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

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.