Overview Of Starbucks Distribution Channel In Singapore

Table of Contents

Distribution intensive

Exclusive Distribution

Suggestion

Companies can generally distribute their products through a variety distribution channels to customers, such as retailers, wholesalers and stores/outlets.

Intensive Distribution Channel (Starbucks outlets / Cafes, Other Retailers, Online platfrom)

Foodpanda has exclusive distribution channels to deliver food services.

Intensive DistributionStarbucks’ outlets hold significant place in their marketing strategy because the outlets are normally first venues where customer can access the company’s products and services. There are 140 Starbucks outlets across Singapore. These outlets are usually located in high-traffic areas that are easily accessible and high-visibility. The cafes / outlets are intended to create a comfortable and familiar atmosphere. Starbucks aims to offer customers a high-quality product, a comfortable environment, and a love for their brand through the outlets and cafes. Their outlets sell hand-crafted drinks, coffee & Tea, Frappuccino and food (pastries and sandwiches, yoghurt and cut fruits, etc.) as well as merchandises (mugs and tumblers and instant coffee).

Starbucks integrates the Mobile Application into their customer service outlets to improve their customer’s drinking experience. The Mobile Application allows customers to view product information, store location, promotions, and menus from their phones. Customers can also pay with their mobile app and receive rewards as well as new product alerts and promotion notifications.

Starbucks select products – sealed / bottled chilled drinks (Frappuccino), will be sold through the extensive distribution channel members, such as mini-markets or convenience stores. These retailers sell bottled drinks at a lower price than those sold from Starbucks cafes and outlets. This allows the company to have as many distributors possible to help promote its brand and mass-market selling. These channel members can also reduce logistical problems like storing goods or providing transactional functions such as reaching potential customers and promoting the products.

Starbucks merchandise, including coffee mugs, tumblers or bottled coffee (Frappuccino), can be ordered online via qoo10 and Lazada. Customers may sometimes question the authenticity of online orders.

Exclusive Distribution (for Online Purchase & Delivery Service). Starbucks is not only a strong distributor, but also uses a unique distribution channel to fulfill the market demand. Starbucks Singapore does not currently accept online orders via the Starbucks mobile app or website. Additionally, delivery is free for purchases that are made at their store within 10 minutes of its location.

Starbucks has partnered up with Foodpanda, a food delivery company in Singapore, to deliver food to customers who order via FoodPanda’s mobile app and website. FoodPanda has the exclusive partnership with Starbucks to deliver food in Singapore. FoodPanda has a limited product selection, which is dependent on the location of your order. This makes them less comprehensive than direct Starbucks outlet purchase. Customers can still enjoy Starbucks high-quality products at their doorsteps by ordering through FoodPanda.

RecommendationEdible Straw, a new product that will be sold as cold beverages such as Frappuccino, cold-brew, fruit juice and so on, will be launched at all Starbucks locations during its launch. According to Starbucks, customers will get the product at the best price and most directly through their outlets. The product can still be of high quality.