Starbucks marketing budget – additional information
Starbucks, a company headquartered in Seattle, Washington, is one of the most valuable brands in the world. With more than 25 thousand stores worldwide, the company is also one of the most successful coffee chains. In 2016, Starbucks’ brand value was at nearly 7.5 billion U.S. dollars, an increase of 20 percent from the 2015 figure. Within its industry, Starbucks is the second most valuable fast food brand. The giant Mc Donald’s, Starbucks’ main competitor in the U.S., is the most valuable brand in the industry. Along with Mc Donald’s, Dunkin’ Donuts is another major Starbucks’ competitor in the American market.
Much of the company’s achievements and high brand value can be attributed to its successful marketing and branding strategies. The coffeehouse places emphasis on the product’s high quality and customers’ experience, aiming to be a “third place” for them, that is, a space between home and work. With that in mind, customer satisfaction is a pillar of the company’s business and marketing strategies. In 2016, Starbucks spent around 380 million U.S. dollars in marketing activities, and about 249 million U.S. dollars in advertising. Considering Starbucks’ presence in the U.S., Starbucks’ advertising spending in the country is low in comparison to other major American fast food restaurants. In 2015, Mc Donald’s, for example, spent 802 million U.S. dollars in advertising in the U.S., while Starbucks’ advertising expenditure was at 79 million U.S. dollars in the same year.
Along with marketing and advertising, the company also invests in its social media presence. Starbucks has one of the largest fan bases on Facebook, with around 36.5 million fans as of February 2017.