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Starbucks Position Paper

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Submitted By runningchicken
Words 900
Pages 4
Ryan Montez
Position Paper
Cerritos College
BA 118 – Retail Management

Instructor: Petros Keshishyan Date: 05/18/2014

What is Starbucks’ retail strategy? What is its target market, and how does it try to develop an advantage over its competitors?

Starbucks’ retail strategy is to give customers a “Legendary Experience” that creates a welcoming environment and makes customers want to return each day. Customers go to Starbucks for not only their coffee and tea, but to interact with other customers and the baristas behind the bar. This environment gives Starbucks the advantage over their competitors. Starbucks has created an environment for their customers to escape the daily grind and have social interactions with others in the community. Starbucks’ target market is…EVERYONE! Starbucks has turned into a “one stop shop”, compared to their original formats, and has such a large variety of options that there is something for everyone.

Describe Starbucks’ retail mix: location, merchandise assortment, pricing, advertising and promotion, store design and visual merchandising, customer service, and personal selling. How does its retail mix support its strategy?

Starbucks loves to saturate markets with stores very close to each other, even though it may seem like poor planning and will increase cannibalization it actually helps the company grow. Howard Schultz’s idea is to increase market share over saturating markets rather than have a competitor take up market share, he would have 2 stores right next to each other than have a competitor move in to the area. Starbucks’ stores are not “cookie cutter” by any means, each store has a different shape and feel to it, but they all have the same goal. All stores are set to resemble an Italian style espresso bar with a European open market feel. Starbucks Partners (their employees) also are a big part of their

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