Founded on March 30, 1971 in Pike Place Market Seattle, Starbucks has established its mettle as one of the most successful and the admired brands in the world. As of April 2012, the company had 17,420 locations worldwide with 12,570 in the Americas. What makes Starbucks a success is its innovative forward looking marketing strategy.
Unlike other companies, Starbucks has stayed away from promoting itself through ads in a billboard, newspaper, ad space or a poster. It has relied on the dictum “Real Simple is Real Effective.”
So what are the attributes of Starbucks’s unique marketing strategy that has led the company grow consistently and become a model for other businesses.
Starbucks marketing strategy is in total alignment with its holistically slanted mission statement. Starbucks promotional strategy is the unconventional and inexpensive “word of mouth” so cial media strategy. It relies more on giving a unique experience to the customers and less on bragging about itself.
Listed below are some of the important marketing techniques, which account for the success of Starbucks, and can be a huge motivation for small businesses.
• Product Quality: From the beginning, Starbucks has placed more emphasis on product quality. Their coffee is notorious for rendering a rich, delicious taste and aroma to the customers. In the midst of many upscale independent coffee houses and roasters selling premium specialty coffee, Starbucks has created a niche for itself through its unique “burnt espresso” coffee beverage profile. The company has introduced millions of Americans to the Italian espresso bar tradition.
• Third Place: Starbucks has established itself as a “go to” place between home and work for the customers. A unique “atmosphere",where people can relax, meet others and surf the Internet, serves as a powerful branding signal for the company.
• Customer Satisfaction: Starbucks knows “why customer service is important.” Their superior customer service has its imprint in everything, right from the entrance to the store to the last drop of the coffee. An important part of Starbucks’s exceptional customer service is their focus on customization. People are allowed choices and their individual needs are taken care of.
• Starbucks Community: Starbucks has created a strong online community around its brand by expanding social media viral marketing strategy. The company’s website, facebook, twitter page and blogs encourage customers to talk about their experience with Starbucks. They actively engage their customers in feedback and open discussions. Needless to say the company strives to “personally” join in the invigorating online conversation.
• Smart Partnerships: Starbucks relationship building exercise is not limited to customers, but extends to forming strategic partnerships with other businesses and Non-profit organizations. Such partnerships not only facilitate responsible business but also help Starbucks extend its reach.
• Innovation: Over the years Starbucks has made its mark using its creative and innovative genius. They have come up with different flavors of coffee, different kinds of drinks such as the Green Tea Latte, Frappuccino’s and iced teas and more food on its menu. In April 2008, Starbucks introduced a new line of regular coffee called Pike's Place Roast. They were one of the first to offer WIFI –Internet capability in their stores.
• Advertising: The “uniqueness” of Starbucks lies not only in product quality and product innovation but also in wholly original style of advertising. Starbucks oft-beat advertising is focused on “word-of-mouth.” They refrain from shouting out their products through billboards, posters or visual media. They simply provide high quality products and services and let the customers talk about it and spread the word. This advertising style is a key ingredient in Starbucks huge success.
• Social Responsibility: Starbucks active role in addressing environmental concerns establishes its reputation as the value driven company. It demonstrates its social responsibility in panoply of ways: from such little things as keeping recyclable tissues in their coffee shops to making its Corporate Social Responsibility Annual Report available for public view on their website.
By use of its solid marketing techniques, Starbucks continues to grow over the years. The company plans to open 1,000 net new stores around the world in 2012.
Many business schools have studied Starbucks subtle yet highly effective marketing strategy and have recognized it as a recipe for growth of small and upcoming companies.
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