Thursday, November 17, 2011

Ch.7 Business Marketing

Business to business commerce (B2B commerce) has become a significant revenue source for Starbucks. Besides the company profitability that the company gains, Starbucks also expands their market reach, brand awareness and improves product image through B2B commerce.

The firm mainly interacts with other businesses in form of business strategic alliances and by selling their products directly to other business re-sellers such as Shop Rite or Kings.

Starbucks forms alliances with other companies and social groups across the world, at the same time they are improving the company's brand awareness and reputation; furthermore, they are exposing the brand name and products to potential new customers on a regular basis. 
For example, Starbucks partners with Barnes and Noble bookstores since 1993. They established an in house coffee shop in plenty of Barnes and Noble stores. Starbucks also has formed an alliance with United Airline, offering the company's coffee in brand labelled cups on board. The coffee company has formed an alliance with ice cream manufactures to use the Starbucks flavored ice cream and brand. Furthermore, the firm partners with the National Association for the Advancement of Colored People (NAACP). The collective purpose of this alliance is to support the advancement of both parties' goals which is to fight for social and economic equality. These are only a few example of the many alliances that Starbucks has been taking care of. However, the company attaches great importance to relationship marketing. Starbucks is a loyal and dedicated partner who guarantees top quality and satisfaction.

"Starbucks Business Alliances provides our customers with a custom Starbucks coffee programme which is tailored to the business  partner. A consultative relationship based on proven success, industry expertise and an overall commitment to quality. It’s a commitment that begins with our selection of the finest coffee beans and doesn’t end until the customer savours the world’s finest cup of coffee." Starbucks for Business


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