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Free Essays on Starbucks

With 30 million weekly customers, Starbucks is much more than a beverage company: it’s a lifestyle company (www.starbucks.com). Though Starbucks’ core-competence is gourmet coffee beverages, it also sells a brand that people have begun to associate with an upscale coffee culture. With the increasing popularity of urban coffee shops, the Starbucks name seems to get the most recognition. In fact, Starbucks seems to be the Rolls-Royces of this fast-growing industry. Every aspect of the Starbucks experience makes the consumer feel as though they are getting the highest-quality product and service offered. Every store is lavishly decorated to invite people in to â€Å"smell the coffee†; Starbucks sells the most well known brands of coffee machine products in the market; even the drinks are mostly priced above $3.00 (in comparison to the average drink at competitor Dunkin Donuts for a starting price of $0.99.) Starbucks has mastered the concept of consumer’s perceive value of a product based on it’s price. To understand how consumers attribute prestige to products, even a cup of coffee, it is important to examine some of the key marketing strategies companies like Starbucks use. Products are frequently bought and displayed as markers of social class. These products are referred to as status symbols (Solomon 441). Big-ticket items such as cars, entertainment systems, and jewelry are the most obvious examples, however, smaller purchases can also be tools to display a consumer’s social status. Starbucks is a perfect example. One small cup of coffee makes consumers feel more up-scale, trendy, noticed, and most importantly more fulfilled and satisfied with their choice. This is due to a product’s brand equity. Brand equity is defined as the extent to which a consumer holds strong, favorable, and unique associations with a brand in memory (Solomon 195). If a company can understand the components of their product and how co... Free Essays on Starbuck's Free Essays on Starbuck's With 30 million weekly customers, Starbucks is much more than a beverage company: it’s a lifestyle company (www.starbucks.com). Though Starbucks’ core-competence is gourmet coffee beverages, it also sells a brand that people have begun to associate with an upscale coffee culture. With the increasing popularity of urban coffee shops, the Starbucks name seems to get the most recognition. In fact, Starbucks seems to be the Rolls-Royces of this fast-growing industry. Every aspect of the Starbucks experience makes the consumer feel as though they are getting the highest-quality product and service offered. Every store is lavishly decorated to invite people in to â€Å"smell the coffee†; Starbucks sells the most well known brands of coffee machine products in the market; even the drinks are mostly priced above $3.00 (in comparison to the average drink at competitor Dunkin Donuts for a starting price of $0.99.) Starbucks has mastered the concept of consumer’s perceive value of a product based on it’s price. To understand how consumers attribute prestige to products, even a cup of coffee, it is important to examine some of the key marketing strategies companies like Starbucks use. Products are frequently bought and displayed as markers of social class. These products are referred to as status symbols (Solomon 441). Big-ticket items such as cars, entertainment systems, and jewelry are the most obvious examples, however, smaller purchases can also be tools to display a consumer’s social status. Starbucks is a perfect example. One small cup of coffee makes consumers feel more up-scale, trendy, noticed, and most importantly more fulfilled and satisfied with their choice. This is due to a product’s brand equity. Brand equity is defined as the extent to which a consumer holds strong, favorable, and unique associations with a brand in memory (Solomon 195). If a company can understand the components of their product and how co...

Marketing Phase I Paper Essay Example | Topics and Well Written Essays - 750 words

Marketing Phase I Paper - Essay Example Microsoft is currently set to market its new personal computer operating system entitled Windows Heraldâ„ ¢, a software system designed to improve user functionality as well as provide free Internet service for a period of one year under the Microsoft Internet brand. Windows Heraldâ„ ¢ will provide an entirely new operating platform including deleted document retrieval, something that no other operating system currently provides. This new product will allow users to retrieve documents and files which may have been deleted from the recycle bin by accident, giving the user better control over their computer systems. Competition is a major issue for Microsoft as there are a wide variety of competitors in the marketplace which develop and distribute various software and technology packages. Because of this high competition volume, Microsoft must utilize marketing tactics to ensure that their product is positioned better than that of their competitors (in the mind of the consumer) and ensure that potential customers understand what specific features and advantages will outperform competing software brands. The company must establish an appropriate pricing structure as well as ensure low-cost distribution (as a portion of the marketing mix) to save corporate dollars and ensure higher profitability. Marketing, when described as a set of processes to developing and communicating advantages for the delivery of value to customers, is extremely important for Microsoft to ensure that potential buyers recognize that Microsoft products are superior to competition. Because Microsoft maintains an advertising and marketing budget, the company must ensure that costs are monitored and their sales increase through the correct strategies for not only pricing, but specifically at which retailers their products will sell the most. Previous negative consumer word-of-mouth