Marketing Strategy: Product Development of Starbucks. Starbucks’ marketing strategy is to develop its brand awareness and increase sales.
In order to achieve its financial goals. In this section, we will elaborate more on how Starbucks developed its brand awareness and how it increased its sales.
There are three components that support brand awareness: Product, promotion, and place. Product refers to the quality and design of a product. Promotion refers to how companies advertise and promote their products.
In order to let people know about them. While place refers to where a company places its products in order to attract customers.
Starbucks uses all three components as well as other components. Such as a customer loyalty program (star rewards program) in order to develop its brand awareness.
Starbucks has always made sure that they have designed high-quality products. In order to maintain the image of their brand. This means that customers who enter a Starbucks coffeehouse would expect that the products they will buy will be of good quality.
If a company develops high-quality products then it can be expected that customers would buy their products again and again.
Because they would feel confident about the quality of their products and therefore, they would not have to worry about whether the next time they come into a Starbucks coffeehouse they will get good quality products or not.
Moreover, if a company develops low-quality products then it will affect negatively their brand awareness because customers will doubt the image of their brand which means that next time they enter another Starbucks coffeehouse what kind of quality product they are going to get there?
If it’s not as high as other Starbucks coffeehouses then why should they go there? So this shows us that if a company wants to develop its brand awareness then it needs to develop high-quality products so that customers can trust them and come back again and be loyal customers.
As we can see Starbucks has always developed high-quality products in order to maintain their image of providing good quality products to their customers.
Develops new products
Moreover, Starbucks also develops new products and improves the existing products through a product development strategy. For example, in 2016 Starbucks created a new way to make its espresso drinks without using milk powder anymore.
It is because before you needed both milk powder and milk in order to get a latte but now you only need milk because without milk powder it’s easier to pour latte out from the machine-like latte maker.
This way made Starbucks’ espresso drinks more convenient for customers who don’t like to use milk powder because they usually put too much or too little milk powder in the drink while they are trying to pour a latte out from a machine like a latte maker.
Marketing Strategy: Product Development of Starbucks
Another example is when Starbucks heard some customers complain about the acidity of espresso drinks then they tried to reduce the acidity and make better tasting espresso drinks for customers
Moreover, Starbucks also provides high-quality service for their customers. For example, when you enter a Starbucks coffeehouse then you will find that the store is always clean and tidy and employees are always kind and helpful to their customers. Moreover, when you ask them any questions then they will answer them politely.
This helps customers feel comfortable when they come into a Starbucks coffeehouse. Moreover, since all the employees wear uniforms it also helps customers recognize baristas at all of the stores across the world which is useful for customers who travel frequently or move often.