Though Starbucks is a US company, it had to adopt various strategies in order to achieve tremendous success in the United States. (Bhaskar, 2009)
Starbucks has always positioned itself as a premium brand by providing a high standard and innovative products coupled with good customer service. They bought high-quality coffee beans from places like Kenya, Costa Rica, Ethiopia, etc.. processed them with their high-end technology equipment and sold only through the company-owned outlets. What initially started as just another coffee shop started selling sandwiches, pastries, cookies etc. They also started offering many seasonal varieties like gingerbread latte in Christmas and Strawberry Frappuccino in summer. They also delivered coffee to offices without any restriction to coffee size. Starbucks did not limit itself to be a coffee shop. They also sold smoothies, oatmeals, etc. in order to satisfy a large group of customers. Moreover, the products of Starbucks are never stagnant. The research on more and more combinations and introduce new menus on a timely manner. Starbucks always upgraded their products and introduced new products mostly on yearly basis.
Starbucks has always positioned itself as a high-end product served at a very expensive price compared to that of the competitors. The public’s general perception that high quality comes at a high price has worked well in their favour. They always used high-quality beans, had very well trained staff and also served their coffee at exceptionally maintained shops. They always tried to justify their high price by giving high-quality products and never intended to bring the prices down. The upscale image associated with their brand name also helped them in maintaining those high prices. Higher price for products was not a restriction in a country like the United States where people have enough disposable income. . .