Chapter 2 - Strategic Planning for Competitive Advantage

"IT'S NOT JUST COFFEE. IT'S STARBUCKS"

Starbucks separates themselves from other coffee houses with their one of a kind selling point which is a lavish experience that goes above and beyond a cup of coffee. Starbucks distinctly positions themselves as an upscale brand that offers more than just a coffee. It targets a wide demographic as it a place "to be seen" from office workers to students, cultural and social classes that gather and have a quality coffee in a cozy and relaxed atmosphere. Starbucks has left any form of competitors in the dust by identifying themselves as prestigious and valuable, with product and service differentiation thus creates a competitive advantage.

To provide this lavish experience their marketing plan involves a homely feel to customers who feel invited to make a purchase. Starbucks takes a great amount of care right as you set foot inside you a greeted with an ambient environment, comfortable furniture, relaxing jazz music and other features such as wireless internet, handicapped access also free song, and application gift cards.

Furthermore, Starbucks is on the go seeking various strategic alternatives. The coffee house is constantly being updated with promotions for example seasonal beverages; Caramel Brulée. Other promotions include prepaid member cards with levels of Green and Gold, an incentive that awards complementary drinks.

The fact that Starbucks is the largest coffee brand in the international market, benefits the company in terms of competition. The company has been able to convince their customers that Starbucks is just more than coffee. Starbucks customers throughly believe they offer more than just a great cup of coffee, it is recognized as a luxury coffee that gives customers a feeling of prodigality as they go about their day holding a Starbucks beverage.