7 Ps of Starbuck Services Marketing Strategy

7 Ps of Starbuck Services Marketing strategy 1. Product a. Core service: an uplifting coffee experience b. Supplementary service: i. Facilitating: information, order taking, payment ii. Enhancing: consultation, hospitality, Exceptions 2. Price a. Company: i. ABC: complexity of services linked to expenses ii. Fixed costs iii. Variable costs b. Competitions i. Competitors pricing strategy ii. Location specificity iii. Non-price related costs such as time iv. Revenue management: high fixed cost structures, perishable inventory c. Customer i. Value-based pricing ii. Benefits: fast food, convenience, consistency, reward cards iii. Related monetary costs: Transport, item costs iv. Related non-monetary costs: time, physical effort 3. Place a. What i. Negotiation flow: order taking or payment in-store or online for certain products ii. Product flow: 1. Hospitality: Greetings “Just say yes” 2. Safekeeping: security cameras 3. Consultation: advise, order, customization 4. Exceptions: compliant-handing and special requests b. How i. Customers visit service site ii. Specialty operations: hotels, airlines, restaurants iii. Relationship with third parties c. Where i. Over 21,000 stores ii. Convenient locations: high traffic and high visibility areas iii. Multi-purpose facilities: e.g. airports iv. Majority of the stores in the USA v. Products for purchase over the internet d. When i. Convenient hours (specific hours for each store) ii. Open most public holiday 4. Promotion a. Add value: “live coffee”, corporate design and servicescape, information, distribution b. Marketing communication plan: Defined target market and objectives

c. Communication Mix: i. Personal communications: Welcoming partners ii. Advertising: Billboards, magazines, internet iii. Sale promotion: Coupons, discounts iv. Publicity: Special events, sponsorship v. Instructional manuals: Brochures, website vi. Corporate design: Green, two-tailed siren, comfortable stores 5. Process a. Front Line Employees (FLE): i. Co-production ii. movement of truth iii. Time 3 minutes goal b. Evidences of FLE activities i. Appearance of store ii. Dialogue iii. Appearance of partner iv. Appearance of food/drink v. Taste of food/drink c. Back Line Employee (BLE) i. Maintain equipment ii. Facilities iii. Suppliers delivery iv. Prepare food v. Database for loyalty cards d. Potential fail points i. Long waiting times ii. Mixing up orders iii. Understocking 6. Physical environment i. Building/landscape – recognizable ii. Interior design/ furnishing - third place iii. Equipment – cups and machines with logos iv. Staff grooming – Uniforms 7. People “Happy customers” a. Partner b. Extensive organizational training in both “hard” and “soft” skills c. Keeping a low turnover rate