Monday, February 24, 2020

TROUBLE BREWS AT STARBUCKS--Case Study Case Example | Topics and Well Written Essays - 500 words

TROUBLE BREWS AT STARBUCKS-- - Case Study Example Essentially, the 5Cs analysis, which was initially the 3Cs strategy, includes elements such as customer, company, collaborators, climate and competitors. The key aspects that Schultz had in mind were customer, competitors, and the company itself in order for the vision to expand Starbucks to be realistic. In essence, Schultz intended for Starbucks to serve coffee at its outlets with the same taste of that made at home and factored in the growing competition from entrants such as McDonalds, which was winning its customer base. The main target market for Starbucks as part of this vision was to be the people that prefer to brew their coffee from home because not many chain stores served coffee that was of their desired quality. The value positioning to customers would be that Starbucks would be able to serve coffee that was the same as that brewed at home hence saving their customers the hustle of having to only rely on home ground coffee with the taste that they know. Additionally, Schultz also examined Starbucks position and sought to remain relevant in the market by providing its needs and meeting customer satisfaction while register ing profits. Schultz vision met resistances, but Starbucks later bought into the idea in which the first step in implementation based on the 4Ps marketing mix was to create a place or atmosphere that customers would relax in. The idea was to create the third place after home and work where their target market would enjoy the ambience of Starbucks while sipping on a cup of coffee (3). The ambience of the ‘third place’ included the access to music, books, and movies as part of its product delivery options, which was successful in increasing customer flow to their stores (7). The other factor was that Starbucks also targeted areas with heavy population flow such as airports, which succeeded in capturing a wider target market. Secondly, Starbucks also trained its staff on the

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