Case Study - Starbucks

1294 Words Oct 15th, 2008 6 Pages
Abstract

“Starbucks is the leading specialty coffee retailer in the nation, with over 5,000 locations in 22 international markets. Starbucks positions their products on a relatively simple plane. They focus on quality and experience, rather than price. A comparison of specialty drinks with its competitors reveals very minor differences. Starbucks’ image is one of the key elements to their success. The company has realized that people don’t only come for the coffee; they come for the atmosphere. People socialize, read, study, or just enjoy the music while drinking their coffee.” (Kembell, Hawks, Kembell, Perry, & Olsen, 2002) The Product

The product strategy for Starbucks appears to be to position their coffee as the one people
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Additionally, they sponsor large social events such as Bumbershoot, Jumpstart’s “Read for the Record” and an Elle magazine party to launch its Green Issue.
According to Ed See, COO of Marketing Management Analytics, “Starbucks ' approach is a throwback to the way businesses appealed to customers before the mass media came along, he said. ‘At the end of the day, advertising has been a poor substitute for community communication,’ See said. ‘Starbucks went back to basics, and they 've approached the basics with a science and intensity that no one has ever done before.’” (Allison, 2006)
Protecting the Market

In order to protect its market, Starbucks would be wise to continue to insist on the BEST customer service possible. Ultimately, it’s the experience that will continue to bring people back. “Starbucks built its brand not so much on the coffee, but on the EXPERIENCE of being in a Starbucks cafe, surrounded by like-minded people and listening to the music selections of their CD-of-the-month club and cool "baristas" who reveled in talking about the differences between the various coffee blends as if they were wine aficionados, which is cool.” (Janal, 2006) Other’s may try to replicate what they see at Starbucks in look and feel but without the excellent

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