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Starbucks Uses Big Data to Improve Marketing Efficiency
Data analytics is used to describe the massive volumes of organized and unorganized data
that overwhelms an organization in its daily activities. Such information emanates from social
media and business transactions as well as machines, and it is available in different formats.
Importantly, organizations can use it to make smart decisions, develop new products, and reduce
time as well as costs among others. Starbucks uses big data as a marketing tool to expand its
brand and develop new product lines by following its customers’ needs.
Starbucks, which is a leading coffee chain in the world, uses its consumers’ buying
patterns and feedback to develop products that match their preferences. For example, it used
information collected from the numerous stores to generate several industry reports. From this
analysis, it introduced bottled beverages and K-Cups in its grocery stores (Whitten). Besides that,
Starbucks began selling sweetened and unsweetened black iced coffee without added flavors or
milk. This technique is a marketing strategy to help it retain its position in the coffee industry.
Furthermore, Starbucks uses big data to gain market share in new product lines while
getting closer to consumers’ needs. The introduction of several Pumpkin Spice flavored grocery
products in 2003 was a huge marketing strategy that relied heavily on data analytics. As a result,
it increased foot traffic in its stores during the autumn months. Such initiatives depend on the use
of big data to identify the available market opportunities. Consequently, Starbucks creates an
appealing marketing campaign that aims at gaining and retaining more customers.
