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