Starbucks Marketing Strategy

Starbucks Marketing Strategy

Starbucks Marketing Strategy

Starbucks started in 1971. Two teachers and a writer opened a coffee beans shop in a shopping mall in Seattle, Washington, for $1,300. 

They decided to name their store in honor of one of the Starbucks cult American novel “Moby Dick” characters. 

Since Starbucks was an assistant on the ship, the creators favored the nautical theme.

That’s why Starbucks chose the mythical Greek ancient sea creature, the mermaid siren, for the company’s logo. An engraving from a 16th-century book was used, which depicts the siren half-naked.

Then over time, the designers made various changes to the Starbucks logo, such as enhancing the smile of the mermaid siren and removing her navel.

In 1971, the Starbucks company logo was predominantly brown and made a cigar ribbon.

Starbucks Marketing Strategy

Then that in 1987, Starbucks changed its logo color to green and included some stars in it.

Starbucks Marketing Strategy

In 1992, the logo focused on Sirena’s face – the mermaid’s lower body was removed. Brown has been applied.

Starbucks Marketing Strategy

In 2011, Starbucks decided to change its 20-year-old logo radically. 

Starbucks Marketing Strategy

Starbucks has changed everything in its logo except the siren. The company says that the siren is now a key sight identifying Starbucks.

Creatures of the mythical ancient siren have made their way into the Starbucks logo for 50 years. The green rim with the company name and stars disappeared, the emblem became lighter in color. 

Starbucks considers this logo to be very true because they say that this logo is very expressive, and the best part is that it shows the green color of the logo and the scene very beautifully.

Starbucks expanded beyond the US market to open its locations in Japan and Singapore in 1996. The worldwide coffee chain has now made $945 million (2010). Starbucks continues to expand into new markets – the company has now started producing juices and energy drinks.

Founder of Starbucks

  • Gordon Bowker
  • Zev Siegl 
  • Jerry Baldwin

How was Starbucks founded?

Three friends who were met by a love of coffee –(Writer) Gordon Bowker, (History teacher and English language teacher) Zev Siegl and Jerry Baldwin – came up with the idea of creating a common cause. 

Even the modest savings of ordinary teachers and writers were not enough for this venture, so they had to take loans. So, in March 1971, a small coffee shop developed in Seattle, selling its own roasting high-quality coffee beans and types of equipment for its preparation. 

Thus opened the first and, for a long time, the only coffee shop in the city. The owners were happy to tell some of their customers about the coffee, cultivating a love for the drink.

For almost their entire first year of operation, the Starbucks founders collaborated with the owner of Peet’s Coffee, Alfred Peet: They bought coffee beans from them, learned how to roast them, and chose the right ones.

But then Gordon, Zev and Jerry decided to work directly with coffee suppliers and set up their roasters; He opened another shop on the premises. A branded product catalog was released shortly after, and mail-order introduced sales.

Starbucks’ first logo was a two-tailed mermaid, which was carved from old 16th-century engravings, and this mermaid was surrounded by the name of the store (Starbucks). 

This logo means that Starbucks coffee has been brought through research and testing. The mermaid in the Starbucks logo is named Siren by Starbucks. On the one hand, it was considered as tempting as the drink itself, but on the other hand, such a presence of everyone did not arouse pleasant feelings.

Starbucks changed its logo several times, but due to the benefits of the Starbucks marketing strategy, they made some changes to the siren but did not change the entire siren.

Starbucks- First phase

Starbucks’ success is mainly due to Howard Schultz. Starbucks owners hired Howard Schultz to drive company success. Became Under the leadership of this talented businessman, the Starbucks coffee chain has conquered the world.

After a trip to Milan, where Schultz saw unique Italian coffee shops, he was so inspired that he wanted to replicate the Italian experience in America. But the idea of a store selling coffee beans and readymade coffee in Seattle was not supported by its owners.

According to tradition, they believed that then their shop would lose its essence, and it would be better to make coffee at home.

Starbucks Marketing Strategy

Schultz left Starbucks, and the II ZIO Nelle coffee house he created bought Starbucks from the founders two years later. Thus, the first coffee shops of the famous company appeared outside of Seattle, in Chicago, Vancouver, British Columbia.

After seven years, there were 165 coffee shops in America, and another three years later (in 1996), Schultz opened the first coffee shop outside the United States in Japan. 

After some time, Schultz opened its shops in Taiwan, the Philippines, Singapore, Hawaii, Thailand, China, South Korea, Malaysia, Kuwait, Libya.

Starbucks Marketing Strategy

All of the work of the Schultz team was aimed at creating a comfortable atmosphere in Starbucks establishments. Fireplaces, comfy sofas, beautifully curved lines that make an open and comfortable space at the same time, free Wi-Fi – everything for the people.

For Howard Schultz, the first place is to fill the spirits not of his visitors but them, as he says. He has realized his dream – to create a charming atmosphere in all Starbucks establishments, and at the same time, make it special, unique in each coffee shop.

Initial Difficulties of Starbucks History

Starbucks’ history has had many ups and downs, and Starbucks has faced difficulties at times in its time.

Starbucks supplied all the coffee in 2 kg bags. Expensive and rare varieties quickly faded once the bag opened, as Starbucks rarely sold them. 

Then came the idea to create our technology, from which it would be possible to obtain powdered coffee but of excellent quality. When buying expensive coffee at Starbucks, you cannot guess this is a quick product. Starbucks coffee is delicious and healthy to drink.

In the ’90s, California began to associate nutritious food: Every calorie counted, and coffee with whole milk, due to its high-fat content, was classified as a product that is very unhealthy.

He did not make his coffee with skim milk for a long time, fearing that the novelty would not preserve the authentic taste of the drink. But when the Starbucks company noticed that they were losing their customers and were not satisfied with Starbucks, they diversified their assortment.

I was afraid that such innovation would not save the authentic taste of the drink.

The next decade brought new challenges. The new, large and bulky coffee machine was a significant problem, keeping the staff away from the guests. The rack had to be redone to reduce the coffee machines.

The economic crisis, when hundreds of coffee shops had to be closed, the store’s sales of excess goods, which for some reason we’re not successful – all this did not break the company but strengthened it.

The next decade brought new challenges. The new, large and bulky coffee machine was a significant problem, keeping the staff away from the guests. The rack had to be redone to reduce the coffee machines.

The economic crisis, when hundreds of coffee shops had to be closed, the store’s sales of excess goods, which for some reason we’re not successful – all this did not break the company but strengthened it.

Starbucks Marketing Strategy (secret of success)

The Starbucks marketing strategy was very beautifully designed by Howard, due to which today people not only love Starbucks but feel very comfortable there.

Amazing environment

The biggest Starbucks Marketing strategy is that it doesn’t attract people as much through coffee as it does with the environment of its stores. It also follows the traditions in its stores and creates a friendly atmosphere with the customers. It is an honor to preserve traditions.

Music

Starbucks creates an atmosphere of beautiful songs in all its stores You will hear the same type of melody in all cities.

Some Other Starbucks Marketing Strategy

To promote Starbucks company constantly comes up with simple yet very curious tricks. One of these tricks is a ring of corrugated cardboard placed over a paper cup not to burn your hands. And for a small surcharge, each customer can get a reusable polyurethane ring with the Starbucks logo on it; this is not only a tremendous competitive move but also a concern for people and the environment.

Another “trick” is the famous Starbucks Thermo mug; Starbucks invented its Thermo mugs, which benefited the company. Due to this strategy, the company also made a lot of profit.

The Unbreakable Principles of Starbucks Marketing strategy

  • The secret of the company’s success is caring for its employees. (Starbucks is one of the hundred best employers around the world)
  • Another feature of the Starbucks marketing strategy is that it treats its employees as trustworthy partners, and instead of calling them waiters, they call them baristas.
  • Loyalty to traditions.
  • Friendliness of employees.
  • Open communication with visitors (distasteful, no matter how professional, Starbucks Tech doesn’t).
  • Uncompromising quality and brilliant marketing move.
  • Fairtrade.
  • Environmental protection.
  • A work environment in which friendship and respect for each other prevail. 
  • Friendly service is the company’s core principle.
  • Helping to attract and retain connoisseurs in the circle of regular customers. 
  • Good Coffee. 
  • The company recently sent a portion of its profits to the fight against AIDS in Africa.

Rich Menu

Today, Starbucks coffee shops have selected types of coffee and a skillfully selected additional assortment – various syrups and teas, seasonal types of coffee, and some dishes: snacks, light salads, and desserts. 

The flexibility in the menu is also tempting. Starbucks has thousands of coffee combinations, and each visitor has the opportunity to create a drink based on individual tastes and preferences.

Relentless Ambition

Today Starbucks is the largest coffee chain globally: more than 80 countries are open, there are about 33,833 establishments around the world. As of today, the company is employing more than 3,49,000 people.

Starbucks is like a second home, and for America itself, it is one of its main symbols. Expansion is going crazy today. Local chains of coffee houses are being formed in different parts of the world; new varieties of coffee are constantly emerging. The latest innovation is a lightly roasted coffee with a milder flavor than a drink made from well-roasted beans.

Starbucks made coffee available for rail sale in 2011. The company also manufactured under the Chill Chai Tazo brand. Collaboration with other well-known corporations and the joint creation of innovative drinks, one of which, for example, contains green coffee extract and natural fruit juice, and is already sold in American stores, allowed us to enter a new stage of development allowed to do. The company’s management does not have time to rest: ambitions do not qualify.

Howard Schultz and his own business

After leaving Starbucks, Schultz began looking for investors. But finally, in 1985, their first coffee shop, Il Giornale, was opened in Chicago in honor of the Milan daily newspaper.

To say that everything went well for Schultz would significantly undermine the success of his effort. 4.5 years later, Howard Schultz bought Starbucks from the previous owners for $4 million.

After the brands merged, Schultz dropped Starbucks as the primary trade name, as by that time, the trademark was strongly associated with high-quality and flavorful coffee.

starbucks marketing strategy

History of Starbucks logo (The essential part of Starbucks marketing Strategy)

Now comes the fun part. All you Starbucks fans and followers should know why Starbucks has Mer Mermaid in its logo.

After a long time, the three founders came together to inspire Herman Melville’s famous novel – Moby Dick. 

At first, they wanted to borrow the name of the ship on which the book’s hero sailed – the boat was called “Pequod,” but then they chose the name of Captain Ahab – Starbucks’ first mate. And by 15th-century engraving borrowed the siren image.

Starbucks Marketing Strategy

The first version of the logo was considered indecent: the two-tailed mermaid, located in a brown circle, was lush and had an open forum. This image lasted six years – from 1971 to 1987.

Then In 1987-1992, the Starbucks company sucked up to the green color logo. And at the same time, they cropped the mermaid’s tail slightly and covered the mermaid’s chest with her flowing hair. Stars appeared between the words in the logo.

The next version of the logo focused on Sirena’s face – with the mermaid’s bottom removed. This happened in 1992 and was so until recently. And ten years ago, in 2011, the green rim with the company name and stars disappeared from the logo, and the logo’s color became lighter.

Conclusion

Hope you all have come to know about Starbucks marketing strategy by reading this blog Howard Schultz has a big contribution in the success of Starbucks.

Starbucks has maintained a good relationship with the general public for many years with its coffee store and people love its services and its style. Starbucks marketing strategy is one of the best strategies in the world.

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