Detailed Analysis: Starbucks Coffee Product Components and Marketing

This report provides an analysis of Starbucks coffee as a product, focusing on its key components, including the core product (latte coffee), facilitating products (snacks), supporting products (taste and quality), and augmented products (accessibility and delivery). It examines how each compone...Read More

SDM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A. Evaluation of key components of products......................................................................1
B. Analysis of contribution of each key component of product.............................................1
C. Market segmentation of product .......................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
A. Evaluation of key components of products.
Product has been considered as important thing or service that has been offered by
company for sale to its customers (Navarro and et.al., 2010). The selected hospitality choice is
the coffee at the star buck in London. Coffee comes with the adequate service and others
additional snacks and a range of flavours to dine in. Customer can also get benefits with the
inspiring taste in different flavours along with different other brands and range of additional
snacks. Proper and luxuries physical evidence have been provided to the customer along with
free Wi-Fi facilities and 360 degree view from the cafe outlet and areas situated near the coffee
bar. This product consists of a long life cycle as it has been in present from last 20 years in
Starbucks as they offer a wide range of products at competitive prices.
The four most important components of this product are:
 Core product: Latte coffee in the international coffee brand available outlet Starbucks in
London. For example: Room of hotel of the stratosphere resort in Las Vegas
 Facilitating products: Additional and healthy snacks and services for business class
people.
 Supporting products: Quality and taste that influence the people of different countries
which follow a strict routine of having a coffee. 360 degree view from the cafe outlet and
areas situated near the coffee bar.
 Augmented products: Coffee is accessible from morning 8 Am to last 8 pm. However pre
booking of table in restaurant is possible at an additional charge. Home and office
delivery facility is also available for business class people. For example: Rooms are
accessible from 3pm and check out at 11pm however early check in and late check out is
possible at an additional fee. There are rooms and suites accessible for handicapped and
wheelchair users
B. Analysis of contribution of each key component of product
Main product contributed to rise in sales as well as profits as the desire to have a coffee
will also encourage potential and habitual coffee customers to look for latte coffee in restaurant.
Other important facilitating products will provide flexibility to customers and encourage more
sales depending upon the taste of coffee (David, 2011). Further, supporting products will also
contribute towards growth in sales and profits as wide range of flavours and snacks set the
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Starbucks apart from coffee outlets in London Like Costa coffee. Having a largest food market
with restaurant, tourist destinations will also encourage the sale from coffee lovers. Augmented
products also allows for the high flexibility along with the more inclusive for potential customers
with the issues of mobility so gains can be achieved here as well. For example: augmented
products also allow for greater flexibility but also is more inclusive for potential customers with
mobility issues so profits can be gained there too.
C. Market segmentation of product
Buyer's behaviour is considered as study of individuals and there perception, values
towards purchase of particular product in market (Insch, Prentice and Knight, 2011). There is
positive behaviour of consumers towards the coffee brand. Two factors that affects the buyers'
behaviour is quality and prices of product. Basically there are four approaches of segmentation
like Behavioural, geographical, demographic and Psycho graphic segmentation.
Geographical segmentation is most appropriate segmentation for selling the selected coffee
product. In order to increase the sale, the firm has targeted different geographical segments of
UK in which they established there outlets and targeted premium class people which have a
positive buying behaviour and able to afford its prices. It is quite valuable approach for large
company Starbucks, that operates across many countries, as geographical segment will allow
them to consider cultural differences. Demographic segmentation will also be effective for the
chosen product as due to many factors because Starbucks attracts many people from the age of
the 21 and up. This has been due to various attraction the company will offers various attractive
packages. These experiences offer something for everyone to enjoy regardless of age. Secondly,
gender there is enough for male or female to enjoy through the many attractions to choose from.
You also have income which plays a significant role. This is due to cost of everything in london.
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REFERENCES
Books and journals
Navarro and et.al., 2010. The diversity and similarity of simulated cold dark matter haloes.
Monthly Notices of the Royal Astronomical Society. 402(1). pp.21-34.
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Insch, A., Prentice, R.S. and Knight, J.G., 2011. Retail buyers’ decision-making and buy national
campaigns. Australasian Marketing Journal (AMJ). 19(4). pp.257-266.
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