Starbucks Competitors - The Competition
Starbucks Marketing Strategy
Starbucks Information
Starbucks Target Market
Starbucks Competitors
Starbucks' marketing strategy involved positioning its Starbucks outlets as a place where consumers can spend time other than their home or work. This was done by making each of its stores as comfortable and relaxing as possible. The coffee giant achieved these using creature comforts, such as comfortable furniture and relaxing music. Over the past several years, Starbucks also included offerings such as wireless internet, handicapped access, complimentary books, and common areas for collaboration. While Starbucks stores are positioned as locations where customers can spend time in a comfortable setting, their product lines are positioned at the higher end in regards to prices and quality.
Starbucks competitors in the coffee beverage sales include 7-Eleven, Dunkin Donuts, BIGGBY Coffee, Caribou Coffee, McDonald's, Panera Bread, and Einstein Bagels. Competitors such as McDonald's and Dunkin Donuts not only have extensive menus, but also the financial resources and position to leverage their strengths to threaten Starbucks profitability.
In terms of perception, 7-Eleven and Dunkin Donuts provide coffee in a "no-nonsense fashion", which attracts customers who are extremely price sensitive. Caribou Coffee's environment is similar to that of Starbucks because of furniture, free internet, and cozy surroundings, but their lack of market expansion has prohibited them from gaining the notoriety Starbucks has achieved. Finally, BIGGBY Coffee is in the middle ground where the likes of Dunkin Donuts and Caribou Coffee separate themselves.
Perceptual Map of Starbucks And It's Competitors (Coffee Shop Market)
The graph below illustrates customer perceptions regarding various brands:
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