Starbuck's Pricing Strategy:
Throughout its history, Starbucks Corporation has established a reputation for having the most expensive coffee products in the marketplace. The evident premium pricing at Starbucks are combined with the premium name or brand that the organization has also developed. While the prices of Starbucks coffee products are relatively expensive, the high prices are approved by many customers in many places where the firm has its operations. Pricing act as an important aspect of Starbuck's marketing strategy because it's critical to the firm's promotion strategies and profitability. However, the company's pricing strategy is based on several aspects and decisions that help in determining its efficiency.
Pricing Decisions and Strategies:
Pricing decisions and strategies are important to a business since pricing is the only element in the marketing mix that generates revenues. Moreover, these decisions and strategies are crucial since the wrong ones can damage the firm's corporate value at a faster rate than any other mistake in the business (Florissen et. al., 2001). Some of the common mistakes that contribute to flawed pricing policies are usually carried out in attempts to hang on to customers. In such instances, an organization's managers lessen prices preemptively in order to minimize the threats from new rivals and instigate price wars in the hope of being victorious at the end.
Currently, there are several pricing strategies that are classified into different categories based on various variables. First, the variable of interest is used as a pricing strategy as it relates to the consistency of prices ("Pricing," n.d.). This variable has led to the development of daily low pricing strategy, which is practice with perfect consistency by few companies. In other instances, some retailers like Wal-Mart focus on the provision of constant low prices of products to an extent that they do not make any actual sales.
The other pricing strategy is the high-low initiative with which retailers feature prices that are relatively higher, especially when they are not discounted. Similar to the daily low price strategy, the high-low strategy is for the aim taking advantage of the different...
market structures in detail and analyses the pricing strategies that the firms have to undertake when they operate in different regimes. The case study on Toyota is considered next, which indicates that firms competing in various structures does not only have to focus on price and quantity ceteris paribus, they also have to consider external and internal variables that have a bearing on these decisions. Introduction to Market Structures Market structures
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor Relations, 2011). Starbucks was also able to manage costs of closing locations
The figure to the right shows the current promotional materials used throughout the Starbucks locations to promote the Christmas Blend. In addition, Starbucks is offering coupons on Christ Blend bundles with coffee mugs and discount pricing on the combination of these two items. The promotion strategy is aimed at sustaining the pricing and margins on bundles with the brand loyalty that the Christmas Blend evokes (Starbucks Investor Relations). Finally, the
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their
Starbucks 2010 MOST ETHICAL RESTAURANT Starbucks Coffee Company was chosen Most Ethical Restaurant for 2010, according to strict screening methods and criteria (Ethisphere, 2010). These criteria were corporate citizenship and responsibility, corporate governance, innovation in public well-being, industry leadership, executive leadership, regulatory and reputation track record and internal systems and ethics or compliance program. Starbucks is the lone recipient of the award in the restaurant and cafe category (Ethisphere). Company History Starbucks Coffee Company
Antigua Guatemala Coffee Antigua Guatemala International (AGI) will be a manufacturer and exporter of Guatemalan coffee to Japan and the global. AGI will use a new system in the food and beverage industry to offer Antigua Guatemala coffee in a time-efficient and convenient way. AGI will provide vendors, retailers, and cafes with the ability to buy freshly brewed Antigua Guatemala coffee. It will be a high quality option to the institutional
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