Starbucks Case Study

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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…show more content…
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…show more content…
99). The reason behind this is because loyal customers are more profitable for the company due the willingness of the customers to spend will be higher. This marketing perfection leads to relationship that more sort out than just simple transaction, which Starbucks used promotions to boost loyalty programs and maximise share of customers. There are some promotions strategy that Starbucks applied in order to build relationship with their customers. Firstly, Starbucks has 10 million customers signed up for their rewards program so that their loyal customers could collect points to redeem for drinks (Jargon 2015). Secondly, Starbucks cooperate with the well-known music-streaming agency “Spotify” to let its followers collect the reward points in order to redeem for drinks at Starbucks (Jargon 2015). With the presence of Starbucks’ loyalty program, Mr Kris Engskov added that their customers are devoted to their products and services in which made Starbucks’ business grow rapidly (Armstrong
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