Business Analysis

Starbucks Marketing Mix (4Ps) Analysis

A detailed marketing mix employed by Starbucks

  • X(Twitter) icon
  • Facebook icon
  • LinkedIn icon
  • Copy link icon
Starbucks Marketing Mix (4Ps) Analysis.jpg


Starbucks Corporation has the tag of being the leading coffeehouse chain in the entire world. This position has been acquired through the application of a very detailed Marketing Mix. This Marketing Mix focuses on the 4Ps that are Products, Price, Promotion, and Promotion. These 4Ps act as the strategy to deliver the products offered by Starbucks to customers all over the globe.

Starbucks has leveraged its marketing mix to gradually build its brand image and maintain its loyal customer base. But this is not just the application of one strategy. The company changes the marketing mix over time to respond to any fluctuation in the demand and supply market. Mostly this is affected by competition. These changes show just how much Starbucks goes to maintain its competitive advantage in the face of competition.

The Marketing mix is the main variable of any marketing plan in an organization. It dictates the pricing, placement, product offering and promotion techniques. Let us take a look at the marketing mix used by Starbucks to market its brand popularity, image, and loyalty .

Product in the marketing mix of Starbucks

The product element of the marketing mix details what the Starbucks company gives to its loyal customers. Starbucks has applied marketing approaches to ensure that it offers the right products at the right outlets within the right places. The company has come up with marketing approaches to evolve its product offerings to acquire a larger portion of the beverage and also the food sector.

Ideally, Starbucks offered only premium quality coffee products at premium prices. However, the company now has expanded its products to baked goods, teas, smoothies, Frappuccino, and even Starbucks merchandise like mugs. The product mix has been altered and expanded. This aims to increase the market reach and give the company a bigger market share. 

Starbucks' modification of the product offering comes from the business approach of seeking innovation. The marketing strategy has been to develop new products that will keep attracting more customers who have diverse tastes and preferences. The international market is very wide, and only focusing on one market segment is not enough. The different products now cater to multiple market segments. The new products satisfy more needs, bring in more market segments and increase the company's market share.

Place in the marketing mix of Starbucks

The place element of Starbucks' marketing mix analyzes the areas where the Starbucks products are sold. Starbucks has focused on reaching the international market by opening up outlets in numerous places around the world. In most cities around the world, there are vibrant Starbucks coffeehouses and cafes. These outlets offer localized Starbucks experiences to the people of the area.

There are also well set-up distribution channels for the Starbucks products in all places. This includes the incorporation of dedicated retailers and dedicated online stores. This is a strategic evolution from the use of traditional coffeehouses. The use of online stores integrates Starbucks' marketing strategies with the advanced e-commerce sectors that have so much potential. Despite the closure of online stores, Starbucks showed that it was willing to tap into the right places to reach a wider market.

The retailers are the channels through which most of Starbucks' merchandise gets sold to consumers. They offer Starbucks products to customers in a local area. Retailers give the company a wider market reach and market span. People also get to order online and get reservations in the coffeehouse. Starbucks focuses on the place component of the marketing mix to ensure that its products can be accessed in different places around the world.

Price in the marketing mix of Starbucks

The pricing strategy employed by the marketing mix in Starbucks is that of premium pricing. This pricing strategy focuses on people's behavior of seeking expensive products because they believe that these products have a higher value. People hold the belief that a high price translates to a high-value experience. This strategy is the reason Starbucks prices its products relatively higher than the products given by its competitors like McDonald's.

The premium pricing strategy employed by Starbucks Corporation gives the company a premium value image. This image appeals to high-end and medium-class customers. But this does not stop at this. Starbucks focuses on offering the ultimate Starbucks experience in its coffeehouse outlets. It offers quality products in a place of ambiance. This gives customers a satisfactory experience, maintains the premium brand image, and increases brand loyalty and competitive advantage

Promotion in the marketing mix of Starbucks

The promotions element of the marketing mix is the strategies used to market the company and its product offerings. Promotion helps to give more information about the company and encourage the market to purchase the products. The techniques of promotion used by Starbucks include advertisements, sales promotion, and word-to-word sales marketing.

The word-to-word marketing has been instrumental in promoting the company in the eyes of customers. The spreading of positive information about the company endears it to the public. Every person who hears about what Starbucks offers gets attracted, and they seek out the experience. This increases the attraction, appeal, and market share.

Starbucks also uses advertisements to promote its products. There are appealing advertisements in print media, television adverts, and internet adverts that spread positive information about Starbucks. Advertisements market the company and bring in more customers.

Starbucks has designed a reward program as a form of sales promotion technique. This involves the company giving free items to customers who buy a certain amount of products. The company also employs public relations strategies to give a positive brand image. This includes initiatives that solve social issues like helping the local community.

Starbucks uses the promotion techniques of advertising, word-of-mouth marketing, and sales promotion to promote the company to customers.

Starbucks Marketing Mix (4Ps) Analysis Mind Map

The Starbucks Marketing Mix mind map shows how the company uses the 4Ps to give itself a competitive advantage. The 4Ps include Price, Place, Promotion, and Products. In pricing, Starbucks uses the premium pricing strategy. For product offerings, Starbucks has differentiated its products to cater to numerous needs and preferences. As a means of promoting the company to the public, Starbucks uses word-of-mouth marketing, sales promotion, and advertisements to market the company. 

Key Takeaways

Starbucks has used its marketing mix elements to become the leading coffeehouse in the world. The pricing, promotion, placement, and product offering techniques used by Starbucks have been very instrumental in its success. Each of these elements forms the marketing mix in Starbucks. Starbucks uses differentiated products to increase the types of customers. This translates to more customers seeking the different products. An increase in customers increases the company's market share. 

Every company needs to promote itself to fight competition. Starbucks uses word of mouth, adverts, and sales promotions to promote its brand image and keep loyal customers. The pricing strategy in Starbucks appeals to high-end and medium-income earners. The company offers premium quality products in a place of ambiance. 

You can download the report in PDF format below and read about the marketing mix employed by Starbucks. It details the 4PS used by Strategies (Price, Place, Promotion, and Products)

Download the report

For future use, I highly recommend the use of the PDF-making software, PDF Agile. This is the most user-friendly and reliable solution for all your PDF needs. Make your PDF materials using this tool and experience its added features.


Starbucks Corporation's Marketing Mix (4Ps) Analysis   

Starbucks Marketing Mix (4Ps) Analysis 

Starbucks Marketing Strategy & Marketing Mix (4Ps)

Starbucks: The 4Ps of success 

Complete 4Ps Marketing Mix of Starbucks with 360 Company Analysis 

Marketing Mix 4Ps and Strategy of Starbucks 2022 

Related Articles

Business Analysis5 Mins

Tesla Marketing Mix Analysis

Tesla 4Ps consist of the marketing mix elements of the product, price, place, and promotion. These elements are vital to the success of the alternative fuel automobile company.


Business Analysis5 Mins

Samsung Marketing Mix Analysis

Samsung's marketing mix strategy is crucial to the success of the brand. The Samsung 4Ps are greatly responsible for the company making over USD$200 billion in annual revenues.


Business Analysis4 Mins

Netflix Marketing Mix Analysis

Netflix's marketing mix combines the 4P elements of Product, Price, Place, and Promotion in perfect harmony to promote brand positioning and financial success.