Day in, day out, I see countless Starbucks cups in the hands of university students, parents and even children. Starbucks is continuing to grow within the beverage industry with their new innovative ideas while Pepsi and Coca-Cola’s sales are decreasing.

At one point, roughly twenty years ago, people would drink diet coke or pepsi like they drink coffee now. They’d wake up, drink a can, go to work and drink another during break like a daily routine. Nowadays, people consume beverages from Starbucks in place of pepsi and cola causing sales of those products to decease.

So why is it that Starbucks’ Frappuccino, a drink more expensive and with more calories than a can of coke, is higher in demand than coke?  Well, it is believed that Starbucks’ marketing for their products attracts consumers in such a way that they believe there is a purpose in drinking an additional cup of coffee. Starbucks is an excellent company as they are well aware of “consumer perceptions” therefore they “carefully balance their menu with both gourmet, coffee snob approved beverages and sweet sugary options to appease all customers.” As a result, they have a good reputation among their customers.

Further more, in the beverage industry, people don’t always drink to stay healthy, their choices and demands are based off the drink’s function and purpose. Brands in this industry that have succeeded within the past few decades all have one thing in common – a purpose with a solution, which are both often related to health. In addition, third parties such as the government has been advertising coke and energy drinks in such a way that discourages people from consuming too many units of it which may have also led people to drink more coffee.

Within the past twenty years or so, Starbucks has expanded tremendously, and is still continuing to grow with their never ending ideas. It’s because of Starbucks’ strong understanding of the demand of consumers as well as their strategic marketing that has allowed them to thrive in this industry. Another reason that Starbucks has been able to thrive in this environment is because of how they manage to keep up with technology. By introducing a Starbucks app, it’s made it extremely convenient for people to pay and order drinks, furthermore, their rewards program also acts as an incentive for people to continue buying.

Starbucks has something for everyone and I believe that at the end of the day, it’s their smart marketing, branding and knowledge of consumer’s interest that has allowed them to thrive.

Reference: http://www.businessinsider.com/starbucks-takes-down-coca-cola-and-pepsi-2016-6