Starbucks was positioned by their products based on quality and image rather than price. Starbucks created the coffee shop revolution as Starbucks have the ability to be the public educator on espresso coffee. According to magazine article found on Starbucks.com, Starbucks brand is a member of the coming century’s top twenty-five brands. It is critical that Starbucks position their brand for what the brand stands for: an innovative industry leader that produces high quality products. Brand image, as already shown, is a goal that all the future functional strategies will work to attain.
-Starbucks must differentiate their products based firstly on image and secondly on the product itself. Because of the international markets such as Italy are renowned for high quality coffees, it will be difficult for Starbucks to differentiate their products on quality alone. Combined with its research and development emphasis on product development and being the first mover into a market, Starbucks should differentiate its new products based on their unique features and brand image.
Starbucks must position its brand as an experience. The Starbucks’ experience is what will entice new customers to visit their locations and create customer loyalty. First impressions will be vital in ensuring repeat customers.
Starbucks will be able to combat the threats of bargaining power of buyers, substitute products, and competitive forces by continuing to market based on their highly differentiated products and unique brand image.
Advertising strategies used by Starbucks has also been a key success factor. Starbucks has found more success advertising on a local level rather than to the nation as a whole. The Company advertises a lot through print mediums, as Starbucks’ target market tends to be educated people who do more reading than the average person