We always have a list of top brands for various products in our minds. Such as if we wish to have the best coffee in a famous shop, the name “Starbucks” will pop-up in our mind. That’s how a brand establishes it’s positioning in the market among other rivals and enjoys the benefits of extra sales and profits. But if we talk about Starbucks, which is now one of the leading coffee retailer and seller, it wasn’t always on the top list. Throughout the years, it has come to this position with some competitive advantages that helped it to stand out among its competitors. Let’s dig out what are those!
The Competitive Advantages of Starbucks
The “Third Place” Positioning
Starbucks used the “Third place” concept for their brand which refers to a place where people can gather and connect with each other than their home, office or educational institution without any boundaries. It placed its brand image as a “Third place in people’s mind where they can have a cup of coffee and escape from their busy schedule. People can spend some quality time there and talk about anything, meet a friend over a cup of coffee. This concept has gathered massive response from people and started to choose it as a place for relaxation in a warm, welcoming environment, which has made this brand unique than others.
Innovative & Large Product range
Starbucks is known for its innovation in drinks and foods. It always tries to analyze the needs of its customers and serve them with new products. For example, it has a drink called “Frappuccino” which is a combination of various ingredients. And the target customers for this drink is those who usually don’t drink coffee. It also has other signature food items other than coffee or drinks so that people can quickly meet their cravings. In this way, this brand has made it appealing for all kinds of people who can find their favorite drinks from an extensive range of products which they may not find in other shops.
Opening Stores at Unusual Locations
Though Starbucks is known for its premium price and food, it has established itself in a way different than other premium brands. It has changed the image of premium service. The social perspective of this brand has made it to open its stores in various economically backward places all over the world. This company believes that people of every corner deserves to have a superior experience. By this, it has successfully reached every corner of the world and made itself distinct from others as we all achieved larger sales target.
Connecting with the Farmers
Starbucks never compromises with quality. And for that, they’ve chosen best farmers as their suppliers and managed to have a great relationship with them. It has given them financial support, information and training support, reward etc. so that the farmers stay loyal to this brand and it can serve the best and unique food and drink that can be distinguished from any other coffee around the world.
Advanced Roasting Facility
The process of roasting coffee beans and preparing the drink in Starbucks is unique than everyone. It has invested in advanced technology so that the process becomes environment friendly as well as maintain the quality. Unlike its rivals in the market, it uses an advanced proprietary extraction process for the best beans it uses. The method also eliminates acidic flavors and bitterness and preserves the rich and high-quality seeds. The generalized system maintains maximum cleaning and sanitization. This brand maintained transparency of the process among its customers and earned a vast loyalty base and the top position in the coffee retailing industry.
Related
- PESTLE Analysis of Starbucks
- Nestle Competitive Advantages
- Marketing Mix of Starbucks
- Leadership Qualities – Style, Skills, and Traits of Howard Schultz
References
- https://medium.com/@shahmm/how-did-starbucks-build-its-sustainable-competitive-advantage-79ff5eedb5ff
- https://www.ivoryresearch.com/samples/business-essay-example-starbucks-reasons-for-success/
- https://research-methodology.net/starbucks-coffee-business-strategy-2/
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