Using Internet resources, identify the product attributes customers seek when buying hot coffee. (10 marks)
Customer tries to find reasonable price
Hint: You can classify most product attributes in terms of • price point • quality—conformance to specification (e.g., with hot coffee it might be the proper temperature, fresh, and free of foreign substances) • functionality—the elements customers value in a cup of coffee (e.g., taste, how it is served, store’s ambiance, the overall experience, selection).
Be sure to cite all references and information sources you use. • One of the important factor customers try to find hot coffee which is Costs Competitive while meeting the buyer needs and requirements. • •
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Some of their drinks under 200 calories etc. this is their way to attract health conscious customers.
At Starbucks you can choose whether to drink your coffee from a Starbucks mug or a paper cup, with or without its styrene cap. For those worried about the safety of styrene, a known carcinogen, Starbucks cups themselves are safe - but the cap is still made of this troubling material. But you can always choose to drink your coffee from the mug.
Starbucks is the leading retailer, roaster and brand of specialty coffee in the world,”
Starbucks is known for its innovation and strong product differentiation within its industry. establishing relationships with well-known third parties that share their values and commitment to quality, Starbucks is able to reach customers where they work, shop, and travel,”
One of the main reasons Starbucks is so successful in the flattening global economy is because they focus on quality and experience rather than the price
. Starbucks, the industry leader has built an image around taking considerable shares of the competition, by establishing reliability with suppliers.
. Each store delivers a unique experience, particular to each city’s culture
Using the data in the Starbucks case, prepare a BCG growth matrix for Starbucks. Be sure you consider the Starbucks company as a whole; do not confine your analysis to the hot coffee business.
Customers are able to socialize, read, study or enjoy music while drinking
Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.
2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.
Starbucks built continues relationship with its suppliers to ensure they can provide high grade coffee to achieve a sustainable supply chain.
4.5 Topic 4: Consumer Opinion about Communication Means…………………….46 4.6 Topic 5: Premium Coffee Shops Frequented Most Often In the Last 6 Months 48 4.7 Topic 6. Customer Evaluation of Premium Coffee Brands……………………..50 4.8 Topic 7: Brand……………………………………………………………………….51 4.9 Topic 8: The Factors That Influence Customers’ Decisions to Go To Premium Coffee Shops……………………………………………………………………………………..53 4.10 Topic 9: Types of Coffee Gloria Customers Drink Most Often………………. 56 4.11 Topic 10:
This marketing plan will show that the solution to Mr. Coffee’s problem is show that the features and technological improvements, specifically the Wi-Fi option, thermal carafe, and optimal brew temperature feature create a good value and great cup of coffee. The plan will rely heavily on channel and image differentiation. This device will be easier to get than pricey Italian entries and the Mr. Coffee brand will be shown to reestablish brand affinity by keying into pop culture references.
The ambiances at each bar were different and the energy was electrifying. It was in this setting that he realized that creating an atmosphere and bonding with customers around a cup of coffee was monumental in improving his business. Coffee would be only the automobile for a place where people want to stay for a while, a place-like-home, and office. These variables will become the differentiating factor for Starbucks.
Starbucks does not use direct advertising such as commercials, ads or other promotion. They do however; have one of the largest social media networks with one of the highest customer contact percentages on a daily basis. This is one way they continue to promote their brand with customers who have been with the company for a long time. At the same time Starbucks has made quality choices in generating “alliances” with companies who have a similar market segment or customer base. Some of these alliances have been with “Barnes and Noble, I-tunes, Green Mountain, Tata Coffee”. These have allowed Starbucks to differentiate their product in India, Canada, USA and China. They can provide their quality product in hotels, bookstores and specific markets that relate to their direct customer base.
As Starbucks continues to expand, more profits and more risks are in store. The corporation’s brand and reputation may be put at risk as the quality of the products supplied by third parties is outside of the company’s control (―Starbucks Corporation Fiscal 2009 Annual Report‖, 20). Partnering with farmers and suppliers meant letting go of control over the quality of certain products. In order to retain customers and protect their brand, Starbucks must establish and maintain effective working relationships with reputable farmers and suppliers, which could increase costs.
The great cup of coffee: Starbucks has product a great cup of coffee and with the excellent coffee that the shop offers show that there are some pleasing clients, even if the price of coffee is more expensive their test make the clients are satisfied.
Thus, it is evident that the Starbucks is well positioned around its strengths, which far outweighs its weaknesses. The company must maintain its supplier relationships, and continue to offer compelling and premium products to its customer base in order to stay relevant and compete against other coffee giants.
Starbucks achieves this through a vast range of high quality products that positions them as a premium coffee producer and distinguishes itself from its competitors.
Giving customers a high quality coffee experience along with comfortable and spacious facility where they could spend their time with friends and family. According to a research report on coffee chain, “Very few of Indian consumers order a
To ensure brand richness, Starbucks bring the best ingredients and quality control, they also assure that all the employees are constantly involved and be aware of its mission and vision.
Starbucks is and has always been a coffee shop. Some of its main competitors include McDonald’s and Dunkin Donuts, who started as a fast food restaurant and donut shop respectively. Because Starbucks helped introduce “gourmet” coffee and espresso to the popular culture, they continue to function as an educator of the public in coffee culture. This helps paint Starbucks as a leader and innovator in their market, giving them yet another advantage over their competitors.
The main aim of the corporation remained the same: to be the leading company at selling exclusive coffee and increase market share in the North America, which was prosperously achieved. As a customer-oriented entity Starbucks place their clients in the centre of the business activity, having satisfaction of customers’ needs as a priority (Boşcor & Tălpău, 2011). Howard Schultz explains, “We are not in the coffee business serving people, we are in the people’s business serving coffee” (Schultz & Yang, 1999). Starbucks does not just sell coffee; it sells the “Starbucks experience”. The store designers with the HR and Operations departments have created a place where people would come back again and again. As of November 4, 2015 there are 23,132 Starbucks stores operating all over the world (Loxcel Geomatics, 2015) and they are not planning on stopping the rapid expansion. However, due to the cultural differences people have diverse needs, which cannot be met by using one universal international standard for every store in every country. Therefore, in order to gain necessary competitiveness in local markets Starbucks Corporation has to adapt its marketing mix so it could correspond to the existent demand. What strategies Starbucks Corporation applies entering new markets (like in Japan and Australia instances) will be discussed in the following