Starbucks is an international coffee chain that operates over 16,000 stores globally. It aims to provide an uplifting experience to customers through high-quality coffee, tea and food items along with excellent customer service in a comfortable environment. Starbucks focuses on segmenting customers based on demographics and selecting store locations to target office workers, families and teenagers. It differentiates itself through innovative products, trained baristas and providing WiFi access.

1. Starbucks:
Delivering
Customer Service
MARKETING MANAGEMENT
GROUP
SYEDA AREEBA TARIQ

2. OVERVIEW…
o Starbucks corporation is an international coffee house
chain based in Seattle- United States
o Starbucks is the largest coffee house company in the world
o Operates 16,635 stores in 50 countries, including 11,068 in
the United States, while the licenses and frenchises operate
more than 7,800 units worldwide( primarily in shopping
centre and airports)
o Product line
- Beverages ( coffee, tazo tea, soda, juices)
- Pastries
- Whole coffee beans
- Merchandise (cups, mugs)

3. o Through the Starbucks Entertainment division and hear
music band, the company also market the books, music
and film.
o Many of the company’s products are seasonal or specific
to the locality of the store in various countries.
o From a small store that opened in 1971 to its status as a
21st-century Gourmet coffee giant Starbucks has led a
coffee revolution in the united states and beyond.

4. STARBUCKS –national culture to
global vision….
Starbucks –
“Establish Starbucks as the most recognized
and respected brand in the world.”

5. TAKE HOME AN EXPERIENCE…
Mission Statement- “to inspire and nurture the
human spirit- one person, one cup and one
neighborhood at a time.”
The Starbucks VALUE PROPOSITION
o To create an “experience” around the
consumption of coffee, an experience that
people would weave into their lives
o To create an uplifting experience in
“Customer intimacy”
o To create an “ambience” based on human
spirit, sense of community, and the need for
people to come together ‘ everything matters’

6. CUSTOMER DRIVEN
MARKETING STRATEGY….
SEGMENTATION:
• Initially Starbucks concentrated on social class
particularly the business class people those who are
working at the office and wanted to have a cup of coffee
with a good atmosphere and facilities.
• Starbucks also had segmented his market by
geographic and demographically by selecting the store
location where they can find the educated and coffee
lovers .

7. TARGETING:
o Office workers- middle to high income
o The parents with young kids
o Teenagers

8. DIFFERENTIATION:
o Trained chefs and food scientists
o Introduction of its Creme Frappuccino line
o The infusion of Tazo tea drinks
o The Starbucks Card, a sort of “fancy gift
certificate”
o The rollout of Starbucks DoubleShot espresso
drinks
o High-speed Internet access

9. Ques#1: How has Starbucks position
itself?
POSITIONING:
o Starbucks has positioned themselves in the
market as a highly reputed brand.
o Starbucks has positioned themselves as a
premium product in the coffee industry
by creating a high standard, introducing
innovative products and providing excellent
service.
o Starbucks offers distinguish products.

10. Ques#2: Apply the concept of
holistic marketing?
Definition:
Holistic marketing concept is based on the
development, design, and implementation
of marketing programs, processes, and
activities that recognizes their breadth
and inter-dependencies.

11. SUB-ORIENTATION:
1) Internal marketing orientation:
All star bucks employees are called
partners and the waiters at Starbucks are
called baristas to make them feel
exceptional and proud about their
workplace, not to feel just simple service
workers.

12. CONT….
2) Relationship marketing orientation
Satisfying the customers has always been the first
priority of star bucks. The chairman of Starbucks
Howard Schultz explains, that a person gets more
than just coffee when he/she visits Starbucks –he
gets great people, first-rate music and a
comfortable and upbeat meeting place.

13. CONT….
3) Integrated marketing orientation:
integrated marketing includes the 4 Ps of
marketing mix which are product, price,
promotion and place.
o Product: coffee
o Price: stable
o Place: hotels, airlines, university campuses,
office buildings
o Promotion: environmental friendly

14. CONT…
4) Performance marketing:
• Starbucks announces its corporate
social responsibility
• They started to use cups from recycled paper
or biodegradable plastic.
• Social responsibility is also emphasized in their
coffee-bars’ design, posters and various
promotional campaigns.

15. Ques#3: Apply the concept of value
chain?
• The value chain is a tool for identifying ways
to create more customer value because every
firm is a synthesis of primary and support
activities performed to design, produce,
market, deliver, and support its product.
AIM:
• Profit margin due to Value > Cost
• Value Created and Captured less Cost of Creating
that Value = Margin

16. VVaalluuee CChhaaiinn ooff FFiirrmm AAccttiivviittiieess
Primary Value Chain Activities and Support Activities
•Firm Infrastructure
•Human Resource Management
•Technological Development
•Procurement
•Inbound
•Logistics
•Operations
•Outbound
•Logistics
•Marketing
• Sales
•MARGIN
•Service

17. Marketing Mix
Product: Whole bean coffees, cappuccino, coffee
makers, and other Starbuck paraphernalia.
Also pastries, oatmeal, smoothies, seasonal
offerings and wraps. Plus books, music and
films.
Price: Premium prices due to high quality and
variety of beverages offered.
Place: Own retail stores in high traffic and
highly visible areas. Grocery stores,
convenience stores and around the globe.
Promotion: Minimal advertising, Use of
philanthropy and Starbucks Card.

18. Ques#4: How starbucks creates,
delivers and communicates value?
o Starbucks creates value for its valued
customers by:
- Providing them with their best quality claimed
coffees
- Providing them personalized and customized
coffees
-Providing them with a wide variety of coffee
- Training their staff on both hard and soft skills
- Understanding the human need of socialization
and creating a third ideal place for their
customers

19. CONT…..
o Starbucks communicates value for its
customers by:
-Easily accessible and visible stores
-Local marketing and good locations
- Word of mouth
-No advertising

20. CONT…..
o Starbucks delivers value to its customers
by:
- Friendly staff
-Customized offerings and a wide range of
products
-Good alliances
-Product innovation

21. SWOT…
STRENGTH
•Established logo, developed brand,
trademarks, patents and websites.
•High visible locations to attract
customers
•Motivated employees
•Globalized
•Good relations with suppliers
•Strong financial foundation
WEAKNESS
•Size
•Too much focus on expansion
•Self cannibalization
•Product pricing(expensive)
OPPORTUNITY
•Technological advancement
•New distribution channels(delivery)
•New products
•Brand extension
THREAT
•Competition
•Cultural and political issues in
foreign countries
•Consumer trends towards more
healthy ways and away from caffeine

22. COMPETITORS…
o 7- eleven
o Caribou Coffee
o Dunkin Donuts
o Second Cup
o Mcdonalds
o Kraft
o Green Mountain Coffee Roasters
o Procter Gamble
o Coffee Beans And Tea Leaf
o Nestle
o Costa Coffee

23. CONCLUSION…
“First comes thought; then organization of that thought,
into ideas and plans; then transformation of those plans
into reality. The beginning, as you will observe, is in your
imagination.” – Nepoleon Hill..

24. QUESTIONS??

25. THANKYOU…... 