Coffee and Starbucks

1425 Words Jan 20th, 2012 6 Pages
1
A. What is Starbucks’ “product”
• Starbucks’ product is a casual experience in a comfortable atmosphere where the customer can enjoy a premium cup of coffee and a newspaper or relaxing conversation with friends.
B. What is their “core product” and what are the “auxiliary features” and benefits?
• The core product is a premium cup of coffee. The auxiliary features include the well-educated baristas that can help select the right cup of coffee and help customers learn how to reproduce the experience at home or the office with fresh coffee bean or grounds they can purchase in store. Along with the coffees available there are also Tazo teas, hand crafted espresso and blended drinks a little something for every taste. To go with the drink
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The high quality product and unique sizing of their products also set them apart. Rather than using the standard small med and large names they used unique identifies that helped make their products stand out in memory. Before they came around your options for coffee outside the home were very limited and the ability to get such high quality even at a premium price was a welcome feature in the market place. For the longest time they were really the only player in the space and that niche afforded them very rapid growth and early successes that help fuel even more growth as they expanded worldwide.
5.
A. What are the advantages of the Starbucks Card to the company?
• The most obvious advantage of the card to Starbucks is the guaranteed income. Once people load money on the card it can only be spent at a Starbucks location. It also makes tracking customer purchasing habits and preferences readily available. Then there is the case of the forgotten or lost cards that never get used that equate to pure profit. One last advantage is that with the card they have also created a secondary market for sales by placing the cards in stores like Giant Eagle where people that wouldn’t come into the stores can buy the cards as a gift.
B. What are the advantages of the Starbucks Card to the customers?
• The consumer can control their spending with the card. By loading the card with the amount they allocate for coffee they can track their spending more effectively

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