Friday, November 19, 2010

Starbucks Marketing Strategy

The Starbucks marketing strategy is one of the most written up marketing strategies.  Their initial goal was expansion.  Once they came up with a forumla that worked in Seattle, they started to replicate it regionally.  After regional expansion, they focused on expanded their coffee stores nationally.  At this point, Starbucks had become "the brand name" for coffee. 

Once their national expansion had started to top out, Starbucks went global.  The rate of new store openings was the highest rate of any business in the world during this time period.  The biggest global expansion problem that they faced at the time was in China.  China's lack of copyright laws allowed local companies to essentially copy their brand and throw it up on their stores.  This lead to serious brand confusion especially in the high tourist zones within the country.  Tourists saw the logo and went in thinking it was a legit Starbucks.

Over the last two years, the founder took the reigns back and changes the Starbucks marketing strategy.  They closed over 10% of low performing stores and came up with low cost marketing methods to compete with McDonald's.

1 comment:

  1. Starbucks marketing strategy is a very interesting thing. That is really cool to be connected to such a great company. Look in here Best Essay Writer Here