Starbucks Conclusion Essay Example

"quality" of the product. While high prices might "turn off" some customers, overall people view Starbucks products as having a higher quality than its competitiors because of the price.

Secondly, Starbucks has licensing agreements with several other "non-coffee" companies to sell a Starbucks product. For example, Starbucks has an agreement with Dreyer's Grand Ice Cream to sell a Starbucks Ice Cream product. Introducing Starbucks products into new markets is an important way for Starbucks to increase sales and exposes many new people to the Starbucks brand. However, too many licensing agreements could have the effect of reducing the Starbucks brand equity because oversaturation of the marketplace will decrese the exclusivity of the brand name.

5. What are the advantages of the Starbucks card to the company and to customers?

The Starbucks card provides customers with a fast and convienient way to purchase Starbucks coffee. No money in the wallet but still have a balance on the Starbucks card....swipe, you just bought a coffee. The card does not offer any discounts for prepayment.

For the company, the Starbucks card encourages repeat customers, and possibly new customers. Starbucks also generates traffic for their website because Starbucks card holders can "re-load" their cards online. The card generates new customers because Starbucks cards are often given as gifts at birthdays, holidays, etc.

6. What recommendations do you have to improve the Starbucks competitive position?

First, continue to expand to new geographic markets in order to reduce the amount of sales lost to McDonald's and Dunkin Donuts. Placing Starbucks kiosks in already established businesses will allow new branches to open without incurring the high cost of building a stand alone brick and mortar building. For example,

Starbucks has a kiosk in Fry's Grocery store. This offers shoppers the convienence of having a coffee while they shop (I know...I've done it).

Second, evaluate the image of the Starbucks product. Starbucks is commonly viewed as an "exclusive" coffee store and thus many of the "working class" Americans do not feel they have the same views as Starbucks. When thinking of Starbucks customers, one often thinks of words like trendy, hip, younger, or college-age. Starbucks must develop a plan to make their coffee more "working-class" friendly while still maintaining the brand equity.

7. Evaluate Starbucks' mission statement and guiding principles. What do they suggest about the company?

The Starbucks' mission statement and guiding principles both seem to have a common theme - environmentally friendly. Starbucks appears to be a company that is focused not only on protecting the environment, but also educating the public on environmental protection. This allows Starbucks to position itself in-line with, if not in front-of, the current trend of "green" companies.