Competitive Analysis of Starbucks Coffee

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Strategic and Competitive Analysis
ACCT 356v5
Assignment 1

There are many attributes when it comes to the assortment of hot coffee and as the selections may perhaps be overwhelming, there are definite elements that allow the consumer to choose from. The following dissertation will provide a comprehensive response to the questions posed within the assignment on the Starbucks Corporation. Price point plays an important element when customers expect a great cup of hot coffee. Consumers will pay an exuberant amount of money not only for the coffee, but also for the experience. Pricing could be based on a philological point of view. Consumer’s think if they pay more for something then it must be better. Conversely, if you price a cup of coffee to low then the consumer may well portray the product as poor quality. On the contrary, it may be a little “less convenient to make coffee at home, however it certainly is economical.”1 The quality of drink is very import to the each customer. The complexity about the conformance of specification plays an important role for brewing excellent java. Many consumers will have a number of specified requirements that meet their needs. I.e.) The proper temperature, how fresh the coffee is and if it is free of unfamiliar substances. The depth of flavor or body is an essential ingredient in terms of strong or watered down. Consumers demand a strong, full bodied accompaniment, however customers have the option and variety of different flavors such as Black Coffee, Dark Roasted, Hazelnut, Mocha, Capuccino,Cold coffee, Macchiato, Espresso, French Vanilla and Steep Tea to name a few. The quality of the coffee bean, brewing equipment, length of time the coffee has been sitting and quality of water all furthermore affect the consumer’s decision. Additional factors that may perhaps affect a consumers decision is the assortment of specialty coffee. There are a number of elements that affect a buyer’s decision and what they value in a cup of coffee. The environment and ambiance also provide a lasting impression on a customer. A customer’s decision may perhaps reflect the cleanliness of the store, great customer service, non smoking establishment, air quality, interior décor, menu items and even the selection of music that is playing within the environment. Customer service is extremely imperative, as friendly and motivated staff leaves a lasting impression for future returns. Starbucks ‘guiding principals is their hot coffee product and their primary focus has always been their hot coffee segment. It is through this approach that they have exemplified a product that provides an experience of offering interesting coffee related drinks, within a warm and inviting atmosphere. Their offerings of unique blending and roasting have let them create a brand that has enabled them to maximize market share. ‘Baristas’ as they are known, receive an great deal of instruction and preparation to become experienced about the product and to provide an incomparable experience to consumer’s who are increasing their awareness of brewed coffee. With the ability to provide an exceptional service, their aptitude to acquire the perfect location for their stores has allowed them to gain additional market share. Each store prides itself on the unique experience and environment that it creates. Within this atmosphere a flurry of easy listening music, unique graphics on their cups, the name of their drinks accompanied by an interior of inviting sofa’s, lounge chairs and fixtures allows the consumer to embrace and appreciate why they are really there; for that cup of coffee. There ability to provide an experience of more than just coffee would be considered masterful. Within each establishment, Starbucks has created a non-smoking environment, along with clean air and a well vented ambiance. As the company builds on it’s gourmet coffee brand and...
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