Question

How does Starbucks differentiate its product offerings from its competitors?

Answer 1

Starbucks has adopted a brand differentiation strategy through uniqueness in their product and product differentiation for the promotion of its products; it has utilized innovation in its services and products that is different from that of its competitors. Starbucks has also positioned itself best coffee brand in the market by providing attractive store design, locations, elegant taste and high quality coffee beans.

Starbucks is dedicated to offer a unique coffee experience to it's customer in order to gain competitive advantage in the market. Experience is the core philosophy of differentiation strategy of Starbucks that elevates mere coffee purchases to emotional and cultural consumptions. To be specific, with the usage of unique characteristics of atmosphere, environment, communication and decoration inside Starbucks coffee stores, it infects its customers’ experience and emotions, creating the essence of its brand value. Thus product differentiation in terms of premium product mix, coffee beverages reputation, unique environment, and supreme customer service that translated to build a premium valued brand for Starbucks which is costly to imitate for competitors