Starbucks Coffees Marketing Mix (4Ps) Analysis

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A Starbucks caf in Warsaw, Poland. Starbucks Coffees marketing mix (4Ps)

equally emphasizes product, place, promotion and price to support the companys
brand image and competitive advantage. (Photo: Public Domain)

Starbucks Coffee Companys marketing mix (4Ps) supports the companys industry
position as the leading coffeehouse chain in the world. The marketing mix identifies
the main components of the firms marketing plan. Starbucks uses its marketing mix
as a way of developing its brand image and popularity. With the strongest brand in the
industry, the company shows how an effective marketing mix supports brand
development and business growth. Starbucks also changes its marketing mix over
time, thereby emphasizing the need for the business to evolve its various aspects to
maintain competitiveness.

Starbucks Coffees marketing mix (4Ps) indicates the importance of this marketing tool as a
way of ensuring that the firm promotes the right products at the right prices and places.

Starbucks Coffees Products

Starbucks continues to innovate its product mix to capture more of the market. This
component of the marketing mix focuses on what the business offers to customers. At
present, the following are the main categories of Starbucks products:

1. Coffee
2. Tea
3. Pastries
4. Frappuccino beverages
5. Smoothies
6. Merchandise (mugs, instant coffee, etc.)
This product mix is a result of years of business innovation. For instance, Starbucks
added the Frappuccino line after it acquired The Coffee Connection in 1994. The
company also has an ongoing product innovation process that aims to offer new
products to attract and keep more customers. Thus, this part of Starbucks marketing
mix involves beverages, food, and merchandise.

Place in Starbucks Coffees Marketing Mix

The company offers most of its products through Starbucks cafs. This component of
the marketing mix determines the venues at which customers can access the
products. In Starbucks Coffees case, the following are the main places used for the
distribution of products:

1. Cafs
2. Online Store
3. Starbucks App
4. Retailers
Originally, the firm sold its products through Starbucks cafs. Through the Internet,
the company now offers some of its products through the online Starbucks Store. Also,
the firm now sells some merchandise through retailers. In addition, the company uses
the Starbucks App to allow customers to place their orders. This part of Starbucks
marketing mix shows how the firm adapts to changing times, technologies, and market
conditions.

Starbucks Coffees Promotions

Starbucks promotes its products mainly through advertising. This component of the
marketing mix refers to the communication strategies used to disseminate information
about the firm and its products. Starbucks promotional mix is as follows:

1. Advertising
2. Public relations
3. Sales promotions
The company advertises its products through television, print media and the Internet.
The company infrequently uses public relations, which has not always been successful
for the business. For example, Starbucks Race Together public relations campaign was
widely criticized. In addition, the firm uses sales promotions, such as the Starbucks
Card that customers can use to get freebies. This part of Starbucks marketing mix
shows the core significance of advertising, and the supporting roles of public relations
and sales promotions for the company.

Starbucks Coffees Prices and Pricing Strategy

Starbucks uses a premium pricing strategy. This pricing strategy takes advantage of
the behavioral tendency of people to purchase more expensive products on the basis
of the perceived correlation between high price and high value. The companys coffee
products are more expensive than most competing products, such as McDonalds
Premium Roast. Through this pricing strategy, the company maintains its high-end
specialty image. This part of Starbucks Coffees marketing mix directly relates with the
firms generic strategy, thereby helping the business maintain its premium brand image.

References
A Letter from Howard Schultz to Starbucks Partners Regarding Race Together.
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014).
Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4),
534-550.
My Starbucks Rewards.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and
New Product Development with a focus on Marketing Mix 4P model. Asian Journal of
Research in Marketing, 4(2), 98-108.
Starbucks Store.
Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the marketing
mix revisited. The Journal of Marketing, 83-93.
Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix How to evaluate
4P Marketing Mix. Commercial Research, 5, 6.

Case questions and reflexions

1- Do you agree with the underlined two sentences in the first paragraph?
And please explain why?

2- The case presents only the 4Ps, should we add 3 other Ps? If yes, list and
explain those 3Ps, also show how important they are for a company like
Starbucks.

3- What according to you are the competitive advantages (distinctive

competencies) of Starbucks and please explain why?

4- Use the BMC Business Model Canvas) below to present Starbuckss

Business Model.
5- Using the Michael Porter competitive strategies below, which strategy best suit
Starbucks? And please explain why?