1. Starbucks
Promotion
Types & Application
on the global stage

2. Starbucks
21/11/2011
Members Contents Q&A References

3. Phong Nguyen
Li Ivy Maximilia
n
An Le Kito

4. Contents
Theory overview
 Promotion – types & underlying concepts
 Standardization vs. Adaptation
The Promotion
of Starbucks
 Advertising & Direct Marketing
 Visual application
Conclusion

5. Introduction
Promotion
The propose of promotion
is to make consumers
aware of a new
product, to stimulate
nonusers to samples,
an existing product, or to
increase overall
consumer demand.
1 Advertising
2 Direct marketing
3 Personal selling
4 Public relationship

6. Promotion
– underlying
concepts
 Teutner (2002):
 ‚instruments to
stimulate sales of
products and brands‛
 3 Basic objectives (Kurtz,
2010):
 Information
 Change behaviour to
increase Demand(short
term)
 Differentiate from

7. Features
 Action-orientated
marketing events
(Rossiter and
Bellman, 2005)
 Tool: stimuli to
cause sudden
behavioural
change;
 may also appeal to
Product, Place &
Price
(Van Waterschoot &

8. Types - The
Promotional Mix (1)
 Advertising
(presentation by
identified sponsor: e.g.
Print, TV, direct mail,
web)
 Personal Selling
(person-2-person
transaction)
 Sales Promotion
(paid consumer

9. Types - The Promotional
Mix (2)
 Public Relations &
Publicity
(evaluating &
influencing the public
perception)
 Direct Marketing
(communication with
prospect i.e. generate
response in form of
request or order)

10. Standardisation vs
Adaptation
 Adaptation: A strategy
regarding change of the
marketing program (e.g.
Product, Price, Place,
Distribution.) according
to local preferences
 Standardization: Usage
of a generic marketing
program for different
international target
markets.

11. Promotional Type ‚Advertising‛–
Application at Starbucks
Jonoshka (2004):
‘external communication of an
organization with actual and
potential customers.’
Types of advertising media include:
 Print media : newspapers,
magazine, posters,...
 Broadcast media : TV, radio...
Direct marketing: direct mail,
website, online advertising... (Kotler,
1994).

12. Starbucks costs on
advertising* Store operating
expenses, other Prepaid
operating expenses and
expenses and other current
general and capitalised
administrative advertising costs
expensive ()
2007 $ 103.5 $ 19.2
million miilion
2008 $129.0 $8.8
million million
2009 $126.3 $7.2
million million
* Numbers provided are based on world wide costs
starbucks.com

13. Word of mouth- ‚third
1)
place‛
The average Starbucks customer visits the
store six times per month while the heaviest
20% of customers go to Starbucks at least 16
times per month. (Starbucks commercial,
2010)

14. Social media
2) Starbucks is mainly adult-focused and
aims to connect with their customers,
communities, and children through
various advertising tactics
(Professor Marty Lawlor, 2007)
- E-marketing
Twitter, Facebook, Youtube, My starbucks
idea,
Starbucks V2V (Jon Swartz, 2009)
http://www.youtube.com/watch?v=K9nJa_8L
nSI
- Iphone applications
(Annual report, 2009)

15. Starbucks card*
 Starbucks Card is the
simple, easy way to
pay when you are in
store.
 Extra rewards for
Starbucks card
holders
* Starbuck.com

16. TV commercials
 Starbucks is worlds one of the best brands but it rarely
advertised on television (Burt, 2009).
 In 2007 the company felt slowdown in customer traffic
even in holiday season. For the first time Starbucks
introduced the national TV advertisement in U.S (Janet,
2007)
 The TV Commercial titled Starbucks Holiday 2010 was
done by BBDO NEW YORK advertising agency
Starbucks Coffee company (for Starbucks) in USA.
released in November 2010.

17. Market segment
 Young, affluent customers
 College educated
 Higher income levels
 People combining work and coffee break
 People who have requirements for the
Life-styles

18. Visual Examples



24. Back

25. Conclusion
 Promotion plays a vital role for
Starbucks
 Starbucks uses various
advertising tactics
 Starbucks concentrates on E-
marketing

26. Q&A

27. References
 Blattberg, R. C., & Neslin, S. A. (1990). Sales promotion: Concepts, methods, and strategies. Englewood
Cliffs: Prentice Hall.
 Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
 Teunter, L. H. (2002). Analysis of sales promotion effects on household purchasing behavior. ERIM PhD
Research Series in Management. Erasmus University Rotterdam, 262 p.
 Van Waterschoot, W., & van den Bulte, C. (1992). The 4P classification of the marketing mix revisited.
Journal of Marketing, 56(4), 83–93.
 Journal of the Academy of Marketing Science, Volume 38, Number 3, 383-397, DOI: 10.1007/s11747-
009-0161-1 available @ http://www.springerlink.com/content/m3v3604924347073; Accessed on:
19/11/11

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http://online.wsj.com/article/SB119513628463094194.html?mod=yahoo_hs&ru=yahoo . Last accessed
20th Nov 2010.
 Fleishman, G. (2010). A new revenue drip for Starbucks. Available:
http://www.economist.com/blogs/babbage/2010/10/coffee_and_wi-fi . Last accessed 20th Nov 2010.
 Helm, B. (2009). How Starbucks Could Do TV Ads. Available:
http://www.businessweek.com/bwdaily/dnflash/content/may2009/db2009057_583829.htm . Last
accessed 20th Nov 2010.
 Janoschka, A. (2004) Web advertising: new forms of communication on the Internet
[Online]. Available at:
http://books.google.co.uk/books?id=oObQOTJbpuoC&pg=PA15&dq=advertising+definition&hl=en&ei=Dq
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29.  Kotabe, M., Helsen, K. (2011) Global Marketing management. 5th edn. Asia: John Wiley & Sons.
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 Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
 Melewar, T.C., Vemmervik, C. (2004)’ International Advertising strategy. A review reassessment and
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 Tancer, B., (2008)., Brewing Battle:Starbucks vs. McDonalds. TIME, [online] 10th January. Available at:
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