Tuesday, December 3, 2013

Marketing Blend - Approach

How should Starbucks approach Finland, take a traditional or an adaptive approach to marketing? The traditional approach is fundamentally linear, starting with a brief, then developing the marketing material, after which it is sent out. Then performance is measured and reflected if the campaign worked or not. The project ends and the data gathered is used for the next campaign. Nevertheless, as consumers have changed, and with the world at their fingertips, information sources on products are increasing and consumers are becoming immune to traditional advertising.

Adaptive marketing, on the other hand, takes an iterative approach. The measurement system is always ‘on’, and performance based on marketing creativity is measured constantly. The end goal is known, and a team works towards it till they get there. The marketing mix is not an end itself, it’s a means to an end, a predetermined goal.
So which strategy should Starbuck’s take? In the US, they’ve started out with a traditional approach since their founding in the 70’s. They built their brand name with this approach, similar to Coca-Cola, Kleenex or Band-Aid. Nevertheless, they started adapting with the ever-increasing online world, nowadays with daily updates on Facebook and Twitter, having an occasional contest for consumers to win something. They’ve already built an online Starbucks fan community, with over 35 million likes on Facebook and over 5 million followers on Twitter. For Finland, as the country has one of the highest internet accessibility rates (91% of consumers online*), having a traditional marketing approach does not cut it. Starbuck’s needs to use an adaptive approach. In our opinion, Starbuck’s should have street-level advertising from the traditional approach to penetrate a new market area and get street-level visibility fast. All the while, they need to keep upholding an online presence that speaks to the younger coffee drinking community, which has been increasing in Finland.


* "Percentage of Individuals using the Internet 2000-2012", International Telecommunications Union (Geneva), June 2013, retrieved 1 Dec 2013

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