Starbucks service and relationship marketing

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Starbucks Coffee Company was established in 1971, in Seattle Pike, and over the past thirty five years in existence, Starbucks has established more than over 11,500 outlets located around the world with a clientele of forty million every week.

It is a well known brand name globally specializing in gourmet coffee beans, caffeine-free beverages and coffee-brewed products (Opie Percival Read 2008).

Starbucks rapid growth and brand name recognition can be greatly attributed to the firms implementation of the seven elements of services marketing mix in its operations.

The seven elements are as follows: First, Product. Starbucks has been introducing new products in the market from time to time and offers wide range of products from 30 types of whole grain coffee to cappuccinos, coffee assortments and equipments, pastries, oatmeal, smoothies.

Starbucks has implemented a multi-faceted model of introducing its products in the market. This has helped to helped to keep competition at bay and meet its customers demands (Michelli 2007).

Second is price. Starbucks goods and services are sold at a higher price as they are seen to be luxury and esteemed products. Starbucks has applied value strategies on its products so as to cater for the low end consumers who cannot afford its products. Third element is place.

Starbucks locates its outlets strategically in locations with high human traffic on the move, and where people enjoy listening to music or reading books. Its stores can be found in large chain stores, malls, and hyper marts. The outlets are localized depending with their locality by giving each store its own identity name and local address (The Age 2003).

Fourth element is promotion. Starbucks does various promotion activities to capture the intended markets. Its promotions include; Starbuck Card which are used to enhance brand loyalty, and as a form of advertising; doorstep delivery of coffee services; corporate social responsibility activities; and offering international tea and coffee brands to cater for its diverse customer base (Beckwith 1997).

Fifth is process. Starbucks handles sales satisfactorily; processes order fast enough and offer after-sale services to customers as an overall marketing strategy.

Sixth element is physical evidence. Starbucks utilized its satisfied customers as a mode of advertisement and a source of goodwill. It ensures that it is well in contact with its customers and also potential customers (Koichi 2009).

Seventh element is people offering services. Starbucks ensures that its customers needs and suggestions are addressed as they offer important information to the contribution of better services.

These objectives have been very significant in Starbuck in meeting its marketing objectives and satisfying the demands of the customers.

At the moment, Starbucks marketing strategy it to position a local store as a third place for people away from home and workplace, to spend hours in and the outlets are built to make it a comfortable environment to stay in. this strategy has really worked for Starbucks over its competitors in the market.

Starbuck services are directed to customer value benefit, that is, to enable a coffee consumption experience that people can associate with every day. When Starbucks got into the coffee business the coffee consumption experience was not in demand and businesses had not implemented it (The Age 2003).

Starbucks has implemented the Service, Quality, Image, and Price (S-Q-I-P) model to achieve its customer-based objective, of making Starbucks the most established and esteem brand name in the globe. It offers customized service to its clients, with top quality tea and coffee products, goods which represent personal image at a price worthy for the kind of product (Crane 1993).

Starbucks has distinguished its operations and services from the other providers in the market by three main ways: first, it has specialized its main coffee experience as its main product; secondly the top quality coffee products and services; and thirdly Starbucks has provided an environment that excites individuals to walk in the stores and mostly come back in the future (Bhaskar 2009).

Reference list

Beckwith, H., 1997, Selling The Invisible: A field Guide To Modern Marketing, Warner Books, MA.

Bhaskar, C., 2009. Starbucks Marketing Mix. Indews Broadcast, Web. Web.

Crane, F., 1993, Professional services marketing: strategy and tactics, Routledge Publishers, CT.

Koichi S., 2009, Advertising Theory and Strategies, 16th edition, Souseisha Book Company, PA.

Michelli, J., 2007, The Starbucks experience: 5 principles for turning ordinary into extraordinary, McGraw-Hill Professional, London.

Opie Percival Read, 2008, The Starbucks, BiblioBazaar Publishers, Montreal.

The Age, 2003. Ground Control. The Age, Web. Available at: https://www.theage.com.au/ .

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Starbucks service and relationship marketing

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