Integrated Marketing Communication Program of Starbucks

Integrated Marketing Communication Program of Starbucks

Introduction

This final project sets to critically evaluate the various advertising or promotional tools within the integrated marketing communication (IMC) program of Starbucks, determine their effectiveness, and contrast their advantages and disadvantages using different types of media to reach the target market.

Slide 1: Cover Page

Slide 2: Company Profile and Products offered

Headquartered in Seattle, United States, Starbucks was formed in 1971 and started as a roaster and retailer of whole bean and ground tea and coffee. Starbucks began as only a single store but has, over the years, managed to expand its operations to other countries whereby it currently has more than 30,000 retail stores in more than 80 markets across the globe. One of the main factors that have enabled Starbucks to connect with millions of customers and manage to expand its customer base is the use of useful promotional tools as well as offering high-quality products. Some of the broad range of exceptional products that Starbucks provides to its clients include more than 30 blends and single-origin premium coffee, whereby customers can choose the coffee flavor of their preferences from the varieties offered by this company. Moreover, Starbucks offers handcrafted beverages such as hot and iced espresso beverages, Nitro, Teavana teas, fresh-brewed coffee, Starbucks Refreshers beverages, Iced Coffee, Frappuccino coffee, Cold Brew, and non-coffee blended drinks.

Slide 3: Objective of the IMC Program and Target Market

The objective of the integrated marketing communication program of Starbucks is primarily based on its mission, which involves inspiring and nurturing human spirit by providing one cup, one person, and one neighborhood at a time. This mission gives the company its marketing direction. The primary objectives of the IMC program that Starbucks uses during its marketing campaign include generating product interest amongst its target customers and creating brand awareness through using a consistent brand voice to strengthen its relationship with the target clients. The third objective of the IMC program used by Starbucks is prompting the target and potential customers to take action in the form of buying its products, thus increasing its sales.

Moreover, the IMC program of Starbucks aims at increasing the customers’ desire for its products, which may translate into more sales for the company. The primary target market that Starbucks aims at covering using this IMC program is both men and women in both the upper and middle socioeconomic class mainly those are in the age bracket of 25 to 60 years who account for more than 49% of its total sales. By working towards keeping its high-quality products as current as possible, Starbucks uses hip and contemporary design that is increasingly consistent with its décor and advertising to appeal to this consumer age group.

Slide 4: Promotional/Advertising Tools

Starbucks uses several promotional tools to create customer loyalty, communicate customer value, and build customer relationships, thus enabling it to enhance its public image as well as attract a more significant customer share. The primary tools that comprise Starbucks’ marketing communications mix include public relations, sales promotion, advertising, personal selling, and direct marketing.

Slide 4: Sales Promotion

In the effort of motivating its target customers to make more purchases, Starbucks uses sales promotions across the United States and most countries where it has opened subsidiaries. The sales promotion marketing strategy used by Starbucks is in various forms, such as the use of customer loyalty cards. Starbucks uses the ‘My Starbucks Rewards’ as its primary customer loyalty program to implement most of its sales promotion initiatives. Customers can benefit from rewards such as ‘buy one get one free’ or even complimentary drink customization through this loyalty program based on the number stars one had earned from being a regular customer. Another form of sales promotion technique that Starbucks uses is seasonal sales such as discounts during Starbucks Red Holiday Cup and Christmas Holiday promotions. This strategy is useful for Starbuck in the sense that it is more controllable and less expensive for the company, thus enabling it to push for immediate turnovers. It has also allowed Starbucks to attract and retain most of its customers despite the presence of stiff competition.

Slide 5: Personal Selling

Starbucks uses its well trained and experienced staff to build a strong relationship with each client in a more personalized way as well as providing the customers with all the necessary advice and information regarding the products that it sells. Such information enables customers to make informed decisions as well as understand the benefits associated with every product sold by Starbucks. This promotional tool is useful and beneficial to Starbucks in the sense that it enhances customer service that it offers to the clients, thus giving them a shopping experience that is rarely provided by its competitors.

Slide 6: Advertising

Starbucks uses this marketing tool to associate its brands with superior quality and pleasing experience with both media and print being at the core of this marketing strategy. Starbucks has, over the years, been using viral marketing and social media to increase its sales by reaching out to a more significant market available across the globe. For instance, in 2009, Starbucks offered a free pastry through social media for those customers who managed to purchase any of its drinking products before 10:30 am, thus attracting millions of customers through this initiative. The most recent marketing campaigns that have been launched by Starbucks and which have seen the company attract a more extensive customer base thus increasing its sale include the ones it started on Twitter such tweet #TreatReceipt, @tweetacoffee and #Pumpkin Latte whereby customers with the highest number of tweets were given discounts for every purchasing any of its products. Starbucks also uses print media such as billboards, flyers, magazines, and newspapers to increase the awareness of its customers regarding its products. This method has proven to be useful for Starbucks as it enables it to reach out to a broader market that it cannot manage to reach using other promotional strategies.

Slide 7: Public Relations

Starbucks uses this technique to maintain a positive public image as well as that of the products and services that it offers to its customers. Starbucks has been using this strategy on special occasions such as when launching a new product or service, attracting the attention and interest of the public, effectively defending any of its products that may have at some point suffered from negative perception by the public. Moreover, this promotional technique has enabled Starbucks to reposition its products, generate additional revenue through enhancing public confidence about its products, and also to improve its overall image. This promotional technique has been useful in the sense that it is less costly and enables the company to customize the kind of information that it wants its target customer to get regarding its brands.

Slide 8: Direct Marketing

Starbucks has been using this promotional strategy to obtain an action in the form of sales from a selected group of consumers. Some of the forms of direct marketing strategies that Starbucks is fond of using during marketing include direct emails, telemarketing, point of sale in its different stores, and postal mail because these strategies have been enabling it to measure the rate of consumer response. Some of the reasons as to why Starbucks has incorporated direct marketing as part of its promotional mix is that this strategy enables it reaches its specific audience segments using personalized messages, increase its sales from both the current and former clients, optimize its marketing budget, upgrade its loyalty strategies and create new business opportunities. These reasons for using this strategy have made it useful to Starbucks.

Slide 9: Overview of Media’s Advantages and Disadvantages

Just like of most of its competitors, Starbucks has been at the forefront in using media a one of its primary promotional tool to increase its brand awareness, attract more customers as well as increase sales. There are various forms of media that Starbucks has been using for marketing purposes, and they include Television, internet, radio, and social media platforms such as Facebook and Twitter. Moreover, the use of these types of media as part of its promotional mix has brought various benefits and shortcomings to the company.

Advantages of Media

Some of the benefits that Starbucks has experienced from using media include raising brand awareness, building conversions, improving communication and interaction with primary audiences, and creating positive brand association and brand identity. Moreover, the use of media such as Television and radio had enabled the company to reach out to a broad market segment at a limited cost due to distance barrier elimination facilitated by this promotional strategy. Other advantages of using social media include gaining a full brand authority in the market, enhancing customer satisfaction, and creating more inbound traffic.

Disadvantages of Media

However, media has several limitations that may have significant impacts on the company if used appropriately. These shortcomings include being costly for the company and time-consuming for both the company and the customers as they have to understand the market and the products being offered, respectively. Others include negative feedback provided by past customers in the media may significantly tarnish the brand image and may be difficult for the company to focus on specific target market since media coverage is extensive as it reaches out to both target and un-targeted customers.

Slide 10: Twitter

Starbucks currently has more than 2.1 million followers on Twitter, and they are expected to increase with an increase in the population of its target customers. Through the help of Twitter, Starbucks has managed to customize its customer services by using its marketing team to engage with its clients actively. The marketing team does so by providing customers with direct responses to their questions as well as clarifying any issue that the customers may have, including addressing any complaints. This media tool has also enabled Starbucks to enhance its brand image by reaching out to a large number of online users present in this platform. Twitter, as a marketing tool, has been useful in the sense that it has enabled Starbucks to customize its services through direct responses to customers and well as an increased online presence that promotes its brand image.

Slide 11: Facebook

Starbucks has, over the years, been using Facebook as one of its primary media tools to increase its customer base as well as attract more customers into buying its products. Today, Starbucks has more than 40 million followers on its Facebook page, with approximately 92% of these fans being its target market. Facebook has been an important media tool for Starbucks as it has enabled it increases the awareness of the customers regarding its products as well as attracting more customers as well as retaining the existing ones. Starbucks has been ensuring that it makes regular posts of its products in the effort of attracting customers’ attention towards them as well as influencing them into buying them through promotion sales strategies such as discounts and coupons. Starbucks uses Facebook to enlighten the customers on this platform regarding some of the rewards that they can get from maintaining loyalty to its products, thus making it a useful media tool for use. This tool has also enabled Starbucks to keep up with the competition and maintain a leading position.

Slide 12: Television

Moreover, Starbucks has embraced TV as one of its crucial media tools to market its products. In the hope of driving new and existing customers into its stores, Starbucks has launched a national television advertising campaign, which has enabled it to increase its customer base. Through using Television, Starbucks has managed to deliver the message about its “Starbucks Experience” through adverts that are aimed at showing positive feedback from past satisfied customers. Moreover, Starbucks has contacted most of the local and international Television broadcasting corporations where it has partnered and instructed them to air animated-I minute adverts about its brands in prime time, especially from 7:30 p, to 11:00 pm on weekdays and at regular intervals on weekends and holidays. That is because more customers tend to watch Television during such times.

Conclusion

In conclusion, an integrated marketing communication program of Starbucks is composed of useful promotional tools that have enhanced its marketing activities. Some of the most effective promotional tools that Starbucks has been using and which have enabled maintain a leading position in the market include sales promotion, public relations, direct marketing, and advertising. They have allows Starbucks to increase its brand awareness, attract more customers, increase sales as well as revenue generated from sales made. Moreover, Starbucks has been using media tools such as Television, Facebook, and Twitter, among others, to attract a larger market share, increase customer loyalty and sales.