Marketing Case Study on Starbucks Coffee

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MKT 421 - Marketing (Plan) Mgmt Student: GalVal

Instructor: Mr Tom WallSection #: _25___

Assignment #2: Actual Case Study - Starbucks Coffee

1. The main or primary product that Starbuck's sells or distributes is coffee beverages but, according to this article or company analysis,
it also now offers a whole line of complementary products - from
sandwiches to CD's! Yet essentially, Starbucks product was the de-
velopment of the ultimate, out of home (OOH) coffee-drinking
experience; also referred to as the "third place" which the com-
pany's chairman, Howard Schultz, defined as a spot between home
and work where people are able to go for some personal "down-
time" or just to relax and get together with friends or like-minded
business associates.

2. The target market for this product, from what I was able to gather
from this case study or outline is male and female coffee drinkers, primarily those who live in a more metropolitan area, between the ages of 25 and 60+, who have the interest and disposable income

to purchase these types of specialty drinks, foods and ancillary
products (especially those that Starbucks 'features' each month)

3. The competitive advantages that McDonald's has had when
competing with Starbucks for coffee sales would be factors or
strengths such as:
• the ability to modify or improve a decent product into a great
one (McD's standard- blend of fresh, ground coffee);
• an already popular, if not familiar, sandwich and bakery menu;
• a large, untapped or unexposed coffee-drinking segment that was
willing or able to try specialty coffees for the first time, as now
they were accessible and affordable;
• a huge, loyal base of core customers who are almost always will-
ing to sample McDonald's "latest & greatest" menu offerings;
• thousands of existing locations (this is referring only to the North
American market) that only required minor...
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