Starbucks

Extract

[...] Starbucks serve other beverages too, like tea, fresh squeezed juices and sodas. In addition to that a wide range of food items is also available, such as various pastries and sandwiches. Lately the company also started to sell coffee- Howard Schultz, CEO of related products and equipment such as coffee mugs. Starbucks Since the beginning the company sells the highest quality coffee, and that is why customers are ready to pay quite an elevated price for the products: the consumers perceive the products as superior merchandise. [...]

[...] Consequently Starbucks can increase margins but also satisfy a lot of market segments thanks to their customized drinks. Differentiation involves creating a product that is perceived as unique. The unique features or benefits provide superior value for the customer if this strategy is to be successful. Because customers see the product as unrivaled and unequaled, the price elasticity of demand tends to be reduced and customers tend to be more brand-loyal. This can provide considerable insulation from competition. However there are usually additional costs associated with the differentiating product features and this could require a premium pricing strategy STARBUCKS RECOMMENDATIONS Today Starbucks is the leader on the market of coffeehouses in spite of the sharp competition and demand of lower prices; they are positioning on a very up-to-date segment with their fair trade coffees. [...]

[...] The coffee beneficiates of quite an important market. Figures about the USA market: - Coffee drinkers spend on average $ 164.71 per year on coffee. - There are on average 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year. - 54% of the adult population of the United States drinks coffee daily - of the coffee drinkers in the United States drink gourmet coffee beverages daily. [...]

[...] Strong marketing skills to be able to communicate the importance of the differentiating product characteristics. Maybe in front of all those competitors, Starbucks should consider making some advertisement in the media and stop only relying on word of mouth publicity. Attract highly skilled and creative people to be able to put into practice all the criteria above. In a nutshell considering the market: the coffee market is expanding more in value than in volume because of sociological aspects of nowadays' life, and consumption outside residence is growing faster than households' consumption; we recommend Starbucks to go on with its strategy of focused differentiation in spite of the rough competition which tends to lower the market prices. [...]

[...] Starbucks wants to maintain an excellent growth and stay focused on their basis values. The company is based on the following statements: • • • • • • • • • • Offer customized high quality coffee Give to the customer an interesting variety of products Provide a relaxing, attractive social atmosphere Create, keep and always improve the relationship with the customer Create a great working environment Create a strong relationship with their suppliers Implicate themselves in the communities around Be a social corporation responsible Provide a superior rate of return to the investors Do everything in the respect of everyone VISION Starbucks wants to be the reference between all the coffeehouses. [...]