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Starbucks new

  1. 1. Starbucks Promotion Types & Application on the global stage
  2. 2. Starbucks 21/11/2011Members Contents Q&A References
  3. 3. Phong NguyenLi Ivy Maximilia nAn Le Kito
  4. 4. ContentsTheory overview  Promotion – types & underlying concepts  Standardization vs. AdaptationThe Promotionof Starbucks  Advertising & Direct Marketing  Visual applicationConclusion
  5. 5. IntroductionPromotionThe propose of promotionis to make consumersaware of a newproduct, to stimulatenonusers to samples,an existing product, or toincrease overallconsumer demand.1 Advertising2 Direct marketing3 Personal selling4 Public relationship
  6. 6. Promotion– underlyingconcepts Teutner (2002):  ‚instruments to stimulate sales of products and brands‛ 3 Basic objectives (Kurtz, 2010):  Information  Change behaviour to increase Demand(short term)  Differentiate from
  7. 7. Features Action-orientated marketing events (Rossiter andBellman, 2005) Tool: stimuli to cause sudden behavioural change; may also appeal to Product, Place & Price (Van Waterschoot &
  8. 8. Types - ThePromotional Mix (1) Advertising(presentation byidentified sponsor: e.g.Print, TV, direct mail,web) Personal Selling(person-2-persontransaction) Sales Promotion(paid consumer
  9. 9. Types - The PromotionalMix (2) Public Relations & Publicity (evaluating &influencing the publicperception) Direct Marketing(communication withprospect i.e. generateresponse in form ofrequest or order)
  10. 10. Standardisation vsAdaptation Adaptation: A strategy regarding change of the marketing program (e.g. Product, Price, Place, Distribution.) according to local preferences Standardization: Usage of a generic marketing program for different international target markets.
  11. 11. Promotional Type ‚Advertising‛– Application at Starbucks Jonoshka (2004): ‘external communication of an organization with actual and potential customers.’ Types of advertising media include:  Print media : newspapers, magazine, posters,...  Broadcast media : TV, radio...Direct marketing: direct mail,website, online advertising... (Kotler,1994).
  12. 12. Starbucks costs on advertising* Store operating expenses, other Prepaid operating expenses and expenses and other current general and capitalised administrative advertising costs expensive () 2007 $ 103.5 $ 19.2 million miilion 2008 $129.0 $8.8 million million 2009 $126.3 $7.2 million million* Numbers provided are based on world wide costs starbucks.com
  13. 13. Word of mouth- ‚third1) place‛ The average Starbucks customer visits the store six times per month while the heaviest 20% of customers go to Starbucks at least 16 times per month. (Starbucks commercial, 2010)
  14. 14. Social media2) Starbucks is mainly adult-focused and aims to connect with their customers, communities, and children through various advertising tactics (Professor Marty Lawlor, 2007)- E-marketingTwitter, Facebook, Youtube, My starbucks idea,Starbucks V2V (Jon Swartz, 2009)http://www.youtube.com/watch?v=K9nJa_8L nSI- Iphone applications(Annual report, 2009)
  15. 15. Starbucks card*  Starbucks Card is the simple, easy way to pay when you are in store.  Extra rewards for Starbucks card holders* Starbuck.com
  16. 16. TV commercials Starbucks is worlds one of the best brands but it rarely advertised on television (Burt, 2009). In 2007 the company felt slowdown in customer traffic even in holiday season. For the first time Starbucks introduced the national TV advertisement in U.S (Janet, 2007) The TV Commercial titled Starbucks Holiday 2010 was done by BBDO NEW YORK advertising agency Starbucks Coffee company (for Starbucks) in USA. released in November 2010.
  17. 17. Market segment Young, affluent customers College educated Higher income levels People combining work and coffee break People who have requirements for the Life-styles
  18. 18. Visual Examples 
  19. 19. Back
  20. 20. Conclusion Promotion plays a vital role for Starbucks Starbucks uses various advertising tactics Starbucks concentrates on E- marketing
  21. 21. Q&A
  22. 22. References Blattberg, R. C., & Neslin, S. A. (1990). Sales promotion: Concepts, methods, and strategies. Englewood Cliffs: Prentice Hall. Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning. Teunter, L. H. (2002). Analysis of sales promotion effects on household purchasing behavior. ERIM PhD Research Series in Management. Erasmus University Rotterdam, 262 p. Van Waterschoot, W., & van den Bulte, C. (1992). The 4P classification of the marketing mix revisited. Journal of Marketing, 56(4), 83–93. Journal of the Academy of Marketing Science, Volume 38, Number 3, 383-397, DOI: 10.1007/s11747- 009-0161-1 available @ http://www.springerlink.com/content/m3v3604924347073; Accessed on: 19/11/11
  23. 23.  ADAMY, J. (2007). Starbucks Turns to TV In Bid to Boost Results . Available: http://online.wsj.com/article/SB119513628463094194.html?mod=yahoo_hs&ru=yahoo . Last accessed 20th Nov 2010. Fleishman, G. (2010). A new revenue drip for Starbucks. Available: http://www.economist.com/blogs/babbage/2010/10/coffee_and_wi-fi . Last accessed 20th Nov 2010. Helm, B. (2009). How Starbucks Could Do TV Ads. Available: http://www.businessweek.com/bwdaily/dnflash/content/may2009/db2009057_583829.htm . Last accessed 20th Nov 2010. Janoschka, A. (2004) Web advertising: new forms of communication on the Internet [Online]. Available at: http://books.google.co.uk/books?id=oObQOTJbpuoC&pg=PA15&dq=advertising+definition&hl=en&ei=Dq jqTOe5HMuEhQeCsdEP&sa=X&oi=book_result&ct=result&resnum=1&ved=0CDAQ6AEwAA#v=onepag e&q=advertising%20definition&f=false (Accessed: 17.11.2010)
  24. 24.  Kotabe, M., Helsen, K. (2011) Global Marketing management. 5th edn. Asia: John Wiley & Sons. Kotler, P., Wong, V., Saunders, J., and Armstrong, G. (2005) Principles of marketing, 4th European edn. Essex: Pearson Education Limited Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning. Melewar, T.C., Vemmervik, C. (2004)’ International Advertising strategy. A review reassessment and recommendation’, Management decision, 42 (7), pp. 863-881. Tancer, B., (2008)., Brewing Battle:Starbucks vs. McDonalds. TIME, [online] 10th January. Available at: <http://www.time.com/time/business/article/0,8599,1702277,00.html> [Accessed 19th Nov. 2010]. starbucks advertising costs. (2010) [Online]. Available at: http://www.wikinvest.com/stock/Starbucks_(SBUX)/Advertising (Accessed: 17.11.2110).

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