Starbucks is a popular hangout for Generation X and young urban professionals. Despite selling coffee and other baked products at a higher price than regular food stores, they were able to generate awareness and patronage through word-of-mouth and publicity instead of relying on media advertising. In 2014, Coffee Project was tested in the Philippines tested than an innovative neighborhood coffee house that sells coffee together with organic pastries, gourmét cheese, and meat plates. This was an attempt to capture the upscale market by offering cheaper lattés and frappuccinos that are now facing competition with McDonald’s McCafé. Both stores are located in the Makati and Manila area, which is the headquarters of most Starbucks branches. Jollibee is on the expansion strategy for the Coffee Bean and Tea Leaf.
Question:
Looking back at the success of Starbucks, what made Starbucks so successful today?
Step by step
Solved in 2 steps