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StarbucksPromotion
Types & Application on the global stage
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Starbucks
21/11/2011
Members Contents ReferencesQ&A
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Li Ivy Maximilian
Phong Nguyen
An Le Kito
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Contents
Theory overview Promotion – types & underlying concepts
Standardization vs. Adaptation
The Promotion of Starbucks
Advertising & Direct Marketing Visual application
Conclusion
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IntroductionPromotionThe propose of promotion is to
make consumers aware of a
new product, to stimulate
nonusers to samples, an existing product, or to
increase overall consumer demand.
1 Advertising 2 Direct marketing 3 Personal selling 4 Public relationship
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Promotion – underlying concepts
Teutner (2002): “instruments to stimulate
sales of products and brands”
3 Basic objectives (Kurtz, 2010): Information Change behaviour to
increase Demand(short term)
Differentiate from Competition
ACT NOW!
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Features Action-orientated
marketing events
(Rossiter and Bellman, 2005)
Tool: stimuli to cause sudden behavioural change;
may also appeal to Product, Place & Price
(Van Waterschoot & van den Bulte, 1992)
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Types - The Promotional Mix (1) Advertising
(presentation by identified sponsor: e.g. Print, TV, direct mail, web)
Personal Selling
(person-2-person transaction)
Sales Promotion
(paid consumer communication programme)
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Types - The Promotional Mix (2)
Public Relations & Publicity
(evaluating & influencing the public perception) Direct Marketing
(communication with prospect i.e. generate response in form of request or order) Exhibitions or try-outs
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Standardisation vs Adaptation
Adaptation: A strategy regarding change of the marketing program (e.g. Product, Price, Place, Distribution.) according to local preferences
Standardization: Usage of a generic marketing program for different international target markets.
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Promotional Type “Advertising”– Application at Starbucks
Jonoshka (2004):‘external communication of an organization with actual and potential customers.’
Types of advertising media include: Print media : newspapers, magazine,
posters,... Broadcast media : TV, radio...
Direct marketing: direct mail, website, online advertising... (Kotler, 1994).
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Starbucks costs on advertising*
2007 $ 103.5 million
$ 19.2 miilion
2008 $129.0 million
$8.8 million
2009 $126.3 million
$7.2 million
* Numbers provided are based on world wide costs starbucks.com
Store operating expenses,
other operating expenses and general and
administrative expensive ()
Prepaid expenses and other current capitalised advertising
costs
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Word of mouth- “third place”1) The average Starbucks customer visits the store six
times per month while the heaviest 20% of customers go to Starbucks at least 16 times per month. (Starbucks commercial, 2010)
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Social media2) Starbucks is mainly adult-focused and aims to
connect with their customers, communities, and children through various advertising tactics
(Professor Marty Lawlor, 2007)
- E-marketing
Twitter, Facebook, Youtube, My starbucks idea,
Starbucks V2V (Jon Swartz, 2009)
http://www.youtube.com/watch?v=K9nJa_8LnSI
- Iphone applications
(Annual report, 2009)
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Starbucks card*
Starbucks Card is the simple, easy way to pay when you are in store.
Extra rewards for Starbucks card holders
* Starbuck.com
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TV commercials
Starbucks is worlds one of the best brands but it rarely advertised on television (Burt, 2009).
In 2007 the company felt slowdown in customer traffic even in holiday season. For the first time Starbucks introduced the national TV advertisement in U.S (Janet, 2007)
The TV Commercial titled Starbucks Holiday 2010 was done by BBDO NEW YORK advertising agency Starbucks Coffee company (for Starbucks) in USA. released in November 2010.
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Market segment Young, affluent customers College educated Higher income levels People combining work and coffee break People who have requirements for the Life-
styles
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Visual Examples
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Back
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Conclusion
Promotion plays a vital role for Starbucks
Starbucks uses various advertising tactics
Starbucks concentrates on E-marketing
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Q&A
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References
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ADAMY, J. (2007). Starbucks Turns to TV In Bid to Boost Results . Available:
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2010.
Helm, B. (2009). How Starbucks Could Do TV Ads. Available:
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Janoschka, A. (2004) Web advertising: new forms of communication on the Internet
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Kotabe, M., Helsen, K. (2011) Global Marketing management. 5th edn. Asia: John Wiley &
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