Starbucks Success Essay

Success is something that is strenuous to accomplish, especially when it comes to the field of business where companies need to fulfil their customers’ needs and wants. Starbucks is one of the widely known company for selling the finest whole bean coffees and coffee beverages and is considered to be one of the largest coffee shop with more than 21,000 stores in over 65 different countries (Starbucks 2015). It can be seen from Starbucks’ performance in achieving their success recently after facing a crisis in the 2007/2008 time period (Allison 2010), which they manage to exploit technology effectively to increase market share by providing their customers varies amenities such as, mobile application, wifi, and wireless charging mats. This essay

It is important for developers to understand of what encourages the beginning of relationship before analysing loyalty. The marketing mix management plays an important role in developing marketing strategies that includes the concept of 4ps, which are price, product, place and promotion. The major marketing mix concepts that Starbucks’ applied to increase their market share are place and promotion. According to Allison (2010), Starbucks was experiencing a decline in its price share by 54% in the 2007/2008 time period, new marketing strategy and development are implied by the organisation and they managed to increased its shares from $4 a share to $24 by the end of the period. This includes one of the major concepts, consumer behaviour, which Starbucks utilised their amenities to attract customers in purchasing their products. Consumer behaviour is the study of the processes involved when people acquire or purchase certain products to satisfy their needs and desires (Solomon, Russell-Bennett & Previte 2013, p. 3). Fundamentally, Consumer behaviour is how consumers choose products by evaluating different competitive and alternative in the market and how consumers perceive brands and stores in terms of

34). As stated by Jargon (2015), “[t]he survey found that 14% of orders…are coming from the app and that customers who use it, on average, spend 15% more than this who don’t…”. Thus, the growth of Starbucks’ mobile transactions has reached more than 9 million a week, which also helped them to increase their transactions, effectively control demand during peak hours and rose 18% of their revenue (Jargon 2015). Moreover, the mobile application is user friendly and only takes few minutes for them to activate account, which made everyday user more productive and an increase in potential customers (Holzer & Ondrus 2011, p. 28). Additionally, Starbucks also increase their market share through ameliorating their shops by providing wireless charging mats and free internet connection. Wireless charging mats was used to solve their customers’ problem from drained batteries. It is free of charge and comfortably placed in designated tables and counters so that their customers will be able to charge their phone while taking a break from the hustle and bustle of their city life. Furthermore, the other thing that interest customers are their fastest wi-fi on the street in