Marketing Mix Of Starbucks Marketing - 1262 Words

The portion of Starbucks marketing is reflecting the social aspects of their customers, while the other portion is focused on rebranding of their locations. Starbuck s marketing mix (4P s) indicates the importance of this marketing tool as a way to ensure that the firm promotes the right product at the right place and with right pricing. 3.1.1 Product/Service The customers demand Starbucks to be innovative. Starbucks is focusing on the food side of the business. It would be very beneficial for the Starbucks to focus on their in-store items or baked goods. The test locations have already started to follow on this trend, and have provided positive feedback and results. Starbucks is continuing to innovate its product mix to capture the†¦show more content†¦A Starbucks Coffee Frappuccino is Starbucks coffee, milk and blended with ice. A Starbucks Cappuccino is similar to a latte but with more foam. Starbucks Mocha is an espresso, steamed milk and chocolate with whipped cream on top (Greenspan, 2015). Starbucks has expanded its product mix to keep up with the demand and satisfy more customer needs. Starbucks has been constantly introducing new product such as VIA flavored coffees. They also provide seasonal offerings such as smoked butterscotch latte, citrus green tea latte during spring, ginger bread latte during Christmas and many more varieties. 3.1.2 Price Starbucks follows a premium pricing strategy. This pricing strategy takes advantage of the behavioral pattern of people to purchase more expensive products on the basis of the perceived correlation between high price and high value. The company’s coffee products are more expensive than most competing products, such as McDonald’s Premium Roast. Through this pricing strategy, the company maintains its high-end specialty image (Greenspan, 2015). Starbucks is not only a high-priced coffee shop but it offers a combination of quality, authority, and relative value. Starbucks sets its prices on the basis of a simple idea: high value at moderate cost. When people feel that they are getting a good deal for their money, they are more likely to pay a higher cost. Quality is key.