Dina Lu's Blog

Emily’s blog post caught my eye because I don’t think I would ever want to pay $4 for a milkshake…

I then realized that her blog post was about Starbucks, an ever-successful coffee company that has essentially dominated the coffee industry. The “milkshake” is a Frappuccino, a delicious drink that I buy often on scorching summer days to refresh myself. I take back what I said in the first sentence.

How does Starbucks thrive within the coffee industry? This picture in Emily’s post sums it up well:

The value proposition that Starbucks offers to its customers is that its customers belong to a community; it is a “home away from home” (Starbucks psychology, ABC News). For instance, Starbucks has created its own language for coffee drinks and cup sizes. A Frappuccino is a milkshake, a tall is a size small. The first few times I ordered drinks from Starbucks were interesting as I was not aware of the special terms used. I would say medium and have the barista correct me that it was a grande. No wonder Starbucks has made its way to the top. Customers buy the experience of being part of a tight-knit community.