Chapter 16 - Integrated Marketing Communication

No matter how good the product is, it will most probably not be successful without the use of promotion. Communication to customers is an essential key to make them aware, informed and more apt to take action. All the promotional strategies from advertising, public relation, personal selling and sales promotion must be combined effectively and efficiency. It is important to promote on each and every stage of the purchase decision making process in order to make customer buy the products. The AIDA concept outlines four basic levels of the purchase decision making process attention, interest, desire, action and indicates the most effective promotion strategies on each level.

 

Starbucks mostly attracts attention through high publicity and all kinds of direct and indirect advertisement. For example, the coffee company seems to be everywhere in NYC. The extreme appearance of the Starbucks brand on cups, stores, packages, TV, social media These outlets catch the average consumers eye immediately and unintentional. 

Simple awareness is not enough to drive a consumer to buy, interest must be created. Starbucks creates high interest by advertising their unique store experience and by public relations. For instance, Starbucks attracts interest by sponsoring communities such as the store in Harlem, NYC that shares the profit with the community.

Starbucks encourages desire by different sales promotion that persuade customers to by new products and by well trained sales people.

"In 1971, our original store in Seattle’s Pike Place Market served its first cup of coffee. Today, Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. More than 40 million customers visit Starbucks retail stores every week where they enjoy cup after cup of freshly brewed coffee.

Chapter 10 - Product Concept

A product represents "the heart of an organization's marketing program". Without a product, there would be no price, design, target market, marketing mix; promotion strategy in short there would be no business.

Starbucks products can be defined as convenience products because there are relatively inexpensive and limited shopping effort has to be invested. Among the coffee industry though, Starbucks can be viewed as a specialty product because compared to other coffee brands, Starbucks brand name, image and quality of service are key components in their company outlook. Also, the price range of the coffee makes it come off as high quality or a luxury. The coffee company has a high product mix, beside a major variety of coffee and espresso beverage, Starbucks offers different kinds café foods from their cabinet range Starbucks has been constantly expanding its product lines by developing plenty of new products.

Starbucks has an international brand name and loyalty. The coffee house has been able to establish a quality and upscale image. Its logo is well known and immediately identified on a worldwide basis. Starbucks gives many consumers a feeling of high prestige. The company stands out above other coffee houses such as Dunkin'Donuts because of their high quality product, coffee - and it's product mix width; furthermore, because of the unique store experience. Starbucks as a whole is basically the main product concept that makes the company so successful; the actual coffee is considered secondary. No other coffee brand has been able to build a brand where it’s seen as more than just a place where people grab a cup of coffee. One of the most compelling facts is that even though Starbucks products are relatively expensive and defined as luxurious, it is still affordable. Starbucks was actually meant to target the upper working class. But its brand appearance was so pervasive that Starbucks ended up attracting almost everybody throughout the world.

Chapter 18 – Sales and Promotion and Personal Selling

Sales Promotion has spread widely with Starbucks throughout United States and other nations with hopes of motivating more customers to purchase, especially in times of economical hardships where people are less likely to purchase. The coffee company uses all kinds of different sales promotion. Coming in to Spring for example, Starbucks offered half-price frappuccinos from 3:00-5:00 pm, during Frappuccino Happy Hour  “No coupon is necessary. Just enjoy Frappuccino Happy Hour at all participating Starbucks! If you’d like daily reminders about this deal so you don’t miss a day, text HAPPY to 697289” Coming into the end of Summer Starbucks brought in the Treat Receipt purchasing a Starbucks drink before 2pm and come back the same day and get any handcrafted cold Grande (16 fl. oz.) beverage for $2.00. The coffee company gave away free coffee or samples of their new petites. Coupons or " Buy one and get one FREE" are frequently used strategies at Starbucks as well.

With the awareness of each customers "coffee habits" and each specifically chosen sales promotion, Starbucks shows its major customer related concern which is typical for the company. Starbucks simply knows its customers. This relationship is also reflected in personal selling. The staff at Starbucks is not only well trained in providing advice and information about the products, but they also know how to build good customer rapport with each individual. CEO Howard Schultz stated that the company does not believe that brand sustainability can be achieved only through advertising and sales promotion. How Starbucks builds its personal relationship to each customer is the company’s key, which makes thousands of them so loyal.

Free App cards at the counter of any Starbucks

Starbucks designed "My Rewards Cards" of welcome, green and gold especially for their loyal customers in order to make them even more loyal by benefiting them (Loyalty Marketing Program). The card is the use of a re-loadable Starbucks card with which a customer can collect stars. Once gold status is obtained after 30 stars, every 12 stars are collected; from there they can be converted food or beverage product in the store.

More info can be found at 

http://www.starbucks.com/card/rewards

If you vote, coffee is on them

Added for Chapter 17 - Advertising and Public Relations

Chapter 17 - Advertising and Public Relations

Ben Stiller in Meet the Fockers

Advertising is a key element of Marketing/Business. A new business needs to elevate itself in order to be noticed. Otherwise, it would pass sooner or later because of the lack of brand awareness. Advertisement attracts attention and brand recognition; more importantly it affects customers everyday by informing them about certain products, which affects their beliefs and attitudes towards the company. However, advertisement is quite important in the way we perceive a business. After a business established its clientele, not every business stresses importance of having a large advertisement budget.

Sandra Bullock in Miss Congeniality

Starbucks is one of those companies that do not follow aggressive advertisement strategies. Today, the coffee company mostly promotes itself through their logo and cups that have a high recognition value and are seen everywhere in NYC and all around the world. Moreover, the brand appearances not only in every day life but also in the Media and in association with celebrities, promotes the company subconsciously and free of charge.

Tom Hanks in You've Got Mail

Starbucks uses in store advertisement mainly for their products. They also have a seasonal media schedule where the company advertises a specific beverage that is more likely to be purchased during that specific season of the year, for example the "Pumpkin Spice Latte" which is highly marketed at the moment. Nonetheless, Starbucks is more concerned about institutional advertisement, to point out what Starbucks is about the experience.

Chapter 15 - Retailing

Starbucks is essentially a chain store as all the coffeehouses are owned and manage by the company. They have over 170 stores in NYC. Starbucks locates It’s stores at highly observable places or central points close to Bus or Subway Stations. The company also cooperates with other retail stores such as Macy’s to create brand recognition and sell their coffee. Starbucks licenses their brand for other drink and food companies to help build as they are a specialty retailer. Their mission statement involving customer service: “When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.” Reflects a high level of the stores overall atmosphere and customer service.

I visited a Starbucks on 51 Astor Place. Located near 8^th Street  right outside the downtown 6 train (St Mark’s Place) the area has housed two Starbucks coffee shops until one closed recently. Students and late twenty to early thirty-something comprise the main clientele for this Starbucks. Nearby institutions such as The Cooper Union, NYU, and The New School provide a various mix of students, who use the coffee shop as a modified library. I ordered a standard medium roast coffee; the staff seemed genuinely friendly in taking my order as their coffee is already brewed so I did not have to wait on the other side of the counter. This Starbucks is especially large, by boasting lots of tables and few cushy armchairs. Although the building is old, it has been modified to include sunrooms on two sides.

While Starbucks’ corporate headquarters are in Seattle, NYC feels like the coffee chain’s second home, as there seemed to coffeehouses on every corer. There are lots of unique Starbucks throughout the five boroughs of New York.