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