Competition in the Specialty Coffee Industry

Starbucks widens its product line with the new Frappuccino tastes and thus, it meets here its contestants like Jamba Juice. Therefore, to occupy a position in the consumers’ heads as a high quality brand, Starbucks should widen its position via nutritional products. This effect can be gained by decreasing the calories or by adding fresh fruit to the product. With the increase of the product’s nutritional and taste, their product quality will increase as well. Proposing a more quality product for the same price will raise sales and make the company more competitive.

Starbucks has played a significant role in creating the USA specialty coffee market. Nowadays, it has a unique value proposition that goes far than products and services. Starbucks executive staff believes that the organization should actually give a definite number of services. All this should be added to a satisfying coffee experience that combines premium coffee drinks such as cappuccino, cafe latte, espresso macchiato with great consumer service and an inviting, sociable atmosphere that makes people feel comfortable. This strategy involves not only what the coffee consumers drink, the way they communicate with shop assistants, and the atmosphere they are covered with. The coffee aromas in the air, background music, and other strategies are also included of shops’ organization.

Starbucks is known for providing high quality products and services. Consumers have enjoyed the services they have at Starbucks. Nowadays those people who look for a high quality non-coffee drink can find it in Starbucks line of products. By producing new summer drinks, Starbucks will add an entirely new part of consumers to its clients. One should look at the sales benefits for the summer drinks. It is important as some of the present consumers will want to taste and begin consuming the new drinks. In the end, the widening of the product line is a right step because of the ease of adoption to Starbucks reputation for quality as well as the low cost of products.

The first contestant to the new summer drinks is Jamba Juice. Starbucks summer drinks have significantly lower prices. In addition to low price, the gained profits for consuming a Starbucks drink are quite high for most consumers. Thus, if a consumer conducts a comparative analysis and divides gained profits by the price, the outcoming value for the consumer is rather high. The price of the summer drinks is comparatively lower than it contestants have. Nevertheless, while consumers adopt the product, they may taste other products and so, the price will increase appreciably with time. The balancing strategy is to make the price of the drink low enough to gain the profit and preserve Starbucks’ prestigious image.