To ensure continued success, Starbucks must develop contingency plans that provide the firm with alternative marketing options, especially because the business environment is so dynamic and constantly changing. As we’re aware, companies are unable to anticipate every possible problem, thus requiring leaders to quickly react to these unforeseen events in an effort to prevent further damage to the company’s reputation, revenues, sales, etc. To do so, organizations must incorporate effective crisis management should urgent issues arise.
One of the best methods for crisis management is to develop contingency plans prior to events occurring. Doing so would enable the firm to make the necessary changes to the company’s strategies and tactics quickly, thus potentially resolving the concerns prior to it getting out of control. By definition, a contingency plan is a course of action to be followed if a preferred plan fails or an existing situation changes; a plan or procedure that will take effect if an emergency occurs. Contingency plans provide organizations with different marketing alternatives, and options, that would enable the company to adapt quickly to the dynamic business environment. This is critical, especially if certain internal, or external, environmental factors influence the firm’s marketing strategies to the point where results deviate from company goals and objectives.
To illustrate, Starbucks has several contingency plans pertaining to public relations, promotions, personal selling, and advertising. Not only is the company involved with philanthropic and volunteer activities for global societies but also does its’ best to produce quality coffee beans by ethically hiring people from all around the world. The company does not believe in paying employees unfairly similar to the conditions noted in “sweat-shops.” Instead, Starbucks treats every employee fairly, morally, and ethically. This in turn aids with creating positive public relations for Starbucks because of the firm’s strong organizational culture. In fact, Starbucks is a respected employer that values its workforce, hence why the company is voted onto Fortune’s Top 100 Companies to Work For. Plus, when the company treats their employees fairly, the same treatment transfers to customers, thus assisting with personal selling as well. If employees are treated fairly, they tend to treat customers fairly, along with providing consumers with exceptional customer service to the best of his, or her, abilities.
As for promotions and advertising, Starbucks uses a variety of alternative marketing options pertaining to both areas because the firm is aware that each communication method, or media, has its strengths and weaknesses. For example, Starbucks mainly uses word-of-mouth advertising for promoting the firm’s products and services. As an alternative marketing option, the company also uses the Internet, direct mail, outdoor, radio, television, social media, and newsletters to further promote and advertise the goods from Starbucks. The reason for this is that the company also realizes that limitations also exist with word-of-mouth advertising. Therefore, Starbucks uses a variety of communication and media platforms for getting the company’s intended marketing messages out to target markets in an effort to increase sales and revenues. The goal is to take advantage of the strengths of each media type while minimizing the limitations associated with each communication method. Doing so would ensure that Starbucks achieve the firm’s desired goal of branding, positioning, and to gain a competitive advantage over competitors within the same industry by using a variety of marketing tactics.
Marketing Tactics
Starbucks incorporates several marketing tactics that aid with providing the company with points-of-differences that would help with positive branding, positioning, and with providing Starbucks with the competitive advantage needed to remain successful. Please note that points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Through PODs for products and services offered, Starbucks creates loyal customers who continually come back because of the total experience that the establishment provides. For instance, Starbucks is very effective at pleasing the emotional and rational appeals of people. Not only do their establishments include a rich coffee aroma, along with soft jazz music but also comfortable seating, internet access, and other hip appointments. In addition, the company also serves a variety of high-quality coffee for customers to select from, along with providing consumers with exceptional customer service. Through these key attributes and with an effective value proposition, Starbucks created an uplifting experience around coffee consumption that consumers could interweave into their own lives.
Consumers come to Starbucks to enjoy a positive in-store experience that is aesthetically pleasing for a variety of reasons. This in turn provided Starbucks not only with a competitive advantage through positive branding but also positioning the firm’s products and services favorably at convenient locations for consumers. In fact, the company’s positioning statement is to “reach out to the world to embrace them with the culture and products of Starbucks.” The goal is to ensure that consumers purchase the firm’s goods and services as second nature, thus enabling the firm to accompany people on their daily adventures. In addition, Starbucks entered the world’s top three coffee markets: Finland, China, and Norway, which allowed the company to seize the top spot in the Quick Serve Restaurant market, thus solidifying its’ position as a world player in parallel.
What I found interesting was the company’s two primary target markets. The first was the younger, mainly Generation X types, who found coffee to be an alternative to the bar scene and made purchases accordingly. Next, the baby boom generation became a target as people in their 40s and 50s began consuming less alcohol and looking for other products with a similar degree of appeal and coffee became an excellent alternative as well. In addition, the company not only targeted young and affluent customers heavily involved with the Internet and social media but also others who loved to combine daily work with a little coffee break. By focusing on target markets that share similar buyer behavior, demographics, psychographics, or even lifestyle, Starbucks increases their chance of achieving organizational success. The goal is to reach target markets with the firm’s intended message in an effort to persuade these groups to purchase from the firm. If certain marketing strategies and tactics do not work out as intended, Starbucks has alternative marketing options in place to aid with achieving the company’s desired goals and objectives.
In the end, Starbucks continues to demonstrate that the firm understands the importance of creating contingency plans that involves the use of alternative marketing options. By offering an aesthetically pleasing environment that fosters positive human interaction, along with providing consumers with a wide variety of high-quality specialty coffees and teas to select from, Starbucks continually satisfies the wants, needs, and desires of consumers worldwide. Plus, the company is also heavily involved in other volunteer and philanthropic activities that aid with positive branding, public relations, promotions, including advertising. The goal is to innovate continually on new products and services, along with delivering those goods to the right people, at the right place, in the right quantities, to end-users at the right time. Starbucks is very effective at achieving this feat, hence why the company has paved an entirely new coffee culture that millions of people globally enjoy daily.
