Starbucks mocha VS Old town white coffee mocha
Starbucks Mocha Old town white coffee Mocha
They’ll ask your name and write on the cup. Difference in services They won’t do it.
High
(International enterprise) Popularity Low
(Local coffee chains-Malaysia, Singapore, and Indonesia)
High Input Price Low
Inelastic Elasticity of Demand Elastic
Better
(provide internet access) Environment Good
(some outlet didn’t provide internet access)
STARBUCKS:
Demand for Starbucks coffee is inelastic enough that the company can pass on higher costs to its customers.
Starbucks is universally known as a premium brand that has always been known for its above-average prices.
Since agricultural prices-Arabica beans have skyrocketed in just the past few months. This has significantly increased input costs, which Starbucks should pass on to customers to protect its margins.
Food price inflation- Milk prices are up 27% this year, and coffee prices are rising by about 25%.(Food cost /input price increased)
Starbucks mocha is notorious for satisfying customers with its rich, delicious taste and aroma even sell at a higher price than Old Town White Coffee Mocha.
Starbucks always focused on ‘word-of-mouth’ advertising and letting the high quality of their products and services speak for themselves.
Starbucks has been able to accomplish with its pricing strategy focus on profit, not on sale and low pricing would erode the perception of quality.
Starbucks represents an attractive combination of price features, high quality, good service and other attributes customers find attractive.
Starbucks will give discount price for the regular customers, this can make more people to attract going in Starbucks.
Even though Starbucks more expensive than Old Town but still have many peoples willing to pay the premium price for the Starbucks’s coffee. Starbucks more famous than Old Town, can be compare with the brand. Then, Starbucks provide internet access and better...