PRODUCT DESIGN

i) PRICE

Low-cost strategy refers to a company's ability to gain a competitive edge by boosting profits while
lowering production costs. Due to low production costs, the corporation may be able to gain market
share by offering cheaper prices than competitors while still making a profit.

ii) ADVERTISING

Starbucks was once recognised for its lack of marketing spending until a few years ago. All of the
marketing was focused on the company's brand image and the reputation it had built through
providing high-quality products. It has changed its marketing strategy and increased its advertising
spending in recent years. Its advertisements can now be seen on television, in print, and on internet
channels. Its focus was on hiring talented people and acquiring only high-quality raw materials
rather than relying on advertising gimmicks to gain massive growth.

iii) PRODUCT

Difference strategy refers to positioning products as being unique, of higher quality, and distinct
from those of competitors. A corporation must conduct outstanding research, be innovative, and
constantly develop in order to implement this approach. Furthermore, it is critical to execute an
efficient marketing effort in order to persuade clients that the company's product is unique and
superior. Starbucks is introducing new products into existing market. This strategy is related to the
possibility to meet customers need more closely and outperform competitors, through the
introduction of a new product. They have introduced so many products like soda, Starbucks VIA
Ready brew, different type of tea, savoury meals and variety of desserts. Pasta and pastry, for their
existing market. And they are going to introduce so many products like sandwich, lunch meal,
organic soup, In this year.
QUALITY MANAGEMENT

Starbuck's business strategy revolves around quality management. The company has a premium
brand that only sells premium grade products, which is also the brand's key point of differentiation.
While the Starbucks business model is differentiated mostly along other lines, when customers think
of Starbucks, they think of high-quality items and a wide range of options. This method has been
used by the brand since its beginning, and it has never impacted on taste or quality. In exchange for
the high quality of the brand's products, the brand costs premium pricing for the manufactured
goods. Starbucks' customers are generally high-end customers, and the taste and quality of the
company's products are nearly irreplaceable, and that is why brand customers are always ready to
spend more for greater quality. Experts evaluate millions of coffee cups every day to implement the
best flavours and satisfaction from the coffee are reached. The company has also established criteria
that are often higher than the usual, resulting in the best results. Starbucks' flavours and quality are
always appreciated by customers, whether they are one-time or repeat customers. As illustrated by
Starbucks' growing sales, this business strategy has considerably contributed in increasing brand
profit margins.