Question

Please explain, what is the ‘value proposition’ for Starbucks and how Starbucks developed its value proposition?

Answer 1

Value proposition is something which a company could be able to mark a place in customers mind, it could create a value for customers which the competitors was unable to do. They adapted a different strategy to become customers favourite place after home..It could become the third place after work place and home. Starbucks ensured customer satisfaction by serving them in a less amount of time without compromising quality. Starbucks won customer intimacy by representing superior quality, guarantee the happiness of customers, and resolve the issues in a efficient manner.

Starbucks could meet the expectations in quality, convenience, waiting time and make a personal experience or touch with the product from competitors. This created a word of mouth communication and it invited new customers to get an experience from Starbucks.

Starbucks used its " live coffee" mantra which company has put all its efforts to ensure that coffee culture is alive and creating a habit of drinking coffee. The company created a experiential branding strategy by offering high quality coffee and they worked with the suppliers inorder to make sure that the quality standards are met and they created a customer intimacy so the visit the stores frequently and the employees are familiar with their favourite drinks, so this can make a positive vibe among the customers so they invite the family and friends to visit the store. Another component they made is atmosphere or the environment, Starbucks seating arrangements made customers relax for a longer time if they need to stay and socialization made possible by inviting family and friends. This is the way Starbucks created its Unique Value Proposition.