Starbucks's Place Element in the 7P Extended Marketing Mix

Starbucks has over 300,000 coffee houses in approximately 83 countries worldwide. Due to the brand’s presence all over the world, the customers have access to the products almost everywhere. The stores’ locations are strategically selected to be placed in high-traffic areas such as shopping malls, city centers and transportation hubs to ensure maximum visibility and accessibility to its customers.

The company is investing in creating a consistent and appealing store design which provides customers with comfortable and inviting atmosphere. (www.thestrategystory.com) This usually includes cozy seating arrangements, warm lighting and layout encouraging relaxation and social interaction. Design consistency helps to establish a recognizable ambience and brand experience for its customers. The recent store models feature dedicated areas for mobile pickup, which allows better organization and distinction between ‘in-store’ and ‘mobile’ customers. Starbucks is committed to accessibility in its store designs. This includes features like optimized acoustics, power-operated doors, and improved lighting for customers with low vision. The goal is to create an inclusive environment that caters to all customers (www.starbucks.com)

Starbucks is also shifting back to its roots by emphasizing craftsmanship and community over speed. This includes inviting seating arrangements that encourage customers to linger and connect. The stores incorporate local artwork and design elements that reflect the community it serves. This helps to create a unique atmosphere in each location, fostering a sense of belonging among customers. (www.amworldgroup.com)

Starbucks is further innovating its store formats that serves both on-the-go and sit-down customers. That includes ‘drive-thru’ focused format optimized for drive-thru orders allowing customers to purchase their favorite beverages and food items without leaving their vehicles, small format stores which helps to unlock access to more locations, and ‘third place spaces’ emphasizing warmth and sense of place.

Besides the physical stores, Starbucks has also expanded to the online space. The Starbucks mobile app can be used for payments and for participation in Starbucks rewards program. It can even be used for placing and paying for orders prior picking them up from the store. This is efficient for customers short on time and for customers who do not want to wait in line.

Starbucks has also built a robust network of partner companies that contribute to its success through strategic collaboration and partnerships. The alliance with Nestle has allowed Starbucks to penetrate retails markets globally, making its products available in supermarkets and convenience stores, thus expanding its consumer base beyond coffee shops. (www.milkwick.com) Starbucks collaboration with delivery platforms such as Uber Eats has further improved Starbuck’s accessibility by offering convenient delivery options especially in urban areas.

Starbucks has expanded its collaboration with coffee growers by adding two innovation farms in Guatemala and Costa Rica, with plans for future investments in Africa and Asia. This initiative aims to increase productivity, profitability for farmers and climate resilience. The company’s commitment to sustainability is evident in its efforts to mitigate the impacts of climate change on coffee farming communities. (www.starbucks.com)