Ch. 7 - Business Marketing

Strategic Alliances of Starbucks

1. AT&T

    If you visited any of Starbuks coffee shop, You can use AT&T wireless services
    without any charge. some of my friends said the wireless speed is big reason for
    choosing coffee shop amongs many coffe shops. When they satisfied with wireless
    condition, they would get positive image to AT & T, even though customer
    visited Starbucks.

2. Barners &Nobels

As previous post, Starbucks make relationship with Barners & Nobels. Almost of  Barners & nobles bookstores have cafe with starbucks menu. Unlike Ragular Starbucks coffee shop, B&N cafe have limited flavors and types. The target of this store is book shoppers who think about drinks with book, not a regular customer. If their goal is just drinks, They will move to another regular Starbucks coffee shop. As a result, B&N cafe has basic and popular menu from regular Starbucks coffee shop. Also, those cafes run from Barners and Nobels.


3. CUNY schools

    Have you ever been cafeteria in 1st floor? If you said 'yes', What kind of brand coffee
    is there? The answer is Starbucks coffee. If you visit other CUNY schools, such as
    Barauch colleage and Hunter colleage, you will be able to find cafeteria with limmited
    Statbucks coffee menu. Same as Barners & Nobels Cafe, This caffeteria doesn't run
    from Starbucks company.

4. United Airline

    If you used United Air line, You can find Starbucks logo. easily in the air craft.
    coffee cups in the filghts have both company’s logos, Starbucks and United Airline.
    This method has limited person and limited time, but they would be exposed again
    and again in limmited time. 

5. Apple

Starbucks make relationship with apple in musical partnership. The musical partnership is between Starbucks and i-Tunes, an alliance that has formed the "song of the week” program. As becoming Starbucks member, you can get free song in every weeks for apple product user.

 

 

 

 

 

Biblioghaphy

 

Larson, Rebecca. "Marketing Strategy and Alliances Analysis of Starbucks Corporation".     
           Lynchburg, VA. Liberty University school of bussiness, 2009.

Ch. 8 - Segmenting and Targeting Markets

Segmenting of Starbucks

 

For starbucks, market segmentation is very meaningful. because Starbucks Started from market segmentation. Starbucks was a coffee machine shop, not a coffee beverage seller. When Starbucks started as a coffee machine shop, They sell all about coffee, except coffee drinks. Ten years from open their bussiness, Starbucks was a just small coffee wholesaler. However, Starbucks becomes the biggest coffee beverage chain in the world after market segmentation. Starbucks segmented market as several parts, and started to focus thier abilities to one part. The part that Starbucks  focused was people who likes drinks coffee ,but dislikes making coffee due to laziness. Starbucks started to use their esspresso machines and coffee for serving good quarity of beverage.

 

After getting success, Starbucks extend target market to people who want drinks. Starbucks starts to serve non-caffine drinks such as 'Tazo Tea' and lamonade drinks. Nowadays, Starbucks starts to focus on people who want something to eat. Starbucks made thier own bakery brand, 'La boulange', and make several kinds of bread products. This is a new target market, people who want something to eat during tea time. Courtesy of market segmentation, Starbucks can get a huge success as No.1 worldwide coffee chain. as a new market segmentation, Starbucks move a step forward to become the biggest Food company in the world.

Ch. 11 - Developing and Managing Products



Starbucks La Boulange New menu

If you visit starbucks store, you might see a showcase which has many breads and mufins. It's called 'LaBoulange'. Starbucks' main menu is drinks(coffee), but many people are looking for something to eat with their drinks(coffee). Many customer want to eat a piece of bread, mufin, and cookie. As a result, those are selected as a friend of Starbucks coffee. I think this addition of La boulange menus is 'Additions to Existing Product Lines' starbucks sold bread(Existing Product lines) Starbucks make several kinds of new breads by using existing product lines and creating new product lines.

  - Promotion video: http://www.starbucks.com/promo/laboulange

Why they make new bakery menus instead of new drinks?

 

'09 Starbucks' gross profit decreased about 6% by being laurnched new coffee brands, because Starbucks sold only coffee at that time. For improving, Starbucks' CEO changed their mind. Starbucks started to invest $750 milions for bakery and related industries, and three years later, Starbucks got amazing sales margin. Statbucks' Q3 sales increase about $15 million than last year, also Q3' gross profits increase about 20% than last year. Starbucks overcome crisis of managing by imprving product line.

Ch. 18-Social Media and Marketing

Starbucks with Social Media (Facebook)

 

 

Starbucks runs their own Facebook page. This looks like 'Fan page' of celebeties. Starbucks facebook page has 35,435,439 likes right now. It is more than 10% of The U.S. citizen. The people who liked starbucks on facebook will be exposed on starbucks' posts automatically,even thogh it is a advertising. Therefore, Starbucks uses Facebook page as a way of advertising chennal. It is very effactive way. Starbucks' main target age is 10s~40s. They really famillar with internet, and they use facebook 'news peed' several times in a day. If you liked one page, you can see all the posts of that page. It means, Starbucks advertises one post to 35,435,339 people who interested at starbucks in the world without any advertising expense, whenever they scroll down 'news peed'

Starbucks with Review sites (Yelp.com)

Starbucks' Facebook page is made by Starbucks company, but yelp.com's starbucks ratings and reviews are made by customers. Therefore, you can find more objective rewiews of Starbucks coffee than Starbucks' Facebook page. Most of people believe that 4 stars rating or more means very good quality of service and taste. Those information will help other customer's choice.

Ch. 10 - Product Concepts

Trademark 

 If you saw white paper cup with green logo or plastic cup with green straw, you would imagine Starbucks immidiately. I guess if you can recognized some brand by some particular things. For example, if you see the box which is covered Tiffany blue, you will recognize the box come from Tiffany Co. Also, big yellow M is symbol of MacDonald's. Like those company, Starbucks has their own special mark and color. 

Starbucks' logo 'seiren'

first of all, Starbucks has thier on logo. Starbucks' logo is 'siren'who is known in Greek mythology. She was locked in island by god, because of her wicked act. She had beautiful voice, so she attracted human to her island. Starbucks made thier logo which is motived from Greek mythology. Starbuks expact 'Seiren' in the starbucks logo will attract people to starbucks. the orginal logo was brown one, because starbucks started coffee whole-saler and coffee machine shop. At that time, brown logo might refresent coffee. As changing as a coffee beverage company, Starbucks made their loge with green and new design.

Starbucks' color is 'green' 

 Secondary, Starbucks' symbolical color is green. If you visit any starbucks, the emoloyee of starbucks would wear green aprons. In addition, all the straws are green, too. Because of those atmosphere of store, green becomes the main color of Starbucks company.

Ch. 17 - Personal Selling and Sales Management

Starbucks membership(retaining loyal customer)

When you register starbucks member, You become starbucks' family. Starbucks uploads your infommation on main server, and starts manage you as royal customer.

Starbucks celebrate your birthdays every year.

First of all, Starbucks send celebration e-mail and text for every birthdays.  also, if you visit Starbucks from your birthday to a week later, you cans get a 'Free drink' as swipe your starbucks membership card or scan your mobile bar code.

 

Starbucks send special offers for you by e-mail.

Those big deals are only for registered Starbucks' royal family. As your level is higher, you will get better special offers. It is suddenly popped up and has time limits. For example, $2 off Esspresso shot coupon or $3 off food coupon.

Stabucks recommend free musics for ios users.

Starbucks send free music download coupon for i tunes. those musics are mostly related seasons. also, most of musics aren't famous. therefore, you can enjoy other genre's music that you've never meet.

Promotions are for general customers, but Those birthday free drink, special offers and free musics are only for registered starbucks members. Those benefits are the biggest reason that starbucks members keep visit starbuck again and again.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Advertising

Where can you watch Starbucks' illustrations? The answer is on Starbucks coffee cup. Starbucks' the biggest advertising is cup which is printed Starbucks logo. If you saw someone who hold starbucks coffee when you work in streets or you are in the park, you would be attracted. Starbucks customers is moving billboards as holding Starbucks coffee cup.

Promotion

- Happy Hour

1. Starbucks company have 'Happy hour' that is Between 3-5 p.m.
If you visit Starbucks coffee in 'happy hour', you can get a half-price Frappuccino® blended beverage of your choice in .



2. If you visited Starbucks coffee before 12 P.M., You can get free refill after 12 P.M. with your recipt that pachasied on same day before 12 P.M.

-Starbucks Rewards

Starbucks card is a way of promotion. Starbucks membership have three levels: welcome, green, and gold. each level have different own benefits. For example, you can get a free refills in the stores on green level. also, you can collect stars from each transactions. Your star can be used for your free drinks

 

 

-Come together

 

This promotion's concept is a customer buys the next person in line their favorite beverage. It means, If you come into Starbucks and buy someone else their favorite beverage, we’ll give you a free tall brewed coffee. Starbucks want to connect each other ,and they willing to come together with your friends.

 

Ch. 14 - Marketing Channels and Retailing

Retail Marketing Strategy

 

Have you ever vistit Barnes and Nobles? Barnes and Nobles has B&N Cafe, and it Starbucks coffee shop. A combination of Book and a cup of Coffee is one of the best friends in the world.

 

Defining a Target Market

Starbucks focus on the people who read the book witout drinks. Almost of bookstore are banned drinks, so you have to wait your drinks by way you out. I classified this defining as psychographics

Choosing the Retail Mix

Product

Unlike Ragular Starbucks coffee shop, B&N cafe have limited flavors and types. The target of this store is book shoppers who think about drinks with book, not a regular customer. If their goal is just drinks, They will move to another regular Starbucks coffee shop. As a result, B&N cafe has basic and popular menu from regular Starbucks coffee shop.

 

Promotion

B&N Cafe have Special discount for Barnes and Nobles members. If you have Membership card for Barnes and Nobles, you can get 10% discount for several items.

Place

When you take rest in home, you may read books with some drinks. However, if you couldn't find a book to read, you can visit B&N cafe. you can find some book and bring to cafe and read with coffee without charge. I thinks there is no place better than bookstore. Reading a book with fragrant coffee and comfortable seats will be peaceful and healing time for busy city people.

Presentation

Even if, you didn't know B&N cafe is starbucks, you can recognize this is starbucks by seeing interior design and employer. B&N Cafe looks almost same as Starbucks stores, but B&N cafe's atmosphere is warmer than others. B&N Cafe's seats are more comfotable, because average of staying time is longer than other Starbucks coffee shop. I asked staff Staffs of B&N Cafe belong to Barner's and Nobles, not a starbucks company.

Ch. 6 - Consumer Decision Making

Consumer Decision-making Process

Need Recognition

Starbucks is related with the basic and physiological needs, thirst. We can easily find those needs wherever in our life. For example, you are way on school in summer. You feel thirsty. in front of coffee shop, you are in think you will get some drinks or not. You can also find those needs in cold weather. You didn't expect that it is cold day, so you wore light. but it is cold, so you may find some hot stuff. you will find a cup of coffee. Those two needs are rudimentary needs for Starbucks company.

Information Search

Customer need information for making decision. There are two ways, 'Internal information search and External Information search' First of all, you may follow your memory. you will try to remember coffee shop where you visited and taste of coffee. This is internal information search, and the most important search for making decision.if you don't have enough information in your mind, you will start to find external information search. the easiest way is ask friend or family. Their recommend will help you make decision. Also, you will search internet for blog posting or news. those ways are Non-controlled information. you may meets some adverting during the searching process. Starbucks advertising is well-known marketing-controlled information. Advertising on TV, internet, or newspaper. Actually, Starbucks' the biggest advertising is cup which is printed Starbucks logo. Starbucks customers become moving billboards as holding Starbucks coffee cup.

Evaluation of Alternatives and Purchase

Evaluation of Alternatives is the last step before purchasing. Nowadays, you don't need to evaluate yourself, because there are many website for rating. Yelp.com is one of famous evaluation applications. Even though, you search some place from internet or cell phone, you can see automatically rating of place from pre-visitors. Alternatives of Starbucks are the Coffee Beans and leaves, Aroma Espresso, Dun kin Donuts etc. if you search those stores, you can get Strengths and weaknesses each stores.Those information from evaluation applications will help you to make decision. However, It is personal idea, so you can't believe at all. End of all considering, You will purchase your drinks. 

Post purchase Behavior

Post purchase behavior is everything after purchasing products. Feeling, talking with friend about products, writing a blog post, or Returning products. all of those behaviors will affect to other decisions, because those behaviors become non-controlled External information. For example, yelp.com's customer review is one way of this process. Nowadays, Those reviews are powerful. In Korea, we have 'power Blogger' as a job. When I worked in restaurant, I met a power blogger. He rated my restaurant as very good in his blog. It affected immediately to customers. 60% of my customers made decision to visit my restaurant by power blogger's posting. 

Ch. 5 - Developing a Global Vision

External Enviroments

Culture

Nowadays, Starbucksbecome a 'Glober coffee franchize'. Starbucks has 20,891 stores in 62 countries. However, There is only few starbucks in India and near nations. India and near nations were colonies of The Great Britain in 1800s. At that time, The Great Britain's major Export was 'Tea'. As a result, India and near nations had tea culture instead of coffee. Following a research, India and near nations still have bigger tea consumption than coffee's one. It means, their main drinks is tea. As a result, Starbucks have only few stores in India, and growth rate is lower than other countries. This stuation is cause of cultural background. If Starbucks want to have more wide market than now, Starbucks need to read culture.

Mistake of Reading Culture Case

Starbucks opened the first Starbucks store in Vietnam on Feb, 2013. however, their business is under the company's expactation. The reason is 'Culture'. As different as China and India, Vietnam has popular and high-quality of coffee culture instead of tea. Starbucks expact successful store extention, because of succeeds of Thailand and Malaysia. However, Vietnam customers disregard Starbucks Coffee. The reason why, vietnam's coffee style. Vietnam has very strong taste of coffee, more than esspresso. Therefore, starbucks coffee was not coffee for Vietnam customers. They made new coffee style for only vietnam, but still low growth.

Successful Case of Reading Culture

China has the most famous and oldest tea culture among Asian nations. Starbucks have started to open in china since 1999. Many people predicted, it seemed impossible that Starbucks would be able to break into this market. However, Starbucks focused on Mid-class(econormical) of China. End of 1990s, China started to be exposed to westen products and brands. Mid-class longed to western culture. Starbucks have strong appeal to Mid-class who fantasize about Western coffee culture as a symbol of modern lifestyle. For the youngs, Starbucks was good example of Western coffee culture, and youngs created 'Starbucks culture'. Starbucks became a culture for the young. in Addition, one of Starbucks’ best practices is to send their baristas from company and train new employees. Because of this pratices, in early 2000s, north-east Asia had 'Stong wind of Barista'. Starbucks coffee is well-known as premium coffee by profesional barista. As a result, Starbucks have luxuary name value, and customer started to buy Starbucks coffee, even Starbucks coffee had high price than other coffee frenchize. China has over 1300 stores, and also becomes second biggest market following the U.S in 14 years. Starbucks is successful in china.

Bibiliography

Wang, Helen H. Five Things Starbucks Did to Get China Right, Forbes. First.
        Aug 10th, 2012. Oct 10th, 2013

Ch. 4 - The Marketing Environment

Demographic Factors

 

- Tweens(8~12)

     Tweens are the biggest potential customers in the future of all market sections. Therefore, attracting tweens to Starbucks is really important to company's development. Starbucks' best selling product is Coffee. However, coffee isn't allow to children, usually. Caffeine can be hamful to children, so Starbucks has Kid's menu, Apple juice, steamed milk, hot chocolate, and so on. building positive relationship with customer is the most important way of marketing, especially when they are young. If customers have bad attitude to one company, they wouldn't be customers of that company when they grow up.

- Teens

      Teens starts to think about shopping, and their friends are the most powerful effects to teens. If they have to buy somthings, They will ask to their friends. not to their parents. As a result, they need space to talk, access of internet, and something to drink during the conversation.  In addition, Students have light purse, so they are sensitive to price. Therefore, they need to find reasonable price to them. Starbucks coffee shop fits to those conditions.

-20' to 40'    

     Twenties to Thirties are major customer in coffee market. For 20'to 40', coffee is the starter of a day and finisher of a day. For example, if they didn't get breakfast, they would get some drinks during the way of work place or school. In addition, they lives in busy life. They starts to work, so thier finacial status are usually stable. Therefore, they choose a coffee shop as how close to thier school or workplace. In Chapter 2, I found Starbucks' accessiblilty as the 'Strength' of Starbucks. You can find over hundreds of  Starbucks coffee shop in the manhattan. You can find same flavor and same menu in five to ten minutes.

 

-Elders

 

have you ever been to Starbucks in suburban? The Starbucks is meeting room for villager. You can talk with elder of village without wall. They know people who sit near their table. you can encounter your neighbors. if you ask "what are you doing, here?", they will answer "I just looking people. I'm alone in my house, because my son and dautgher go to work. If I sit here for 2~3 hours, I can meet my friend without plan." for elders, Starbucks can be a day-care center with coffee.

 

 

Conclusion 

Starbucks is known as the most famous coffee shop in the world. Starbucks' targets are people who want dirnk. No matter how old s/he is, no matter how much their income is, they will serve Starbucks coffee to their coffee. Starbucks just require to their customer afford to $3~$7 coffee price. It's almost same price with a bottle of water.

Ch. 3 - Ethics & Social Responsibility

For Coffee

Starbucks collaborate directly with coffee farmers. Starbucks made first farmer support center at Costa Rica in 2004. As helping coffee famers, Starbucks expacts to encourage responsible growing practices and improve the quality and size of coffee harvests.
Starbucks has plan to 2015 and has continued to expand the program. In addition, Starbucks shares coffee knowledge with farming communities through Starbucks office in Guatemala City and additional farmer support centers in Kigali, Rwanda, and Mbeya, Tanzania to improve the quality of coffee.

For Recycling

If you visit Starbucks near our school, 120 Church St, New York, NY. You can find recycling box which looks like this picture. this is called Front-of-Store Recycling. You can guess easily where it is located. It's located in front of store. As setting this recycling can, almost 94% hot cups would be able to recycle.




In addition, Starbucks has discount policy to use reusable personal tumbler. if customer used their own tembler, you can save 10cents for each cuffees. Nowadays, only 1.5% of customer used their tembler. Starbucks promoted using personal tembler, and made beautiful and fancy designed temblers

 

For Cummunity

In 2012, civic leaders and nonprofit organizations contributed more than 613,000 hours of service around the world. During April’s Global Month of Service, volunteers made a significant impact in more than 33 countries around the world.

Starbucks created the Youth Action program in 2008, and they set a goal of engaging 50,000 young people by 2015. These youth leaders in turn mobilized more than 1.8 million hours of community service in 2012 and created ripples of change in communities around the world. Starbucks helps many young people can build successful and socially responsible thinking, surpports nonprofit organizations, either.







by 2012 Global Responsibility Report: Year in Review, Starbucks Co.

Ch. 2 - Strategic Planning for Competitive Advantage

1. SWOT analalysis

 - Strangth: You can find same menues, and flavors in differrent countries without menu board. In addition, If you have Starbucks card, you can add to your smartphone application easily. Therefore, you can buy a cup of coffee with your smartphone, not with a heavy, thick, and old-fashioned wallet.

 

Starbucks has also machines that can make Starbucks drinks at home. If you have this machine in your home, you don't need to go to Starbucks branches in a freeze day.


Homemade Drinks Machines of Starbucks

 - Weakness : First of all, If company made new drinks, they have to consider all of worldwide trands. secondly, changing style is really hard to company. customer used to your drinks, so if company change something in drinks, customer will recognize it immidiately. As a result, company can be turned over.


 - Opportunity : Starbucks is a worldwide coffee shop, so company has many customers in differant countries. Their customer can be a each opportunity. In other words, company can give reseach to customer for new items. They will get responses by sales revenue.


 - Threats : There is many risks. First of all, coffee shop is already red-ocean. So many coffee franchises are upcoming, like The Coffee Bean and Tea Leaf, Aroma Espresso bar, and local single coffee shops, too. Therefore, if company loss their truth from customer, in the ways of taste or service, customer will find another stores instead of Starbucks.

 

 

Product Strategy

Starbucks makes 3~5 new drinks every seasons. Mocha cookie Frappuccino and Java Chip Frappuccino that blended beverages for last summer season, and Pumkin spice Latte and Salted caramel Mocha that fit to cooler weather beverages for this coming fall season.

Those seasonal drinks attrack people who want to feel changing weather. also, those drinks represent things that people want to feel in each season. Blended beverages represent cool things for summer, and Pumkin Latte or Caramel Mocha represent warm things because of low temperature.

Distribution strategy

Have you ever work through fifth avenue in New york City? How many starbucks chains can be found? you can find at least one Starbucks chain in every miles. It means, if you want to drinks any Starbucks coffee, you can get your coffee in 5 minutes on New York City. Even though, if you want your drinks in the midnight or 3 a.m, you can get your drinks in some chains near 42nd street Time Square. In addition, if you go to Japan,korea, china to trip, you can find Starbuks drinks exactually same one that you had in New York City.

Promotion strategy

Starbucks is always on promotion at least one. Basically, Starbucks card is a way of promotion. Starbucks membership have three levels, welcome, green, and gold. each level have different own benefits. For example, you can get a free refills in the stores on green level. Secondary, StarBucks have Happy Hours. If you got drink before 12p.m, you can get same drink after 12p.m with your vaild receipt.

Price Stategy

Someone said Starbucks' tall size( It is small size on the other coffee shops) coffee is so expansive. It could be a ture or fulse. tall size regular coffee is 12oz and $1.93. however, venti size regular coffee is 24oz and $2.25. Compare those two coffee. The portion is exactly two times. Contrastively, the price gap is only $0.32. It says, if you ordered bigger one, you can get your bigger drinks with two quaters.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

The First Starbucks chain in Seattle,WA

History - 

Starbucks Corporation

The most world famous coffee shop started from tiny coffee bean wholesales store named Pequod, which sold coffee beans and roasting machines, by Jerry Baldwin, Zev Siegl, and Gordon Bowker, who met when they were university students in 1971. From 1984 to 1987, Starbucks started to sell espresso and to make foundation. Finally, Starbucks became a coffee shop like a nowadays Starbucks. 

Starbucks in a No.1 coffee house in the world, with 20,981 stores in 62 countries 

(13,279 in the United states, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United kingdom, 556 in South Korea, 337 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany)

Mission Statement of Starbucks

Our Coffee

It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this;

Our Partners

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.

Our Customers

When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.

Our Stores

When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life-sometimes slow and savored, sometimes faster. Always full of humanity.

Our Neighborhood

Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action-bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility-and our potential for good-is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.

Our Shareholders

We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive.