Marketing Communication

3427 Words14 Pages
Executive summary “Third home”, it is concept created by Starbucks. This unique idea comes up because Starbucks understand consumer needs and wants. Starbucks is one of the most successful coffee shop chains with over 17000 stores in 52 countries. The company also employs 137 000 people, Starbucks is leader of coffee shop industry. Starbucks attracts various generations from teenager to senior citizen. But, their main target is office worker in middle and upper class who want “third home”. Surprisingly, nowadays their main competitor is fast food chain such as Mc Café and Dunkin’ Donuts. One of the strongest strength is cozy ambience of their shop where customer can feel comfortable. However, the reputation of Starbucks’ coffee…show more content…
How Starbucks makes clients to stop in their shop more often, stay longer and buy more? Firstly, Starbucks creates variety of menu including hot breakfast, lunch and dinner items. Secondly, to get customers hang around longer, they offer free wireless Internet access and music. They also offers music downloads for customers burn their own CDs while sipping their cappuccino. Thirdly, even customers are out of cash, it is not a problem. They just swipe our prepaid Starbucks card (Kotler, 2008). 3.2 COMPETITORS Starbucks has many competitors in the world. The below table1 shows the 3 main competitors of Starbucks as well as their market share and number of stores. Table 1: Market share and number of stores worldwide in 2013. Source:, 2013 Dunkin’ Donuts and Mc Café are the main party of Starbucks. These two competitors are both part of fast food but they have made a progress to introduce their upscale version of particularly coffees. Dunkin’ shifts its from doughnuts to coffee. It’s extremely successful, Donuts makeup a mere 17 of sales 2.7 million cups of coffee a day, nearly one billion cup per year. Moreover, “McDonald’s is trying to look and feel more like Starbucks,” (Penney, 2014), and Mc café has operated under the name by McDonalds. Mc Café took a page from Starbucks and can sell cheaper coffee without cheapening Starbucks name. Mc café’ Staffs have been trained
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