Starbucks Rising to #1
I’m pretty sure that most people reading this have ordered at least once from Starbucks in their lifetime. As of 2014, Starbucks is considered to be the second most valuable fast food brand worldwide, second only to McDonald’s. It’s not a surprise, seeing as how common Starbucks stores are around North America. Now Starbucks is even extending its stores worldwide. Statistics show that over the last 10 years, Starbucks stores in America have increased from 7302–11962 stores and from 2939–8993 stores outside of America (Source:http://www.statista.com/statistics/218366/number-of-international-and-us-starbucks-stores/). Starbucks has essentially tripled it’s influence globally. How did Starbucks even get so successful in the first place?
Let’s talk about the strategies Starbucks came up with. Starbucks aims for convenience; the company wants people to have easy access to their coffee so they placed their shops in bookstores, around busy areas where people would meet up, quiet areas where people could study, etc. They introduced the idea of ‘coffee snobbery’, where people could customize their coffee drinks to how they like it. This allowed people to creative and not just drink plain, boring coffee. Social media also has a big contribution as they know how to advertise, when to introduce new drinks/food/ideas, and lots of people start posting about Starbucks on social media too. All these initiatives have contribute to a heightened level in constructs such as happiness, attitude, and convenience, and revolutionized the way people have thought about coffee shops. Starbucks is now essentially a standardized norm for coffee shops to refer to. (Source:http://www.mweb.co.za/Entrepreneur/ViewArticle/tabid/3162/Article/6880/What-is-the-secret-behind-Starbucks-growth-and-success.aspx)
As Starbucks got more successful, it’s prices also got more expensive. Other coffee shops around North America, notably Tim Hortons and Dunkin’ Donuts, are some of Starbucks’ biggest competitors. Starbucks counter their opponents by increasing it’s variability on their menu and knowing when to introduce new drinks and create hype. Comparing the menu of these coffee shops though, it’s easy to tell which of these have cheaper prices for the same quantity. Despite all of that, Starbucks still has the biggest worldwide coffee house chain revenues out of its competitors though, with a 14.89 billion dollars revenue in 2013, while the second most revenue goes to Tim Hortons, at 3.07 billion dollars (Source:http://www.statista.com/statistics/270091/coffee-house-chains-ranked-by-revenue/).
An incentive to get customers to spend money at Starbucks was to offer rewards and deals, mostly available to only Starbucks members, so people signed up and the majority started going Starbucks more. Starbucks will send a customer satisfactory survey to their members to get feedback about their services; here is a mock version of it: http://www.surveymonkey.com/s/GSJ3XRY. The survey measures the construct satisfaction, and it’s items all measure different construct such as obsession, irritability, happiness, etc., all of which are associated with satisfaction. These feedback allowed Starbucks to aim towards a better shop environment and create a better store atmosphere. Overall, Starbucks is doing it’s job right and is a great example of how a company that knows what construct to seek out will lead to its success.
If you’re interested in checking out the menu of fast food chains and their prices, you can visit http://www.fastfoodmenuprices.com/.