The Strategy Behind Starbucks

By Channey Joey Yu, Korea International School Jeju

This article was written by a member of the Business Economics Review A Associates (BERA). BERA is a newspaper published by the students of Korea International School Jeju. – NE Times staff.

When you think of coffee, Starbucks is often the first brand that comes to mind. From a small business in Seattle, this café has grown into a giant franchise that dominates the coffee industry, accounting for 38,038 stores worldwide (Statista, 2023). So, what has led this common coffee shop to such colossal success? The answer lies in its marketing strategies, psychological segmentation, and customer-centric approach to understand and meet the needs of the consumers.

At the core of Starbucks’ success is the use of psychological elements to captivate “coffee lovers.” Starbucks creates an immersive experience for customers through the implementation of premium beans, paying scrupulous attention to the aroma and flavors of each blend. This brand also attracts health-conscious customers by enhancing its uniqueness and broadening its appeal globally. This strategy primarily caters to “coffee connoisseurs,” those who crave coffee. Not only that, Starbucks gives insights to coffee experts while excelling in reinforcing consumer loyalty and engagement.

Starbucks also mastered the art of digital marketing to obtain customers’ personalized tastes and preferences. “My Starbucks Idea” was one of its major accomplishments in this area, transforming the culture of coffee. This enables customers to give feedback, propose new ideas for the menu, or request the return of retired products, thus creating a sense of community. This initiative was a huge success, receiving over 150,000 responses and providing Starbucks with direct insights into customer preferences (Startuptalky, 2024). By utilizing the feedback obtained, Starbucks shifted to data-driven decision-making instead of solely relying on assumptions.

Starbucks continues to pursue its mission of inspiring and nurturing the human spirit. By praising customer preferences and integrating healthy ingredients, Starbucks achieves and meets high expectations. For aspiring brands, Starbucks serves as a model for building a loyal customer base through holistic marketing strategies.