Discussion Questions

1. What is Starbucks product? Starbucks sells gourmet coffee, tea, bottled coffee drinks, pastries, coffee makers, and accessories. Starbucks also sells "the coffee drinking experience." 2. What advantages does McDonalds have in competing with Starbucks for coffee sales? * First, McDonald's already has existing locations. Emphasizing coffee sales in McDonald's only required the installation of new equipment and minor modifications to existing stores' interiors. This is a major advantage over Starbucks because Starbucks must build a store should it wish to enter a particular geographic market.

* Second, McDonald's has a larger customer pool (ie: those individuals who go to McDonald's for the burgers, etc). Prior to McDonald's emphasizing coffee sales, some of McDonald's "food customers" would visit Starbucks to get their coffee. After the McDonald's push to introduce gourmet coffee, the regular McDonald's customers find it more convenient to get their food and coffee at McDonalds, thus taking away business from Starbucks. 3. What changes in society helped Starbucks become successful? The biggest change which led to the success of Starbucks was the increase in the amount of "out-of-home coffee drinkers." Coffee drinkers aged 25-29 increased their out-of-home coffee consumption from 42 to 66 percent. Coffee drinkers aged 30-59 increased their out-of-home coffee consumption from 33 to 46 percent. Coffee drinkers over 60 increased their out-of-home coffee consumption from 14 to 20 percent. Another key factor is the at-work coffee consumption rate, and the fact that most workers no longer purchase/make their coffee at work. 4. What strategic factors account for Starbucks long-term success in building brand equity? Starbucks does not discount any of its products or offer any promotional or sale prices. This maintains brand equity by emphasizing the "quality" of the product. 5 What are the advantages of the Starbucks Card to the company and to customers?To Company:- Create and maintain customer loyalty- Used as CRM or Customer Relationship ManagementTo Customers:- Could be a discount card or give benefit to customer in the future- Felt an exclusivity of Starbucks society...

QUESTION 7Starbucks set their mission as To inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. Starbucks always passionate about ethically sourcing the finest coffee beans, roasting them with great care and improving the lives of people who grow them. They are always stressing about the quality of their coffee. Next, they always treat their partners with respect and dignity so that they can be themselves because that is exactly their passion. Moreover, starting with the promise of a perfectly made beverage, they connect with, laugh with and uplift the lives of their customers even it just for a moment. Furthermore, Starbucks want their customers feel the sense of belonging when they are in Starbucks and made the stores as a harbour which is away from worries and can meet with friends and enjoy their life which is sometimes slow and savoured but sometimes also can be very fast. After that, they want Starbucks to be a part of community and be invited in wherever they do their businesses. They will bring together their partners, customers and the community to contribute every day as the world is looking to Starbucks to set a new standard, yet gain. Next, Starbucks enjoy the kid of success that reward its shareholder. The most important is Starbucks committed to a role of environmental leadership in all facets of its business. Starbucks fulfil the mission by a commitment to understand the environmental issue and keep sharing all information with their partners. They also responsible in developing innovative and flexible solutions to bring about change and strive to buy, sell and use environmentally friendly products. Then , its recognizing that financial responsibility is essential to our environmental future and instilling environmental responsibility as a corporate value. Lastly, its measure and monitor the progress for each project and encourage all partners to share in Starbucks mission.