In this blog post I really wanted to shed some light on the marketing strategy of one of the biggest companies in the world…
Today I talk about ‘The Truth Behind The Marketing Strategy Of Starbucks‘.
The Marketing Strategy Of Starbucks goes a little like this…
We all know that we are in a current economic crises. We are seeing businesses closing down left, right and center. Businesses can no longer keep themselves a float.
But despite this, Starbucks keep growing and growing and this is down to a major difference in the marketing strategy of Starbucks compared to these other businesses.
So how did Starbucks really build a multimillion dollar empire using just a basic commodity?
We’ve all heard of Starbucks. There just about the biggest retailers of coffee in the world at the moment and you can buy a cup of coffee in many different places Including Dunkin donuts, McDonald’s and a whole host of others.
What you need to know is that Starbucks didn’t just get lucky, they have a system, they have a carefully crafted campaign that took them years to develop and roll out. In most cases when you’re selling something as simple as coffee it’s forcing yourself into a market that has always existed and competed on price alone.
In fact Dunkin donuts, McDonald’s and all the rest were battling with each other to see who can offer the cheapest cup of coffee. In fact, for most of them they decided to provide the coffee at cost as a simple way to just get people through the door more often and they figured that they would make up the lost profit with additional sales as a result.
Starbucks had a much smarter way of looking at things instead of competing on price with all the others they decided to try to think outside of the box and they wondered how they could possibly get people who were used to paying perhaps $0.50 for a cup of coffee to pay four dollars per cup of their coffee.
Now I guess you’re wondering why you need to know all of this? Well let me tell you because what they did was they innovated, they were innovators, the keyword here is innovation. In order to be successful, in order to stand out from the rest of the crowd you need to standout, you need to innovate just like Starbucks did.
Listen, if you want to be successful in business, if you want to have everything in life through your business then you need to stop competing on price and you need to innovate, you need to start coming up with ideas and propositions that will raise you above everybody else who is competing on price. The simple fact of the matter is that if you compete on price, unless you’re absolutely the cheapest out there in your market there is no point in second place, that gets you nowhere. You need to have a real value proposition for your customers so that they will gladly, in fact happily pay more your products or services.
Starbucks understood that people are willing to pay more for an experience. Their customers didn’t just want a cup of coffee, they could get a cup of coffee from just about anywhere, but they went to Starbucks and they paid four dollars for a cup of coffee because they wanted a Starbucks experience, and that is what I’m suggesting you do in your business too.
So my message to you today is take a leaf from Starbucks’ book and find out what your customers really want and give it to them. If you do that one thing, they’ll happily pay you more than your competitors and they will keep coming back.
So read this article again if you have to and implement the marketing strategy of Starbucks into your business.