Milestone 1 MKT 225

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Southern New Hampshire University *

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225

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Marketing

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Feb 20, 2024

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Uploaded by PresidentElementKookabura40

MKT 240: Digital Marketing

Starbucks prides itself on delivering top-notch coffee to its patrons, focusing on creating a cozy, welcoming atmosphere perfect for socializing or productivity. Along with free Wi-Fi and comfortable seating, Starbucks' rewards program encourages repeat visits by offering points and rewards. Among the many benefits of Starbucks are its global brand recognition, personalized marketing techniques aimed at building customer loyalty, and community spaces in select locations for socializing. The company also stays ahead of the curve by constantly innovating its menu and store formats to keep up with changing consumer preferences. However, there are some downsides to Starbucks. For one, its prices can be high, and there's always competition from local coffee shops. Additionally, the disposable cups used by the company harm the environment, leading to criticism of the company's sustainability practices. Dunkin' Donuts operates through a franchise-based business model, whereby independent franchisees own most locations. This approach enables Dunkin' to identify enthusiastic and driven individuals committed to the brand. The advantages of this model are vast, including rapid expansion and the establishment of a national and international presence, as well as the opportunity for entrepreneurs to own a Dunkin' franchise anywhere. Furthermore, Dunkin' boasts a powerful brand and a loyal customer base, facilitating consistent revenue. With a vast menu that includes food items, coffee, and donuts, Dunkin' has something for everyone. However, the company's prosperity is contingent on the performance of its management and franchise owners, and it faces stiff competition from other local coffee shops. Another competitor to Starbucks is Dutch Bros, a coffee stand that distinguishes itself by calling its employees "bro-istas." Offering primarily drive-thru service, Dutch Bros prioritizes customer experience by creating a friendly and inviting atmosphere through personal interactions, lively music, and unique, hand-decorated cups. Though their coffee selection may

not appeal to those seeking a more comprehensive range of options, their commitment to fast and friendly service is undeniable. However, the reliance on drive-thru stands could limit their ability to attract customers who prefer to sit and savor their coffee. In a fiercely competitive industry, Dutch Bros must stay on top of their game to thrive. Starbucks's current digital model boasts a highly efficient mobile app that empowers customers to place orders and pay for their drinks and food in advance, saving them time and hassle. By integrating the Starbucks Rewards program with the app, customers can earn reward points for their purchases and enjoy personalized rewards and promotions based on their preferences and purchase history. Using data analytics, Starbucks tailors its offerings and marketing initiatives to better meet individual customers’ needs. The coffee company uses social media, email marketing, and the Starbucks app to engage customers with promotions and user- generated content. To enhance the customer experience and streamline operations, Starbucks integrates its digital platform with various technology platforms and services, including payment, loyalty, inventory, and point-of-sale systems. The company explores new digital initiatives and technologies, such as AI, machine learning, augmented reality, and voice-activated ordering, to stay ahead of market trends. Starbucks strongly emphasizes digital ordering and payment, but there are opportunities to merge the digital and in-store experiences. This could involve using technology to boost customer engagement within stores, such as interactive displays, digital menu boards, or in-store digital assistants. However, Starbucks' digital ventures may not cater to all customers, including those with disabilities or limited access to technology. Improving accessibility features within the mobile app and digital platforms can ensure that all customers can easily access and use Starbucks' digital services. Finally, not all customers may be comfortable or familiar with digital

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platforms for ordering and payment. Providing support and resources to help customers navigate the digital experience, such as user-friendly interfaces, tutorials, and customer support channels, can improve digital inclusivity and literacy. It's important to note that Starbucks operates in diverse markets worldwide, each with its cultural norms, preferences, and regulatory requirements. Adapting its digital business model better to suit local tastes, languages, and regulatory environments can enhance customer engagement and loyalty in different regions. Starbucks can enhance its mobile app's customer experience by implementing AI and machine learning algorithms. This would offer highly personalized recommendations based on customer behavior, purchase history, and real-time location data. Starbucks can also incorporate gamification elements in its Rewards program to boost customer attention and loyalty. By leveraging data analytics and customer insights, Starbucks can tailor marketing announcements and product offerings to specific regional preferences and cultural nuances. Lastly, Starbucks can create a seamless omnichannel customer experience by integrating digital and physical touchpoints throughout the customer journey. To enhance its competitive edge, engage customers, and tackle business challenges in the digital globe, Starbucks can effectively leverage marketing tactics. By prioritizing personalization, sustainability, community engagement, localization, and omnichannel integration, Starbucks can strengthen its digital business model and provide customers with superior value. This, in turn, will boost lasting growth and profitability for the company.

Citations Dunkin’ Donuts Business Model - How Dunkin’ Donuts Makes Money? (2023, August 4). Businessmodelanalyst.com. https://businessmodelanalyst.com/dunkin-donuts-business- model/#Dunkin_Donuts_Business_Model Dutch Bros – Case Study - Professional Leadership Institute . (2020, August 24). https://professionalleadershipinstitute.com/case-studies/dutch-bros-case-study/ Pereira, D. (2022, July 17). Starbucks Business Model . The Business Model Analyst. https://businessmodelanalyst.com/starbucks-business-model/

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