Starbucks Malaysia's Innovative Approach to Product Management: Zero Waste and Eco-Friendly Practices for a Sustainable Future

In this essay we will discuss about starbucks malaysia and below are the summaries point:- Starbucks Malaysia has adopted an innovative zero waste and eco-friendly approach to product management, promoting sustainability and minimizing their carbon footprint. While Starbucks Malaysia's pricing is on the higher end due to its focus on premium coffee and products, the company's commitment to sustainability may involve additional costs, such as using biodegradable products and sustainable sourcing. Starbucks Malaysia offers a comprehensive product portfolio, including core products like high-quality coffee, actual products in the form of customizable coffee drinks, and augmented products that enhance the customer experience through store ambiance, customer service, and a loyalty program.

Starbucks in Malaysia has taken an innovative approach towards product management by
endorsing a zero waste and eco-friendly approach. This approach not only contributes to
minimizing the company's carbon footprint, but also promotes a more sustainable future. One
aspect that customers may be curious about is how this approach affects Starbucks' pricing.
Generally, Starbucks Malaysia's pricing is on the higher end of the spectrum, as it focuses on
offering premium coffee and products. However, the company's commitment to sustainability
and zero waste management practices may involve additional costs, such as using biodegradable
products and sustainable sourcing, which could potentially increase the prices of its products.
Nevertheless, Starbucks' pricing strategy is designed to reflect the high quality of its products,
and its commitment to sustainability and eco-friendliness is an added value for customers who
are environmentally conscious and willing to pay a premium price for a premium product.
Starbucks Malaysia's innovative and eco-friendly approach towards product management has
positively impacted the environment and the company's reputation in the region, creating a win-
win situation for both the company and its customers.
Starbucks Malaysia is a popular coffee chain that offers a wide range of products to meet the
diverse needs and preferences of its customers. The company operates on different levels of
products, including core, actual, and augmented products, to provide a comprehensive and
appealing product portfolio. In this essay, we will examine the core, actual, and augmented
products offered by Starbucks Malaysia, as well as the core values that underpin these products.
The core product of Starbucks Malaysia is its premium coffee. The company uses high-quality
Arabica beans sourced from around the world to create its signature coffee blends. The core
value of Starbucks Malaysia's coffee is quality. The company is committed to using the best
ingredients and processes to ensure that its coffee is of the highest quality. This commitment to
quality is reflected in the taste and aroma of its coffee, which is appreciated by coffee lovers
around the world.
The actual product of Starbucks Malaysia is the physical coffee drink. The company offers a
range of coffee drinks in different sizes, flavors, and preparation methods to suit the preferences
of its customers. The actual value of Starbucks Malaysia's coffee drinks is convenience. The
company has designed its menu and store layout to make it easy and convenient for customers to
order and receive their drinks quickly. Starbucks Malaysia's coffee drinks are also customizable,
allowing customers to tailor their drinks to their liking.
The augmented product of Starbucks Malaysia includes the ambiance of the store, the customer
service experience, and the loyalty program. The augmented value of Starbucks Malaysia's
products is the experience. The company has created a unique atmosphere in its stores,
characterized by comfortable seating, music, and a relaxed environment. The customer service
experience is also a key part of the Starbucks experience, with employees trained to provide
friendly and attentive service to customers. The loyalty program, known as Starbucks Rewards,
is another way the company enhances the customer experience. Members of the program receive
benefits such as free drinks and food, exclusive offers, and special perks, which help to create a
sense of community and foster customer loyalty.

In summary, the core, actual, and augmented products offered by Starbucks Malaysia are
designed to meet the diverse needs and preferences of its customers. The company's commitment
to quality, convenience, and the overall customer experience is reflected in its product portfolio.
Starbucks Malaysia's focus on the augmented product is a key factor in its marketing strategy, as
it creates a unique and appealing brand image that sets it apart from its competitors. Overall,
Starbucks Malaysia's products and core values have helped it to establish a strong position in the
Malaysian coffee market and win the loyalty of its customers. (Starbucks, 2022)
Suffice to say, Starbucks Malaysia belongs to the specialty coffee shop and quick service
restaurant (QSR) industry. In addition, it could also be considered a part of the snack and
beverage industry as it offers a range of non-alcoholic beverages and snack items to accompany
its coffee offerings. The company's product category is a competitive advantage, as the demand
for specialty coffee and QSRs continues to grow, and Starbucks Malaysia's strong brand image
and reputation as a leader in the specialty coffee industry have helped it to attract customers who
are looking for a premium coffee experience.
The product form competition for Starbucks coffee in Malaysia includes other coffee-based
beverages and related products offered by coffee chains and independent coffee shops. This
includes direct competitors like Coffee Bean & Tea Leaf, as well as other coffee chains like
Dunkin Donuts, Gloria Jean's, and San Francisco Coffee. Additionally, there are independent
coffee shops that offer similar products, such as artisanal coffee and specialty drinks. The
competition is primarily centered around coffee-based beverages, but also includes other
products such as teas, juices, and baked goods.
Take Starbucks’ most popular signature product Caramel Macchiato as an example, Coffee Bean
has their own sea salted caramel Macchiato and Dunkin Donut’s Iced Caramel Swirled Latte as
Starbuck’s counterpart. These are the prime example for product form competition.
The product category for Starbucks Malaysia and its competitors is coffee and specialty
beverages. This category includes a range of coffee-based drinks, such as espresso, cappuccino,
latte, and mocha, as well as specialty beverages like frappuccinos and teas.
Starbucks Malaysia's main competitors in this category include other coffee chains such as
Coffee Bean, Dunkin Donuts, and Costa Coffee. These companies offer a similar range of
coffee-based drinks and specialty beverages, and compete with Starbucks in terms of product
quality, pricing, and customer experience.
In addition to coffee chains, Starbucks Malaysia also competes with independent coffee shops
and cafes in the specialty coffee category. These establishments offer a range of specialty drinks
and brew methods, such as pour-over, cold brew, and nitro coffee, and often focus on creating a
unique and personalized customer experience.
In terms of generic competition, Starbucks Malaysia faces competition from various substitutes
that can replace their coffee products. The most significant substitutes include tea, energy drinks,
carbonated drinks, and other non-alcoholic beverages. These products are widely available in the
market, and consumers may choose to buy them instead of coffee, especially if they are looking

for a different taste or a healthier option. For example, tea is a popular substitute for coffee in
Asia, and there are many tea shops and brands that offer a wide range of tea varieties to choose
from. Energy drinks, on the other hand, are preferred by some consumers who need an instant
energy boost, while carbonated drinks are a popular choice for those who prefer a sweet and
refreshing drink. Other non-alcoholic beverages such as smoothies and milkshakes can also serve
as substitutes for coffee, especially for those who are looking for a drink that is more filling and
satisfying. Thus, Starbucks Malaysia faces intense competition from these substitutes, which can
affect its market share and revenue (Shrestha, S, 2022, March 24).
When assessing the coffee market in Malaysia and the competitors of Starbucks using coffee as
the selected product, it is important to analyze the product from the following marketing
perspectives: product marketing objectives, target segments, product value positioning, and
technology strategy.
Other than level of competition there are other ways to identify the competition such as using
customer-based evaluation and customer judgement data.
Customer-based evaluation is a marketing approach that involves assessing the effectiveness of a
product or service from the customer's perspective. It typically involves gathering data from
customer surveys, feedback, and reviews, to gain insights into how well the product is meeting
their needs, expectations, and preferences.
For Starbucks Malaysia's Caramel Macchiato, customer-based evaluation can help identify the
strengths and weaknesses of the product and how it compares to the competition. By analyzing
customer feedback and reviews, Starbucks Malaysia can identify the aspects of the product that
customers like or dislike and make improvements or adjustments to enhance the customer
experience.
For example, if customers complain about the sweetness level of the Caramel Macchiato,
Starbucks Malaysia can adjust the recipe to better suit their preferences. Customer-based
evaluation can also help Starbucks Malaysia identify new trends and preferences in the market,
enabling the company to introduce new products or make changes to the existing ones to meet
customer demands.
In addition, a positive customer-based evaluation can also help to enhance the brand reputation
of Starbucks Malaysia and its Caramel Macchiato, which can lead to increased customer loyalty
and advocacy. This can ultimately lead to increased sales and profitability for the company.
Starting from product marketing objectives, Starbucks Malaysia's primary product marketing
objective for coffee is to provide high-quality, sustainable, and ethically sourced coffee in a
premium, customer-focused environment. This objective is achieved through Starbucks'
commitment to using only the finest Arabica beans, investing in sustainable coffee sourcing, and
providing a welcoming atmosphere for customers to enjoy their coffee. Other coffee shops in
Malaysia may have different objectives, such as affordability, convenience, or a focus on
traditional coffee experiences, which may appeal to different target segments.

Customer judgment data in marketing refers to the collection and analysis of customer feedback
and reviews to understand their perceptions and opinions about a product or service. This data
can be gathered through various channels, such as surveys, online reviews, social media, and
customer service interactions.
In the case of Starbucks Malaysia's caramel macchiato, collecting and analyzing customer
judgment data can provide valuable insights into the customers' preferences and opinions about
the drink. This data can help Starbucks Malaysia identify the strengths and weaknesses of the
product and make necessary improvements to enhance its appeal to customers.
For instance, Starbucks Malaysia can use customer judgment data to understand how customers
perceive the taste, aroma, texture, and overall experience of drinking the caramel macchiato.
They can also gain insights into customers' preferences for the drink's sweetness level, serving
size, and pricing.
Furthermore, customer judgment data can help Starbucks Malaysia identify trends and patterns
in customer feedback, such as common complaints or suggestions for improvement. This
information can help the company make data-driven decisions on how to improve the caramel
macchiato and better meet customer needs and preferences. (Starbucks, 2022)
Product Names Starbucks’
Caramel Macchiato
Coffee Bean’s
Salted Caramel
Macchiato
Dunkin Donut’s
Iced Caramel
Swirled Latte
Sizes Short : 250ml
Tall : 350 ml
Grande: 500ml
Regular: 350ml
Large: 500ml
Regular: 350ml
Upsize: 500ml
Prices Short: RM14
Tall: RM 17
Grande: RM 18.50
Regular: RM 10
Large: RM 11
Regular: RM10
Upsize: RM 12
Calories A tall Caramel
Macchiato contains:
240 Calories
A regular sized Salted
Caramel Macchiato
contains approx. 228
Calories
Without
Cream:120kcal
Distribution Coffeehouse
Online
Delivery
Retail Stores
Coffeehouse
Online
Delivery
Restaurant
Online
Delivery
Taste Test 4 4 2
(Nutrients are based off from MyFitnessPal app),
According to the matrix, Starbucks offers its famous Caramel Macchiato in three sizes, Short
(250ml), Tall (350 ml), and Grande (500ml) with corresponding prices of RM14, RM17, and RM
18.50, respectively. The Caramel Macchiato contains 240 calories in a tall size. Starbucks targets
middle and upper-class, socially aware customers and distributes its products in coffeehouses,

online, delivery, and retail stores. The brand is positioned as premium, focusing on quality,
customer experience, and innovation.
Coffee Bean offers Salted Caramel Macchiato in regular (350ml) and large (500ml) sizes. The
regular size costs RM10 and contains approximately 228 calories. Coffee Bean's target audience
is men and women aged 18 to 40, and they distribute their products through coffeehouses, online,
and delivery. The brand positioning is based on quality, artisanal craftsmanship, and
sustainability.
Dunkin' Donuts offers Iced Caramel Swirled Latte in regular (350ml) and upsize (500ml) sizes.
The regular size costs RM10 and the upsize costs RM12. The Iced Caramel Swirled Latte
contains 120 kcal without cream. Dunkin' Donuts targets students, young adults, employees, and
professionals and distributes its products in restaurants, online, and delivery. The brand
positioning is based on convenience, affordability, food and beverage variety, and speed.
According to the consumers, Coffee Bean and Starbucks have an even score of taste at 4 and
Dunkin Donuts at the score of 2. (Brand Positioning, 2012, January 28), (Gzipwtf.com., 2021,
April 18). (Dunkin Donuts, 2023), (Coffee Bean, 2023), (Starbucks, 2022)
Product Marketing Objectives:
Starbucks aims to offer a premium customer experience with innovative and high-quality coffee
drinks. Its Caramel Macchiato is made with espresso, steamed milk, vanilla syrup, and caramel
sauce, which offers a sweet and complex flavor profile. Starbucks' marketing objectives focus on
creating a memorable customer experience by offering consistent and high-quality products in a
comfortable and welcoming atmosphere.
Coffee Bean's Salted Caramel Macchiato targets consumers who value sustainability, artisanal
craftsmanship, and high-quality ingredients. The Salted Caramel Macchiato is made with
premium espresso, velvety steamed milk, and a balanced blend of sea salt and caramel flavors,
which appeals to consumers who prefer a sophisticated and refined taste. Coffee Bean's
marketing objectives are to create a personalized and high-quality coffee experience for its
customers, highlighting its artisanal approach and sustainability practices.
Dunkin' Donuts' Iced Caramel Swirled Latte caters to consumers who prioritize affordability,
convenience, and variety. The Iced Caramel Swirled Latte is a refreshing and sweet coffee drink
that offers a quick and convenient option for on-the-go customers. Dunkin' Donuts' marketing
objectives focus on offering a wide variety of affordable food and beverage options and quick
service, targeting students, young adults, and busy professionals.
Target Segment(s):
Starbucks' Caramel Macchiato is targeted at middle and upper-class customers who are socially
aware and value quality and innovation. The brand aims to attract customers who are willing to
pay a premium price for a premium coffee experience.

Coffee Bean's Salted Caramel Macchiato targets young adults and professionals who value
sustainability and premium ingredients. The brand aims to attract customers who are willing to
pay a premium price for artisanal craftsmanship and high-quality coffee.
Dunkin' Donuts' Iced Caramel Swirled Latte targets students, young adults, and busy
professionals who prioritize convenience and affordability. The brand aims to attract customers
who are looking for a quick and affordable coffee fix.
Product Value Positioning:
Starbucks positions its Caramel Macchiato as a premium coffee drink that offers a complex and
unique flavor profile, reflecting its high-quality and innovative approach. The brand appeals to
customers who are willing to pay a premium price for a premium coffee experience.
Coffee Bean positions its Salted Caramel Macchiato as an artisanal and sustainable coffee drink
that offers a refined and sophisticated taste. The brand appeals to customers who value
sustainability, premium ingredients, and a high-quality coffee experience.
Dunkin' Donuts positions its Iced Caramel Swirled Latte as a convenient and affordable coffee
drink that offers a quick and refreshing option for on-the-go customers. The brand appeals to
customers who prioritize convenience and affordability and offers a wide variety of affordable
food and beverage options.
Technology Strategy:
Starbucks' technology strategy focuses on creating an innovative and personalized customer
experience through its mobile app, which offers mobile ordering, payment, and rewards. The
brand aims to simplify the ordering process for customers and provide a more convenient and
personalized experience.
Coffee Bean's technology strategy emphasizes sustainability and environmental responsibility,
with a focus on reducing waste and promoting recycling. The brand offers a mobile app that
allows customers to earn rewards and offers mobile ordering and payment, reflecting its
commitment to sustainability and convenience.
Dunkin' Donuts' technology strategy emphasizes convenience and speed, with a focus on online
transactions.
In conclusion, Starbucks in Malaysia is a prime example of how companies can balance the goal
of maximizing profits with that of being environmentally friendly. Its commitment to
sustainability is evident in its product management approach, which is characterized by the use
of biodegradable products, reducing single-use plastics, and promoting recycling. Starbucks
Malaysia's focus on the levels of product, including the core product of premium coffee, the
actual product of physical coffee drinks, and the augmented product of customer experience, has
helped the company establish a strong position in the Malaysian coffee market. The company's
initiatives to promote sustainable coffee sourcing, recyclable and compostable cups, reusable
cups, alternative lids and straws, and packaging innovation have demonstrated its commitment to
reducing waste and being eco-friendly. Starbucks Malaysia's need-based marketing approach and

diverse product portfolio have helped the company stay competitive in a highly competitive
market, while also appealing to customers who are environmentally conscious. Overall,
Starbucks in Malaysia is an excellent example of how companies can prioritize sustainability in
their product management practices and create a positive impact on both the environment and
their bottom line. (2628 words)
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