Last Updated 26 Mar 2020

Starbucks Value Proposition

Category Coffee, Retail, Starbucks
Essay type Research
Words 288 (1 page)
Views 144

The Starbucks Value Proposition Starbucks’ brand strategy was centred on its ‘Live Coffee’ mantra. Starbucks created an experience around the consumption of coffee. The three main components to this branding strategy were: [pic] Channels of Distribution Starbucks had stores in North America in high-traffic, high visibility settings such as retail centres, office buildings and colleges.

Product mixes varied according to the store’s size and location. The retail product mix in North-American Company operated stores is given in the following diagram. [pic] Starbucks sold coffee through non-company-operated retail channels too which were called ‘Speciality Stores’ and accounted for 15% of its revenues, out of which the various sources contributing to the speciality store revenues is as given in the following diagram. [pic]

Realizing that many customers (almost 40%) had tried Starbucks earlier before entering their company owned stores; they focussed on these speciality stores to establish relationships with the customers and establishing their brand amongst them. Starbucks Partners The employees at Starbucks are referred to as Partners. The number of employees was 60,000 worldwide, out of which 50,000 were in North America. Hourly-waged employees at Starbucks are called Baristas. Employee satisfaction is the point of concern at the firm.

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They are provided with health insurance and stock options. The company encouraged people promotion and thus the higher manager ranks were occupied by employees who had been working at the company since a long time. This encouraged the partners to work for a longer duration and work well in the firm. Employee turnover rate at Starbucks was just 70% compared with industry average of 300%. And the employee satisfaction level was 80%-90%. ‘Manager Stability’ was the key to these favourable results and it also helped in serving the customer in a much better way.

Starbucks Value Proposition essay

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Related Questions

on Starbucks Value Proposition

What is McDonald's value proposition?

We make things simpler for you. McDonalds: McDonald's incentive was composed by its originator Ken Croc: "McDonalds represents agreeableness, neatness, consistency, and comfort". It's is this comfort or speed and the reality you generally recognize what you will get which is McDonald's incentive.

What are the core values of Starbucks?

Howard Schultz1 Starbucks fundamental beliefs are composed like a way of thinking and they are: Making a culture of warmth and having a place, where everybody is welcome. Acting with mental fortitude, shaking things up. Being available, associating with straightforwardness, poise and respect.

What is value proposition example?

Your incentive ought to depict; how your item or administration tackles/improves issues, what benefits clients can expect, and why clients should purchase from you over your rivals. With the normal human ability to focus shorter than that of a goldfish, inbound promoting is a great deal like speed dating.

What is Starbucks mission and vision?

Starbucks features its strategic "to motivate and sustain the human soul – one individual, each cup and one neighborhood in turn." And its vision is to "treat individuals like family, and they will be faithful and give their everything."

Cite this page

Starbucks Value Proposition. (2016, Dec 19). Retrieved from

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