Services – starbucks

PRODUCT LINE : Starbucks roasts high-quality Arabica beans,sells pastries and cakes, hot and iced espresso beverages. Additionally, Starbucks offers a line of super-premium ice creams and a range of coffee making equipment. HOW IS IT A SERVICE : Through the “Starbucks experience”, ” built around brightly lit cafes with comfortable seating, the aroma and taste of coffee, friendly staff, the bustle of customers and the relaxing vibe of its background music.

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The idea of Starbucks stores being it becomes “third place” to spend time in, away from work and home. PRODUCT OFFER : Core product : Coffee drinks Augmented product : WiFi access, Starbucks loyalty card, premium coffee drinking experience and global quality consistency. Potential product: A bookshop alongside the coffee shops, branching out to other similar products like donuts, cupcakes etc. SWOT ANALYSIS: Strengths : Good reputation, numerous branches in big cities of the world, brand loyalty, highly profitable organization.

Weaknesses: Innovations in products may fail, highly dependant on US market. Opportunities: Expand into European markets, branch out into related product lines, collaborate with supermarkets for better distribution. Threats: coffee market is saturated, high competition, process of coffee beans to rise in near future. SCOPE FOR IMPROVEMENT IN UAE 1. Place and STP : Since Starbucks is already present in all major malls, it should now target supermarkets to increase its target market to include middle aged adults and school students too.

They can have a small bookshelf inside every branch for customers to read peacefully while enjoying their coffee, since having a bookshop or music store with every branch may not be feasible. 2. Promotion and STP: To promote its products and gain new teen-aged customers, Starbucks can introduce schemes like “Tweet about #starbucks with maximum retweets to get a free coffee” or “Share on facebook and the one with maximum likes gets free coffee”.

Doing this will not only make it “in” with the youth but will also show that Starbucks has adapted itself to the dynamic environment and are using the latest form of advertising and promotion, i. e. social media to promote their brand. 3. Product: It should branch out to donuts, cupcakes and other related product lines to match the competiton like Dunkin Donuts, Tim Hortons etc. 4. Price: They can work on different pricing strategies for peak and off-peak seasons. 5. People: Their staff is competent and well-trained, so according to me, they have nothing to improve on in that area.