Experience Marketing

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

quality of the products connected with a fair price attracts many coffee lovers. Starbucks also

Starbucks will be the first come in your mind when you want to have a cup of coffee. Don’t you feel curious about why is Starbucks so successful? This report explains how Starbucks take advantage in consumer purchase decision making process, how does Starbucks attract customer, how does Starbucks segment its market and new trends in society affect purchasing process.

In “Undercover Economist”, Harford shows the biggest issue affect to the Starbucks to have a huge success is a location. Based on the investigation of the

Starbucks Corporation has been around since 1971. What makes Starbucks unique from other coffee-bar shops is not only their wide selection of products, but the environment they provide to all customers. Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. Starbucks also offers a selection of music, and unique designed coffee mugs. The company even hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. They

When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. Schultz’s brand aimed at gaining dominance in the coffee industry in addition creating a Italian coffee shop feel in the United States (Buchanan & Simmons, 2009). The strategy of Starbucks was based on new products, listening to customers wants and ensure future expansion (Buchanan & Simmons, 2009). In creating convenience for customers, Starbucks created stores almost on top of eachother. They hinged on the idea that, they did not want to lose out on a sale if a line was too long. This action, of placing stores in heavy populated areas, basing need on projected growth of an area caused some decline in sales during economic trouble with the economy. The 2007 recession, failure of subprime mortgages, increased competition from McDonald 's McCafe brand, and Dunkin Doughnuts all led to a decline in sales for Starbucks in the fourth quarter of 2007 (Buchanan & Simmons, 2009). To attempt to regain market share and recover after the

By item, we can see that some of Starbucks product position in the business. In the stage of introduction, Starbucks products, for instance, frozen yogurt and coffee in business is new a product. At that point, Starbucks stores in a couple of nations like Japan, China, and Singapore ,Indonesia, and fundamentally in Asia are a star thing because it has a high market advancement where the association push Starbucks to wind up lifestyle for people especially in urban zone in these nations.

In 1982, Starbucks coffee changed forever. While traveling in Milan, Italy, head of marketing Howard Schultz was intrigued by the coffee shop atmosphere – patrons sitting, relaxing and chatting over café latte. Wanting to

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

This economy is unique. It is built on the perception that the customer is the dynamic participant in the search of experiences that will personally amaze and engage them. (Schmitt, 1999). For a business to be successful, goods alone are not enough (B J Pine II & J H Gilmore 1999). Consumers are tired of standardized products and services – they are seeking those that have been specifically designed for them, based on their perceptions. In the context of this economy, the authors propose to abandon the traditional relationship between the company and customers. Instead, the company should be a “director of impressions" and clients: "spectators" or “guests". The Experience Economy” is the playbook from which managers can direct and control performance, based on the concept: The foundation for economic growth stems

Since the 1950’s, the world’s economy has gone through several changes, from an agrarian economy to an industrial economy, then to a service-based economy and then to the experience economy. “The term ‘Experience Economy’ was first introduced by Joseph Pine and James Gilmore in 1999. The concept is that goods and services are no longer enough for consumers – that businesses must create memorable events and experiences that capture their audience and create experiences that transform their brand’s value proposition.” (Frias, 2014) Despite being introduced in 1999, the concept of the Experience Economy has already existed in some extablishments to gain a large and growing customer base. The Hospitality Industry is an example of this. “For example, on July 17th, 1955, the pioneer of the Experience Economy, as Pine calls him, Walt Disney

As such, large store will have a greater variety of products while smaller stores and kiosks will typically only carry the beverages, and a limited selection of whole bean and ground coffees, Tazo teas, and coffee accessories. They also adapt the Stores to local cultures. Starbucks has clearly achieved its goal of improving its business through better products. The next step for the company is to introduce these new products all their channels and develop new channels for distribution as well. In order to continue its global expansion, the company must never fail to take into account that the local tastes of the country before they introduce these new products into the market.

Many coffee companies are currently in the market, making competition fierce. Although Starbucks has a strong reputation in North America, direct and indirect competitors still pose a threat. To establish market niche, competitors use location,

This article focuses on how companies could enter emerging experience economy by looking at the experience characteristics and design principles that could help pioneer customer’s experience.