Starbucks Marketing Mix (Starbucks 7Ps of Marketing) - Research-Methodology (2024)

Starbucks 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence as discussed below in more details.

Product Element in Starbucks Marketing Mix (Starbucks 7Ps of Marketing)

Starbucks sells coffee, tea and other beverages and a variety of fresh food items, including snack. In addition to its flagship Starbucks Coffee brand, the company sells products and services under the following brands: Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve and Princi.

The global coffeehouse chain also sells merchandise products such as coffee- and tea-brewing equipment, Verismo® System by Starbucks, mugs and accessories, packaged goods, books and gifts. Starbucks products are known for high quality. Coffee is the main product sold by company and it sells more than 30 blends and single-origin premium coffees.

Starbucks Marketing Mix (Starbucks 7Ps of Marketing) - Research-Methodology (1)

Place Element in Starbucks Marketing Mix (Starbucks 7Ps of Marketing)

Starbucks operates in 84 markets globally and its products can be purchased from the following places:

1. Company-operated stores. There were 17133 company-operated stores, which accounts for about 51% of total numbers of stores by the end of fiscal 2021.[1] Almost all company-operated stores are leased. Starbucks company-operated stores are usually located at high-traffic, high-visibility locations

2. Licensed stores. There were 16700 licensed Starbucks stores by the end of fiscal year 2021, representing about 49% of total numbers of stores.[2]

Theworld’s largest coffeehouse chain offers customers the possibility to order online or through mobile app. Customers can explore the menu, customize their order according to their tastes and preferences and find nearest store location to collect their order.

3. Grocery and foodservice accounts. The world’s largest coffee retailer also sells its products via global leading supermarket chains such as Walmart, Tesco, Sainsbury’s and others. Only the most popular products such as Starbucks Espresso Colombia, Starbucks Seattle Latte, Starbucks Mocha Chocolate Frappuccino can be found in supermarket aisles.

4. Uber Eats. Starbucks partners with Uber Eats to get its products delivered to customers. Customers can use Uber Eats app to find Starbucks store near them that delivers.

Price Element in Starbucks Marketing Mix (Starbucks 7Ps of Marketing)

Starbucks pricing strategy can be described as a hybrid of premium pricing, geographical pricing, psychological pricing strategies.

Starbucks pursues premium pricing strategy and its products are generally more expensive compared to the competition. A cup of tall Starbucks Cappucina costs about USD 4,55 in New York and about GBP 2.25 in London. High Starbucks prices are understandably the result of pursuing product differentiation business strategy and capitalization on high level of customer loyalty. Nevertheless, such a strategy may alienate certain segment within current customer base, especially in times of economic difficulties.

Geographical pricing represents another important element of Starbucks pricing strategy. It has been found that “a Starbucks coffee in London is almost half (48%) the price ofthe same beverage in Bern, Switzerland, who top the list for the most expensive drinks from the chain worldwide.”[3]. Similarly, as of March 2022 Starbucks Tall Latte costs USD 1,31 in Turkey and USD 7,17 in Switzerland. The world’s largest coffee retailer also applies psychological pricing strategy by using Price Point Perspective (PPP), i.e. pricing products 0.99 cents instead of USD1.00

Starbucks Corporation Report contains a full analysis of Starbucks marketing mix (Starbucks 7Ps of marketing) and Starbucks marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Starbucks. Moreover, the report contains analyses of Starbucks leadership, organizational structure and organizational culture. The report also comprises discussions of Starbucks business strategy, ecosystem and addresses issues of corporate social responsibility.

Starbucks Marketing Mix (Starbucks 7Ps of Marketing) - Research-Methodology (2)

[1] Fiscal 2021 Annual Report, Starbucks Corporation

[2] Fiscal 2021 Annual Report, Starbucks Corporation

[3] London the most expensive city in the UK for Starbucks (2017) Ealing Times, Available at:

Starbucks Marketing Mix (Starbucks 7Ps of Marketing) - Research-Methodology (2024)


What is the 7Ps process of Starbucks? ›

Starbucks 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence as discussed below in more details.

What are the 7Ps of service marketing of Starbucks? ›

It aims to address the 7Ps of Starbuck which stand for product, price, place, promotion, process, people, and physical evidence. Starbucks is the biggest coffee house chain in the worldwide in terms of number of stores. It is an American coffeehouse chain which was founded in Seattle in 1971.

What marketing mix does Starbucks use? ›

Starbucks targets high-income, educated customers who are willing to pay more for premium coffee. The company adopts an innovative and adaptive global marketing strategy centred around 4 marketing mix elements - price, product, promotion and place. Starbucks always places quality and customer value first.

What are the 7Ps of marketing mix explained? ›

These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.

How does Starbucks conduct marketing research? ›

💡 The Key Takeaway: The Starbucks market research strategy utilizes social media monitoring as an effective market research tool to identify areas that the brand can improve, along with increasing customer loyalty strategies.

What is an example of a company using the 7Ps strategy? ›

An example of a company using the 7Ps marketing mix in their strategy. Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries.

What is the best marketing strategy of Starbucks? ›

Its loyalty program is one of the most successful marketing strategies for Starbucks. Loyalty is critical to the success of marketing and business. Loyalty and relationships are built with consistently happy and satisfied customers, which can contribute to customer retention and increased profitability.

What are the 7Ps of marketing in coffee shop? ›

The marketing mix 7 Ps (i.e., product, price, place, promotion, people, process, and physical evidence) are examples of marketing fundamentals.

What are the 7Ps of marketing mix ranking? ›

In school, we learn that there are 7 Ps in the marketing mix: product, place, people, process, physical evidence, promotion, and price. Traditionally, each of these P's has been an important way to differentiate your company from the competition.

What business model pattern is Starbucks? ›

Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2022, with over $32.2 billion in revenue, most of the revenue came from owned stores ($26.57 billion) compared to franchised stores ($3.65 billion) and other revenue sources ($2 billion).

What type of market structure is Starbucks? ›

Answer and Explanation: Starbucks, a US-based firm that has majored in the coffee industry, is considered monopolistic competition.

How can I improve my Starbucks marketing mix? ›

Use a Multi-Channel Promotional Strategy. Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. It also uses sales promotions, events, direct marketing, print media, and PR in an integrated manner to multiply the impact of its promotions.

Why are the 7Ps important in the marketing strategy? ›

The seven Ps are important because they can help you plan and lead discussions about a business' marketing practices, whether the company sells products, services or both. If you're marketing a service or product, you can consider the seven Ps to help you sell it effectively.

What is an example of positioning in 7Ps of marketing? ›

Product positioning refers to what the product means in the mind of the customer. Take for example, Heineken beer. Here in the U.S., Heineken is marketed as a premium, imported beer, so U.S. buyers pay more for it compared to other choices.

Which company uses 7Ps of marketing? ›

Apple marketing mix (Apple's 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

What are Starbucks ethical approaches? ›

Practices includes sustainable agricultural practices and environmental measures that must be in place for managing waste, protecting water quality, conserving water and energy, preserving biodiversity and reducing agrochemical use. We only source, roast and sell the highest quality arabica coffee.

Does Starbucks use concentrated marketing? ›

McDonald's, Starbucks, and Subway are three firms that have relied heavily on concentration strategies to become dominant players. Within concentration strategies, there are three sub-strategies: (1) market penetration, (2) market development, and (3) product development (Figure 8.2 “Concentration Strategies”).

What is 7ps and examples? ›

The 7 P's of marketing include product, price, promotion, place, people, process, and physical evidence. Moreover, these seven elements comprise the marketing mix. This mix strategically places a business in the market and can be used with varying levels of force.

What is the 7ps format? ›

7 P's is a continuous reevaluation model for business marketing strategies. These seven P's are product, price, promotion, place, packaging, positioning, and people. The products, market, and customer's needs change rapidly.

What are the additional 3Ps in the 7ps of marketing? ›

The additional 3Ps are People, Process and Physical Evidence.

What is the competitive strategy of Starbucks? ›

Selling coffee of the highest quality.

Accordingly, the coffee chain giant focuses on the quality of its products and customers pay premium prices for high quality. Excellent customer services as one of the solid sources of Starbucks competitive advantage further increases the attractiveness of the coffee retailer.

Which positioning strategy should Starbucks use? ›

As has been previously mentioned, the positioning of Starbucks is customer-based, allowing the company to provide the best customer service.

What are the 7Ps of marketing mix to a food product? ›

The extended marketing mix model contains 7Ps: Physical Evidence, Price, Place, Product, Promotion, Process and People.

What are the 7Ps for pizza business? ›

The 7 key elements of the marketing mix are Product, Price, Place and Promotion, People, Process and Physical Evidence.

What are the 5ps or 7Ps of marketing? ›

The 5 P's of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically.

Why 7Ps is better than 4Ps? ›

The difference between 4Ps and 7Ps lies in the purpose we want to achieve. The extended marketing mix helps businesses with a deeper understanding of how to meet the needs and expectations of customers.

What makes Starbucks a monopolistic competition? ›

Note that one of the defining traits of a monopolistic competitive market is a significant amount of non-price competition. I.e., firms cannot compete on prices. For example, a street vendor offers coffee at $0.5 per coffee cup, but Starbucks charges about $5 for a single cup of coffee.

Does Starbucks use direct marketing? ›

Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to the target customer segment.

How to create marketing strategy using 7Ps? ›

The 7Ps of marketing are – product, pricing, place, promotion, physical evidence, people, and processes. The 7 Ps make up the necessary marketing mix that a business must have to advertise a product or service.

Why is price the most important in 7Ps of marketing? ›

Price is perhaps the most important component of the marketing mix because it ultimately determines the income flow, and with it, the continuity of a company.

How do you create an effective market positioning strategy? ›

A market position strategy can be distilled into the following key steps below:
  1. Pen a positioning statement. ...
  2. Critique your identity against competitors. ...
  3. Outline your existing market position. ...
  4. Understand the conditions of the marketplace. ...
  5. Develop a unique market position.

What are five P's of a marketing plan and how do they influence the positioning of the product? ›

The 5 P's of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things.
What are the 5 P's of Marketing?
  • Product. Your product is what you offer to customers. ...
  • Place. ...
  • Price. ...
  • Promotion. ...
  • People.
Dec 9, 2021

How do you use 7ps in digital marketing? ›

7 Ps' of Digital Marketing
  1. Understanding Marketing Mix. Marketing mix refers to the strategies used to meet consumer needs and effectively place our offering in their minds. ...
  2. Product. ...
  3. Price. ...
  4. Place. ...
  5. Promotion. ...
  6. People. ...
  7. Process. ...
  8. Physical Evidence.
May 5, 2022

What is the 7p marketing mix for restaurant? ›

The extended marketing mix model contains 7Ps: Physical Evidence, Price, Place, Product, Promotion, Process and People.

What strategic planning does Starbucks use? ›

Differentiation strategy: Starbucks follows the differentiation strategy and it should follow this strategy in future to deliver unique coffee, quality green coffees, and other new products to the target clients. Focus: It can adopt this strategy to concentrate on its core business by reallocating all business units.

What pricing strategy does Starbucks use? ›

Value Based Pricing Can Boost Margins

For the most part, Starbucks is a master of employingvalue based pricingto maximize profits, and they use research and customer analysis to formulate targeted price increases that capture the greatest amount consumers are willing to pay without driving them off.

Why do you need the 7ps of marketing in the hospitality industry? ›

The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process. The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation.

Which companies use 7ps of marketing? ›

Ever heard the term “7ps”? No, it's not a movie name! It is your future academic task with which we are making you familiarize, beforehand.

What is process in marketing mix examples? ›

Processes Include Direct Activities And Indirect Activities.

It can also have an integration of processes to create an overall marketing process. For example- Logistics and Internet Marketing can be integrated. Another view is that marketing process is used to define and control the marketing mix to achieve objectives.

What are the 7Ps for a pizza restaurant? ›

The 7 key elements of the marketing mix are Product, Price, Place and Promotion, People, Process and Physical Evidence.

What is the difference between marketing mix 4p 7p? ›

As mentioned above, the 4Ps include Place, Price, Product and Promotion. The 7Ps model, on the other hand, is a combination of the 4Ps with 3 additional segments, which refer to People, Process and Physical evidence. People are presenting how our business works inside.

What is Starbucks management style? ›

He uses motivation, influence and referent power to overcome business obstacles and achieve shared success. Evidence of Howard Schultz transformational leadership qualities are a key component of the Starbucks operation.

Does Starbucks use focus strategy? ›

Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object.

Does Starbucks use cost leadership strategy? ›

In this essay, the author

Explains that starbucks has many business-level strategies, such as cost leadership strategy and focused differentiation strategy. Explains that starbucks differentiation strategy is important to the long-term success of the company.

Does Starbucks use skimming pricing? ›

Starbucks uses an impressive pricing strategy. Their strategy can fit the needs of multiple consumers, while maintaining a high quality image. Using a combination of prestige pricing, price skimming, and relative pricing Starbucks can fit the needs of various consumers.

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