After witnessing the price of a small drip with tax

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after witnessing the price of a small drip with tax climb over the $2 mark (Dawson, 2013).The real differentiator that keeps people coming back to Starbucks is the sense of community that it creates, “a third place” (Millman, 2011). Starbucks offers a variety of entertainment platforms to create this community feel such as music, movies, and reading material (Ferrell and Hartline, 2014, p. 526). Today, Starbucks continues to build emotional connections with its increasing target customer base regardless of any competition from other popular retail chains (Millman, 2011).
References: Dawson, T. (2013). How Starbucks Uses Pricing Strategy for Profit Maximization. Price Intelligently . Retrieved August 23, 2016, from blog/bid/184451/How-Starbucks-Uses-Pricing-Strategy-for-Profit-Maximization Ferrell, O. C., & Hartline, M. D. (2014). Marketing Strategy: Text and Cases (6th ed.). Mason, OH: SouthWestern/Cengage Learning. Millman, D. (2011). How Starbucks Transformed Coffee From A Commodity Into A $4 Splurge. Fast Company. Retrieved August 23, 2016, from - 4-splurge 2. How did Starbucks’ non-brand decisions erode the brand’s positioning? How did this brand erosion lead to customers losing interest in the brand? This case offers a compelling example of how non-brand managerial decisions, such as store locations, licensing arrangements and drive-through services can make sense on financial criteria at one point in time, yet erode brand positioning and equity in the longer term (Buchanan & Simmons, 2016). Additionally, this case demonstrates how brand value and positioning can be influenced by seemingly unrelated, non-branding decisions. Starbucks tried to focus on brand positioning by providing Wi-Fi service, creating and selling its music and putting its focus on books and movies (Ferrell and Hartline, 2014, p. 524-525). None of these things proved helpful in solving the company’s fundamental problems. That Starbucks’ new- product initiatives, from food to music, books and movies influenced brand meaning is obvious. The Starbucks story offers a differed appreciation of how brand value is built and maintained. The company’s aggressive expansion through company-owned stores and licensees added millions of new customers, but it also changed the nature of Starbucks’ customer base and eroded its positioning as a destination or Third Place (p. 527-528) Starbucks is simply not what it used to be (Barnes, 2008). The brand that was one of the pioneers of the notion of brand experience is struggling to be relevant in a turbulent marketplace (Barnes, 2008). Starbuck’s original “third place” was centered around association and sociability (Barnes, 2008). The atmosphere attracted customers’ desires such as chatting with friends, reading magazines, and working on History assignments with laptops open (Barnes, 2008). Sadly, Starbuck’s rapid expansion has moved the company away from this brand positioning (Barnes, 2008).Without the convivial atmosphere of the original Starbucks, it’s just not a third place anymore which has caused the company to lose some of its value for millions of loyal customers (Barnes, 2008).

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