STRATEGY ANALYSIS OF STARBUCKS

RUNNING HEAD: STARBUCKS STRATEGY ANALYSIS

1STRATEGY ANALYSIS OF STARBUCKS
First opened in 1971, Starbucks had proved to be profitable in their business approach. The main
aim of the company was primarily to serve a premier quality coffee made from excellent Arabica
Coffee Beans, roasting those in its highest standard and the fresh delivery of those to the satisfied
customers. The company has set up a unique marketing strategy that runs even from the choice
and pick of their products.
Analysis of the strategies:
The company considers the quality of the products to be of the most importance as it
serves the main benefits of raising the brand image. The great quality and taste of the coffee
account for the vast reputation of the company (iello, G. and Dickinson, G., 2014). In the
marketing of their products, the company follows a marketing strategy of selling directly at
stores and through brand merchandise as well. The company has also shifted its focus in the
investment in advertising and marketing.
1. Positioning Strategy: the company has been positioned as the premium brand for the coffee
because of the top notch experience it provides. The positioning of the brand values have been
done on the basis of the store environment and customer satisfaction as well.
2. Segmentation: the target customer of Starbucks are the upper economic strata or the upper
middle class who are particularly higher wage earning population. Keeping in mind the
economic and demographic criteria of the target market, the company has created the concept of
“third place” between the home and office where people can sit and relax (Geereddy,2013). For
the effective implementation of this concept, star bucks has its own team of architects and
designers for the proper conveyance of the company image to every stores.