Customer analysis: Positioning & Value Proposition

This article presents the second part of the STPV -framework, positioning and value proposition. First we look at how Starbucks should be positioned in Finland considering all that we've learned about the Finnish market and our customer segments. Then the exact value provided is discussed in detail.

Positioning

According to our analysis, Starbucks should take the same approach in Finland as it has in the other parts of Europe and Scandinavia. Instead of competing with price, it should provide customers with more value than competitors. The exact components of the value proposition are discussed in the next section.





Value proposition

What justifies the higher prices in Starbucks? Why should Finnish consumers be ready to pay extra for a cup of café latte? The basic value proposition of Starbucks can be divided into three components

1. Great coffee: Brewed from only the best quality coffee beans, Starbucks maintain high quality standards in every single cup. You're able to change the cup every time you are not happy with the results.
2. Customer intimacy: Keeping the service standards top notch sets Starbucks apart from many competitors. The staff tries to remember you name and provide you with the 'Starbucks experience' every time you come by. 
3. Athmosphere: Starbucks offers more than a high-priced cup of coffee. It provides an emotional experience: a retreat from a busy day, a place to meet and share with friends, a comfortable, daily destination. It’s welcoming and homey. That uplifting experience forms strong emotional connections, which in turn drives repeat business.

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