Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
The company also sells different types of coffee and tea products and licenses their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Starbucks also markets its products mix with other brand names within its portfolio of
The industry size and consumers needs are impacted by social or customer related factors (Contributor, 2015). The main customer related factors affecting Starbucks and its competitors include, economic conditions and customer attitudes, specifically towards Lifestyle and Taste. One of the main demand drivers in the Industry is disposable income, which is significantly influenced by economic conditions. Positive economic conditions increase industry demand and per capita coffee consumption. The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products.
The Starbucks case study shows the importance of paying attention to customer needs. The company has built an image that appeals to a broader segment of the market, with the idea of "leveraging the need to interact with people from the workplace or home." The Starbucks experience can create a unique service experience for other retailers with customer-oriented marketing strategies. In addition, retailers should ensure that they fully understand the target market segmentation and distinguish the strategic importance of their products, so that not only in the traditional market and succeed in the global market positioning. 2) Based on the information in this case at Starbucks’ web site (www.starbucks.com), describe the market segment(s) to which the firm appeals.
Starbucks is able to give this lifestyle the quality experience that has attracted such a market in the United States, people are able to enjoy a luxury coffee in the store, but also on-the-go. However, Chinese consumers of Starbucks have different tastes, “they value space and couches on which to relax in the afternoons” (Burkitt). So in order to address these desires, Starbucks is adding stores that have 3,800 square feet that can accommodate large groups of friends, family, and businesses employees coming together for the afternoon. The company is also not also relying on income rises in households to attract the Chinese to Starbucks; they are relying on lifestyle in the emergence of a shifting lifestyle. In order to attract the rising Chinese population too openly or subconsciously identify to more “cosmopolitan tastes” they have adjusted the store layouts in accordance to culture and aesthetical appeal of the geographic location.
They now serve more than just coffee and beans, including various types of coffees, teas, snacks and even specialty drinks around the holidays 3. According to a recent article on Fortune.com titled World 's most Admired companies 2015, "Operating in 66 countries with nearly 22,000 retail stores, the coffee chain shows no signs of slowing down." B. With so many stores it’s also not surprising to see Starbucks on many college campuses and in bookstores 1. Starbucks is a great place for college students and avid readers to go because it offers a warm environment to sit down, plug in that laptop and study or just spend a day with your nose in a book 2.
In addition, unique light fixtures, wireless connection in all Starbucks outlet attract more people. Nice place for chit chat session with friends and family. Therefore, they might come in one big group. People will think of Starbucks when they need their own personal space and homely feeling which could not be found in other café. This implementation gives good impact on Starbucks market development.
Starbucks is a company that are very well known so easy to attract customers. Third, Starbucks should further improve its technological progress and expand its stores as the future of starbucks sales will increase let alone the united states of the people who depend on coffee if not overcome from now on there can be a buildup of customers who can make people lazy to buy at starbucks and move to another