24A – Venture Concept No. 1

Opportunity: I believe that an opportunity exists for Starbucks to enhance their advertising and social media marketing methods. This belief comes from the experience of frequently visiting the Starbucks stores located on campus because the coffeehouse’s main advertising medium is the store itself. The unmet need is Starbucks potential to increase their advertising and social media marketing methods for various promotions such as offering BOGO (buy one, get one free) offers to consumers to encourage them to purchase a drink and receive one to give to a close friend. The people who have this need are young people ages 16 to 24, typically in high school or college. The need came from when I asked some of my peers out of curiosity if they had ever seen an advertisement for Starbucks before, in which all of them answered no. The need has always existed, due to Starbucks relying on not following traditional methods of advertising, which some consumers view as a throwback to the methods businesses appealed to target markets before the introduction of social media. To meet this need, Starbucks has gradually shifted towards advertising on social media platforms. The geographics for Starbucks consists of three regional divisions for the global market, Americas, China and Asia-Pacific, and Europe, Middle East, and Africa. The new and potential target audience in China has great potential, with same-store sales growths outpacing the segment. The demographic for Starbucks generally has very high income and is senior in age. By opening primarily in upscale neighborhoods, Starbucks target demographic is urban and affluent, on-the-go professionals who tend to work office jobs. The age range for men and women are ages 22-60, and the life-cycle stages ranges from young, single people not living at home to older married couples with dependent children. This is the demographic audience due to the fact that consumers with higher income have higher disposable incomes compared to those with lower incomes. This allows them to spend more money towards luxuries, such as Starbucks drinks and food.

Innovation: The innovation I am proposing is for Starbucks to convey to the audience and target market is communicating their brand purpose. Rather than emphasizing and maintaining the focus on the products and services, which enables competitors to quickly adapt to, brands like Starbucks should accentuate the focus and intent of the brand. Instead of creating a generic coffee advertisement focusing on the smell of fresh ground coffee, a new seasonal product, or how one is saving the rainforest by purchasing ethically traded coffee, Starbucks highlight’s the brand’s purpose of connection. The core marketing strategy focuses on segmentation, targeting, positioning, and differentiation. Starbucks also utilizes the extended marketing mix, with beverages being the most profitable for the corporation. Starbucks has strayed away from traditional advertising within the past few years, due to the fact that they did not require it to promote the brand. To appeal to the target audience and encourage them to purchase merchandise, the products should be highlighted through social media posts or viral marketing campaigns. Through the development of at least one major digital campaign that goes viral will strengthen the brand through it being highlighted through social media posts or marketing campaigns. If this strategy was implemented, its success can be monitored through social media engagement, such as likes, comments, and shares on Facebook and retweets on Twitter. The service could be an enviable social media strategy that can result in staggering numbers of insight on Facebook, Twitter, Instagram, and YouTube. The main points that Starbucks focuses on when advertising include quality-based differentiation, excellent customer service, and a high focus on customer orientation. In order to promote their seasonal products, the brand posts and promotes the new product through social media, such as Facebook, Twitter, and Instagram to receive high engagement. Social media is a tool that is utilized by corporations and has become a predominantly driving force for Starbucks proficient public relations on social media. The brand can use them to optimize customer engagement through focusing on customer wants and needs in their online posts.

Venture Concept: My innovation will solve or address the opportunity I identified by helping Starbucks advertise and sell their products with a sole purpose in mind and not portraying them as the giant global corporation that it is. Customer’s unmet needs will be solved through Starbucks accentuating the intent of the brand, such as saving the rainforest by purchasing ethically traded coffee. Starbucks has appealed to a large target market by offering customers luxury in the form of a coffee beverage, along with a “home away from home,” to do work or take time for themselves. The needs and motivations of consumers include a quiet environment to hold a conversation with family, friends, and colleagues, private time to his or her-self with free Wi-Fi and something to drink, or a unique present or gift for a friend. By promoting the lifestyle of their consumers, Starbucks provides a friendly and relaxed atmosphere and consistency throughout their stores. The main points that Starbucks focuses on when advertising include quality-based differentiation, excellent customer service, and a high focus on customer orientation in order to solve this issue. The brand has strayed away from traditional forms of advertising within the past few years and can shift their focus towards communicating their brand purpose and solving the unmet needs of their target audience. Customers purchase Starbucks products and services because they appeal to what consumers want both qualitatively and quantitatively. Consumers tend to lean towards Starbucks not only for the products, mainly the beverages, but for the experience as well. What Starbucks embodies that is important towards the audience is that they have packaged something that is relied on by many- caffeine, and made it appeal towards a larger intended audience. To appeal to the target audience and encourage them to purchase merchandise, Starbucks highlights its products through social media posts and viral marketing campaigns. The customer experience is one of the main defining points that separates Starbucks as a brand from other competitors in the industry.