Marketing Plan for Starbucks

There are different pricing strategies available to firms and each will be optimal in different situations (Jobber and Fahy, 2006). One strategy is premium pricing, which is also called a high price-high quality strategy, and this allows the firm to charge higher prices because there is something unique about the product. Exclusivity is partially derived from price because more expensive products exclude some consumers who might like to buy them (Solomon et al., 2002). It is therefore expected that the high status products will to cost more than the mundane brand. In line with this, Starbucks' adverts do not contain pricing information because product pricing is premium, which is due to the company's commitment to quality products and a high level of customer service. Indeed, the only time price is mentioned in the sample of adverts is when the company is depicting low prices as suspicious (Picture 6) and how higher prices can change the lives of others (Picture 7). In this way, the pricing strategy is again used to reinforce the brand as being socially responsible and helping to justify the price (and reduce dissonance). The premium pricing strategy has to be carried out throughout the life of the product (Solomon et al., 2002). For example, using deep discounts and other price promotions are generally not the best tactics when selling status goods. Therefore, while Starbucks will use promotions where it gives customers things for free for trial (Picture 5), it does not engage in price promotions to any extent (Kembell et al., 2002).