How does starbucks advertise

In emerging markets and nations where the coffee drinking culture is not well established, it is critical to achieving a balance between these two critical factors. Starbucks, being an internationally known brand, must maintain consistent branding at all times. This includes every message sent, every piece of branded collateral created, and every part of their in-store design and experience.

The Starbucks logo alone has gone through four redesigns over 47 years to develop the famous emblem that graces your coffee cup today. According to Work Design Group, when Starbucks chose to overhaul its logo in , it encountered a unique dilemma.

Because they operate in 55 different countries, they required a brand design that would appeal to a diverse audience. As a result, the most recent logo was born. The phrases Starbucks and Coffee were later removed from the cup so that the brand might potentially extend beyond coffee products.

Unrivaled Brand Consistency This sleek, modern design attitude pervades everything they produce. Everything looks, sounds, and feels like Starbucks, from the ambiance in their stores to their Internet content to their advertising.

Even the glasses and tumblers available for purchase at the store have a clean, modern style. What was the end result? I can go to my neighborhood Starbucks and another one an hour away and have the same experience. I know their sizing will still be referred to in the same Italian moniker sizes Tall, Grande, Venti, etc. Key Lesson from Starbucks Marketing strategy: Maintaining a consistent brand experience for your customers is critical to drawing them back to your organization and turning them into brand supporters.

Its actual pricing plan is more comprehensive and sophisticated, which is critical to its success. When it comes to an offline business like Starbucks, customer engagement is the best indicator of success. There are many coffee companies, but only very few stand out. The combination of mouth marketing with quality coffee beans is what made the Starbucks corporation the success it is today.

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This website uses cookies to ensure you get the best experience on our website. Learn more. Affiliate Marketing Insider. Table of contents How is Starbucks catering to its target customers? What are the marketing objectives of Starbucks?

What is the marketing strategy of Starbucks? What pricing strategy and profit margin does Starbucks use? Business Ideas. Elizabeth Sramek.

Elizabeth is a Senior Content Manager at Scaleo. Currently enjoying the life in Prague and sharing professional affiliate marketing tips. She's been in the online marketing business since and gladly shares all her insights and ideas on this blog.

Check out our popular blog posts. Nov 8, Nov 3, Oct 21, Oct 12, Check live demo Name. The image of an ethical and accountable brand can be a major advantage for a business in an industry marked by heavy competition. Customers are generally more loyal to brands that are environment-friendly and socially responsible. Customers also notice how businesses treat other stakeholders like suppliers and vendors.

Starbucks has maintained strong relationships with its suppliers and invests in their welfare. Till some years ago, Starbucks was known for its zero investment in marketing. All the marketing was based on its brand image and the fame it had earned by offering premium quality products and superior customer service.

In recent years, it made some changes to its marketing strategy and raised its investment in advertising. Now, its ads are visible on television, print media and on digital channels too. Its TV commercials highlight the latest and most romantic flavors available at the Starbucks stores. However, advertising and paid promotions are not a central focus at Starbucks. Compare its marketing budget with other celebrity brands like Coca Cola or Nike and you will see its marketing budget is a small fraction of theirs.

Till , its focus was to spend more on having talented people on board and sourcing only good quality raw material than on using advertising gimmicks to achieve enormous growth. Its annual report stated it clearly —. In recent years, the company has started spending on marketing and advertising.

However, the budget has never touched even half a billion. Starbucks has always kept its marketing budget under control. The level of competition in the market has increased, which has led to beverages brands investing more in marketing. Customer preferences have also changed over time and so have the channels utilized to target customers across the globe. Apart from the methods outlined above, Starbucks markets itself from social media platforms.

There are more than interesting and engaging videos of Starbucks brand and products on YouTube. It has released videos related to its products, supply chain, and various other aspects of its business operations.

The coffee brand started an animated series with cute characters about life inside a Starbucks store. Twitter has also become a favorite social media channel for marketers. Companies can reach a large audience of fans and followers in real-time without spending a penny.

Starbucks has made more than 87, Tweets and has more than From its new products and inside the store stories, the brand shares all the exciting things happening at Starbucks in its Tweets.

Even its CSR achievements and all the critical milestones it has achieved are shared on Twitter regularly. A critical thing that Starbucks has achieved over time is its millions of fans and followers. He is credited to have successfully turned around the company into a global powerhouse of today. When he came back during those difficult phases, cost cutting and gaining efficiency in operations were made the primary focus areas.

More than Starbucks stores were closed in the United States alone over and The global recession also made it difficult for the company to come out of its low growth phase due to continuous cutback on customer spending. This experience of Starbucks raises some fundamental questions about the future of the brand and the strength of its brand equity.

These events beg the obvious question — when fundamental changes happen in the macro environment, should an iconic brand like Starbucks stay true to their strategic vision or continually adapt to regain competitive advantage? Another important question, in light of the vulnerability of brand equity to major external shocks, is whether iconic brands should continue to invest, build and maintain their brands in phases of long-term uncertainty, low growth, deep recession and sustained cutback in customer spending?

Answers to these questions will lay the foundation for how Starbucks wishes to address future challenges in its growth path. Increased competition: As Starbucks continues to expand into new markets and consolidates its position, it will increasingly come across different levels of local and regional competition.

The experiential aspect of the brand has always been the key differentiator for Starbucks. But the same consumer, who Starbucks educated in drinking coffee, has a much more evolved, finer and sophisticated taste for outside coffee drinking. These developed and refined preferences increases the propensity of switching and puts the Starbucks brand loyalty at risk.

Local coffee chains with strong heritage or those who position themselves as gourmet and unique can easily replicate the experience through offering superior products.

Starbucks customers, who are used to paying a premium for higher quality, will be open to switching wherever the same levels of quality and experience can be recreated. Additionally, Starbucks needs to be aware of local competitors. For example, founded in , Luckin Coffee is a fast-growing coffeehouse brand in China which is built on the same differentiation strategy as Starbucks. By May , Luckin Coffee had aggressively expanded to 6, stores, exceeding the 4, Starbucks stores in China but later shut down unprofitable and under-performing locations, leaving it with 4, stores in February In July , Luckin Coffee was found to have overstated revenue and understated net loss in , which resulted in a USD million SEC penalty, de-listing from the Nasdaq and subsequent filing for bankruptcy protection under Chapter 15 to allow restructuring of its financial obligations.

While the consequences of the exposed scandal are still evolving, the brand is still undeniably a strong competitor in the Chinese market. In order to win over a greater pie of the market, Starbucks needs to be sensitive towards local preferences and constantly provide the customer with a value-adding experience. One way it has done so is to offer larger spaces for community meetups to facilitate the Chinese communal culture, as opposed to individual spaces in the West.

Constant need for innovation: The Starbucks Idea portal is a nice start, but Starbucks needs to have a strong innovation strategy in place to compete effectively in international markets. Innovation seems to have become a buzzword that is as much misused by the popular press as it is by many brands. Given such a nature of innovation, it is a fundamental building block of iconic brands. Leading brands create their corporate strategies with an inherent strategic element encompassing innovation.

Brand strategies that are envisioned with innovation as one of the core elements affords the brand a long lasting competitive advantage that would even withstand system level shocks such as recession.

Competitors easily copy the innovation concepts in the coffee drinking industry, which include different origin espressos, season specific drinks, new flavors and additives and promotions. For Starbucks, innovation should not be limited to bringing new products to markets, but should be extended to encompass many internal functions such as innovation in channel communication with customers and other stakeholders , innovation in organizational cultures work practices and internal brand practices and innovation in implementing cost-cutting and efficiency-enhancing strategies.

Most of these are not new processes for Starbucks to administer but there is a need for consistent implementation across their global operations. It encourages everyday acts of kindness and appreciation among family and friends, by enabling users to instantly and conveniently gift a Starbucks beverage or digital gift card. First, innovation will allow Starbucks to refine and redefine its core brand philosophy in line with changing customer needs. The core brand promise can easily get lost in the competitive clutter in the marketplace.

Such a scenario will become even more plausible when the brand experiences an external shock. In such cases, the brand has to reach out to the customers to reinforce that aspect of the brand that earned the loyalty of the customers in the first place.

Second, innovation will allow Starbucks to continually adapt to the changing needs of customers, thereby protecting its competitive advantage. Whenever competitors challenge with either lower priced products or imitation of the overall branding experience, innovation will allow Starbucks to reach out to its customers in novel ways that would reiterate the core brand promise.

Need for diversification: Starbucks placed the strongest possible hint of its future diversification strategy by redesigning its logo in So, there are sure signs that the brand is taking diversification as a strategy to identify and unlock growth opportunities seriously. In addition to expanding the beverage portfolio to include alcoholic beverages, the next opportunity lies in innovation of the food products served in its stores.

Innovation in food is specifically important for Starbucks to establish foothold in emerging markets or where the coffee drinking culture is in its nascent stage. In many Asian and Latin American countries, coffee drinking is a mealtime ritual, where the importance of food consumption is high. To consolidate in such markets, having a differentiated food offering in its stores will be critical for Starbucks. Consistency in the brand experience: Starbucks puts a lot of emphasis on recreating similar levels of brand experience in each of its stores across the world.

The attention to detail to achieve this is commendable. Starbucks is not a stranger to creating a coffee drinking experience or even educating a consumer segment in how to drink coffee outside home and work.

But the concept of cultural differences in terms of how time is spent outside and for what activities need to drive the local marketing strategies for the brand. So, if the core brand values is to create a third place to have a coffee, meet and greet your friends and have a relaxed experience, then these experiences should match with the local culture. One good example is its expansion into China — how did it manage to launch so successfully in a culture of primarily tea drinkers?

The key was market research. To make its menu more relevant to Chinese consumers, Starbucks introduced beverages that included local tea-based ingredients.