There is an abundance of work going on inside Starbucks right now to bring GIS expertise in-house to aid in their segmentation planning based on taking both demographic, psychographic and attitudinal segmentation criteria overlaid against potential market areas.
Marketing Mix Analysis
The following is an analysis of the marketing mix for Starbucks compared to Dietrich Coffee and Coffee Bean and Tea Leaf Company.
Product
Starbucks' ability to continually innovate new products is central to its lasting competitive advantage in this area. That combination of innovation and focus on being able to executive product delivery globally is a sustainable competitive advantage. Starbucks has steadily grown their cold and hot drink menu equally in terms of product offerings, and continues to experiment with light lunch, mainstay bakery items, and seasonal fruit and bakery goods.
The approach to this product strategy however is muted and not as pronounced on their website as it is in their stores. The majority of revenue growth in Starbucks however comes from recently added drinks, according to Mintel Research and DataMonitor. This is also supported by Baird (2006) and their investment analysis.
Comparably, both the Coffee Bean and Tea Leaf Company and Dietrich Coffee rely on the higher-priced and correspondingly higher margin drinks. The product strategies at both of these competitors are decidedly focused on the higher end of the market, the segments where Starbucks is positioning the Vendi class of hot drinks and the Frappacino line of "fancy" drinks.
Starbucks' two competitors are relying on these higher-end beverages, both pictured with mounds of whipped cream, as dessert replacements and communicating their product...
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