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