Product Strategy of Starbucks

Product Strategy of Starbucks

Introduction

This paper discusses the various aspects and perspectives of Starbuck's product strategy. The issues and challenges pertaining to the product are also entailed. It elaborates the product details and competitive advantages with respect to competitors. The success of Starbucks is also discussed including significant factors such as long-term brand building strategies and benefits to the customers. Finally, recommendations are given for Starbuck's further success and improvement.

Discussion

Question - 1

Starbucks deal in various assortments of products such as a variety of coffee and bakery items. However, coffee remains the specialty of the company. There is a variety of coffee tastes offered by Starbucks. Other products include bakery items such as sandwiches, muffins and other related products. There are other beverages also offered by Starbucks which are enjoyed by the customers. The diversity of products is the competitive advantage of the company. It excels in providing various flavors to customers at reasonable prices. Therefore, Starbucks is regarded as a coffee shop with a variety of other products (Quenqua, 2010).

Question - 2

McDonald's have advantages over Starbucks in competing for coffee sales. McDonald's is known as a fast food restaurant. However, Starbucks introduced particular sandwiches and snacks to compete with McDonald's. This repositioned the brand image of Starbuck from a coffee shop to fast food restaurant in views of some customers (Thompson, 2004). Therefore, McDonald's enjoys a significant position in the minds of customers which is unbeatable. Starbuck's attempt to compete with McDonald's impacted its image overall.

McDonald's has already positioned itself in the fast food industry as one of the leading brands. This cannot be overtaken by Starbucks by introducing the products or expanding the product line. The branding of McDonald's is done in a remarkable manner. Thus, Starbucks should create its own identity as a diversified coffee shop instead of challenging McDonald's. In this way, Starbucks will capture the market more effectively without fading or compromising on its own brand identity.

Question - 3

People are more inclined towards quality food and beverages. The society is influenced by the trends in the food industry which also impacts the restaurants and coffee shops. This supported the success of Starbucks. Therefore, Starbucks has an advantage of societal factors. The changes in society with the passage of time have strengthened Starbucks. More customers are involved in coffee consumption and its products. Thus, it can be stated that changes in society has assisted Starbucks in becoming more successful than before over time.

The society plays a pivotal role in shaping the trends for consumers. People these days highly prefer coffee as a beverage. Starbucks evaluated the opportunity and realized the demands of consumers by providing superior quality coffee along with other edible products. People desire to have coffee with others on social gatherings or other occasions. The seasonal nature of the product also has an impact on the business of Starbucks. Therefore, it should analyze these trends and use it in advantage of the company.

Question - 4

Starbucks has huge potential ...