Coffee and Starbucks Essay

Submitted By cjoseph9

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Pages: 2

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1. What factors accounted for the extraordinary success of Starbucks in the early 1990s?
• Location - Most stores in the North America are located in high-traffic, high-visibility areas and many different locations which made it very convenient.
• Product depth - huge variety of selection that satisfies various customers. In addition to selling whole-bean coffees, these stores sold brewed coffees, specialty espresso drinks, cold-blended beverages, and gourmet teas. Also offers pastries, sodas, juices, etc.
• Brand awareness - by selling products through retail stores and not just company-operated stores.
• Product and service innovations
What was so compelling about the Starbucks value proposition? What was compelling about the brand experience? What brand image did Starbucks develop during this period?
Starbucks’ value proposition put emphasis on brand strategy. The phrase “live coffee” helped keep the national coffee culture alive. It created an “experience” that people valued in their everyday lives. Starbucks’ branding strategy was to offer the highest-quality coffee in the world. It purchased directly from the coffee growers, controlled the supply chain, and oversaw processes from distribution to retail globally. “Customer intimacy” was another component of Starbucks’ branding strategy. Simple things such as remembering someone’s name or drink order was important. The ambience or atmosphere was also an important factor that kept its customers coming back. The brand image that Starbucks developed during this period was that it

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