Starbucks Product Concept II

Starbucks has nationally and internationally changed the minds of many cost cautious consumers. Starbucks persuasive labeling intrigues this consumers because not only will they receive the luxury coffee but at times discounted. Although, Starbucks has many competitors, McDonald's, Dunk in Donuts, etc: Starbucks still manages to present itself in the category of an speciality product.

As Starbucks continues to expand globally, it keeps the Starbucks brand name. Starbucks continues to use product modification to appeal to global market. In japan and china, new snacks were created and drinks undergo style modification. Starbucks Coffee jelly and Green tea Frapps are apart of Starbucks many product line extensions. For each product mix starbucks has a different marketing strategy depending on the country.

Starbuck's Product concept

Starbucks motto is the perfect cup of coffee is a wholesome, delicious snack that can make your day. So they make sure everything you choose is of the finest quality, they have a repetition of being creative. At Starbucks customers can receive not only the finest quality of coffee but delicious hand crafted snacks and sandwiches. As a customer myself I tend to go for the white hot chocolate more because of the strength of the coffee and I just leave the snacks. Starbucks products appeal to almost anyone and if your someone like me that doesn't like their coffee there are many alternatives.

Starbucks Via Ready Brew
Starbucks has found a new way to prepare a great cup of coffee but just adding water. Starbucks boosts that other instant coffees taste flat and lifeless. Starbucks Via Ready Brew is different because its full bodied and flavorful. It is made with the highest quality Arabic beans and it is an natural process that Starbucks spent years perfecting. Starbucks is constantly developing their product line extensions and product mix width by adding new editions to their already packed line of products some items are only sold in select retail spots.

Starbucks and beam global spirits & wines created a liqueur drink that is not sold at Starbucks. It is not the first time that Starbucks merged with other big brands to deliver innovative products and create niche markets. Pepsi co distributes Starbucks frappuccino drinks and double shot espressos and Dreyers distributes their ice cream in local stores.
Starbucks is always trying to develop new creative products to apply to customers. They modify their existing products to perfection.

Starbucks Pricing Concepts

In 2009, Starbucks revamped it pricing structure. Starbucks redesigned its menu to feature lower priced brewed coffees and offered promotions on its drinks. In the struggling economy, Starbucks needed to think of a more practical plan in order to keep its customers from McDonald's cheaper brewed coffees and Lattes. Instead Starbucks increased the prices of its higher end and more complex drinks. The Frappuccino and Carmel macchiatos were raised by 8%, because dun kin donuts and McDonald's cannot compete. Starbucks is using the lack of competitors and gaining profit from its most devoted consumer of the drinks.

Starbucks pricing may be considered unnecessary for more practical people, but this is America, and Americans are fascinated by the term of luxury. Starbucks sells itself on luxury and whether or not people can really afford it, they will still buy it. When a customer buys a cup of quality, it is seen as a small investment for quality. People who are all about luxury will never have a problem dishing out the extra bucks to receive it. Starbucks is aware ofthis and therefore can raise the price, because they have a strong net of devoted customers who may complain about the price increase, but you will see them with Starbucks the next day.

Prices for the smallest coffee:
Coffee of the day/ regular and decaf$1.40 $1.60$1.70
Carmel Macchiato$2.80$3.40$3.65
Plus Tax

Starbucks Advertising and Public Relations

Starbucks is well known for its lack of Advertising. Most of Starbucks advertising is done in and outside of its retail chains. Starbucks in store advertising helps customers get comfortable in the comfy chairs, relax to relaxing music and have the choice of spending hours sitting without even having to make a purchase. Which compels the customer to actually spend money because they almost feel like their taking Starbucks for granted. The Average Starbucks customer visits the store six times per month, while Starbucks most loyal visit 16 times per month. Starbucks lack of advertising must be doing something right.

When the growing retail chain releases a commercial, the commercial receives huge popularity. The commercials have driven up sales and received very positive feedback. Starbucks reported 26% of respondents like them and the commercial appeals equally to men and women. I believe that the music is the key the success of each commercial. Although Starbucks executives are happy with the feedback, they want to stick with creating unique and welcoming first handed experiences for all customers.

February 26, 2008 Starbucks closed down 7,100 stores in the u.s. They retrained Barista's in making espresso shots, steam milk and other drinks for customers. Starbucks made the public announcement promising customers that their drink should be made" perfect every time" or the customer should tell the Barista and they will remake it correctly. I think this is one example of excellent public relation. The company showed that they were able and capable of losing money that day just so in the future customers will know that their expectations are important.