Friday, December 14, 2012
Monday, December 10, 2012
Chapter 7 - Business Marketing
Business
to business commerce according to MKTG 5th Ed. textbook is the use
of the Internet to facilitate the exchange of goods, services, and information
between organizations. This has become a significant revenue source for
Starbucks. Besides the company profitability that the company gains,
Starbucks also expands their market reach, brand recognition and improves
product representation through B2B commerce.
The firm primarily communicates with other businesses in form of business strategic alliances and by selling their products directly to other business. Starbucks forms alliances with other companies and social groups throughout the world, within the same interval they are refining the company's brand awareness and reputation; additionally, they are familiarizing the brand name and products to potential new customers on a regular basis. For example, Starbucks has partnered with Barnes and Noble bookstores since 1993. They established an in house coffee shop in various Barnes and Noble stores. Starbucks also has formed an alliance with United Airlines, offering the company's coffee in brand labeled cups on board. The coffee company has formed an alliance with ice cream manufactures to use the Starbucks flavored ice cream and brand. The firm partners with the National Association for the Advancement of Colored People (NAACP). The collective purpose of this alliance is to support the advancement of both parties' goals, which is to fight for social and economic equality. These are only a few instances of the many alliances that Starbucks has been taking care of. The company fixes great deal to rapport marketing. Starbucks shows to be a reliably dedicated that guarantees top quality and satisfaction.
"Starbucks Business Alliances provides our
customers with a custom Starbucks coffee programmed which is tailored to the
business partner. A consultative relationship based on proven success, industry
expertise and an overall commitment to quality. It’s a commitment that begins
with our selection of the finest coffee beans and doesn’t end until the
customer savors the world’s finest cup of coffee." Starbucks for
Business
Found
at http://starbucks.co.uk/business
Monday, December 3, 2012
Chapter 8 - Segmenting and Target Markets
Through the use of market segmentation, marketers can address and their customers specific needs for each group more accurately. In doing so, resources can be distributed correctly and the marketing mix can be adjusted to fit marketers expectations.
Starbucks
incorporates a strategy to break down their own market from others in order to
sell their products more efficient and effectively. The coffee company predominantly
uses demographic and psycho-graphic segmentation.
Starbucks
focuses mainly on married, upper class and sophisticated men and women with
children in the age of 40. Therefore, the coffee house created a mature and
high prestige image and also provides beverages and food that appeal to
children in order to appeal to their ideal segment. The actual segment turned
out to be younger and less educated than expected. The main segment shows women
in the age of 18 - 43, 42% of them have children, 33% of them are college
graduates and 54 % of them are married. A large demographic of Starbucks
consumers are college graduates with higher-end income who like
to socialize with friends and community. The coffee house locates its
retail stores in central spots of a neighbor hood such as train stations because
these spots are more convenient for everybody in a community.
Starbucks
practices a concentrated targeting strategy by directing their attention at one
segment, which is the gourmet coffee drinker. This is how Starbucks’
defines its niche and label their selves as a high quality product. After
establishing their niche, Starbucks constantly blankets its product line to
keep its only segment excited.
Thursday, November 29, 2012
Monday, November 26, 2012
Chapter 11 - Developing and Managing Products
Developing new products and to be up to date
plays a crucial role in today's rapidly moving business world. Innovation is
the key of developing new products. Starbucks is considered as the most
developing company in the specialized coffee industry. Starbucks provides its
customers with new exciting beverages, food items and a unique store experience
throughout the year. Coffee is nothing new to the world, and basically all the
items Starbucks offers do exist already. But nevertheless, Starbucks
makes it happen to update their own company to a overall new experience by creating new product
lines, adding new products to existing product lines, improving or revisions of
existing products, re-positioning products and innovating customer
experience.
Over the thanksgiving period Starbucks
brought out a “Thanksgiving Blend”
roast to enter the established market of "light blend" coffee
drinkers. The coffee house adds new products to its products lines throughout
the year. For example, Starbucks extends its line every season by introducing
specific seasonal drinks such as the caramel cream brulee or pumpkin spice
latte.
The Starbucks ready brew instant coffee is one of Starbucks improvements of already existing products. "Other instant coffees taste flat and lifeless. Starbucks VIA® Ready Brew is different – it’s full-bodied and flavorful, just like the Starbucks® coffee you know and love." Starbucks guarantees the innovative quality of its instant coffee by promising a packet of the traditional house blend in case of dissatisfaction.
Starbucks has been constantly
introducing new products. However, in Starbucks CEO Howard Schultz opinion
Starbucks was not always innovating new products.
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