Starbucks - Case Study 2

Topics: Coffee, Starbucks, Customer service Pages: 3 (785 words) Published: June 14, 2010
Discussion Questions
1. What is Starbucks’ retail strategy? What is its target market and how does it try to develop an advantage over its competition?
Starbucks retail strategy is having royal customer or another word repeated customer to their coffee shops. Also they don’t want to make only the best coffee they want to educate their customers about their products and make their experience unique all the time by their baristas (Italian for bartenders).Making relaxing atmosphere for their busy life customers is another strategy for Starbucks. The store offers juices and cocoa for children, creamy blended drinks for those who don't particularly like coffee, and a number of different types of brewed coffee. Starbucks continues to refine and target their product offerings to the changing tastes of consumers. The stores now sell specialty breakfast foods such as scones and muffins as well as a variety of beverages and coffee. The company made some important partnerships with some successful bookstores around the nation. And last but not least they license the brand name for other food products such as ice cream. Those successful movements helped company with their brand awareness expansion.

2. Describe Starbucks’ retail mix: location, merchandise assortment, pricing, advertising and promotion, store design and visual merchandising, customer service, and personal selling. How does its retail mix support its strategy?

Location is a real estate/marketing strategy where every retail location also serves as a billboard for a business. Everything about a store’s physical exterior, from the awning to the logo on the side of the building to the company name in lights, is, in essence, a billboard communicating the business to customers. Starbucks location strategy is called Main & Main and the real estate department maximizes every opportunity to place Starbucks locations in the most highly visible and highly trafficked street corners ... just like advertisers do...
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