In an ever-evolving digital landscape, Starbucks stands out as a beacon of successful digital marketing. From its engaging social media presence to creative in-store experience, the Starbucks marketing strategy has continuously adapted to changing consumer behaviour and preferences.
In this case study, we will delve into how Starbucks leverages digital marketing and other marketing strategies to connect with its target audience.
Click on each corresponding link to learn more:
Contact Relevantly today for expert marketing strategy insights. Or if you’re interested in the marketing strategies used by other big brands, take a look at our other case studies!
The Starbucks Marketing Strategy
Image Source: christian hardi from Pixabay.
1. A Brief Introduction to the Starbucks Brand
Starbucks is a global coffeehouse chain that was founded in Seattle, Washington, in 1971.
Before we begin analyzing the Starbucks marketing strategy, let’s take a look at the chronological history of the company:
In 1971, Starbucks opened its first store in Seattle's historic Pike Place Market, offering fresh-roasted coffee beans, tea, and spices from around the world for customers to take home.
The name "Starbucks" was inspired by the classic tale "Moby-Dick," evoking the seafaring tradition of early coffee traders.
In 1983, Howard Schultz, a young New Yorker, joined the company and was inspired to bring the warmth and artistry of Italy's coffee culture to Starbucks.
Schultz's vision led to an aggressive expansion of the franchise, first in Seattle, and then across the West Coast of the United States.
In 1987, Schultz purchased Starbucks and began to expand the company rapidly, opening stores across the United States and eventually around the world.
Starbucks continued to grow in popularity and success for decades following this rebrand. In 1996, they opened their first store in Japan, in 1998, they opened locations around Europe, and in 1999, they opened locations around China.
Starbucks has led a coffee revolution in both the United States and beyond, becoming a global coffeehouse chain with nearly 35,000 stores worldwide.
Today, Starbucks is known for its reputation as a purveyor of high-quality coffee, tea, and food offerings, as well as its commitment to ethical and sustainable sourcing practices.
In summary, Starbucks began as a small coffee bean retailer in Seattle and has since grown into a global coffeehouse chain with a strong brand identity and commitment to quality and sustainability.
2. Mobile App and Loyalty Program
Starbucks’ mobile app and loyalty program has been highly successful in driving customer engagement and loyalty. They also do a great job of engaging their target market (tech-savvy people ages 22-60 and teenagers).
The app allows customers to:
Order and pay ahead
Earn rewards/points
Access personalized offers
Their mobile app features a pretty standard modern look:
The Starbucks mobile app aims to be as user-friendly as possible.
Mobile apps like Starbucks are becoming increasingly popular. Tim Hortons, McDonald’s and other popular chains also have their own mobile apps and loyalty programs.
Small businesses can learn from this component of the Starbucks marketing strategy by developing their own mobile apps and loyalty programs to enhance the customer experience and drive repeat business.
- How to apply this to your business -
Imagine you own a small bakery. You can create a loyalty program that rewards those who have purchased more than six donuts with one free donut. You can keep track of each customer's progress through a card which you can stamp every time they make a purchase.
You can even have a mobile app created that does the same thing but through a smart phone. Customers simply scan the QR code displayed on the app and they receive points and rewards.
These loyalty programs are a great method for increasing customer engagement because they give them a reward to work towards. Therefore, it increases the likelihood that they will return to your business in the future.
3. Social Media Engagement
Starbucks does an excellent job of maintaining an active presence on various social media platforms where they actively:
Engage with customers
Share content
Run campaigns
For example, they are currently running their fall campaign where the fan-favourite pumpkin spice lineup has made a return.
Let’s take a look at how they are advertising this specific campaign via their social media:
Starbucks specializes in all things pumpkin spice!
Small businesses can learn from the Starbucks marketing strategy and alter how they utilize their social media platforms by:
Creating compelling social media content
Engaging with their audience
Leveraging social media advertising to reach their target audience
- How to apply this to your business -
Perhaps you own your own home decor business. You can take inspiration from these Starbucks ads and run ads specific to the fall season.
Perhaps you want to highlight your red, orange, and yellow blinds or your beautiful fall-themed area rugs. Whatever the design elements are, make sure your marketing strategy is changing with the season!
4. Personalization and Customization
If you have ever entered a Starbucks and ordered a drink you’re probably aware of the nearly unlimited amount of options to choose from. From extra caramel drizzle to sweet foam on top you can truly create the drink of your dreams.
Although these options are sometimes overwhelming, they are clear examples of Starbucks’ immense personalization and customization options. Not only does this allow customers to truly express themselves but it makes them feel confident in their purchase.
Can anyone tell us what is in this drink? | Image Source: eunsu Yang from Pixabay
Given the fact that drink modifications are nearly endless, customers have the power to create their own unique beverages. As a result, people are constantly trying to find the next best drink and they love to show their close friends and loved ones what they have come up with.
There are even countless online articles displaying specific celebrities and their go-to Starbucks order. For instance, Kim Kardashian loves a white chocolate mocha with whipped cream and Taylor Swift orders a caramel nonfat latte. The unique thing about this is the fact that Starbucks is not the source of these articles. But of course they benefit directly from them as people want to drink the same thing as their favourite celebrity.
- How to apply this to your business -
Small businesses can learn from this component of the Starbucks marketing strategy by increasing the amount of personalization and customization options for their customers. Give your customers free rein to be creative!
5. In-Store Experience
Starbucks has crafted a widely emulated atmosphere.
Starbucks has created a unique in-store experience, with:
Comfortable seating
Free Wi-Fi
Warm lighting
The aroma of freshly brewed coffee
Distinctive green accenting
The truth is, the feeling of being in a Starbucks always feels familiar whether you are in a different city or even another country.
The in-store experience greatly influences Starbucks marketing strategy.
Additionally, Starbucks employees do a great job of:
Offering personalized recommendations
Assisting with product selection
Answering questions
By doing these things, Starbucks creates a memorable experience for its customers.
- How to apply this to your business -
Small businesses can learn from these insights by focusing on creating a positive and memorable in-store experience that encourages customers to stay longer and return in the future. This can include factors such as:
Personalized recommendations
Friendly and knowledgeable staff
Innovative experiences
Comfortable atmosphere
By prioritizing the in-store experience, small businesses can differentiate themselves from online retailers and drive customer loyalty and sales.
6. Partnerships and Collaborations
Starbucks has successfully partnered with other brands and organizations to create unique and innovative products and experiences. For example:
Starbucks has partnered with Spotify to create a “music ecosystem” that offers artists greater access to Starbucks consumers and gives Starbucks access to Spotify’s expansive discography. This partnership has helped to create a unique in-store experience for customers.
Starbucks has also partnered with McDonald’s to create a more sustainable cup. This partnership has mutual benefits, including reducing waste and improving sustainability.
In the US, Starbucks has partnered with Target to open Starbucks counters within Target stores. In a similar way, Starbucks has partnered with Zehrs in Canada. This partnership has helped to create a convenient and enjoyable shopping experience for customers.
Starbucks has also partnered with food delivery services such as DoorDash. This partnership provides consumers with exclusive deals and promotions. For example:
Partnerships and collaborations can be mutually beneficial!
- How to apply this to your business -
Small businesses can learn from the Starbucks marketing strategy by seeking out strategic partnerships and collaborations that can help them reach new audiences and enhance their brand image. By partnering with other brands and organizations, small businesses can create unique and innovative products and experiences that engage their customers and drive business growth.
7. Sustainability in Business Operations
We’ve already mentioned Starbucks' collaboration with McDonald’s and their production of a more sustainable cup, but Starbucks' efforts to tackle sustainability do not end there.
Here are some examples of what Starbucks has done to address sustainability:
Investment in Sustainable Practices: Through their Coffee and Farmer Equity (C.A.F.E.) program, Starbucks has identified a few key areas where it can make big improvements by 2030, such as:
Expanding plant-based and environmentally friendly menu options
Shifting from single-use to reusable packaging
Investing in innovative agricultural, water conservation, and reforestation practices
Looking for ways to better manage waste (including food waste) in stores and in communities
Developing more eco-friendly operations, from stores to supply chains to manufacturing.
Coffee-Specific Environmental Goals: Starbucks has a bold aspiration to be a resource-positive company, to take less and give more to the planet in every aspect of its business – including coffee. Starbucks purchases coffee from more than 400,000 farmers in 30 countries around the world. By reducing carbon emissions and conserving water, Starbucks can help farmers be more productive while also contributing to a better planet.
Ethical Sourcing Challenges: Despite their claims, Starbucks continues to struggle with the ethical sourcing of their products. Although their goal is to reach 99% ethically sourced coffee, they’ve still made mistakes along the way. Starbucks continues to contribute to massive deforestation in countries like Peru and contributed to human rights issues in countries like Brazil. This highlights the importance of media coverage of the efforts of large companies to help keep them honest.
- How to apply this to your business -
Small businesses can learn from these Starbucks marketing strategy examples by prioritizing sustainability in their business operations. This can include the following:
Invest in sustainable practices (solar energy and natural lighting)
Reduce packaging waste
Conserve resources
It is also important to note that sustainability practices should never end. Instead, they must be something you are constantly working towards and held accountable for. As we know, Starbucks is far from perfect and without an attainable plan to complete these goals, they are simply talk.
Through prioritizing sustainability, small businesses can differentiate themselves from competitors and appeal to customers who are increasingly concerned about the environment. They can also launch marketing campaigns around their sustainable practices and make them a key selling point.
Improve Your Marketing Strategy With Relevantly!
Are you looking to employ a marketing strategy similar to Starbucks? Perhaps you are looking for:
A loyalty program
More social media engagement
More personalization for your customers
A better online store and in-store store experience
Effective collaborations
Advice on how to be more sustainable
If this is the case, contact us at Relevantly! We are the marketing experts.
Improving your marketing strategy or creating one from scratch can be difficult, especially if your knowledge of marketing is limited.
As a business owner, you already have a lot on your plate and you may not have the time to create and monitor things like:
Instagram ads
Social media management
Data and analytics
To ensure you are making the most of your time and money, work with a professional marketing company such as Relevantly.
At Relevantly, we specialize in marketing and we would love to help you with your marketing plan.
We have over 15 years of marketing experience and our team has helped several companies and organizations across Ontario, Canada, and North America expand their brand.
If you are feeling inspired after learning about the Starbucks marketing strategy, contact us today! We are here to help.
