Starbucks: The Third Place amid the Pandemic

VCoach SERVES @ www.BongDeUngria.com
Starbucks
The Third Place amid the Pandemic
Netflex
Guinto, Lorenzo B.
Loria, Mark Alfren M.
Ordona, Jan Anthony H.
Paningbatan, Marlo D.
Ateneo Graduate School of Business
www. Netflex.weebly.com

1. High income, environment-caring
and cautious Starbucks customers
2. Unsecured environment, slow
delivery and not the same as in-
store quality products
3. Buy products online or at physical
store
Outline: Starbucks
The Third Place

4. Starbucks offers online app, drive
thru and Pick-up/ Grab-and-go
for safe, fast delivery and same as in-
store quality products just like before
the pandemic.
5. Starbucks provides safe, fast
delivery and the same as in-store
quality of products
Outline: Starbucks
The Third Place

6. Market size for Starbucks Philippines
is P24.540 Billions per month
7. Products: Not just limited to coffee
but the superlative coffee experience
8. Price: Uses Premium Pricing
Strategy. Average of 15% more
expensive than its competitors
Outline: Starbucks
The Third Place

9. Place: Has Physical Stores. Uses
Online Delivery & Shopping
Platforms
10.Promo: Via websites and social media
11.Product Differentiation strategy focusing
on High income, environment-
caring and cautious customers
Outline: Starbucks
The Third Place

i. 30 to 40 years old
ii. 50% ; 35% and the rest being
other or unknown
i. Single and Married
ii. Class A, B and C
1.a. Profile of Starbucks customer
High income, environment-
caring and cautious Starbucks
customers

v. High Income, High Spenders
vi. Busy people
vii. Health Conscious Professionals
viii. Socially Conscious Customers
ix. Technology Early Adopters
1.b. Profile of Starbucks customer
High income, environment-
caring and cautious Starbucks
customers

i. Before pandemic, customers are able to go
to the store anytime, with ease and in their
convenience.
ii. Prefer Starbucks - ambience and buying
experience.
iii. Cautious to leave home - stay at home
orders and breach of safety protocols.
2.a. Starbucks customers Problem/ Pain
Unsecured environment, slow

i. Third party platform delivery doesn’t
provide the same quality as ordered
in the store.
ii. Willing to pay premium on delivery but
concerned with health safety
protocols of third-party delivery
platforms.
2.b. Starbucks customers Problem/ Pain
Unsecured environment, slow

1. Don’t buy, wait until pandemic is
controlled.
2. With more time at home, customers
create own drink.
3.a. Starbucks customers Present Choices
Buy products online or at
physical store

3. Buy at physical store and go
through safety protocols.
4. Buy Starbucks products online
and have it delivered.
3.b. Starbucks customers Present Choices
Buy products online or at
physical store

Can physically get their orders. Safe and have
the same quality as ordering it in the store.
Drive-thru - Not worry about social
distancing and safety protocols.
Using the Starbucks app, can still experience
quick service.
4 Proposal USP (Unique Selling Proposition)
Starbucks offers online app, drive thru
and Pick-up/ Grab-and-go for safe, fast
and same as in-store quality products
just like before the pandemic.

5A Plot: Competitive Positioning Map: 2x2
Starbucks provides safe, fast
delivery and the same as in-
store quality of products

5B Plot: Competitive Positioning Map: Benefits
Benefit: online app, drive thru and
Pick-up/ Grab-and-go provides safe,
fast and same as in-store quality
products.

6 Potential and Primary Market Size
Starbucks Philippines
demand = P24.540
Billions per month
Reference: https://cnnphilippines.com/news/2020/4/25/explainer-who-are-the-Filipino-middle-class.html
Target Market = Middle Middle-Income
Class to Rich Income Class
# of Persons = 16,360,000
Average amount spent per month on
Starbucks per person = P1,500 per
month
Monthly market size = P 24.540 Billions
Target market share = 55%
Target Company Sales monthly =
55% x P 24.540 Billions
= P 13.497 Billions

The following are the main categories of
Starbucks products:
• Coffee
• Tea
• Baked goods
• Frappuccino
• Smoothies
• Other foods and beverages
• Merchandise (mugs, instant coffee, etc.)
7 Product Strategy
Not just limited to coffee but the
superlative coffee experience

7 Product Strategy

Starbucks’ marketing and branding strategies
work to justify the premium prices they charge.
Their brand strategy contains two main focal
points:
1. Customer Experience
2. Quality
8 Price Strategy
Premium Pricing Strategy

Starbucks Customer Experience is all about:
1. People – the baristas and their connection
with customers
2. Place – the physical stores, their design and
aroma
3. Product – the beverages, food, and
merchandise
8 Price Strategy

By offering a unique, consistent “Starbucks
experience”, Starbucks has managed to boost
the perceived value of its brand. Therefore,
customers are willing to pay more for a cup of
Starbucks coffee.
8 Price Strategy

Starbucks provides great product quality as well
as superb customer service and so its
customers do not mind paying a bit higher
prices.
8 Price Strategy

Sample Product Price Comparison
8 Price Strategy
Product
(Large Size)
Starbucks Tim Hortons CBTL*
Cappuccino ₱170 ₱145 ₱150
Café Mocha ₱185 ₱150 ₱180
Café
Americano
₱160 ₱135 ₱150
Brewed
Green Tea
₱135 ₱115 ₱120
Hot
Chocolate
₱180 ₱145 ₱160
Average of 15% more expensive than its competitors
*CBTL - The Coffee Bean & Tea Leaf Product
Price Reference: Zomato.com

Coffeehouses/Cafés (Dine-In and Take-Out)
Retailers (Ex. S&R and Landers)
Drive-Thru stores
Online delivery via GrabFood
Online Shopping Platforms (Ex. Shopee &
Lazada)
9 Place Strategy
Starbucks products are
everywhere

9 Place Strategy
everywhere
Starbucks New Normal (Pick-up Orders)

9 Place Strategy
everywhere
Starbucks PowerPlant Mall, Makati City

9 Place Strategy
everywhere
Starbucks S Maison, Pasay City

9 Place Strategy
everywhere
Starbucks with Drive Thru, Capital Commons, Pasig City

9 Place Strategy
everywhere
Starbucks Frappuccino – S&R

9 Place Strategy
everywhere
Starbucks Products in Shopee

9 Place Strategy
everywhere
Starbucks Online delivery
via GrabFood

Starbucks Card
Facebook page
Twitter
Instagram
YouTube
Starbucks Website
GrabFood
10 Promo Strategy
Starbucks communicates via

10 Promo Strategy
Starbucks communicates via

• Starbucks sells premium coffee and other
products in high quality.
• It also provides excellent customer service
that makes customers come back many
times regardless of its premium price in its
products.
11 Primary Generic Winning Strategy
Product Differentiation

1. High income, environment-caring
and cautious Starbucks customers
2. Unsecured environment, slow
3. Buy products online or at physical
store
Summary: Starbucks
The Third Place

4. Starbucks offers online app, drive
thru and Pick-up/ Grab-and-go
for safe, fast delivery and same as in-
store quality products just like before
the pandemic.
5. Starbucks provides safe, fast
delivery and the same as in-store
quality of products
Summary: Starbucks
The Third Place

Summary: Starbucks
The Third Place
6. Market size for Starbucks Philippines
is P24.540 Billions per month
7. Products: Not just limited to coffee
but the superlative coffee experience
8. Price: Uses Premium Pricing
Strategy. Average of 15% more
expensive than its competitors

Summary: Starbucks
The Third Place
9. Place: Has Physical Stores. Uses
Online Delivery & Shopping
Platforms
10.Promo: Via websites and social media
11.Product Differentiation strategy focusing
on High income, environment-
caring and cautious customers

Starbucks: The Third Place amid the Pandemic

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