Product Strategy Starbucks Product Strategy Essay

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Figure 1, Distribution of Starbucks Customers Worldwide, 2009 was derived from the company's filings with the Security and Exchange Commission and their annual reports. The most brand-loyal customers on average spend $4.42 per visit and also have loyalty cards and Starbucks credit cards as well (Seiler, 2005).

Figure 1: Distribution of Starbucks Customers, Worldwide 2009

Market Segment

Share

Males 18-45

37.0%

Females 18-45

28.0%

Males 45

2.0%

Source: Based on Analysis from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

Competitor Targets

Starbuck's faces a very wide variety of competitors, from the smaller independent coffee shops to the regionalized chains including Caribou Coffee, Peet's Coffee & Tea and their most entrenched competitor, Dunkin Donuts.

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Dunkin' Donuts operates in 38 states and has over 3,800 stores. Starbucks' differentiates against all these competitors with the experience their stores provide and the attention unique customer requirements for customized drinks (Nolan, 2007).

A statement of core strategy

The core strategy of Starbucks is to deliver an exceptional customer experience and provide the greatest flexibility and quality of coffee beverages, light food items and related accessories than anyone in the industry......

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