Price, Place, Promotion Marketing Strategy And Marketing Mix Of Starbuck

Essay, Pages 4 (928 words)

Views

546

Starbucks is a very trendy coffee shop and providing high-quality coffee, premium teas and delicate pastries. Price is the one that can strongly define our product value, while Starbucks uses the premium pricing strategy (Jones, 2015). The premium price strategy is a pricing strategy that keeps the product price higher than other competitor product on the market. This pricing strategy is also a marketing strategy because the high price makes the product look better and more quality than other products. Therefore, Starbucks prices are usually higher than those expected from another fast food restaurant.

Don't use plagiarized sources. Get your custom essay on

“ Price, Place, Promotion Marketing Strategy And Marketing Mix Of Starbuck ”

Get custom paper

NEW! smart matching with writer

The Coffee Bean & Tea Leaf, which is Starbucks direct competitor, the prices of their meals such as tomato-herb spaghetti and fish and chip is between RM17.45 to RM20(Zomato. n.d.) while the meal prices of our indirect competitor The Fish Bowl is RM17.80 (Food Review: The Fish Bowl, 2018).

We would also be using a premium pricing strategy for our new product lunch box. Hence, we set the price of the lunch box is slightly higher than our direct and indirect competitor.

The price of the lunch box is based on the package. The price for a lunch box Ala carte is RM21.99, a set value lunch box that which comes with a beverage is RM26.99.

As compared to the competitors The Coffee Bean & Tea Leaf and The Fish Bowl, they offer a lower prices compare to those of Starbucks. Even though Starbucks's lunch box is more expensive than other competing products, but they won't be lost any customer because Starbucks is the king of customer loyalty and they are won by quality not price (Danny, 2017).

Also, paying premium prices stimulates the production of high-quality food. Through this premium pricing strategy, Starbucks keeps its high-end image. Nonetheless, Starbucks provide premium products and outstanding service in its coffee shop.

Place

We are using direct distribution; the direct distribution is referred to distributing directly from the manufacturer(company) to its consumer. The benefit of using direct distribution is that it provides our company Starbucks to fully control our product. As our target market is University students and staff, the best distribution network for selling our new product Starbucks lunch box is nearby the University such as Sunway University, Taylor Lakeside Campus, Monash University and so on.

This is because nowadays, college and university students are spending too much compared to the old days. The largest percentage of that student allowance is spent on food and beverage, which amounts to about 36% (College Student Purchasing Power, 2016). University students spending a lot of money on food and beverage have become a phenomenon for the generation to release from the stress of their stressful study life. Therefore, capture a University student as our loyal customer which mean we could capture them as our brand loyal customer for life.

Starbucks is a good place for the student, they provide customers with friendly service and their coffeehouse atmosphere have become the perfect place where the student can spend time with their friends or alone for them to reading or doing assignment in a comfortable environment. Starbucks is also providing customers with spacious and adequate seating and free Wi-Fi.

Therefore, our new product lunch box will first be launched in our Starbucks outlet which nearby the University. It will attract a large number of University student and employees to enjoy our delicious lunch box in a comfortable environment.

Promotion

Promotion involves the use of various tools for communicating our product to the customers (Marketing Strategies: Promotion, Advertising, and Public Relations, n.d.). The goal of the promotion marketing strategy is to stimulate action from consumers of a target market (Marketing Strategies: Promotion, Advertising, and Public Relations, n.d.). First, the promotion strategy that we will be using is internet marketing by which to promote our lunch box. Internet marketing is using internet for the marketing purposes, such as placing advertising on internet web page. In addition, we will promote our new product advertisements on social media platforms such as YouTube, Snapchat, Facebook etc. There are about 29.7 million internet users in Malaysia by 2018. Apart from that, there are about 89.3% of internet users use it for access to the social networking platform and respondents that are 20 age and above were using the internet for approximately 8.0 hours daily (Malaysian Communications and Multimedia Commission, 2018) Therefore, our new product lunch box will enter into the target market by promoting our ads on these social networking platforms.

Second, we will be using sales promotion. Sales promotion is designed to create short-term strategic activities to boost sales and encourage new customers to try the new product. We will be launching the happy hour every Monday by which of purchase Ala carte lunch box from 12 pm to 3 pm, they will get a free 'tall' latte. Furthermore, we will be giving out the cards for a customer when he or she first purchased the set value lunch box and then they will get a stamp for every lunch box they buy, and after 5th stamp, they will get a reward, a free Ala carte lunch box. This is a great start for us in building a relationship with our customers and generates word-of-mouth publicity.

Lastly, an advertisement about the lunch box can be promoted via magazines or newspapers which enable to have good market coverage, good pass-along readership, high-quality reproduction, high geographic and demographic selectivity. Moreover, outdoor advertisement is flexibility as it is high repeat exposure, low cost, low message competition, and good positional selectivity. Radio can also be used to promote the lunch box because it has good local acceptance.