High School

As part of its grand opening in Johannesburg, Starbucks provided giveaways and created an atmosphere of excitement. Which best describes Starbucks' communications strategy in South Africa?

A. Starbucks is using a push communications strategy.
B. Starbucks is promoting source effects in its communications strategy.
C. Starbucks is focusing on just social media to reach its target customer.
D. Starbucks is using business analytics to reach its target market.
E. Starbucks is using a pull communications strategy.

Answer :

The best answer is (E) Starbucks is using a pull communications strategy.

A pull communications strategy is when a company creates demand for its product or service by generating excitement and interest among the target audience. In this case, Starbucks used giveaways and created an atmosphere of excitement to attract customers to its grand opening in Johannesburg. This strategy aims to create a desire for the product or service, making customers seek it out rather than the company pushing it onto them.

Option (A) is not correct as a push strategy would involve pushing the product onto customers through advertising or promotions, without necessarily generating excitement or demand.

Option (B) is not correct as source effects refer to the way in which the source of the communication (such as the spokesperson) affects the receiver's perception of the message.

Option (C) is not correct as it implies that Starbucks is only using social media to reach its target customer, which may not be the case.

Option (D) is not correct as it refers to using data analytics to inform business decisions, which is not related to Starbucks' communication strategy for its grand opening in Johannesburg.

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Final answer:

Starbucks is using a pull communications strategy in South Africa, aimed at creating demand and excitement that encourages consumers to actively seek out their products.

Explanation:

From the information provided, it appears that Starbucks is employing a pull communications strategy in South Africa. A pull strategy typically involves creating demand and excitement among consumers so that they actively seek out the product, which is indicated by the giveaways and atmosphere of excitement created for the grand opening in Johannesburg. This approach focuses on engaging customers directly and is often characterized by promotional activities such as advertising and consumer-oriented marketing techniques to “pull” the customer towards the brand. In contrast, a push strategy would mean the company is focusing on pushing the product through the marketing channels to the end consumer, such as through aggressive selling to retailers or promotions targeted at the distribution channel.