This is a very important question well detail answers: Why is starbucks more successful then its competition?

They are not just selling coffee, they are selling a brand and an attitude.

They have the best coofee,great pastries selection & wonderful customer service!

brand recognition combined with understanding that you will get the same taste (certainly not good taste!) no matter which Starbucks you go to....it's huge!!! Why do you think companies spend so much in advertising. Why do you think McDonalds does so well.

They built and entire brand around the name. They don't sell coffee. They sell an experience. They were the first high end coffee house to rapidly expand through investor money in order to build an strong brand awareness.

It's completely about their marketing:

1. They have a good product, however, not necessarily better than local coffee houses.
2. They locate them in solid places, high traffic areas near, but not centralized in residential areas.
3. Prices are competitive - espescially when people get hooked to their product.
4. They promote themselves well and have made a name for themselves as "the coffee place". When you think of going and getting coffee - MANY people will just ask where the nearest starbucks is...

With that being said, however, there are marketing strategies that local coffee houses who compete with starbucks can use to take advantage of starbucks shortcomings. For example, I did a marketing program for a local coffee shop who had a starbucks move into the area. We realistically agreed that most of his walk-in traffic was going to switch to starbucks. Before the starbucks was built, we established a monthly coffee-of-the-month program where the coffee shop automatically sends a new coffee every month to subscribers. Now that the starbucks is in place, the local coffee shop has replaced (and even exceeded) the revenue it has lost from starbucks opening...

One thing that small retailers have over large competition is the ability to adjust quickly... Small-time entrepreneurs and small business owners must always have something in a business plan to adjust to changing conditions, otherwise, they'll be sitting on the curb.

starbucks is an "everyday luxury" for people who don't always have the money or time to have luxuries in other areas of their life. for a few minutes you feel different, and your mindset about your life and yourself is different.
even though it is more expensive, most people feel it's worth it.

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