Creating and Capturing Customer Value: Starbucks
Starbucks is the coffee shop I prefer, as for a long time its stores could be found fairly easily in the cities I’ve lived in and visited. They have the ability to capture and maintain customer value through not only their great menu items and service, but in the elaborate rewards program that entices people to spend more at Starbucks, suggesting food items or different beverage options through their web and mobile app interface, luring customers away from competitors. The Customer (Me!)
When I crave coffee at home, I seek the rich and intense, full-bodied and elegant flavour and aroma of roasted, quality coffee beans. On the road, I look for this same experience, but made using methods and
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These features together with the customer interaction through their easy to use mobile app are what sets this establishment apart from other competitors. Can I “Jump the Line” using my mobile phone at any other coffee shop?
Marketing Mix
Product: Unlike other coffee shops, or baristas, Starbucks has a reputation and image of culture and contemporary classiness. Even just ordering a coffee at Starbucks could make one feel a little sophisticated: “Can I please have a Venti, Half-Sweet, Non-Fat, Caramel Macchiato??”
And as it is primarily a coffee shop, there are enough quick and tasty food options ready to be heated up and served. Did I mention they have all-day breakfast sandwiches?
Price: As it is priced according to the cost of imported fair-trade gourmet coffees and delivered to the consumer in the form of signature beverages using complex machinery and a certain level of artistry—Starbucks is not for the frugal. However, if one is a Gold Level Starbucks Rewards member, every purchase earns stars, and maybe also bonus stars, according to the menu item-ofthe- day that is communicated to your mobile device, eventually adding up to a reward for one free any-size beverage or food item on the
They also have an in-store reasonably priced restaurant to get customers to stay there longer.
Spanish flavors are integrated into the food and drink at Lorca to incorporate the culture of the Mediterranean. By drawing ties to savory delicacies served on the other side of the Atlantic, the charming cafe is set apart from the surrounding American-based chain restaurants. Foreign blends are imported to diversify the restaurant and provide high-quality coffee for loyal customers. Lorca is famous for their pour-over coffee, a technique very pleasing for coffee aficionados. It is not a feeble task; a special kettle, high-quality beans, and extreme patience are required to achieve this unique specialty. Flavors are distinct and even sweet. Coffee beans are really the fermented see...
Great quality products, customized, served in clean, convenient placed stores for everyday coffee, friendly and fast serving, everything in a pleasant atmosphere - these were just few factors that lead to the great success of Starbucks during the nineties. Their USP was a place where every American could escape from home or work, for a coffee drinking ritual; high quality coffee, according to each customer's taste, served in a special, intimate ambience. Their image was supposed to appeal to anyone, being based on the idea of community, "exploiting" the need of people to interact with each other, in a "third place", away from home or work.
Most coffee shops in downtown Manhattan have little to no seating. I found that most New Yorkers usually grab their coffee and keep on walking. This was really hard to get used to considering I am the kind of person who sits at coffee shops for hours. All I wanted was to leisurely drink my coffee, rest my feet, and plan out my activities for the day. Is that too much to ask??
Venkatraman, M., & Nelson, T. (2008). From servicescape to consumptionscape: a photo-elicitation study of Starbucks in the New China. Journal of International Business Studies, 39(6), 1010-1026. doi: 1535534671.
Also, the rewards program is based off a point system and when one has earned a certain amount of points they send them a gift card to spend however they wish. Though, what the consumers don’t know is that by applying for their free rewards program, they are collecting data and constructing analysis to make them into loyal consumers.
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an "if you can't beat 'em, join 'em" strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Starbucks is a company in which purchases and roasts high quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment (starbucks.com). During my environmental scan in which took place at the Starbucks on the corner of Fair and Newport across the street from vanguard, I noticed many things in which where never brought to my attention in prior stays and visits at Starbucks; such as the many social groups in which choose to have their meetings at Starbucks. Thus in this essay we will discuss things in which many people do not really notice when going to Starbucks.
Starbucks did not escape the common practice of adapting and integrating the business to different geographic regions, but they did stick to their guns when it came to their standard product line-up and their no-smoking policy. Surprisingly, these conditions were met with wide acceptance. Analysts felt the real challenge would be in the European marketplace, what with coffeehouses on every corner to compete with. Again, the stores did very well, mainly because of the newer, cleaner environment they provided compared to the older locations of established houses.
The Starbucks Corporation is built around an experience, the Starbucks experience. While the Starbucks experience is most notably associated with the way customers are treated, one could argue however, that the Starbucks experience transcends just the way customers are treated. The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers. Burks (2009) notes that the company cares about the footprint it leaves, no matter where it does business; “the company is dedicated to making positive contributions to the communities where it doe...
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
One of my favorite places located along Fifth Avenue is Starbucks, a coffee shop offering many different types of coffees, teas, and snacks. I frequently find my way down to this coffee shop after school meetings, on weekends, or on days when I just ne...
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.