The economic woes that were hurting the sales that Starbucks had recently have been turning around. Part of the reason for the turn is due to the marketing methods McDonald’s have employed. Since McDonald’s has come out with its own brand of coffee that it has been aggressively marketing through sales training and other resources at its disposal, it has improved the recognition of coffee in food industry for customers . Starbucks as a result has felt some improvement in sales because of the recognition coffee has been getting overall in this business quarter. Sales were down by about six percent this quarter but that was better than the eight percent of the previous quarter. Analysts are hoping the upward trend continues.
Though the advertising campaign McDonald’s used will of course benfit the company itself more than it will Starbucks, the improvement is still appreciated by Starbucks business executives. The McCafe advertisement campaign cost about $100 million dollars. Starbucks in the meantime this year, spent only $28 million in comparison. Other competitors still in the advertising race include Dunkin Donuts. However, Starbucks remains the main competitor.
Starbucks knows it’s time for a refurbishment in how they do sales. In their new advertising campaign they have begun work that promises to aid in sales process improvement. They will continue their spectacular use of social media in addition to more common media. Because of company loyalty that Starbucks has grown through making a trusted coffee brand, executives plan to exploit that strong point. It will more than excuse any large costs the fresh marketing campaign might bring. Factors that show the loyalty customers have given Starbucks comes in the form of the three and a half million people that have friended the company Facebook, and a growing account on Twitter.
The campaign will most likely look to associating with their customers in a more straightforward way. Social sites like Facebook look to be a part of the new way Starbucks sets trends in social media. Many companies have taken their cues from the Starbucks and the way the company interacts with its customers.