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Starbucks Related to Pacific NorthWest - Case Study Example

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The case study "Starbucks Related to Pacific NorthWest" states that customers are the core element of any business success. Business organizations thus have been aggressive in increasing and retaining their loyal customers. The number of customers a business serves determines the volume of sales. …
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Starbucks Related to Pacific NorthWest
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Download file to see previous pages To succeed in the Pacific Northwest market therefore, Starbucks must position itself strategically through knowing and understanding the needs of the customers in the region, particularly during hard economic times. This report, therefore, will be attempting to determine the most appropriate strategy for Starbucks to apply in this area, between the pricing and quality strategy, in efforts to retain its huge customer base during hard economic times (Kotelnikov 1).

Considering the modern challenging economy plus the competitive business world, retention of the customer base is crucial for any business success, including Starbucks. If Starbucks fails in satisfying their customers fully, to encourage them to stay, competitors will take the opportunity to meet those needs, thus leading to increased customer turnover rates (Kotelnikov 1). This is a great risk to the company because customer satisfaction and retention drive profits. Managing the existing customer base moreover will cost less, while increasing sales, as compared to seeking new customers.

Starbucks ' business relies heavily on repeat customer purchases and customer loyalty. The company must, therefore, devote to developing its customer experiences and loyalty. Starbuck thus has to be increasingly strategic in succeeding in different regions, and in this case, the Pacific Northwest market. Identifying the needs of this market will help the company is positioning itself strategically to win customer loyalty, thus retaining its huge customer base. Lowering the prices or continuing to develop the quality of its brand could be the two strategic options Starbuck can choose to succeed in this market (Auch-Roy 17).
The Pricing Strategy: Starbucks needs to adjust its prices downwards as trends have shown that the company’s coffee is more price-elastic as compared to coffee demand, which is more elastic, as compared to the demand for other beverages.  ...Download file to see next pagesRead More
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