Starbucks Essay

2064 Words 9 Pages
1. Starbucks, according to the information provided in the case, has an array of products generally associated with coffee products. Starbucks started in 1971 selling gourmet coffee. Then Starbucks expanded its product mix into different types of products lines, most likely, to better meet the needs and wants of a wider target market and thus hopefully increase sales. Starbucks new product lines included more than 30 blends and single-origin coffees, handcrafted espresso and blended beverages, Tazo teas, a line of bottled Frappauccio coffee drinks, and Starbucks DoubleShot. All things considered, by Starbucks expanding the product mix it is, most likely, trying to segment the market further in hopes of creating a long term customer …show more content…
2. The changes within society, from the information given in the case, that have helped Starbucks be successful are vast. First, internationally, societies in Asia and The Middle East have been progressively becoming more Western. Starbucks, selling Western coffee products, took note and, among other things, using a first mover advantage, significantly increased its customer base. Second, domestically, the societal trend of out-of-home-coffee-drinkers age 25-29 has dramatically increased from 42 to 66 percent and 30-59 year olds increased from 33 to 46 percent. Age 60 and over increased the out-of-home-coffee-drinking from 14 to 20 percent. Starbucks also had a hand in the social change out-side-of-home-coffee-drinking, by creating a third place atmosphere within the coffee stores allowing consumers to go and sit at the store to enjoy a cup of coffee. All things considered, the societal changes, some created by Starbucks, have been capitalized on by Starbucks to increase and sustain its place as an industry leader.
3. Starbucks has many strategic factors that account for the success in brand equity. The first is product quality, where products do what they are supposed to do very well. This is evident as Starbucks coffee is seen by most of its consumers as a high quality dark roasted coffee. Starbucks has managed to position themselves in the eyes of consumers as a purveyor of premium quality dark roasted coffee beans.

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