A Marketer’s Analysis of a Starbucks Ad

CubanCoffee
The ad introducing their new Cuban Coffee.

Starbucks is a world-renowned coffee company brewing an exclusive menu and manufacturing a large product line of coffees and product mix of mugs, brewers, and merchandise. Starbucks often licenses out their logo for an additional revenue stream, so it’s a very popular brand amongst Americans and even scaling the entire globe.

Know the Audience
The product being advertised here is their new Cuban coffee. Fans of Starbucks will subconsciously make out two cake pops in the ad as well, even though the intent of object placement is meant to be Cuban maracas, or music shakers. Starbucks relies heavily on repeat customers so most of them will know of their cake pops, a popular selling item often served as a complementary purchase to a beverage. In my opinion, Starbucks does a great job at selling two products at one time with a simple and sleek advertisement.

Starbucks competes in the food/beverage industry, particularly in the retail coffee and snacks store industry according to a Harvard case analysis. Their main competition includes other key players: The Coffee Bean & Tea Leaf, Dunkin Donuts, mom and pop coffee shops, and home brewed coffee. The main product coffee is well represented in this category, however Starbucks does a good job of making their Cuban Coffee more appealing than their other brews.

Segment Strategy
Coffee enthusiasts often follow new trends on their hunt for the next best cup o’ joe. They know their customers will flock to a new type of coffee if it represents a new experience. This puts Starbucks at an advantage when introducing a new product. Not to mention Starbucks does a creative job of showing off an emphasis for diversity, fun and cultural immersion one will get when purchasing the Cuban blend.

Starbucks Brand Segmentation

Demographic Psychographic Behavioral

·      Urban professionals

·      Middle aged

·      Premium lifestyle

·      Desires premium coffee

·      Early/late adopters

·      Work-a-holics

·      Early risers

·      Busy lifestyles

·      City life


Starbucks Cuban Coffee Product Segmentation

Demographic Psychographic Behavioral

·      Urban professionals

·      Middle aged

·      Premium lifestyle

·      Moderate Income

·      Desires premium coffee

·      Early/late adopters

·      Work-a-holics

·      Trendsetters

·      Early risers

·      Busy lifestyles

·      Cultural immersion

·      Technologically savvy

·      City life

Target Market
The target markets for this new product are middle-aged urban professionals with a busy lifestyle, who are technologically savvy, with moderate level >50k income that want to be immersed in a contemporary cultural experience through a hip new product. The target market for this advertisement is likely to buy more than one item to compliment each other since they have a comfortable disposable income.

This ad demonstrates why Starbucks holds most of the industry market share. They have the ability to market two products within one advertisement (the new Cuban coffee & subliminally cake pops). Starbucks makes the ad contemporary with a rustic/urban feel, playfully utilizing coffee rings and stirrers to allow the customer to make it’s own interpretation of the shapes. Then follows it up with a simple, yet exciting tagline that intrigues the customer, “Coffee with a new rhythm. Introducing Starbucks Cuban Coffee.” Suddenly the joy the customer experiences when they see the ad becomes transcended into a desire and curiosity for this fun, new, and culturally sophisticated cup of coffee.

Positioning Strategy
They conveniently place their locations on busy street corners often equipped with a drive through for those customers with a busier lifestyle. By going after trendsetters and early adopters they’re better able to build up their brand equity by having a greater predictability of unsuccessful products at an earlier stage in its life cycle.

Their target customers are middle aged and technologically savvy, therefore able to see the ad on social media, websites, and various other outlets in the digital world. Starbucks makes this ad contemporary with a rustic aesthetic, culturally sophisticated, and playful message. They are giving the customer a chance to not just order a cup of Cuban coffee, but order the entire feeling of a morning in Cuba.

Effective?

Overall I believe this ad is effective in driving curiosity of the product. What I mean by that is, I probably wouldn’t be influenced enough by the ad alone to goout and make the purchase. However, if I were a customer seeing this ad as I walk in the store, I would be likely to ask the barista how the new Cuban coffee is. Itwould be up to the barista to then sell me on it. It’s a great example of the Service Marketing Triangle. Starbucks is making me, the customer, a promise. They’re also providing employees with resources they need to enable them to deliver that promise to me. It’s up to the employees to optimize the effectiveness of the ad in order to convert into a sale.

MarketingTriangle

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