Reference no: EM132306286
Starbucks has a complex marketing strategy that includes the following tactics:
premium product quality
premium price points
widespread distribution of stores and multiple distribution channels
high quality standards for inputs
premium customer service
excellent employee benefits
investment in suppliers--higher prices and support services to assure quality production
environmental marketing--recycling, recycled content in packaging, composting
full benefits for all employees, even part-time workers
support for community services, including paid time off for employee volunteering
reduction in energy use
corporate charitable giving
individualized promotions in loyalty program to increase loyal customers
1. Starbucks engages in Triple Bottom Line strategic thinking. Categorize (label) each of the tactics listed above (and any others you might know) to its most relevant of the Triple Bottom Line strategic objectives (Profit, People, Planet).
2. Identify and explain TWO major advantages and TWO major disadvantages of a marketing strategy based on a complete Triple Bottom Line set of objectives.
3. Respond to each of the following ethical criticisms of Starbucks:
A. Premium pricing is unfair; it imposes a too high burden on customers and shuts out some consumers who would like to be customers.
B. Charitable contributions damage stockholders by directly reducing profits.
C. Investing in suppliers is culturally insensitive; it forces farmers in very different cultures to adopt Western lifestyles and values.