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starbucks - QR Codes marketing

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A presentation on Strabucks coffe witch explain the new marketing trends of the brand with the QR codes.

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starbucks - QR Codes marketing

  1. 1. TD 3207 2009-2010
  2. 2. I. Starbucks a) A brief history and key facts about the company b) Expansion and Internationalization II. QR codes Marketing a) Definition & Advantages b) Examples III. Starbucks & QR Codes Marketing a) New business opportunities b) A promising future for this new marketing trend?
  3. 3.  1971: The first Starbucks opened in Seattle  1982: Howard SCHULTZ (today’s CEO) entered in Starbucks  1985: He started up his own coffee bar « Il Giornale »  1987: He purchased Starbucks and renamed his coffee bars with this name  1996: The first Starbucks location outside North America opened in Tokyo  2004: Opening the first store in France Brand concepts: - The « third place » - Takeaway Howard SCHULTZ
  4. 4. STRENGHTS - World’s most famous coffee brand - Present in social media (facebook, twitter, youtube) - Partnerships with numerous brands (Barnes & Nobles libraries, United Airlines, Marriott and Hyatt Hotels) - Large choice of drinks - Present in more than 40 countries - Position of the stores - 6th enterprise the most admired (Fortune, 2008) - Diversification of products = satisfaction of clients - Strong ethical values and an ethical mission statement WEAKNESSES - The ratio of quality/price is in decline - Product pricing (more expensive than the competitors) -Too much focus on expansion : Lack of internal focus - An American business model which can’t be adapted to all countries easily (ex: Italy or France) - Dependant on the retail of coffee
  5. 5. OPPORTUNITES - A strong potential in the global operations : new markets for coffee are beginning to emerge as in India, Pacific Rim nations - Expansion : new products and services that can be retailed in the stores such as Fair Trade products, new trends related to their activity - Possibility of brand franchising, co- branding - New products with new distribution channels - Continued domestic expansion/domination of segment THREATS - Competition (other coffee shops, restaurants, supermarkets, etc.) - Price volatility in developing countries - Cultural and political issues in foreign countries - Negative image from poorly treated farmers - Change of consumer trends
  6. 6.  Constant innovation  Variation of products and tastes
  7. 7.  Use of the brand to launch new different types of product  Advantage : Benefit from the notoriety and the image of the brand  Inconvenient : Risk of negative impacts on the brand in case of a failure Pepsi Co Dreyer’s
  8. 8.  In 2007, it had a global reach of over 17,000 stores in 56 countries.  Between 2007 and 2009, Starbucks’ relentless march was slowed by 3 forces: o Increasingly intense competition o Rising coffee bean prices o Global economic recession o Result: 977 stores closed in worldwide
  9. 9. STARBUCKS IN THE WORLD
  10. 10.  To maintain their dominant market position  Buying out competitors’ leases  Clustering several locations in a small geographical area : saturating the market  ex: 2 Starbucks stores in the same shopping plaza  Being positioned as independent stores to sell Starbucks products  ex: Barnes & Noble
  11. 11.  Joint ventures  the formation of a new entity that is owned jointly by two or more parent organizations : option for supplying foreign markets that Starbucks doesn’t have enough knowledge regarding their target market  ex: expansion in Spain joint venture agreement with VIPS in Spain  Retail stores :  international licensing : the firm grants rights to a foreign company to sell the products  Ex: partnership with Restaurant Brands New Zealand Ltd. helped to gain the competition intensity during 90s in the industry of coffee retaining in the country
  12. 12.  Quick Response Code : two dimensional matrix barcode that is readable by smart phones  Created by Denso Wave, Japanese Company, a Toyota subsidiary. The codes were originally used for tracking inventory.  How does it work?  Mobile tagging : the smart phone’s owner points the phone at a QR code and opens a barcode reader application
  13. 13.  The QR codes typically contains :  An invitation to download a mobile application,  A link to view a video,  An SMS message inviting the viewer to respond a poll. Objectives:  Disseminate large amounts of information about the products to the general public  Billboards, posters, television, newspapers, magazines
  14. 14. Static QR Codes : The code’s creator can track information about the number of times a code was scanned and its associated action taken, along with the times of scans and the operating system of the devices that scanned it. So they are able to see how well their advertising campaign is working immediately and on a continuous basis with a high rate of precision. Dynamic QR Codes : The owner can edit the code at any time and can target a specific individual for personalized marketing. Such codes can track more specific information, including the scanners names and email address, in conjunction with tracking codes on a website, conversion rates.
  15. 15.  QR codes on business cards link to the individual's full resume or website.  Victoria’s Secret incorporated QR Codes into “Sexier than Skin” campaign  huge billboards with nearly nude models. QR Codes were placed over the most “revealing” areas When users scan the codes their new line of women’s undergarments where revealed
  16. 16. Starbucks : one of the companies that use qr codes in the best way. Why?  A NEW WAY TO INTERACT WITH ITS CUSTOMERS  QR codes program designed to let consumers learn more about its coffee  Codes created by Scanbuy a company that provides mobile bar code products and software  QR codes appear at some Starbucks locations and in ads in popular magazines like People and in daily newspapers as well as on billboard ads
  17. 17.  videos and description by some coffee experts about what makes starbucks’ coffee unique  Information about the company’s various products, their taste and what food goes best with them
  18. 18. A new promotion strategy  Special QR codes to promote new line of coffee products  Smart way to boost sales of its mobile application downloads: smartphone users get it in one click: When a customer at Starbucks scans a QR code it brings them to a dedicated mobile page which promotes their app for mobile phones
  19. 19.  A QR code when scanned help find the nearest starbucks, browse the menu  coffee lovers can find their favorite roast with a new campaign that incorporates mobile bar codes=promotion of their roast  When consumers scan the QR code, they can vote for their favorite roast= a strategy to connect their stores, their digital networks and their customers
  20. 20.  Customers can also pay for drinks with QR codes  Starbucks’ mobile payment system uses an app that can create QR codes unique for each customer. The code is scanned by employees at checkout  possibility to check card balance and to constantly keep track of how much money is left on their giftcards  Starbucks helped Lady Gaga promote her new album: organized a program "SRCH by Starbucks featuring Lady Gaga", Gaga fans could scan QR codes on Starbucks banners and other materials to receive clues about a game  Posssibility to win free download of the new songsSmart way to promote the brand
  21. 21.  QR codes marketing helps Starbucks develop its company through an innovative promotion strategy, a proximity with its customers opportunities to save money in advertisements  Smart way to evaluate the impact of their marketing communication campains
  22. 22. B) A PROMISING FUTURE FOR THIS NEW MARKETING TREND? QR codes are here to stay Many more opportunities left to discover Companies that has already begun to use it like Starbucks can spread the strategy in their other markets Competitors can follow and even improve the new strategies created thanks to this new marketing trend
  23. 23. B) A PROMISING FUTURE FOR THIS NEW MARKETING TREND? For example LevelUp, a mobile payment platform for smart phones and other mobile devices has taken a new approach to developing a new system based on a model used by Starbucks The company has has re- launched its mobile payment system: more than 1,400 businesses signed up
  24. 24.  New trends in marketing can revolutionize business opportunities in a short time  New techniques like QR codes marketing, mass customization…make the most innovative companies frequently rethink and quickly adapt their strategies.  one of the reason why they remain leaders in their field of activity.  So we can wonder if all companies have to adopt new marketing trends to avoid loosing profitable opportunities and market shares?

A presentation on Strabucks coffe witch explain the new marketing trends of the brand with the QR codes.

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