Executive Summary
Founded in 1971, Starbucks has grown exponentially and currently operates in 41 countries. Starbucks main success comes from its successful strategies like creating human connections and providing customers with a quality experience. The integration of technologies such as Mobile Order & Pay and Currency Program has improved customer relationships. Starbucks interacts with more than 50 million people on Facebook, YouTube, Twitter, Google+ and Instagram. Starbucks is a brand with a high level of customer experience. Starbucks sells its high-quality products and services at a premium price. Starbucks is developing innovative strategies such as incorporating technology to endure sustainability. Starbucks launches new trends in business, including latest technology like A.I and creating new partners for continued growth in marketing.
How Starbucks Engage Its Consumers?
Starbucks is integrating digital marketing, social media, and the latest technology to improve customer relationship management. Mobile Order & Pay is a major breakthrough that allows customers to order food and drinks (for pickup) before visiting a store. long lines during peak hours can discourage customers from visiting its stores. Starbucks launched a currency program where customers receive digital 'stars' every time they purchase Starbucks products using a mobile application. Starbucks began to influence this virtual currency to create value through outside participation. Starbucks announced a strategic partnership with Spotify, The New York Times, and Lift. Under these agreements, customers who shop at these three companies will be offered 'Stars' that can be redeemed at Starbucks locations. Open innovation forums like MyStarbucksIdea.com allow customer to interact with Starbucks and ultimately create engaging customers. By involving customers in modifying products and storing experiences, the company has successfully connected the brainpower of millions of customers.
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How Digital Marketing and Social Media Strategies Helped Companies Achieve A Competitive Advantage?
Starbucks is very effective in engaging with customers through digital marketing and social media strategies to improve customer relationship management. It has a huge social media presence, about 50 million people on Facebook, YouTube, Twitter, Google+, and Instagram. Starbucks also interact with customers through contests, promotions and paid ads. After creating a commercial space that gives use edge over the competition, use social media to get your message out to the public. The social media accounts at websites like Facebook, Twitter, and LinkedIn, can present business and message to potential users, peers, and employees. Social media is also an effective way to promote loyalty and sales incentives to customer. Offer discounts and encourage customers to engage with your business on social media websites. Regular interaction with customers will help them interact with your company and encourage deeper feelings of loyalty. It is easy for a customer to complain to company through a social media website. When a customer visits business in this way, respond quickly and personally to resolve the issue. A quick fix not only makes a successful loyal customer, but it also serves as evidence of the successful customer service company have for other people.
The Methods Used by Starbucks To Increase Brand Recognition in Order to Improving Its Customer Relationship Management
Brand recognition is a serious aspect in business growth where consumers pay high prices for strong brands. Consumers are satisfied when they eat a brand that appeals strong loyalty. Starbucks is a brand with a high level of customer experience. The main difference of Starbucks brand from other coffee brands on the market is the high quality of the products and the excellent customer experience. Starbucks has designed its stores on the theme of Italian bars. Starbucks offers its users a home experience. Starbucks customers are very loyal to the Starbucks brand. Starbucks focuses on managing customer relationships by integrating communication with customers. The research report will analyze the marketing trends of the coffee retail industry comparing Starbucks to McDonald's. Starbucks has a lot of possibilities in Europe because Europeans are coffee lovers. Management has focused on expanding its reach in Europe by opening a network of coffee shops. Starbucks' main target is young consumers. The company also strives to attract older customers by offering different products and a beautiful environment. Cultural values and people's attitudes towards coffee provide an opportunity for Starbucks to deepen its presence in the European market.
By Successfully Incorporating Key Success Factors Into Operations, Did Starbucks Has Generated Higher Sales?
Yes, by successfully incorporating these key success factors like digital technology and social media marketing into its operations, Starbucks has increased its brand profile and generated high sales. The company announced strong growth in the Starbucks loyalty program and mobile transactions in the second financial quarter of 2018. Coffee chain attracted 1.6 million new US members to its program Starbucks rewards. Additionally, Starbucks found that Starbucks Rewards members were buying more: during the quarter, their spending increased by 39 percent in the US Company-managed sales. Beyond its loyalty program, Starbucks stated that users are taking advantage of counter-avoidance opportunities: Mobile Order & Pay present 12 percent increase of the company's transactions in US. Overall, Starbucks also posted comparable store sales in the US and abroad. According to analysts, Starbucks comparable global store sales saw increase of 2 to 1.9 percent. Sales of compost stores in the United States increased 2 percent, while sales of composite stores in China increased 4 percent. In terms of finances, Starbucks reported better-than-expected sales: the coffee chain's revenue was estimated at $ 100 million, $ 6 billion, and analyst-estimated revenue at $ 0.53 per share.
Suggestions for The Developing Innovative Strategies for Keeping the Sustainable Competency of Starbucks
Getting success in international growth and expansion strategy, Starbucks needs a strong innovation mindset and the ability to customize its product offering and store location locally. The brand has made rapid progress in implementing an innovation strategy across the organization by investing in new technology, redesigning store layouts, and investing in new concept stores. In addition to improving the customer experience, which has always been the company's primary focus area, future innovation focus areas should revolve around product offerings. The company is a successful global seller with significant experience entering and establishing new markets. But as it develops and grows, it needs to be constantly reassessed and ears to the ground to understand customer preferences. Innovation and functionality will be the foundation for Starbucks to succeed internationally and in existing markets. Last but not least, Starbucks need to constantly develop and improve the consumer experience of drinking coffee in their stores. This is important because in today's interconnected world, consumers are being educated much faster, constantly raising their level of expectations for a basic hygienic customer experience. So, an amazing branding experience today can become a regular experience tomorrow. Starbucks needs to stay on top of this curve to remain competitive and different in the eyes of the customer.
The Latest and Effective Emerging Trends of Starbucks Business
While offering a premium list experience, the company expects to open around 500 new reserve stores targeting upper-middle-income individuals at low cost. Through its new portfolio of stores, the company hopes to solve competition and ubiquity problems by delivering high-quality coffee to consumers. Starbucks Nitro Cold Brew will be launched in 500 stores in late December. To attract more customers to stores Starbucks is offering new and innovative food and beverage options. Demand for this specialty has grown significantly as a result of recent corporate scandals. CPG contains primarily packaged coffee and K cups. Starbucks is the leader in K-Cups, although the industry has slowed considerably from its peak. Through partnerships with companies such as Pepsi in Latin America, Tingi in China and Unsure-Bush, Starbucks is working to expand its ready-to-drink beverage segment, which is expected to grow 10% in the next five years. The company's latest venture, Digital Engagement, Mobile Go and Pay accounts for 20% of all mobile transactions. The one-year venture is truly Starbucks' way to promote a seamless digital experience. Additionally, the company recently changed the loyalty program to frequency-based amounts to reduce order splitting and the long lines associated with it. The company is working to take full advantage of the popularity of the food and coffee menu, to establish partnerships and to become one of the main growth drivers of the future.
Conclusion
It concluded that incorporating technology into the business is been very effective for the Starbucks business. Customers can save their favorite orders and favorite store location through Starbucks Mobile Order & Pay. Starbucks has effectively used these social media platforms to enhance its capabilities and grow rapidly. Starbucks has designed its stores on the theme of Italian bars. Starbucks offers its users a home experience. Starbucks embraces innovative strategies and emerging trends such as incorporating technology to sustain sustainability.
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