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Problem Definition
The quality of service is one of the major priorities for Starbucks. Nevertheless, the findings of the market research revealed that the company fails to meet some of the customers’ expectations. As a result, the organization struggles to increase customer satisfaction, and it is the biggest problem that requires immediate resolution.
Core Value and Positioning Strategy
Starbucks makes an emphasis on the “live coffee” concept that refers to coffee consumption as an experience. Based on this, the company’s central values include quality of services, ingredients, and final products; and a personalized approach to customers. Starbucks aims to develop long-term relationships with consumers by making them feel valued and recognized. Additionally, the organization always strives to create an inviting and comfortable environment in its coffee shops and develop unique brand-based community.
Target Market
The company mainly creates its products for higher-income, educated individuals. They are primarily female and take higher-ranking positions at the workplace (white-collar patrons). The age of potential Starbucks consumers ranges between 25 and 44.
Competition
The list of Starbuck’s competitors comprises thousands of small and medium-sized, independent specialty coffee shops both in the United States and across the globe. At the same time, major coffee shop chains may be regarded as the company’s biggest rivals. One of them is Dunkin Donuts, which currently has thousands of stores across the country and a highly differentiated product portfolio.
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