family and friends with blended beverage experience offered in different outlets.



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Read More:

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

PESTLE Analysis of Starbucks | Starbucks PESTLE

Marketing Strategy of Dunkin Donuts | Dunkin Donuts Marketing

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