Disc week 6

New England College **We aren't endorsed by this school
Apr 23, 2023
Uploaded by SargentDragonfly2685 on coursehero.com
Product Starbuck is mainly known for its coffee and it had several branches across globe and is one of the leading coffee chain brands. The product component of the marketing mix focuses on what the business offers to consumers. In case of Starbuck, it always comes up with unique and new product mix to capture more of the food and beverage market. Starbucks modifies its products or adds new products to the menu to attract consumers and also focuses on expanding its market reach and by growing its market share. The marketing mix of Starbuck is not an immediate success it is a result of years of business innovation. Some of the main categories of Starbucks products include., coffee, tea, baked goods, smoothies and frappuccino and other beverages. Frappuccino was added to the production line after it acquired the coffee connection in 1994. This how the marketing mix varies depending on various factors. Starbucks also sell pre-packed food items like chips and sandwiches to the consumers who won't prefer coffee or tea to drink and this how they satisfy their customers. They also sell drinkware like coffee mugs, bottles and tumblers etc(Han et al., 2018). During the Covid-19 pandemic time Starbucks president stated that the company was facing losses and revenue fell by 38% but still they are optimistic towards the situation and planning for long term goals. He also said that pandemic was one of the rarest opportunities to move aggressively and further differentiate Starbucks form our competition. They also incorporated new flavours and tastes as per changing needs of consumers and geographical locations. Price The pricing of Starbucks coffee is higher in comparison to other coffee suppliers in the market and still it remains to be favourite of many due to its quality and taste preferred by consumers
and consumers get satisfied with the products and which is why they pay the premium prices. The pricing strategy of Starbucks is well planned and they take the advantage of the behavioural tendency of people to purchase more expensive products on the basis of their buying relation with high price and value. With this high-end pricing strategy company maintains its brand value and speciality image in the market. During pandemic time Starbucks faced huge losses and had strived hard to get back to business and now it is preparing for post coronavirus consumers whose preferences and pricing would alter as their pricing behaviour is expected to change and tailoring marketing strategies to their needs will be imperative and based on which the new pricing strategies are to be constructed and company is focusing on improving its growth from previous year as it is in maturity stage and can focus on improving its company growth and income. They have seen heavy losses during 2020 fiscal year which expected to be nearly $3.2 billion during the pandemic time. So, Starbucks must focus on stabilising its revenue losses.
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Uploaded by SargentDragonfly2685 on coursehero.com