Hao Zhang Sijia Chen Robert Rossfeld Marketing Starbucks Today we are going to talk about Starbucks. Starbucks is the largest coffee chain in the world. It was set up in 1971, at that time, it was just a small store to sell coffee beans. At 1987, Howard Schultz purchased that coffeehouse and expanded it in a rapid speed. Now, Starbucks sells beverages, coffee, teas, snacks and some coffee cups. How can Starbucks rise sharply in these recent years? Yes, Starbucks great coffee is one of the important contributions, and we are also attracted by its careful service and comfortable environment. But actually, Starbucks uses these factors to make the core value of its brand. The brand core value of Starbucks is not only coffee sold in Starbucks, but the experience people have coffee in Starbucks. Starbucks use their experience as a marketing tool because coffee consumption is a kind of sensibility of cultural consumption. What s more, for coffee shop, the most significant thing is to use its environmental culture to infect customers to buy coffee. Based on the experiences, Starbucks communicate with customers not only in the field of marketing environment, but also cover some after sales service. Starbucks operate one on one service to make consumers as a leading role and make consumers fully experience their service which is very considerate and detailed. At that time, the price is no longer in the first position for people. Feeling on the product and the service for consumers becomes more and more attractive to people. These valuable experience help Starbucks build its core value. We can take China as an example. There was a survey ever conducted in some cities in China and the result showed us that more than 32 percent of people like coffee. Besides these people, there are many other people don t like coffee but they like the environment and the atmosphere in coffee shops. So, if these people always go to coffee shops; they also buy some coffee accessories like coffee cups. And those people who like coffee, they are beginning to learn how to recognize brands and styles of different coffee. So some of them spend a lot of money on tasting different kinds of coffee and then choose their favorite flavor. All above are just some subtle introduction of our topic today, afterwards, we are going to analyze Starbucks in detail. We will discuss some approaches and methods Starbucks used before and we may also learn a lot from its rising. The coffee is most popular drink in the world; people should think why it is so popular. In the Asia, People like drinking tea more than coffee, what the reason is making they would
change their taste and custom. We choose the biggest coffee company Starbucks to illustrate why people accept new drink coffee. According to different market conditions around the world adopt flexible investment and cooperation mode. Like McDonald's global expansion, Starbucks began very early transnational business in the world, generally adopted three business structure: joint ventures, licensing agreements, self owned. Starbucks' strategy is more flexible; it will take the appropriate model of cooperation based on market conditions throughout Asia. Starbucks model of cooperation with the rest of the world, there are four situations: 1. 100% stake in Starbucks, for example, in the UK, Thailand and Australia; 2. Starbucks accounted for 50% stake, such as in Japan, Korea and other places; 3. Starbucks shares representing less, generally about 5%, for example, before China's Taiwan, Hong Kong, Hawaii and replenishment of Shanghai and other places; 4. Starbucks does not account for the shares, purely authorized to operate, such as in the Philippines, Singapore, Malaysia and Beijing; Starbucks partners in different parts of the world, but operated by the brand are the same. John Hsu, general manager of Shanghai unified Starbucks, said the benefits of doing that, "it can borrow someone else's power to help it do a lot of things, but one and the same time to do together." In general, the equity ratio Starbucks held in a particular area is larger; it means that it has become increasingly important place in the market. In addition, Starbucks partners to develop a rigorous selection criteria: reputation as collaborators, quality control and whether Starbucks standards to train employees. Starbucks think their product is not only coffee, but also the coffee shop experience. Studies have shown that: the primary goal is two thirds of successful enterprises to meet customer needs and maintain long term customer relationships. In contrast, those companies with poor performance, it is not enough work has been done, they are more energy is placed on reducing costs and eliminating bad assets. Starbucks is one of the main competitive strategy is to communicate with customers in the coffee shop, with special emphasis on communication between the customer. Each attendant must undergo a series of training, such as basic sales skills, basic knowledge of coffee and coffee making skills. Required waiter can be a premonition each customer's needs. In addition, Starbucks coffee is more than good "experience": If the atmosphere
management, personalized store design, warm lighting and soft music. Like McDonald's has been promoting the sale of joy, like Starbucks and gradually break down into the American culture can experience things. "Customer oriented": "seriously treat every customer, a customer that only cooking a cup of coffee." Phrase taken from the old Italian cafe craft spirit of the corporate philosophy, through the secret of the rapid rise of Starbucks. Focus "oneatatime" (current experience) concept, emphasizing every day at work, life and recreation, the careful management "present" This time of life experience. Starbucks also strongly emphasized the American consumer culture; the customer can freely talk and laugh, even moving furniture, random combinations. Such experience is part of the Starbucks marketing style. The promotion of consumer education To promote the habit of drinking tea in a country where coffee and popularity, it is inconsistent with the first encounter on consumer sentiment. Starbucks first efforts to promote "education consumption." Through their own stores, as well as to a number of companies to open "coffee room", and through its own network, set up a Starbucks coffee club. Customers spending time at Starbucks, cashier except name, other than price, but also in the cash register, type the customer's gender and age, otherwise there cannot open the cash register. So the company can quickly know the consumption of time, consumption of what and how much money the customer's gender and age and so on. In addition, the company will ask a professional company to do market research annually. It is precisely because Starbucks put the customer first policy, just let them become the world's largest coffee company. used: Here we are going to talk about some Selling point/pitch, advertising strategies Starbucks A. Appeal to students by creating a social atmosphere around coffee. The strategy for appealing to students and creating a social atmosphere around coffee is all about location. By placing a Starbucks on as many campuses as possible, they are able to continue to reach the same target audience. 1. Make coffee synonymous with starting your morning with energy. It s important to market our coffee as an essential part of the customers morning. 2. Race Together Purchase with a good conscious.
The recent campaign, Race Together, is an attempt at changing race relations for the better. It was met with controversy, but that s part of the plan. The basic concept is to have Starbucks employees discuss race with customers. They are trying to open the lines of communication on an important social topic while still selling coffee. Some people argue that it is immoral to use such a sensitive topic as part of a marketing strategy, but I disagree. Is it not better for Starbucks to use their platform to try and invoke positive change in the world rather than just focusing on selling more coffee? And in doing so, they create an atmosphere of being part of something bigger, even though they are just selling coffee. While other big name businesses continue to try to appeal to our emotions by peddling happiness, like Coca Cola and Mcdonalds, Starbucks is venturing into a strategy that could actually benefit society. Customers will notice, and when they do, they will be customers for life. This is the core of Starbucks advertisement strategy, and it s one that should catch on. In general, we think Starbucks make itself successful because its great environment, perfect relationship between workers and its best strategies. Starbucks made itself not only a coffee shop based on a lot of effort. It built up its own supply chain in the world and set up more and more shops all over the world. It sells only only coffee but also people s experience with coffee. It also does a good job in advertisement. All of the methods, approaches above make a successful Starbucks today and we can also learn a lot from its success. References
Horovitz, Bruce. "Starbucks, USA TODAY Team to Tackle Racial Issues." USA Today. Gannett, 19 Mar. 2015. Web. 01 Apr. 2015. Wang, Fang. "Starbucks's Policy." Starbucks's Policy. Zhejiang Financial College, 12 June 2011. Web. 03 Apr. 2015.