Starbucks is a total sensory experience. It tastes good, smells good, looks good, has relaxing music, comfortable seating, wireless technology, is everywhere and for many is their “third place” to hang out (besides home and work or school). On a 5-point scale, Starbucks probably rates as a 4-4-5-2 based on the S-Q-I-P model, with atmospherics their big value adder and price as their weakest link. Given this value proposition evaluation, opportunities for improvement may be to do a better job promoting its frequent customer program called Starbucks Rewards or a Starbucks for bucks’
promotion ($2 double espresso shots, $3 cappuccinos).
Answer short response discussion questions below
2. Can Starbucks win the morning coffee market from Dunkin’ Donuts and McDonalds? If
so, what do they need to do?
3. Starbucks recently shut down their Teavana venture. Can you identify another business
model they should pursue?
Please reference the follow book in your responses along with other resources.
Superior Customer Value – Finding and Keeping Customers in the Now Economy, Fourth Edition, by Art Weinstein, Routledge/Taylor & Francis Group, 2019