Starbucks is an international coffee chain that sells a variety of coffee and espresso products and is one of the leading players in the hot drinks industry in North America. To set themselves apart from their competitors, they rely on three points of difference: desirability, differentiation, and deliverability.
Their most notable distinction is that they offer a variety of world-renowned products that can be personalized, a characteristic that customers can find relevant and important to them. They currently offer sixty-one products, which includes coffees, espresso beverages, teas, equipment, espresso machines, drinkware, and food (MarketLine, 2015a). This wide range of selection and personalized …show more content…
To stand out from its competition, Starbucks launched their own app that combines a rewards loyalty program, which can increase brand loyalty, as well as a feature that allows customers to pay for their items faster. In addition, Starbucks formed a partnership with Apple in late 2007, which allows them to offer exclusive music, movie, and app downloads for free for their in-store customers (MarketLine, 2015a). They also offer free, instant, and unlimited wifi to encourage customers to spend more time inside the store. Starbucks is able to set itself apart with these features that their competition is lacking.
The last point of difference is deliverability. The Starbucks brand was built on coffee and wide range of regular and decaffeinated coffee and espresso drinks. They are able to deliver on their promise of roaster, marketer, and retailer of specialty coffee based on their recorded revenue of $16,447.8 million in 2014, which is an increase of 10.6% from 2015 (MarketLine, 2015a). To ensure they are sustainable, they have entered many strategic partnerships with specialty coffee and coffee makers such as Green Mountain Coffee Roasters, Arla Foods, and Tata Coffee (MarketLine, …show more content…
There is generally not much regulation, aside from the standard regulatory frameworks. New product development and the consistent launch of new technology encourage consumers to trying different products (Euromonitor, 2015), which could increase sales. However, trading price for raw material, such as coffee beans, may fluctuate depending on climate change, which means retailers may raise prices to protect themselves. While there is a growing specialty market among consumers who are concerned about the ethics of traditional coffee production, consumers are willing to pay a premium for fairly traded products (The Canadian Coffee Industry,