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This assignment involves researching the Starbucks Coffee Company (UK) Ltd (Starbucks) and its role in the COFFEE AND SANDWICH SHOP INDUSTRY in the UK. - Essay Example

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Pages 10 (2510 words)

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In the UK, Starbucks obtains a competitive and leadership position competing with such companies as McDonald’s and Dunkin’ Donuts, Costa Coffee and Caffè Nero. Starbucks was…

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This assignment involves researching the Starbucks Coffee Company (UK) Ltd (Starbucks) and its role in the COFFEE AND SANDWICH SHOP INDUSTRY in the UK.

In the UK, Starbucks obtains a leadership position in the coffee and sandwich industry in the UK creating a unique value propositions and unique brand image. “According to the retail analyst Euromonitor, the company has a 16.7 per cent market share, one per cent ahead of Costa Coffee” (Hickman 2008). In spite of recent decline, the Starbuck’s managing director in the UK admits: ““We have seen steady consumer-led growth in the UK market and we remain excited by the opportunities presented by [it],” Mr Broad said. “International markets as a whole continue to be a growth engine for the company.” (Walsh 2008). For Starbucks, brand positioning serves to make competitors attractive brands seem deficient. This goal is achieved by introducing a new benefit to the category. Starbucks positioning of coffee as a destination rather than a product made other coffees seem ordinary and unexciting. Alternatively, introducing a comprehensive position might make less complete offerings seem deficient (Baye 2002). Starbucks, Tte biggest player in Britains £900m-a-year coffee shop industry offers blander drinks than its competitors Costa Coffee and Caffè Nero and is costlier than most rivals, testers for the consumer group” (Hickman 2008). In the UK, Starbucks has built a powerful experiential brand. Starbucks stores are much more than a place to purchase a jolt of java. They offer a brief reprieve in a hectic day; a chance to inhale the rich aroma of fresh coffee and listen to relaxing music, while tasting a rich, specially prepared brew in the company of like-minded coffee addicts. One hallmark of the Starbucks experience, and any great experience really, is consistency. “Starbucks remains the more recognized chain with 27% of the respondents rating it their favorite, with Costa at 15%” (UK coffee market 2007).
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