StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Marketing Strategies of Starbucks and Nike - Essay Example

Cite this document
Summary
This paper under the title "Marketing Strategies of Starbucks and Nike" will mainly take the reader through the marketing strategies of two different brands – Starbucks and Nike, which offer two different products to their customers all over the world…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Marketing Strategies of Starbucks and Nike
Read Text Preview

Extract of sample "Marketing Strategies of Starbucks and Nike"

Starbucks offers varieties of coffee brewed coffee, espresso coffee, cappuccino, and many others. There are many products of the company that is seasonal or more specific according to the locality where it does the business.

Nike

Nike is a major sports brand in the United States that manufactures different types of sports gear and equipment. The name is the most popular brand in terms of sports shoes and apparel. Nike has created a major loyalty base around the world, especially due to its trend-setting marketing and advertising campaigns, as well as the number of sports stars it occasionally ropes in to endorse its products. The company sells its products through various retailers – both online and offline – along with the exclusive brand stores of Nike. Apart from selling sports-related products, the company sponsors many high-profile athletes and teams in various sports.

At what stage of the product life cycle are they?

Most of the time where Starbucks Coffee formulates its marketing strategy is in the Service phase of the product life cycle. However, their marketing strategy also targets the market during the Realize phase where they produce and deliver the best coffee possible to their customers. When looking into the marketing strategy of Nike they mostly formulate their marketing strategy during the Realize phase in which they manufacture the products and try to capture the market by selling their innovation in the market (Armstrong et al., 2012).

What are the main marketing approaches used by this company?

The main method that Starbucks Coffee applies to its marketing strategy is to advertise its brand through its own products like t-shirts, coffee mugs that its regular customers purchase. On the other hand, the advertising methodology of Nike is exclusively through print media and sometimes through electronic or digital media as well. The early advertising of Nike was mainly focused on the new shoes that it released and the message of the advertisement showed the benefits of various shoes like basketball, tennis, and running shoes.

While formulating the marketing strategy Nike made effective use of television as they believe it to be the most powerful medium of information and commercial. The TV commercials of Nike make a viewer feel the necessity of the product and make them buy. On the other hand, the marketing strategy of Starbucks was in-store marketing. They chose their own coffee mugs and t-shirt as their advertising medium (Coughlan, 2010).

They open small branded flagship stores within the big retail chain stores like Target, Wal-Mart, Best Buy, Mall of America, and many others to capture the crowd comes for shopping there. Through this strategy, the store traffic of Starbucks has risen between 6 to 8% and the interesting fact is that they managed to generate such a number with virtually no marketing. Starbucks generally spends 1% of their revenue in advertising compared to other retailers who spend about 10% of their revenue in advertising.

How do they use their brand to secure and expand their market position?

Nike secured and expanded its market position through emotional advertising as part of its marketing strategy. The company has shown its great ability to appeal to the emotions of its consumers. Their innovative ideas and marketing strategies make their consumers see Nike as the athletic apparel if they want to be victorious. Whereas Starbucks’ one of the methods for expanding and maintaining their brand in the market is through buying out the leases of their competitors. One of the instances that can be cited here is the buyout of Seattle Coffee Company by Starbucks Coffee Inc. when expanding their brand in the UK (Ferrell and Hartline, 2012).

What limitations/barriers does it face in developing its market position?

According to Orin Smith, the CEO of Starbucks Coffee the clustering stores model has increased their revenue but while developing their market position their clustering stores model has poached into each other’s sales. The opening of new stores created losses for the existing stores but because of the size of the company, they could manage the loss and look at the overall sales rather than looking at individual stores.

On the other hand, Nike has successfully expanded in many countries and regions but is still struggling in one of the world’s most important apparel markets – China. The main issue faced by the company is excess inventory. It has threats from the newer companies like Lululemon Athletica and Armour. The challenging market conditions in the Western European region are becoming a barrier to the expansion of the brand (Hawkins and Mothersbaugh, 2009).

What factors will affect its brand over the next 5 to 10 years?

Though both the companies are the leading brands in their respective segments their continuous improvement in customer service and innovative products are the key to their success, which they need to continue to focus on in the coming 5 to 10 years.

 For Starbucks, their focus on customer service is the main key to their success. Whereas for Nike their continuation in inventing newly improved and innovative products make their brand presence stronger in the market along with innovative marketing commercials.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Compare and contrast the marketing strategies of two companies Essay - 1”, n.d.)
Retrieved from https://studentshare.org/marketing/1683194-compare-and-contrast-the-marketing-strategies-of-two-companies
(Compare and Contrast the Marketing Strategies of Two Companies Essay - 1)
https://studentshare.org/marketing/1683194-compare-and-contrast-the-marketing-strategies-of-two-companies.
“Compare and Contrast the Marketing Strategies of Two Companies Essay - 1”, n.d. https://studentshare.org/marketing/1683194-compare-and-contrast-the-marketing-strategies-of-two-companies.
  • Cited: 2 times

CHECK THESE SAMPLES OF Marketing Strategies of Starbucks and Nike

Business plan: Starbucks

This particular study will focus on the business planning of starbucks on the global prospective.... This particular study will focus on the business planning of starbucks on the global prospective.... The long and successful journey of starbucks started in the year of 1971 on 29th March.... The SWOT analysis of the starbucks is also described wisely with many examples.... starbucks is the chosen brand.... In this paper the chosen MNC is the starbucks Corporation....
11 Pages (2750 words) Assignment

Economic Perspectives of Demand and Supply

This paper also explains how discovering new market would be a better economic strategy to foster demands from the example of starbucks's attempt to deal with Tata Coffee.... MICRO ECONOMICS Tata Coffee, starbucks Near Deal for Stores Your name ……………………………………....
8 Pages (2000 words) Essay

Understand the individual elements of the extended marketing mix: Starbucks

Understand the individual elements of the extended marketing mix: starbucks ... hellip; Starbuck utilizes numerous pricing strategies for its products.... In the extended marketing mix, Starbuck's processes mainly include international license agreements and joint ventures (Pride 2011).... Starbuck's marketing mix also considers the people resources.... tarbuck is committed to aggressive marketing communications and maintaining cordial relationships with all customers....
5 Pages (1250 words) Assignment

Marketing Strategy of Starbucks

The paper "Marketing Strategy of starbucks" provides a three-year strategic management proposal for Starbucks.... The research results proposed that instead of starbucks concentrating on opening up more outlets that happen to become a burden to the management board, it should seek to make the existing outlets more competitive.... hellip; The 2006 Global Quest that saw starbucks appear stable is yet another proof that more and more needs to be done if starbucks is to remain a gigantic firm in the coffee making industry....
10 Pages (2500 words) Case Study

Brand Identity of Starbucks

Brand promise is crucial for starbucks and the company has been using high quality beans.... The company… Initially, the store was named as ‘starbucks coffee, Tea and Spices' and the brand logo depicted a chocolate brown colored two tailed mermaid.... Later, the name of the starbucks was initially formed with the motto of selling good coffee with a unique flavor that a regular coffee brand wouldn't offer.... starbucks was formed initially in the year 1971 in Seattle (Burks 2009, 1)....
6 Pages (1500 words) Essay

Strategic Position of Starbucks

This paper "Strategic Position of starbucks" is focused on how Starbucks has strengthened its position in the industry.... starbucks is best known for its service and in-house ambiance (starbucks, 2014).... starbucks' core competency is based on the premium positioning of its product line.... starbucks ' competencies also include establishing a strong and close relationship with its suppliers.... The parent brand starbucks is positioned in the 'Differentiation Strategy' because it offers high-quality specialty coffee products along with a unique experience of the store's ambiance (Pretorius, 2008)....
11 Pages (2750 words) Case Study

Strategic Marketing Analysis for Starbucks

The essay “Strategic Marketing Analysis for Starbucks” is aimed at analyzing the marketing structure and strategy of starbucks to elaborate the strategies that it employs that have led to its success in the market.... The CEO of starbucks, Howard Shultz, has attempted to make a more productive and streamlined structure where data can stream openly from the client and low-level worker to the corporate level.... hellip; The author explains that starbucks is an espresso chain organization that began its business in Seattle, which is arranged in Washington, United States....
5 Pages (1250 words) Essay

Success of Starbucks Marketing Strategy in United States

This paper under the headline 'Success of starbucks' Marketing Strategy in the United States" focuses on the fact that Starbucks, which is now one of the most recognized brands in the world, was started as a small coffee shop in the year 1971 in Seattle, Washington.... Moreover, the products of starbucks are never stagnant.... nbsp;… starbucks is now one of the largest coffee shop franchises in the world with more than 17,000 stores operating in over 55 countries, and more than 11,000 of those are in the United States....
7 Pages (1750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us