Starbucks Success Essay Example | Topics and Well Written Essays - 750 words

Starbucks Success - Essay ExampleIn the history of Starbucks, the company has never lowered the prices of the coffee so as to attract new customers and carry the loyal customers but rather the company has been increasing the prices of coffee. In some cases, the company has been able to give their convergence price level with steep-quality coffee. If the price of coffee is attachd, it is due to the rising labor costs and non-coffee good cost. Reduction of prices is done when the supply is high and the cost is still low in other countries. The determine strategy that the company part is the right customer and the right market, making sure that the brands are of high quality leaving the loyal high-income consumers that perceive the brand as an affordable luxury which everyone cannot go without. other pricing strategy that is used is product versioning and price communication where the company is able to enjoy the service from the customers who buy the large sized packed coffee that is as a result of price rising (Quelch, 2008). The price communication is based on how the company is able to attract the consumers where the price communicates through an increase to manipulate the customer perception of the coffee. Dunkin Donuts is a major competitor of Starbucks together with Tim Hortons which offers the same product like Starbucks. Stiff competition is experienced since the companies still have expanded to other locations where they usually use the same strategies like the Starbucks.