Starbucks Pricing Model Essay

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From a branding standpoint, Starbucks is a well known, high quality coffee company that serves the coffee needs of their customers. They offer hot and cold beverages, beans and supplies to brew at home, snacks and wifi for a comfortable experience, and friendly baristas who inspire us. From a customer’s viewpoint, Starbucks needs a new image that can refocus the customer’s ideas about starbucks’ coffee. To accomplish this, Starbucks should reposition their brand through a new casual appearance in each location, a new pricing method, and improvements to ordering through technology. The first thing toward repositioning Starbucks would be to redesign each location into a casual hangout space like that of the study rooms at the library. The original design emulated that of an Italian espresso bar where patrons hung out and shared the time together as friends and colleagues. To help recreate this experience, the shopping center filled with books, CDs, movies, mugs, gadgets, …show more content…
Each hand-crafted beverage may have been unique enough at first, especially with the introduction of the frappacino, various flavors, and formal brewed coffee. The use of Italian terms for sizing is part of the brand, but the competition has used this as a way of claiming simplicity with small, medium, and large, as an advantage for understanding coffee (Ferrell & Hartline, 2014). Pricing should be made simple as well. Calculate simple values for each ingredient (after markup), and calculate the cost of a drink (before tax) to include the amount of each ingredient at the price each is worth. Customers that calculate the best bargain for the size while standing in line will find that all sizes are proportionally the same value. This may sound funny at first, however, research says that repositioning is all about creating the desired image in the customer’s mind (Ryan, Moroney, Geoghegan & Cunningham,

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