Starbucks Marketing

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Starbucks Coffee Case History

Tyler Hass
Principles of Marketing
Professor Bausano

What Explains the Starbucks Success Story? Howard Schultz had the perfect plan to create a successful coffee company. He got people to pay more for a premium coffee then to just go to a local coffee shop and pay a lot less for a cheaper coffee. He did this by creating an experience around purchasing your coffee. Starbucks focused on creating relationships with its customers while providing one of the best premium coffees out there. Also being able to customize your own drink was a big success in getting people to purchase the product. A high quality coffee was one key component to Starbucks value proposition. Another was service and
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Starbucks had achieved its extraordinary growth by taking over the market by building a lot of sights which had a drawback of businesses cannibalizing each other. They also didn 't spend much money on advertising or marketing which had the drawback of no product differentiation. Finally, they created a good experience for customers with complex customized drinks which had the drawback of slower service time. I believe that it is possible for a mega-brand to deliver customer intimacy.
What does Starbucks ' Customer Base look like Today? The customer base is different than when Starbucks started up. The newer customers are younger, less well-educated lower income people. Also the target market has got more ethnic with more types of females. The customer service should still be the same because the newer customers behaved in the same way. They acquire customers by expanding their product market and creating new products. Customer satisfaction usually is the deterministic factor if someone is to come back to the store or not. Also the quality of the product usually determines that also. The profitability of a customer is based on the amount of times they return to the store in a month. They should put a lot of emphasis on its regular customers for they provide 67% of the sales. However they need to make sure they make all of their customers happy because that is still 38% of the sales and can definitely help in the long run for profit

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