The Pricing Strategy And Strategy Of Starbucks

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Starbucks is a major corporation that focus is on coffee beverages. In order to market effectively along with efficiently the right advertising method must be considered. A new advertisement will be presented and the means for its marketing will be examined. In order to keep the company profitable the pricing objective and strategy will be announced. Starbucks can use the strategy of integrate marketing communication to reach the maximum amount of consumers without spending the maximum amount of money.
Integrated Marketing Communication Integrated marking communication (IMC) is an essential tool of strategic marketing. The IMC is a blend of all of the firm’s promotion efforts to reach the target customer (Cannon et al., 2015, p. 347). …show more content…

Price strategy are methods that companies use to price their products or service (Suttle, n.d., para. 1). One method that Starbucks cold benefit from is competitive-based pricing. Due to the popularity and demand for coffee and coffee shops there are many different competitors in the market. Starbucks might need to adjust its prices based on their competitor’s price and demand. Using competitors pricing as a reference keeps the company comparable to similar companies. This gives the consumer more options within a certain price range. Pricing based on consumer demand is essential strategy. This strategy runs off the basic foundations of supply and demand. If demand increases prices increase, well if demand decreases price decreases. This is effective because it allows the company to optimize prices based on statistical data (Frenz, n.d., para. 3). Also, Starbucks could use temporary discount pricing to increase sales volumes, increase short run profits and keep up with competitors. For example, Starbucks has created “Frappy Hour” for a certain length of time where consumers can enjoy half price Frappuccino’s from three p.m. to five p.m. (Starbucks, 2015, para. 1). This promotion will help to increase sales during the selected hours, which would be the hours that consumers where less likely to visit their stores. This price strategy is one that is commonly used in the food industry to increase sales during slow periods. It has been studied and proven that happy hour can generate additional traffic and revenues for restaurants (Crecca, n.d., para. 7). Starbucks just like a restaurant is offering consumers beverages along with snack type food and therefore could also benefit from some type of happy

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