Advertising Campaign

Advertising Campaign

[Name of the Institute]Advertising Campaign

Introduction

Starbucks was opened in 1971, in Seattle. Starbucks started the business by selling roasted coffee beans, and various accessories for brewing and roasting the coffee. In 1971, the company was owned by Jerry Baldwin, Zev Siegel, and Gordon Bowker. However, in 1982, an entrepreneur Howard Shultz joined the firm. Inspired by the Italian coffee culture, Shultz decided to replicate the culture in many countries (Robbins, 2008).

Starbucks Coffee Company is now among the coffee retailer giants. The company has as many as 10,000 coffee shops in more than thirty countries. Starbucks aims to become the most recognized brand of coffee. In order to achieve long term growth, Starbucks is utilizing effective marketing strategies. Currently, the company is relying on retail expansion along with the product and service innovation to achieve growth and success. In order to implement these strategies, Starbucks has opened new stores in both existing and new markets (Willmott et al, 2010). Starbucks is an innovator in the industry, the main competitive advantage of Starbucks Coffee is that the company changed the strategies and trends as per the changing technology. Over the years, a number of innovative steps were taken by the company to gain a competitive advantage in the marketplace.

The strengths of Starbucks have allowed it to differentiate from its competitors by devising successful marketing strategies. The brand image of Starbucks is its greatest strength. It is the brand image of Starbucks that has allowed the company to expand its stores across the globe (Willmott et al, 2010).

Target Markets

During the initial years, the target market of Starbucks included:

Affluent customers

Well educated customers

White Collar Patterns

The age of the target market was between 25 and 44. Now, the passage of time, the company realized that opportunities for growth also exist in other market segments. Eventually, the company decides to expand its target market to include young, less-educated and low-income consumers. A large portion of coffee drinkers is found in urban areas of the of a number of states. It is because most of educated and working professionals live in the urban areas (Wilmot, pp: 11).

Market Analysis

The business of gourmet coffee is at its peak. A number of players have entered into this market ranging from multinational chains to road side cafes. Specialty coffee in a number of nations is the fastest growing business. The credit of Starbucks' success goes to the projection of its stores. The stores of Starbucks coffee offer customers a venue where they can socialize. This strategy increased the customer base of Starbucks. A lot of customers prefer Starbucks as a place to socialize.

Starbucks has positioned itself as an upscale brand. The company has differentiated itself by providing not only coffee but a rich experience. The rich experience has proved itself to be the selling point of the company. With this positioning, the company targeted young students. The company also targeted different social groups and neighborhoods who would appreciate the idea of buying coffee and spending time with ...