Analyzing the mix marketing strategy of Starbucks in Vietnam PDF

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Analyzing the mix marketing strategy of Starbucks in Vietnam...

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Topic: Analyzing the mix marketing strategy of Starbucks in Vietnam Marketing Mix (4P) is always a classic marketing strategy but never outdated. This mix marketing strategy is trusted by big guys in the world because of its typicality and effectiveness. Let's see how this formula 4 P (Product, Place, Promotion and Price) has been used effectively by Starbucks.

Overview of Starbucks Before going into the analysis of marketing mix strategies, let's take a few minutes to learn about this Starbucks brand. Starbucks is the world's leading cafe chain, created in 1971 by Howard Schultz with the first store in Seattle (USA). Until now, Starbucks has expanded to more than 17,000 of its stores in more than 50 countries worldwide, including the US, UK, Australia, France, Germany, etc. Starbucks began to "land" in Vietnam in the year. 2013 with the first store at the intersection of Phu Dong, District 1, Ho Chi Minh City. Starbucks' USP score is to provide "a third place" outside the home and agency for everyone, with a wide variety of premium quality beverage products. Starbucks launched a TVC and advertised in the press titled "Our Barista Promise: Love your beverage or let us know. We'll always make it right ”(roughly translated:“ Our barista always tries to please you. If something goes wrong, please let us know. We'll try immediate remedy ”). This TVC aims to emphasize and affirm Starbucks' difference from any other cafe or chain. According to brand loyalty index for the world's most famous coffee and beverage brands, Starbucks came in second with 95%, just after Dunkin Donuts. So how did Starbucks get to be the number one customer in the world today? The answer is in their mix marketing strategy (4P). In this mix marketing strategy, MarketingAI will go into 4 P analysis - corresponding to 4 factors, including: Product - Product Price - Price Place - Location Promotion – Promotion

Product This first P focuses on what businesses will provide to consumers. And Starbucks is constantly innovating products to suit customers' needs. Initially and fundamentally, Starbucks provides the main product is coffee. Starbucks coffees are divided into 4 different criteria, ensuring to meet the diverse needs of coffee believers worldwide: Based on the type of coffee beans: whole coffee, roasted coffee Based on roasting: blonde roasted coffee, medium roasted coffee (medium), well roasted (dark) coffee Based on caffeine level: regular coffee (containing caffeine), and decaf coffee (caffeine removed) Based on the taste: coffee tastes and coffee has no taste However, in the process of developing its brand, Starbucks found that they could also attract a large number of non-coffee-loving customers, but wanted to experience and stick with Starbucks space. Since then, Starbucks has developed other product lines to "rack up" those customer groups. In Marketing mix, this is called the product P. In addition to year-round products, Starbucks is constantly refreshing its products and product lines with seasonal products, limited edition products, festive products, and more. The consistency in Starbucks products is so strong that the company is willing to accept products or product lines, if they affect their key product. Typically in 2008, Starbucks launched an experiment with breakfast sandwich products. But after that, the company had to stop selling this type of cake because it lost the delicious taste of coffee - a key product of Starbucks. Currently, coffee, tea, cakes, drinks Frappuccino, smoothies and goods (cups, instant coffee, ...) are all main products of Starbucks. This is the result of a product improvement process for many

years of this big brand. Starbucks also has its own research division to make sure that Starbucks will always be attractive and attractive to customers. Price It is easy to see that Starbuck's beverage or cake products are more expensive than usual. But why are so many people loyal to this "luxury" coffee brand? The second P, called Price, is a point where we need to learn from Starbucks.

Not targeting prices, Starbucks focuses on product value, by delivering a message that they deliver high-value products to customers. From carefully selected high quality coffee beans, the product will undergo strict processing, with the implementation of well-trained staff. Therefore, Starbucks products will definitely not be cheap. In other words, Starbucks applies a mediumhigh price to bring the best experience to their target customers. However, in order to survive and compete with many cafes and coffee chains around the world, Starbucks offers clever tricks - only $ 1 for a cup of coffee with no limit to the number of coffee times. This is quite cheap (50 cents cheaper than other cafes). Of course, at such a great price, people will be attracted to the Starbucks experience. Parallel to that, Starbucks also launched saving combo products and ancillary services such as breakfast saving only $ 3.95. These combos are aimed at groups of customers who are much interested in prices. In order to "rack" a group of customers with price rises, Starbucks launched low-cost coffee products, interspersed with high-end coffee products and the use of price comparison to sell high-end products. . In fact, Starbucks' pricing is quite simple: they think that if customers have experienced and loved high-end beverage products, they are not too difficult to spend more to enjoy the service. that great. With this customer group, product quality is the core factor. They care much about how high quality products, quality control procedures, customer care teams are enthusiastic and professional. At that time, price is only secondary. To maximize profits, they increase the prices of some drinks or cup sizes instead of whole-grain coffee products. They wisely offer attractive rates to customers who want to choose a larger drink cup size. This is a strategy to target consumers' behavioral trends, when customers always think that more expensive products will be more valuable. Therefore, Starbucks can easily maintain its image as a premium brand with its number one product quality. Distribution (Place) Place in the mix marketing refers to whether the product will be distributed at locations where customers can use its services. With Starbucks, the company offers a clear vision, which is to build a direct and personal relationship with customers. This vision leads to the distribution of its products at Starbucks cafes, online shops, via the Starbucks App, and through retailers.

At first, Starbucks sold its products at Starbucks Coffee shops. As the Internet grows, Starbucks offers products in Starbucks Online stores. In addition, some products are sold through retailers worldwide. The company also allows customers to use Starbucks App to order anytime, anywhere. This is to prove that "big man" Starbucks has adapted quite quickly with the change of time, technology, and market conditions. Starbucks imports coffee from the highest quality coffee gardens, and distributes that coffee product with its brand name. They also associate with hotels, airports, coffee shops for office workers. This makes Starbucks easy and quick to expand its market and maximize sales profits. So far, Starbucks products have been available in more than 40,000 grocery stores, including 33,000 stores in the United States. This huge number proves that the optimization of the third P Place - has helped Starbucks to show its number one position in the cafe market and offer premium drinks. Communication (Promotion) This is the letter P refers to marketing strategies used by the company to widely promote products and services. Starbucks is a brand that "pays" for communications and promotional activities, with a diverse and creative form. Let's make a simple comparison between Starbucks and McDonald’s. In 2007, when McDonald's poured $ 727.7 million into advertising and media activities, Starbucks spent just $ 16.6 million. With the remaining money, the company used to search and buy prime locations for its outlet stores. They organized major events at the opening venues, to promote their names. At the same time, Starbucks has many other special promotional activities, such as printing its logo on personal items such as T-shirts, drinking cups, or thermos. They also collaborate with brands and celebrities to release other limited editions. A clever form of the last P is Starbucks Gift Card. With this form of promotion, the company has easily attracted new customers who have never used Starbucks services. They are friends of old customers, and the company uses the same old customers to advertise for themselves. The great thing about Starbucks' promotional strategy lies in its willingness to deliver coffee regardless of size to offices. While not officially offering a slogan for this "mouth-to-mouth" form of care, Starbucks customers can also understand the dedication and attentiveness of Starbucks service. However, Starbucks does not always win boldly. Starbucks' campaign "Race Together" is a classic mistake when it comes to communication without understanding the local culture. Starbucks' PR campaign "Race Together" has been criticized by consumers. Launched in March 2015, the campaign sparked a heated debate about racial segregation with the concept of "Race Together" on Starbucks coffee cups. Instead of a resounding success, this campaign became a ridiculous social network game, and received disastrous failures when consumers protested against his big "plunge into politics." The oral marketing channel is also used quite effectively by the company, in order to enhance brand identity and brand loyalty. With over 27 million fans on Facebook alone, and more than 2 million followers on Twitter, you can easily see Starbucks' speed of light expansion in the race

against other competitors in the market. What makes Starbucks successful is in the fast-paced tendencies, and innovations in media campaigns. Conclusion Starbucks is a classic example of the power of mix marketing. Hopefully, through this article, you have some effective communication ideas for new cafés, or promotions for patrons....