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Starbucks. Back to the Basics. Promotional Strategy . What model does Starbucks use? Push Model Pull Model Current marketing/promotion strategy Analysis of promotion strategy Future marketing recommendations . Starbucks Marketing Model. Push Promote to wholesaler Pull
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Starbucks Back to the Basics
Promotional Strategy • What model does Starbucks use? • Push Model • Pull Model • Current marketing/promotion strategy • Analysis of promotion strategy • Future marketing recommendations
Starbucks Marketing Model • Push • Promote to wholesaler • Pull • Promote directly to consumer • Starbucks Utilizes a Pull Strategy
Current Marketing/Promotion Strategy • Howard Shultz returns to CEO position • Refocusing on the “Third Place”
Promotional Mix • Advertising • Personal Selling • Public Relations • Sales Promotion
Advertising • Starbucks 1.4% of revenue • Coke spends 11% of revenue • XM Radio
Personal Selling • Passionate Baristas • Returning focus to Customers Service • Create the Perfect cup of coffee
Public Relations • Parties • Big, Juicy Paintings • Trump Tower • Nationwide Coffee Break • Public Performances • Charitable Contributions
Sales Promotion Holiday Ad • Pass the Cheer • Holiday web site • Viral video’s • Sample vans • Ads • Newspapers, Magazines, Radio, and Billboards • Short Cups
Buyer Readiness • Awareness • Knowledge • Appreciation • Preference • Conviction • Purchase
Recommendations • Advertising • Personal Selling • Public Relations • Sales Promotion
Advertising • Increase from 1.4% to 3% by 2009 • Radio • TV • Billboards
Personal Selling • Baristas must continue to be the very best • Starbucks must create an incentive to retain and reward baristas
Public Relations • Continue: • Green initiatives • Philanthropic endeavors • Change: • Run promotions in conjunction with contributions
Sales Promotion • Return of incentive cards • Tie in with public relations • Loyalty program • Daily coffee break
Back to the Basic’s • Best Baristas • Best Coffee • Best Environment • And a Campaign to attract and retain customers
Thank You • Mark NewMyer • Charles Fox • Alex Kelsay • Kyle Fuller • Tashina Davis