PERSONAL AFFECT Positive Aspects. The first positive aspect I appreciate is high-standard employee training and customer service. Because Starbucks focuses on both employee and customer satisfaction, they deserved their success as an international brand. Second, Starbucks frequently creates new coffee-based drinks, and I respect their ability to produce innovative products that capture attention and entertain the customers. Finally, Starbucks has an environmental mission statement that recognizes the importance of using environmentally friendly products and promoting environmental responsibility as one of the corporate values. Because of their commitment to environmental leadership, they are more likely going to gain trust and credibility among their consumers. Negative Aspects. Because Starbucks is a chain store, some sacrifices need to be made in order to satisfy the needs of a growing audience. I personally do not agree with the company’s choice to venture into other types of beverages, such as tea and smoothies, or include a variety of foods on their menu. The second critique is the over-saturation caused by opening too many locations after real estate acquisition standards were lowered to satisfy the needs for rapid growth (Stone, “Lax Real Estate”). Although expansion is required to increase revenue and profitability, it is important to consider that increasing revenue by diversifying offers can lead to lower product quality because it is exchanged in favor of quantity. Gourmet Coffee Buying Decisions Target Market. According to Starbucks CEO Shultz, the target market in the early stages of the company’s development consisted of white-collar patrons, who were well-educated and between 25 and 44 years of age (Moon and Quelch, “Starbucks”). Because of that description, is possible to notice that their primary market is more likely going to be inclined to gourmet coffee. Market Needs. Tending to the needs of their market is one of the key reasons for Starbucks’ success. According to the company, people who visit Starbucks want a cup of coffee, but the ambient invites them to stay (Moon and Quelch, “Starbucks”). In a sophisticated environment, gourmet coffee becomes a primary choice over regular coffee. Innovation. Drinking coffee has become a routine for most people, so it is natural to assume they will desire new experiences occasionally. Because Starbucks offers a variety of products, customers can experience drinking coffee as a pleasure rather than a habit. The need for new experiences and the availability of those experiences is one of the reasons people are more likely going to buy gourmet coffee. Fear of Missing Out. Scarcity is an important principle in sales. Because several gourmet drinks and featured offers are branded by Starbucks, they cannot be obtained in other stores. Some offers may also be a limited-edition drink, which makes them desirable to consumers. Incentive Programs. To reward customers for their loyalty, Starbucks offers a loyalty program for frequent customers. According to their Terms and Conditions, customers are entitled to several benefits, such as free drinks and meals on their birthday, personalized offers, and more (Starbucks, “My Starbucks Rewards”). With an incentive program, customers are more likely going to choose gourmet coffee for better rewards or as free gifts for their loyalty. Question Use Maslow Hierarchy of needs to effectively position Starbucks’ gourmet product.
PERSONAL AFFECT
Positive Aspects. The first positive aspect I appreciate is high-standard employee training and customer service. Because Starbucks focuses on both employee and customer satisfaction, they deserved their success as an international brand. Second, Starbucks frequently creates new coffee-based drinks, and I respect their ability to produce innovative products that capture attention and entertain the customers.
Finally, Starbucks has an environmental mission statement that recognizes the importance of using environmentally friendly products and promoting environmental responsibility as one of the corporate values. Because of their commitment to environmental leadership, they are more likely going to gain trust and credibility among their consumers.
Negative Aspects. Because Starbucks is a chain store, some sacrifices need to be made in order to satisfy the needs of a growing audience. I personally do not agree with the company’s choice to venture into other types of beverages, such as tea and smoothies, or include a variety of foods on their menu.
The second critique is the over-saturation caused by opening too many locations after real estate acquisition standards were lowered to satisfy the needs for rapid growth (Stone, “Lax Real Estate”). Although expansion is required to increase revenue and profitability, it is important to consider that increasing revenue by diversifying offers can lead to lower product quality because it is exchanged in favor of quantity.
Gourmet Coffee Buying Decisions
Target Market. According to Starbucks CEO Shultz, the target market in the early stages of the company’s development consisted of white-collar patrons, who were well-educated and between 25 and 44 years of age (Moon and Quelch, “Starbucks”). Because of that description, is possible to notice that their primary market is more likely going to be inclined to gourmet coffee.
Market Needs. Tending to the needs of their market is one of the key reasons for Starbucks’ success. According to the company, people who visit Starbucks want a cup of coffee, but the ambient invites them to stay (Moon and Quelch, “Starbucks”). In a sophisticated environment, gourmet coffee becomes a primary choice over regular coffee.
Innovation. Drinking coffee has become a routine for most people, so it is natural to assume they will desire new experiences occasionally. Because Starbucks offers a variety of products, customers can experience drinking coffee as a pleasure rather than a habit. The need for new experiences and the availability of those experiences is one of the reasons people are more likely going to buy gourmet coffee.
Fear of Missing Out. Scarcity is an important principle in sales. Because several gourmet drinks and featured offers are branded by Starbucks, they cannot be obtained in other stores. Some offers may also be a limited-edition drink, which makes them desirable to consumers.
Incentive Programs. To reward customers for their loyalty, Starbucks offers a loyalty program for frequent customers. According to their Terms and Conditions, customers are entitled to several benefits, such as free drinks and meals on their birthday, personalized offers, and more (Starbucks, “My Starbucks Rewards”). With an incentive program, customers are more likely going to choose gourmet coffee for better rewards or as free gifts for their loyalty.
Question
Use Maslow Hierarchy of needs to effectively position Starbucks’ gourmet product.
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