Coffee and Starbucks

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A.What is Starbucks’ “product”
Starbucks’ product is a casual experience in a comfortable atmosphere where the customer can enjoy a premium cup of coffee and a newspaper or relaxing conversation with friends. B.What is their “core product” and what are the “auxiliary features” and benefits? •The core product is a premium cup of coffee. The auxiliary features include the well-educated baristas that can help select the right cup of coffee and help customers learn how to reproduce the experience at home or the office with fresh coffee bean or grounds they can purchase in store. Along with the coffees available there are also Tazo teas, hand crafted espresso and blended drinks a little something for every taste. To go with the drink of your choice you can also enjoy a fresh pastry or a sandwich while listening to music or utilizing the free Wi-Fi to complete the experience. C.What is their “unique selling proposition” and how do consumers view it now? •Starbucks’ unique selling position was offering a high quality coffee for a premium price, while providing a place to relax other than work, home or going to the bar. With their comfortable seating areas and internet access they branded themselves as your “third place”. Customers bought into it but now that they have started to get more streamlined their stock is falling because they are losing a little bit of that selling position. As the stores get a little less comfortable and become a little more like an assembly line, customers are starting to see it more like a commodity rather than something special. 2.

A.Are McDonald’s and Starbucks direct competitors?
Yes. While they don’t offer the same quality of food or coffee, McDonalds has put a lot of emphasis on the quality of their coffee and have been able to increase their sales and profits. With the introduction of their McCafe line of coffee drinks McDonalds is looking to take a share of the market from Starbucks. B.What advantages does...
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