The Marketing Mix: Product and Branding Strategies (Starbucks) Starbucks coffee is a globally acclaimed coffee brand. The brand boasts about its quality and charges a high premium based on this product attribute. The famous coffee brand is in its maturity stage…
Download file to see previous pages...
2009) It is because of its high quality that the brand charges a high premium for its products. There are several other product attributes, other than the price and quality that contribute towards the image of the products offered under the brand name of “Starbucks”. Product Positioning Map Other product attributes of Starbucks coffee include taste, richness, features, design, style, innovation and customer service. These together combine to support the brand image. But for the product positioning map, there are two primary attributes that have been focused upon. The first attribute is the innovation and the second attribute is the customer service. Innovation is necessary for the positioning of the product because customer needs and wants change with time and the only way to meet the changing demand is through innovation. Customer service is also a primary aspect of positioning because it always adds value to the customers’ coffee experience at Starbucks. If innovation is not present, then the brand might fail to serve its target market in the long run. It cannot come up with new products and cannot create demand of its new products which simply means that it will fail to make use of the opportunities available. Customer service on the other hand is a very important attribute that can help retaining the customers and attracting prospective. Consumers always want to go for the products that provide with the customer service. Starbucks incorporates both these primary attributes into its products. Starbucks specializes in gourmet coffee and there are several competitors that have entered the market of specialized coffee. These competitors include McDonald’s and Dunkin Donuts. The reason for choosing these competitors is that they do not charge as high a premium as does Starbucks though the product category is same. Starbucks heavily invests in its customer service because it believes that loyal customers are the backbone of its success and it is the most effective way of acquiring more loyal customers. For the attribute of innovation, Starbucks has made its own Research and Development team (R&D). The type and level of investment that Starbucks make in its R&D team is notable. It gives a lead to the brand but this gives a direction to the competitors as well because they can wait to imitate the products. Innovation at Starbucks and also the customer service are high. At McDonald’s customer service is high but innovation of the coffee product is low. Dunkin Donuts is low on both the attributes. It is low on the innovation attribute and also the customer service attribute. Following is the product positioning map of Starbucks with respect to its competitors. Customer Service High Starbucks McDonald’s Innovation Low High Dunkin Donuts Low Starbucks is present in the upper right corner of the product positioning map which means that it is both high in innovation and customer service. Similarly McDonald’s is present in the upper left corner meaning that it is high in customer service but low in the attribute of innovation. And finally the Dunkin Donuts which is present in the lower left corner of the map, meaning that the coffee brand is both low on innovation and customer service. Brand Strategy in relation to the Target Market Starbucks’ target audience mainly comprises of the upscale coffee drinkers. Starbucks has a very well defined target audience. It has a target market in each age segment
...Download file to see next pagesRead More
Cite this document
(“Product and Branding Strategies (Starbucks) Essay”, n.d.)
Retrieved from https://studentshare.org/marketing/1434914-the-marketing-mix-product-and-branding-strategies
(Product and Branding Strategies (Starbucks) Essay)
“Product and Branding Strategies (Starbucks) Essay”, n.d. https://studentshare.org/marketing/1434914-the-marketing-mix-product-and-branding-strategies.
Research did not uncover any information that would indicate Starbucks is prepared for changes in pricing that is occurring in a rising-cost supply chain or in an environment where dynamic pricing is used by competition to gain price sensitive buyer interest.
170). Firstly, a business strategy must define the scope of the business. Secondly, the business strategy must be cognizant of customers’ current and future needs within the scope of the business. Thirdly, the business strategy must define the unique capabilities that will give the business the competitive advantage in its business area.
JcPenney (2011) is one the largest retail chains, which provides its customers with a vast choice and stocks the most renowned and consumer friendly products for its customers (JcPenney, 2011). JcPenney runs an amazing number of 1100 stores throughout the USA and Puerto Rica and has attained massive $ 17.8 million revenue in 2010.
Each vehicle offers different features and each vehicle type is differentiated on the basis of its features. BMW have several competitors in the market but the main dilemma is that for every range of vehicles offered by BMW, there is a different competitor in every series.
The key factors contributing to the success of the company includes its strategic management, quality control and distinctive marketing approach. Analyze Marketing Activities and Performance of Starbucks Company Background Starbucks Coffee Company (NASDAQ: SBUX) was established in 1971.
Generally product life cycle consists of four common stages, such as introduction, growth, maturity and decline. This part of the essay will discuss about these four stages of product life cycle. Introduction The introduction stage of product life cycle is characterized by the low sales growth rate of products.
The PLC is applied to Starbucks in the US where coffee is in the mature stage as well as in China where it is still in the introductory phase. It was found out that PLC is a tool which can be used to extend the life of products.
Marketing, as defined by the marketing guru Philip Kotler (2001), is the "delivery of customer satisfaction at a profit (p.
The competitive advantage of the company is evaluated in terms of emotional bonding, experiential retailing and the company’s strategies for expansion.
Starbucks Coffee Company was founded in 1971, opening its first store in Seattle’s Pike Place
Starbucks’ mission is to establish itself as the “purveyor of the finest coffee in the world,” (Starbucks Coffee Website). With the mission statement alone, it can be inferred that Starbucks is established
Starbucks does not market its brand as a low-cost service provider. Rather the Starbucks brand is presented as such a company that provide premium quality coffee at a premium price. Starbucks always ensure that
5 Pages(1250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Product and Branding Strategies (Starbucks) for FREE!