Starbucks 4Ps Marketing: Aligning With Changing Business Environment - Essay Sample

Introduction

Starbucks 4Ps marketing should be oriented towards maintaining and promoting the company position as a leading coffee house chain. The marketing mix identifies the price, place, product, and promotion elements which is key for Starbucks in developing the company image (Datta, Ailawadi, & van Heerde, 2017). Starbucks should constantly review its marketing mix to align it with the changing business environment.

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Products

The product component of the marketing mix assesses what the company can offer to consumers. Starbucks has a rich product mix which is key in capturing the market and preventing losing out to the competitors. Starbucks primary products include; coffee, baked goods, smoothies, Frappuccino and Merchandise such as mugs and instant coffee (Grill-Goodman, 2018). Also, Starbucks offers other foods and beverages but primarily specializes on coffee which is its selling product. The company should constantly invest in research to improve its product lines which is key towards attaining a competitive advantage in a market with many competitors such as Burger King, Wendy's, McDonald's and Dunking Donuts (Datta et al., 2017).

Place

The place component of the marketing mix addresses the venues through which consumers can access Starbucks products. Most of Starbucks products are offered through its coffeehouses. However, the company also offers its products through retailers and mobile applications which has helped it to venture into the lucrative online market niche. However, the company decision to end its online store in 2017 has reduced its online presence with more emphasis on the in store experience (Grill-Goodman, 2018). It is important for Starbucks to reinitiate its online store to capitalize on e-commerce as the market grows and more consumers seek place convenience by being able to enjoy Starbucks products at the comfort of their homes (Datta et al., 2017).

Promotion

The promotion element of the marketing mix assesses how the business communicates its products to the consumers and potential customers. The company primary marketing is through exemplary customer experience and media based advertisements (Grill-Goodman, 2018). Besides, through the Starbucks Foundation the organization has been able to advance its public relations campaigns by helping communities. In the future, it is important for Starbucks to market its products through social media which has become an influential promotion media to reach the millennials (Datta et al., 2017).

Prices

Starbucks pricing strategy plays a significant role in its ability to make sales and maintain its market position. The premium pricing strategy appeals on the company products as prestigious and high quality products which has been instrumental in appealing to high end consumers (Grill-Goodman, 2018). Besides, Starbucks provides extreme customer experiences in its coffeehouses by investing in high end design. It is important for Starbucks to offer seasonal pricing promotion and discounts to attract more customers and gain greater market share during festivities (Datta et al., 2017).

References

Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?. Journal of Marketing, 81(3), 1-20. Retrieved from https://journals.sagepub.com/doi/abs/10.1509/jm.15.0340

Grill-Goodman, J, (2018). Starbucks Develops Digital Strategy for Casual Customers. Retail Info Systems. Retrieved from https://risnews.com/starbucks-develops-digital-strategy-casual-customers