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Starbucks Reward Right on Smartphones • Now Integrated with Apple Pay Psychographic

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Starbucks Reward Right on Smartphones • Now Integrated with Apple Pay Psychographic Sarah Walsh, Demeshia Davis, Lijun Jiang, Jaiwei Yuan Brand History Where it all began, Pikes Place Market - Seattle Washington Brand History • Mission: To succeed in a fast work place • Multinational coffee house company • Starbucks also markets books, music, and films through Starbucks Entertainment Division and Hear Music brand • Jerry Baldwin, Zey SIegel, and Jordan Bowker pulled 8,000 together and made the 1st Starbucks • Name was inspired by Herman Melville’s Moby Dick • Howard Schultz bought the company for 3.7 million Overview of Industry • Coffee - for some, a morning cannot begin without it. • Starbucks customers are willing to hand over $4 for a cup of coffee • Economy began to spiral downward and coffee prices rose • No one wanted to pay for $4 cup of coffee • The Begin of Coffee Wars 21,878 stores Geographics • Community Stores • Work with nonprofits that directly effect the community • Currently have 8 stores world wide • United States Stores • Starbucks has 7,049 company operated stores • International Stores • 21,000 plus stores in 65 plus countries Behavioristic • Loyal customers that come in typically once or two times a day • Starbucks makes it personal - puts your name on the cup • Paying is now easier than ever • Starbucks Reward right on smartphones • Now integrated with Apple Pay Psychographic • Main Starbucks consumer are college graduates with high income who like to socialize and share a neighborhood • The core consumer for Starbucks is the "serious coffee drinker" (upscale market) • Starbucks is also seeking to develop a market of consumer that are interested in their products being socially conscious. • Starbucks is a lifestyle brand and the company aims to attract a wider demographic of customers and so offers several products for the non-coffee drinker (or the less hardcore coffee drinker) who still wants to be a part of Starbucks" social environment Demographic • Starbucks focuses mainly on married,well educated men and women with children in the age of 40 • The actual segment turned out to be younger and less educated than expected. • The main segment represents women in the age of 18 - 43 • 42% of them have children • 33% of them are college graduates and • 54 % of them are married Demographic Target Marketing for young adults (aged 18-24) Starbucks target this group through the growth of technology and innovative ideas.Starbucks positions itself as a place college students can hang out, study, write papers and meet people. Target Marketing for Men and Women (aged 25-44) Starbucks targets this group by offering certain drinks that appeal to them. Starbucks targets this group creating the “third place” to go to between home and work - creating this unique and relaxing “experience” and “atmosphere” as customers within this range tend to have high income and professional careers. YouTube “Meet Me at Starbucks” YouTube Facebook Marketing Mix • The aim of Starbucks was to give the customer more than just a cup of great coffee. • Upon this uniqueness they managed to capitalize as a brand and establish themselves as one of the world’s most recognized and respected brands. The 4 P’s - Product • Its product-mix expanded from 8 main categories of drinks types and 7 food categories to keep up with the momentum and to satisfy more customer needs. • Four new “VIA flavored coffees”, and trying to attract tea drinkers by introducing “Tazo Tea” • They have seasonal offerings such as strawberry, cream Frappuccino in the summer and gingerbread latte in Christmas • Offer a cappuccino maker The 4 P’s - Price • To keep the competitive edge, the company began to offer $1 bottomless cup of coffee, which can be refilled any number of times and 50 cents less than any other Starbucks products • News site sates, the company is also trying to implement other value added services like, introducing $3.95 "breakfast pairings," which includes breakfast items along with a coffee (2010) • A “Tall Latte” sells for $4.50 in China where it is $3.50 in the US. The 4 P’s - Place The 4 P’s - Place • Mostly Starbucks is in to direct supply channel • Starbucks can be found in any neighborhood where there is a potential high traffic for its stores – especially with “Coffee bar” concepts • Their primary goal is to locate them in highly visible locations and opened them in clusters The 4 P’s - Promotion •Their main strategy was not to spend money largely on advertising. In 2007 only 16.6 million compared to McDonald’s 727.7 Million. •Before opening a new store, they organize big community events highlighting each locations personality •Introduced Starbucks Cards; aiming their valued customers to promote its products. While buying a gift card, the customer is not only shows brand loyalty, but it also provides free advertising, attracting new customers. •Starbucks also contributes to non-profit organizations as a way to improve brand image and awareness in local communities. The cup is empty (The End).
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