Starbucks coffee corporation’s marketing response to the COVID-19 pandemic
-
DOIhttp://dx.doi.org/10.21511/im.17(2).2021.16
-
Article InfoVolume 17 2021, Issue #2, pp. 177-188
- Cited by
- 16889 Views
-
15432 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The ongoing COVID-19 pandemic has a significant influence on businesses and marketing strategies across the globe, including Starbucks Coffee. The COVID-19 pandemic has been completely novel in its unprecedented impact on the modern globalized economy. This in-depth analysis of this coffeehouse provides recommendations that were carefully considered within the context of the current public health crisis. The objective of this study was to systematically analyze the strategic marketing approach of Starbucks Coffee to generate recommendations that can not only be applied to Starbucks but marketing endeavors more broadly. A comprehensive review approach was adopted beginning with a thorough situational analysis. Problems and opportunities related to the marketing of Starbucks Coffee were investigated and recommendations were generated. All stages of the study were robustly supported with relevant citations. Starbucks has matrixed a complex corporate structure that supports not only its survival but its continued development even in an increasingly dense and competitive marketplace. While Starbucks must continue to intermittently reevaluate its key problems and key opportunities, especially in the approaching few financial years, the company is operating with impressive effectiveness through the adversities of 2020 thus far. After a careful analysis, Starbucks Coffee should increase the distribution of products that are more likely to succeed during the COVID-19 pandemic, expand pick-up and delivery services, implement additional store locations in underdeveloped geographic market segments, and utilize its vast array of promotional mediums to optimize brand positioning as they approach a reopening world.
- Keywords
-
JEL Classification (Paper profile tab)M30, M31, M37
-
References44
-
Tables0
-
Figures0
-
- Abboud, L. (2019, February 13). JAB’s appetite for deals could lead to credit rating downgrade. Financial Times.
- Adams, P. (2018, October 03). How Starbucks and Cole Haan grow brand loyalty through product innovation. Marketing Dive.
- Almeida, I., & Perez, M. G. (2018, January 30). Buy Now, Pay Later Helps JAB Billionaires Build Beverage Empire.
- Bariso, J. (2020, June 11). Starbucks Just Announced a Drastic Change. What Every Company Can Learn From It.
- Boyer, K. (2013, September 20). Behind the Scenes at Starbucks Supply Chain Operations it’s Plan, Source, Make & Deliver. Supply Chain 24/7.
- Brown, N. (2019, October 25). Nearly Four of Every Five US Coffee Shops are Now Starbucks, Dunkin’ or JAB Brands. Daily News Coffee.
- Cierzan, G. (2019, September 17). What Brands Can Learn from Starbucks’ Expansive View Of Customer Loyalty. Martech Advisor.
- D’Costa, K. (2011, August 11). The Culture of Coffee Drinkers. Scientific American.
- Fromm, J. (n.d.). Why Starbucks is Still Number One With Millennials. Millennial Marketing.
- Geter, T. (n.d.). What is Starbucks Marketing Strategy? OSI Affiliate.
- Greenspan, R. (2019, February 27). Starbucks Corporation’s Marketing Mix (4Ps) Analysis. Panmore institute.
- Haddon, H. (2019, October 30). Starbucks Gets a Lift From Iced Coffee. The Wall Street Journal.
- Haddon, H. (2020a, April 28). Starbucks Logs First Quarterly Same-Store Sales Drop in 11 Years. The Wall Street Journal.
- Haddon, H. (2020b, June 01). Starbucks Reduces Worker Hours to Reflect Pared-Back Operations. The Wall Street Journal.
- Haddon, H. (2020c, June 10). Coronavirus Speeds Up Starbucks Shift to Takeout. The Wall Street Journal.
- Han, H., Nguyen, H. N., Song, H., Chua, B., Lee, S., & Kim, W. (2018). Drivers of brand loyalty in the chain coffee shop industry. International Journal of Hospitality Management, 72, 86-97.
- Haskova, K. (2015). Starbucks Marketing Analysis. CRIS – Bulletin of the Centre for Research and Interdisciplinary Study.
- Harris, R. (2015, July 28). Why Starbucks is winning at loyalty. Marketing.
- Johns Hopkins coronavirus resource center. (2020). COVID-19 Map.
- Koehn, N. F. (2005). Howard Schultz and Starbucks Coffee Company. Boston, MA: Harvard Business School Publishing.
- Koehn, N. F., Besharov, M., & Miller, K. (2008, June 6). Starbucks Coffee Company in the 21st Century. Harvard Business School.
- Lepore, M. (2011, March 25). 15 Facts About Starbucks That Will Blow Your Mind. Insider.
- Lock, S. (2019, November 19). Starbucks Revenue. Statista.
- Lock, S. (2020, February 27). Dunkin’ Brands: Revenue 2019. Statista.
- Lombardo, J. (2019, February 14). Starbucks Coffee Company SWOT Analysis & Recommendations. Panmore Institute.
- Lucas, A. (2020, June 10). Starbucks says it lost $3 billion in revenue in latest quarter due to coronavirus pandemic. CNBC.
- Matyszczyk, C. (2020, April 18). I Went to Starbucks and Saw the True Meaning of Brand Loyalty. Inc.
- Moffat, A., Ludlow, E., & Patton, L. (2020, June 10). Starbucks, Built on Togetherness, Tries to Adapt to Distancing. Bloomberg.
- Monllos, K. (2018, October 18). Peet’s Coffee Wants to Attract New Consumers With Brand Refresh While Maintaining Quirky Heritage. Adweek.
- Morrison, M. (2012, June 18). Caribou Coffee Revels in Its Role as the Little Guy. AdAge.
- Mullaney, T. (2020, March 18). Before coronavirus crash, many big corporations broke the No. 1 rule of personal finance. CNBC.
- Neal, B. (2018, February 27). This New Starbucks Store Will Serve ALCOHOL & The Cocktails Sound Amazing. Bustle.
- Oppmann, P. (2014). I spy a ’stealth Starbucks’. CNN.
- Owler. (n.d.). JAB Holding Company.
- Pondent, C. S. (2017, September 26). The Stages of Family Life Cycle Marketing. BizFluent.
- Pratap, A. (2020, April 01). Starbucks SWOT Analysis 2019. Notesmatic.
- Rafii, L. (2014, January 23). The Starbucks or McCafé Crowd: Who Counts More Politically? Huffpost.
- Rochman, B. (2018, March 7). Securing the future of coffee: Starbucks farm is hub for research and innovation. Starbucks stories & news.
- Starbucks Coffee Company. (2018). 2018 annual report.
- Starbucks stories & news. (2020). Starbucks Company Profile.
- Taylor, K., & Yuan, Y. (2019, May 22). The massive company that owns Panera Bread, Krispy Kreme, and Pret a Manger is buying another sandwich chain. Insider.
- Tu, Y.-T., & Chang, H.-C. (2012). Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan. Journal of Social and Development Sciences, 3(1), 24-32.
- U.S. Bureau of Labor Statistics. (2020). Data tools.
- Yu, J. (2019, November 29). Starbucks Stock: Capital Structure Analysis. Investopedia.