Starbucks is one of the main worldwide leaders of coffee industries which helped in bringing about fresh and new ranged products to the customers in a more convenient way. Starbucks is an iconic name in the coffee industry. Of late it has lost its market position to its competitors like Dunkin Donuts and Mc Donald’s Mc Cafes. The company plans to revive its position by implementing a suitable strategy to regain its lost market share. The main components of the strategy are to recapture the market share by becoming more efficient in its operations.
All the strengths of Starbucks came from internal origin and were made so that they can achieve its targets and objectives smoothly. Starbucks must use these powers and strengths so that they are able to overcome their draw backs and use their potential opportunities for maximum growth. Starbucks biggest strength is that they have huge experience in their field. Their competitors have never been able to copy their coffee style and their working atmosphere or culture (Cardenal , 2012). They provide high facilities to their customers like WI-FI, quick service etc which attracts a wide variety of customers towards them.
Starbucks has wide product and offers huge brand services to their consumers by giving high quality coffee. This gave them an edge over other companies and builds a high reputation brand all over the world. Starbucks also maintained strength in their main store operations as they sell their products through high retail stores which help them build strong financial position for them. Starbucks is a leading brand in providing high quality coffee and unforgettable coffee experience called “Starbucks experience”. Fortune magazine has regarded Starbucks as the best employer as it creates respectable environment for its workforce.
Starbucks trades in coffee and similar other beverages. It brings different types of teas, coffees, espressos, lattes, cappuccinos, etc. The most recognized product of Starbucks is its Tazo tea. Then there are host of breakfast and snacking options like salads and pastries. Starbucks is not limited to just selling coffee, it is also involved in selling various coffee drinks sold in supermarkets, souvenirs, drinking accessories (glasses, mugs, bottles), coffee machines, coffee & tea presses, grinders, etc It also offers its customers a soulful experience by engaging them in music CDs and books.
Starbucks believes in providing quality service to its customers. The products being offered are differentiated and can be categorized as value for money. Since customers are always in lure of the Starbucks experience they are even ready to pay more. The company takes huge efforts to distinguish itself from its competitors by providing innovative products and ambience to its customers. Since Starbucks is a huge multinational brand providing high quality products, therefore the prices charged by it are totally justified.
Demographics are concerned with the structure of the population in terms of ages, lifestyles and economic factors Starbucks targets connoisseurs, highly educated relatively affluent, well travelled and technologically savvy with an interest in arts and other cultural events. In addition, by introducing other non-coffee products, they aimed to have wider target market i.e. non-coffee drinkers.
Psychographic segmentation involves dividing a market into different groups based on social class, lifestyle or personality characteristics. Starbucks focuses heavily on charity and the arts, and is making significant efforts to be a socially and environmentally responsible company. To help ensure sustainability