Exploring Starbucks’ Marketing Strategy: The Secret to Success

What is Starbucks’ target market?

By thoroughly understanding its target audience and tailoring its offering to specific needs, Starbucks has managed to stand out from competitors such as Costa and Cafe Coffee Day.

Being a premium coffee brand, Starbucks has most of its customers in the upper economic segment. It targets juvenile people and people who are looking for a still space to drink coffee. Its upper-end customers are in the age group of 22-50, both male and female. So, Starbucks’ target market is:

• High-income earners
• Health professionals
• Early adopters of technology
• Youthful people addicted to coffee

Profitable Starbucks Marketing Strategies

Marketing mix Starbucks segments its customers on a socio-economic level. A distinctive offline experience and consistent online marketing efforts have made the brand unique.

Marketing mix

Starbucks’ marketing mix incorporates the four Ps very well.

• Product: High-quality products justify the higher price. They guarantee that the coffee tastes better than the competition. Their promise of Barista to fix your drink if you don’t like it has attracted the masses.
• Price: Starbucks sells its coffee at least 25% more costly than other brands. It offers its customers unique beverages and food, charges more, and people are willing to pay.
• Promotion: From social media to TV and advertising, the company uses various channels to market its products. The mix of marketing media makes them stand out. Compared to other major global brands like Apple, Starbucks spends the least on marketing but can still make an impact. Why? Starbucks’ solid marketing strategy made all the difference.
• Location: Each Starbucks location has a similar, upscale, relaxed atmosphere that attracts crowds.

Summary: Your brand can charge a higher price if it provides premium customer service and delivers better products than your competitors.

Digital expansion

Starbucks marketing strategy includes digital customer interactions by implementing up-to-date ways to attract digitally registered customers. It offers mobile ordering and Wi-Fi login services in its stores. The possibility of going cashless with Starbucks cards has further accelerated the company’s business.

Starbucks Social Media Strategy

Starbucks social media accounts feature distinctive branding, visually appealing content, and interactive posts that drive engagement. The diverse range of content includes eye-catching photos, videos, recipes, articles, and more. In addition to visual appeal, Starbuck’s social media marketing strategy divides the content stream into a series of campaigns.

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Starbucks Campaigns

Starbucks campaigns can be divided into three categories that augment brand awareness:

• Starbucks Product-Based Campaigns: The company promotes unique and fan-favorite beverages. It even created social media profiles for customer favorites—the Frappuccino and Pumpkin Spiced Latte. They post relevant memes for their audience. Leveraging the power and sentiment of consumer imagery, the brand often reshares them on its official channels.

Starbucks Frappuccino

• Starbucks Corporate Social Responsibility-Based Campaign: Using social change as a marketing tool, Starbucks positions itself as inclusive and open. Its #TheExtraShotOfPride campaign gained popularity due to its support of the LGBT+ community.
• Community-Based Campaigns: Another significant aspect of Starbucks’ marketing strategy is its emphasis on highlighting communities and individuals. They rely on storytelling to showcase acts of kindness in communities while localizing the content.

Christmas Marketing

Inventive ideas have been Starbucks’ strength. The company launched a coffee bean campaign – #StarbucksDiwaliBlend as a tribute to Karnataka’s wealthy coffee heritage and experience.

Starbucks Diwali Mix

#SketchTheBlend campaign was launched on Diwali, where customers were encouraged to share their creativity in the Diwali Blend cup. The best ones could win five free drinks.

Starbucks Facebook Post About #SketchTheBlend

Key takeaway: Engaging customers through holiday marketing is also a forceful part of Starbucks’ marketing strategy. You can also leverage this opportunity to augment customer engagement.

How forceful is Starbucks’ digital marketing presence?

Targeting the elite class, Starbucks understands that its audience is technologically savvy. Starbucks’ digital marketing gives it the ability to communicate in two directions, unlike flyers, magazines, and television, which are more one-way communication. It has significant traffic on its social media accounts, including

• Facebook: 36 million page likes
• Instagram: 17.8 million followers
• Twitter: 11 million followers

Starbucks Instagram Username

Consistency is key to Starbucks’ successful marketing strategy. The same goes for social media through daily posting. It has challenges and games that engage customers and grow its fan base.

In addition, the company posts engaging posts and connects viewers from one platform to another. Take the Instagram post below, for example. The glowing and pristine photo reflects the Starbucks brand. The caption describes their up-to-date espresso in a conversational tone.

Starbucks Instagram Post

Now, every consumer interested in the product would probably like to learn more and find the landing page Starbucks Blonde Espresso.

Starbucks website image for Blonde Espresso

The website satisfies the intrigued customer by providing more information about the blonde espresso and why Starbucks introduced the same. Scrolling down, you will come across videos and a few other images. In this way, the company wisely uses marketing tactics to lure its customers and delight them with its amazing products.

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Marketing in the time of Covid-19

As the Covid-19 pandemic gripped the world, Starbucks prepared marketing tactics to sustain itself during these unprecedented times. The company constantly improvised, mitigating the economic impact through the following measures:

• Expansion: Starbucks announced the launch of drive-thru and home delivery to stay connected with its customers during arduous times. They also launched their app in India to lend a hand customers easily navigate and shop their key offerings.
• Starbucks social media campaigns: Using the opportunity to augment user engagement, the company launched the #ReconnectWithStarbucks campaign. Followers were asked to share ideas for how to reconnect during the pandemic. They were also encouraged to share their favorite Starbucks memory via Instagram with the hashtag #ReconnectWithStarbucks. Another popular campaign was “Half Cup Full.” Customers had to comment on their favorite drink on a Starbucks post, and then, to remind customers of the in-store experience, they were sent voice notes of baristas calling out their name along with their favorite drink.

Starbucks Strategic Alliances That Expanded the Company’s Reach

Part of Starbucks’ marketing strategy is to create smart associations that extend the brand’s reach and experience.

Product Launch Through Flipkart

Starbucks launches products with Flipkart

Capitalising on the growing reliance on e-commerce during the pandemic, Starbucks partnered with Flipkart and launched Starbucks Signature Merchandise on the platform. It offered a range of products including custom mugs, frigid cups, tumblers, coffee makers and more, allowing customers to order from the comfort of their homes.

Application

Starbucks’ well-developed marketing strategy is one of the main reasons why the coffee chain company has a dominant presence and leadership in the world. Moreover, to stay true to their word, they probably provide a different atmosphere, unmatched service, and a genial environment for every customer who visits their physical stores.

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