Positioning strategies of Starbucks and Dunkin’
Starbucks and Dunkin are two big and influential names in the food and beverage industry. These companies managed to succeed and grow to become worldwide giants with more than 10.000 locations globally. Their dedication, passion for work, and wise strategies are the factors behind their success. The wise positioning strategy that each of these companies used was also crucial. The right positioning helped them to differentiate and make their products desirable and demanded by millions of consumers. So, let’s discuss both Starbucks and Dunkin’ separately to understand how they created their positioning strategies that are indeed effective, powerful, and successful.
Let’s start by discussing Starbucks’s segmentation strategy.
To easily identify the target audience of Starbucks let’s watch and discuss the following commercial by the company.
The video depicts a young, calm, and good-looking man, who consumes Starbucks coffee no matter what he is doing. It seems he is very loyal to his choices. He looks quite basic, open, and has a variety of hobbies. He seems to have mainstream and basic life like to share and is optimistic.
This young man represents the target market of Starbucks. From the discussion of the commercial, it becomes clear that Starbucks focuses on people belonging to the Nesters segment.
Target Market: Nester
Lifestyle and Values of the target audience: Nesters are very responsible, family-oriented, and comparably passive people, who like to move with flow in life. They dress like average people and don’t stand out with their clothing and appearance. People belonging to this segment tend to keep a well-organized daily routine. They give big value to faith and always seek for good in people.
Nesters tend to choose jobs that are stable rather than financially beneficial. They don’t like taking risks and their security is a priority for them. The family has an immense role in their lives and spending time with them at home is one of their favorite things to do. They like communicating, talking, and chatting with others.
Attitude to Shopping: Nesters make shopping lists and plan everything before going for shopping. They tend to visit several preferred places to do their shopping. These people don’t follow trends that much, but instead they listen to the opinion of others. They give preference to goods that are popular by the majority and are mainly produced domestically.
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Marketing Strategy of Starbucks.
Differentiation based on high quality is one of the core marketing strategies used by Starbucks. It always keeps the premium quality of its products and this justifies the higher-than-average price point of its products. By keeping the quality on top the company was able to become extremely popular and gain loyalty from its customers. This aspect is the one assuring a strong brand image for Starbucks.
Also, the company is known for its excellent customer service and for always being customer-oriented. Starbucks coffee shops are known to be comfortable, welcoming, and assuring good experience and connection.
At the same time, Starbucks’s other marketing strategy is its successful reward program. With this program, customers get the opportunity to earn incentives in forms of stars with every purchase. Later on, they can spend the collected stars on different benefits like free drinks, discounts, etc. This is another way to ensure customer loyalty.
Starbucks uses less or none of the traditional methods of marketing and advertising. It keeps connected with customers by implementing unconventional and effective social media techniques. Starbucks actively uses social media platforms like Instagram, Twitter, Facebook, etc. to reach a large audience of customers, always keep them on track, and share updates, news with them.
Problem Removal
Starbucks’ number one priority is continuously perfecting the experience of customers and partners related to the company. Starbucks strives to create a sense of belonging, warmth, and home in each of its locations. The company continuously improves its coffee shops, and always keeps the quality and diverse variety of its products on track.
Starbucks wants each of its customers to feel belonging, connection, and warmth related to the certain coffeeshop from its chain that they visit the most. They want their customers to consider Starbucks coffee shops their place, a place to always go back to.
Social Approval
To gain social acceptance, Starbucks uses different strategies. It wants to make the experience related to Starbucks positive and exciting. The company does this not only for its customers but also for the employees and suppliers whom they consider partners.
Starbucks implements sustainable management along with different actions contributing to the society and environment in general. The company stands for diversity, inclusion, and acceptance. An example of this can be Starbucks’s announcement from 2017, about its plans to hire thousands of refugees around the world in the upcoming five years.
Message Strategy
Let’s discuss the following Instagram post by Starbucks to understand its message strategy.
The post picture and description represent four different tastes and experiences. The company speaks about diversity, encourages the aim to explore and trying something new. It gives customers the freedom to experiment, find what is the best and most fulfilling for them.
All these tactics identify that Starbucks represents the Explorer brand archetype. This archetype stands for adventure, freedom, diversity, and continuous search for finding your true self. Explorer’s motto is “Don’t fence me in” and it represents individualism.
Let’s move on to discuss segmentation strategy of Dunkin’
To understand who Dunkin mainly wants to target, let’s watch the following commercial by the company.
The commercial features three young, attractive, good-looking, and confident men, who are searching for a place to hang out after work. They seem active, positive, and successful. These men have an active social life and love to communicate.
They enjoy each other’s company and spending time together. They represent the segment that Dunkin’ chose to target. After discussing the commercial we can say that they chose people from the Carpe Diem segment.
Target Market: Carpe Diem
Lifestyle and Values:
Carpe Diems are noticeably outgoing, active, and enjoy the dynamism and variety of life. They enjoy life and love to spend time with friends. Carpe Diems tend to get as much as possible from every moment and give importance to the present.
Being adventurous and spontaneous is typical for Carpe Diems. Appearance has crucial importance for the representatives of this segment. They usually follow trends and novelties in the market and always look put together.
People belonging to the Carpe Diem segment like to spend money and visit up-scale places. Independent both financially and in any other possible way is crucial for them. Thus, they understand the importance of having a good career very well.
Attitude to Shopping: Carpe Diems are known for being brand-oriented. They give preference to high-quality products and value quality over quantity. Carpe Diems are extremely loyal to their initial choices and brands. They l find the shopping process and spending money very pleasing, enjoyable and want to make sure that they got the best deal.
Marketing Strategy of Dunkin.
Dunkin’s marketing strategy focuses on a wide range of diverse baked products and beverages. The company is known for its extended menu and double roasted coffee that makes customers come back to try it again. Around the world, Dunkin’ offers an extensive list of products among which people with different preferences can find something for themselves.
At the same time, Dunkin’ uses traditional methods of marketing along with unconventional ones. The company markets its products by advertising them in printed media. It mainly gives preference to popular magazines and newspapers.
Also, Dunkin is remarkably active on different social media platforms. The twitter page of the company is quite popular and active, Dunkin uses these platforms to stay in touch with customers, announce about news and campaigns. For example, people who post their pictures with any Dunkin product can receive a free donut.
Another strategic move by the Dunkin’ is celebrating National Donut Day and implementing a reward program. On this holiday people get the opportunity to have a free donut and as a result, Dunkin’ gets free publicity. Undoubtedly, this is a win-win situation. This holiday and the reward program help Dunkin’ to attract more customers, assure their loyalty and the popularity of the company.
Problem Removal
The biggest goal for Dunkin’ is to make people communicate, stay connected, and have fun. It wants to create a place with beverages and baked products that will ensure warmth, comfort, a friendly atmosphere, and a desire to return.
The company wants to provide people with a location where they can meet with their loved ones, friends to have fun, communicate, spend a good time. Also, it provides the customers with diverse, tasty products that will always complement to such gathering. Dunkin wants to do these all by assuring that you pay a reasonable amount of money and get high-quality products for the best value.
Social Approval
When it comes to social acceptance and approval, Dunkin’ puts lots of focus on sustainable management. The company tries to improve itself by assuring the sustainability of its food, restaurants, and community. At the same time, Dunkin’ takes part in different funding initiatives like The Joy in Childhood Foundation®, which helps children fighting hunger and illness. Besides, Dunkin stands for diversity and inclusion. Thanks to the diversity of the company’s staff, it earned 100 scored on the 2019 Corporate Equality Index (CEI).
Message Strategy
Let’s go through an Instagram post by Dunkin’ to understand what message strategy they chose.
The post involves heart-shaped donuts, pink, romantic colors, and transfers warm, pleasing feelings. It fully catches your attention and seems like you are the one grabbing a donut from the box. All these details along with the encouraging statement of involving a dear person to the post create some type of sensuality and intimacy.
The post and all discussed details identify Dunkin’ as a representative of the Lover brand archetype. The Lover archetype stands for experiencing sensuality, intimacy, and being attractive. This archetype’s motto is “I only have eyes for you” and it actively promotes relationships with places, people, experiences, etc.
Summing up, we have analyzed and identified the positioning tactics of two popular and powerful companies like Starbucks and Dunkin. Check out the main page of our website for more posts like this.
