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 Nationwide Coffee Break Public Performances Big, Juicy Paintings Trump Tower Nationwide Coffee Break Public Performances Charitable Contributions

Sales Promotion Holiday Ad Pass the Cheer Short Cups 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: Change: Green initiatives Philanthropic endeavors Change: Run promotions in conjunction with contributions

Sales Promotion Return of incentive cards Daily coffee break 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