Starbucks

Marketing Strategy (4 P’s) Product: While coffee remains the core product and focus of Starbucks, the introduction of various new products has expanded the Starbucks product portfolio. For example, the acquisition of Tazo Tea has allowed Starbucks to provide new offerings such as tea-only stores (Blessing). Also, as part of the marketing campaign, Starbucks is making a push for its store employees to provide customer with exceptional customer service. For example, part of the campaign is highlighting Starbucks willingness to remake a drink for a customer if it is not satisfactory. This will ensure that Starbucks is always putting the best product forward. Pricing: Starbucks has always offered a range of products that vary in price. With the economy slowing starting to gain momentum, Starbucks’ main objective must be to keep prices on par with competitors. In addition, a market opportunity presented itself during the recession – at home coffee drinkers. In order to capitalize on this market segment, Starbucks must price there at home coffee selections closely to competitors such as Dunkin’ Donuts, while also balancing economic factors such as distribution costs, fair-market costs, and more. Promotion: Starbucks will continue to adopt new promotional outlets in order to reach consumers. An active participation on Web 2.0 platforms, televisions advertisements, and email marketing will all be utilized to promote products and initiatives. Initiating contests for customers to participate in will be a main focus. These can range from coffee bag design contests, to social media contests integrating platforms such as Instagram and Twitter. One more promotional opportunity that will be utilized is participation in “Daily Deal” sites such as Groupon and LivingSocial, in order to associate the Starbucks brand with affordable deals. Placement: The traditional methods of distribution will continue to operate the placement of