Starbucks Case Study

Starbucks Case Study Lauren Byrum ARTS 224-002

background Starbucks started in 1971 as a single storefront in Pike Place Market which is located in Seattle, Washington. With a vision for serving the individual personally crafted coffee similar to coffeeshops in Italy, Howard Schultz bought Starbucks in 1987 and has grown the brand and company ever since.

mission The mission of Starbucks emphasizes the human experience and contains four main points. It is through these values that the company is operated and grown. According to their website the four main points are as follows, “Creating a culture of warmth and belonging, where everyone is welcome. Acting with courage, challenging the status quo and finding new ways to grow our company and each other. Being present, connecting with transparency, dignity and respect. Delivering our very best in all we do, holding ourselves accountable for results.�

target demographic The targeted demographics of Starbucks are two main groups. The main one is 25 to 40-year-olds that are in a middle to upper income bracket. The second group that is commonly targeted by the company is 18 to 25-year-olds who come from an upper-class background. As of 2018, Starbucks began to realize the value of further diversifying its target demographics and marketing to a wider audience.

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unique selling points Starbucks is unique in the sense that they provide quick service while also creating coffee that is specialized. At Starbucks, the consumer’s experience is just as important as the coffee being sold. According to their website, Starbucks cares more about coffee and wants, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Mission Statement)

strengths - - - -

Established company Strong brand recognition Expaned globally Reputation of having the best chain coffee experience

weaknesses - - -

Vibe is the feeling of a chain and not of a local coffeeshop Pastries are not as fresh as a local coffeeshop Not as in touch with community because it is a corporate company and not run by a small business owner

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advertising and promotional tactics two

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one Ad One: This ad evokes summer through its warm color palette, use of shadows, and the product that is displayed. The product containers are different from the typical simple glass that is used for iced products. Instead the canning jar that is used evokes a casual summer vibe. The use of the gradient to color both the background and the main type creates repetition because of the iced drinks and their varied color due to cream and ice. When I look at this ad, it makes me want to drink a glass of chilled cold brew after a day of hard work. The long shadows suggest that this is an afternoon treat rather than a morning beverage.

Ad Two: This ad can appeal to a wide variety of people because of the wide variety of drinks that it features. Consistency within the Starbucks brand is built through the use of Starbuck’s classic green color. The photography style is also consistent with a clean aesthetic that does not include humans. This ad is effective because it makes the reader want to “explore recipes” since it displays appetizing recipes that the reader could learn how to make. One critique of this ad that is worth noting is that the beverages that are featured are not labeled and thus the reader is left to wonder what beverages they could explore Ad Three: This ad is extremely effective for its ability to draw the consumer into its story. Using the phrase, “oh what yum” is a recognizable play on words and mirrors a popular holiday song.

Through its use of colors and the shape of the whipped cream, the ad clearly communicates that this is a specialty Christmas beverage without ever mentioning the words Christmas or holiday.

The stripes of color behind the beverage are similar to peppermint, a classic Christmas candy, or wrapping paper. The styling of the beverage also breaks Starbucks traditional simple styling but makes sense for a holiday beverage because it points the consumer to both the specialty nature of the product and is a reminder of the decadence of the holiday season.

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local competitors

two one Competitor One: This ad is unique for its use of illustrations to create the coffee cup, this creates visual interest for the consumer. Additionally, the illustrations of different people completing different tasks reminds you of Dunkin’s motto, “America runs on Dunkin’” without every mentioning it. However, if the Dunkin’ logo was not present I do not believe that the ad would immediately make me think Dunkin’ rather it would make me think coffee and how I need it to get through the day.

This is an image from the Muse Coffee Company’s Instagram. It is effective in that it clearly shows what is being advertised – coffee.

The coffee is also pretty and unique because of the latte art that is on the top. Having the baristas in the background holding the coffee evokes a personal feel because the consumer can identify who is making the product that they are buying. This is not necessarily an aesthetic image because of the combination of colors and elements that make it a little too busy.

An image pulled from Golf Park Coffee Co.’s Instagram, this visually draws the consumer in for a couple of reasons. One it communicates coffee because various coffee appliances such as an espresso machine can be seen in the picture. The coffee shop’s name is in the background which helps to create brand recognition. Additionally, the brand’s clean aesthetic and color palette of black, white, and green through house plants is communicated through the image. The image also gives the customer a peek inside the coffeeshop and what the experience will be like for anyone who visits it.

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citations “Best Holiday Ads Of 2019.” DigitalMarketer, 25 Feb. 2020, www.digitalmarketer.com/blog/best-holiday-ads/.

“Dunkin’ Donuts: Kids.” RSS, 1 May 2016, www.adsoftheworld.com/ media/print/dunkin_donuts_kids.

“Mission Statement.” Starbucks Coffee Company, www.starbucks.com/ about-us/company-information/mission-statement.

“Starbucks Coffee Menu: Starbucks At Home US.” Starbucks Coffee Menu | Starbucks® Coffee At Home, athome.starbucks.com/ coffee-menu?utm_medium=social&utm_source=pinterest&utm_ campaign=cr-recipes&utm_term=pin&utm_content=aggregate&pp=0&epik=dj0yJnU9UV9RR1hKWHRkaWZFZkNVWTBXRU9PZ1pqQk9kSnhyYmgmcD0xJm49bHZTTlllSHUycEZVeFhkVkdJdWRhUSZ0PUFBQUFBRjlYMDhr. “Starbucks Summer.” Ryan Simonson, www.ryansimonson.com/nebel/ yyyykqapjgd6ud89sw3zunnovycntg.

Khan, Sabrena Khanum Binti Nawab Zadah, Yusyafizal Bin Mohd Yusop, and Fasihah Binti Wook Baharudin. “Starbucks Market Segmentation and Targeting.” (2018).

Login • Instagram, www.instagram.com/golfparkcoffee/.

Login • Instagram, www.instagram.com/themusecoffeeco/.

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