Marketing

Core/Actual/Augmented Product

Dexit provides its customers with a wide range of products, from hot and cold beverages to snacks to munch on along with their beverage of choice. Starbucks main core product includes coffee, along with other beverages the customers can choose from (i.e. cappuccinos, hot chocolates, smoothes, Skinny latte, espresso, almond truffle mocha, Frappuccino, Tazoberry and Cream, etc.). Starbucks actual products include their brand name, the features offered, the quality level, design and packaging of the purchased core product. The augmented product purchased by Starbuck’s customers include the after sale service such as access to wireless internet connections in all Starbucks locations as well as the atmosphere of their coffeehouse. Another augmented product offered by Starbucks includes their free delivery service as well as providing their customers with a Starbucks card. By presenting customers with augmented and actual products Starbucks is able to increase brand loyalty.

Problem

With the phenomenal expansion of Starbucks, the decline in share price of 50 per cent and a decrease in customer visits to its outlets in North America are to be addressed and resolved by Howard Shultz (CEO) as well as the senior management at Starbucks. Starbucks must implement a new branding strategy to overcome the decline in share prices as well as to increase the number of customer visits to North American Starbucks outlets. Recognition of opportunities due to rapid growth of Starbucks is required along with a decision in regards to Starbucks strategic growth plan is to be made. This will help Starbucks achieve their long term goal of becoming the most recognized and respected brand of coffee in the world.

Objectives

Starbucks main objective is to ingrain the company’s values, principles and culture as well as to impart their knowledge about coffee to their employees and customers. Starbucks also wants to be the most recognized and respected brand of...