Starbucks

Focused on creating value for their customers throughout the whole Starbucks experience, which much more than just the quality and taste of the products. The name in the cup is a clear example of one of Starbucks strategies to create product value.

Marketing is all about creating value for customers. (Kotler) Brand Experience The goal is to create value for customers and build profitable customer relationships. In positioning its product(s), the company first identifies possible

customer value differences that provide competitive advantages on which to build the position.

Perceived value for customers

In our last class, amongst several other things, we discussed the four basic competitive positioning strategies that companies can follow: cost leadership, differentiation, focus and middle-of-the-roaders, which are companies that do no pursue a clear strategy. After our discussion and as a result of it, I started to pay more attention to the different positioning strategies that I was exposed to on my day-to-day market interactions with several companies.

The picture attached represents one of those moments when you realize that even really simple things are planned and are part of a company’s big strategy. Starbucks has a clear differentiation positioning strategy, focusing on creating perceived value for their customers through the whole Starbucks experience, which is much more than just the quality and the taste of their products. The customer’s name in the cup is a clear example of one of the many tools used by Starbucks to create perceived product value. Moreover, once your customers perceive a higher value in your product they are more inclined to pay more for it. As a result of that, you are able to build profitable long term customer relationship.