Case Study of Starbucks

Starbucks - Case 4

As you read the Starbucks case this week, I want you to answer these issues. Do not need to do a Situational Analysis just answers to the questions.

1. What explains the Starbucks success story?

• How did Schultz manage to get people to pay so much for a simple cup of coffee?

He set up an espresso bar that will play in American’s everyday social life. This place will become the “third place” in American’s life and provide whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44.

• What were the key elements of their value proposition?

Coffee itself; service; atmosphere.

• What were the benefits associated with buying coffee from Starbucks?

Most of the beverages you can get from Starbucks are handcrafted with a good quality;

You can enjoy an excellent customer service when you buy coffee from Starbucks;

The atmosphere you feel in Starbucks is relaxed and joyful; even you can get some souvenirs.

• Who was their original target market?

Their original target market is affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44.

• What consumption patterns did they bring to Starbucks?

A cup of coffee for everyday social life. (I am not sure because I didn’t find the right answer).

• What was Starbuck’s brand image during this period?

You can find Starbucks anywhere with a not cheap coffee

• What competition did they face in the 90’s?

The smaller coffee chains in the minds of specialty coffeehouse customers and the independent specialty coffeehouses

2. So what is the problem?

• What issues are they facing?

Starbucks was not meeting...