Marketing Strategy of Starbucks: 1- Starbucks Value Proposition 2- Marketing mix (4ps) of Starbucks 3- Ansoff Matrix Strategy 4- Marketing Segmentation 5- Target Marketing Strategy 6- Positioning

1. University of South Asia, Lahore
Marketing Strategy of Starbucks
Principle of Marketing
Section - A
Presented by: Tayyab Zia
Instructor: Mr. Adil Khushi

2. Starbuck Marketing Strategy
Value Proposition
The value proposition of Starbucks focused on a brand strategy that was
comprised of three components. The brand strategy was best captured by the
phrase “live coffee”.
• The first component was simply the coffee. Starbucks offered the highest-
quality coffee in the world and controlled much of the supply chain as
possible to help insure that.
• The second brand component was service, or what was also referred to as
“customer intimacy.” This included simple things such as remembering
someone’s name or drink order.
• The third brand component was atmosphere. Starbucks stated that people
came for the coffee but stayed for the atmosphere. Therefore it was
important to provide a comfortable atmosphere that allowed a sense of
community.
All of these things combined led to a compelling value proposition.
1

3. Starbuck Marketing Strategy
Price
• Higher than others
• Starbucks started with a low cost
range at few outlets to maintain
competition
Marketing mix – 4P’s
Product
• Coffee
• Beverages
• Ice-cream
Placement
• Cafés (Commercial Markets)
• Online Store (Starbucks App)
Promotion
• Social Media
• Sales Promotion
• Free Samples
2

4. Starbuck Marketing Strategy 3
on
Ansoff Strategy

5. Starbuck Marketing Strategy 4
50%
40%
2%
Adults age 25 - 40
Young adults age 18 - 24
Children age 14 - 17
Age above 40
Market segmentation
Geographics
Main Cities of Targeted Countries
Demographics
Age
Gender
Income
Children (14-17)
Young Adults (18-24)
Adults (25-40)
Matured (Above 40)
Male
Female
Middle Income (Rs.25,000 – Rs.40,000)
Higher Income (Above Rs.40,000)
Source:ColomboPageNews Desk,Sri Lanka.
8%

6. 5
Age group: 18 – 40
Lifecycle: Young and adults
Gender: Male and female
Occupation: College students, Corporate sector employees, executive, and
professional positions
Income:
(Social Class) Middle and higher income earners
Targeting Strategy of Starbucks
Starbuck Marketing Strategy

7. Starbuck Marketing Strategy 6
Price
high
Price low
Low perceived
quality
High perceived
quality
Positioning

8. Starbucks Marketing Strategy
Questions?
Let us know!
7