Public Relations and Marketing strategies for three major nationwide coffee chains: Starbucks, Coffee Bean and Tea Leaf, and Caribou Coffee differ. Starbucks is currently the number one coffee house chain in the world. However, other brands such as Coffee Bean and Tea Leaf (CBTL) and Caribou Coffee or fierce competitors with Starbucks in the markets where they compete with Starbucks.
PR and Marketing Strategy of Starbucks
Starbucks Coffee Company's clever mix of marketing tactics supports the company's industry position as the leading coffeehouse chain in the world. Starbucks uses its marketing mix as a way of continuously developing its brand and popularity with customers. Since it has the strongest brand in the industry, Starbucks shows how effective marketing supports brand development and business growth. Starbucks has also changed its marketing mix over time, reinforcing the need for the business to evolve and maintain competitiveness. Starbucks Coffee's marketing mix (called the 4Ps) shows the importance of this marketing tool as a way of ensuring that the company promotes the right products at the right prices and in the right places.Products
Starbucks continues to innovate new products to capture more of the market share of premium coffee consumption. The following are the current main categories of Starbucks products:- Coffee
- Tea
- Pastries
- Smoothies
- Frappuccino drinks
- Merchandise (mugs, etc.)
Place
Starbucks offers most products through its cafés. This component of the marketing mix determines the various locations where customers can buy products. The following are the main avenues used for the distribution of products:- Cafés
- Online Store
- Starbucks App
- Retailers such as grocery stores
Promotions
Starbucks promotes its products mainly through traditional advertising channels. Starbucks' promotional strategy uses the following:- Advertising
- Public relations
- Sales promotions
Price
Starbucks uses a premium pricing strategy. This pricing strategy utilizes the behavioral tendency of people to purchase more expensive products because of the perceived connection between higher price and higher value.The Coffee Bean and Tea Leaf
The Coffee Bean & Tea Leaf recently rolled out its largest advertising campaign ever which focused on traditional and advanced platforms while supporting the increasing role of mobile devices in people's daily activities. Social platforms include commissioned Vine videos, a custom Pinterest page, Instagram crowd participation photos taken through a "purple straw" lens, online banners, Facebook advertising, and Twitter posts/hashtags via #purplestrawcam. As part of the brand's strategy, the initiative specifically targets millennials through radio, outdoor, video, banner advertising, and sentiment-driven social media placements that invite customers to "Keep Cool and Summer On," with the coffeehouse chain.Caribou Coffee
Caribou Coffee positions itself as a brand with a conscience, eliciting the image of wild caribou herds running through dewy meadows in Alaska. Caribou has expanded its reach, then closed some stores, only to open more store locations again. While it doesn't have the reach of Starbucks or the marketing savvy of the Coffee Bean and Tea Leaf, its customers are loyal. Caribou Coffee recently launched a line of premium ready-to-drink iced coffees to compete with Starbucks' Frappuccino line of products. The new Caribou Iced Coffees are made and distributed by Dean Foods Company, while Starbucks' bottled beverages are produced and distributed by a partnership between a subsidiary of Starbucks and Pepsi-Cola North America.Winner?
Even though Starbucks is often called the McDonald's of premium coffeehouse chains, its marketing plan is obviously successful, because Starbucks stores can now be found all over the world. The brand's logo is almost as recognizable as the Golden Arches. While a Big Mac may satisfy the urge for a burger, there will always be room for those smaller burger joints, or coffeehouses, that add a more personal touch like the Coffee Bean and Tea Leaf or Caribou Coffee.EPR's Full Starbucks Coverage
Modern anchor: Starbucks Marketing With Little Ads
Crisis case studies:
- Starbucks Surprised by Pumpkin Flavored PR Crisis (by Ronn Torossian)
- Race Together: Starbucks Racing Backwards?
Other brand strategy:
- Starbucks Is Everywhere. Why Not on a Commuter Flight?
- Starbucks Customers Still Seething Over Long Lines
Brand history:
