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:
2. How can you protect and maintain your brand leadership from aggressive strategy done by your newer current competitors who duplicate the success of your brand?
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