Can you name a company that could benefit from adopting Starbucks

A company that could benefit from adopting Starbucks' pricing strategy is a premium brand like Apple. Apple, like Starbucks, has a loyal customer base that values the quality and brand image over the price. By slightly increasing the prices of their products, Apple could further reinforce its premium brand image and increase its profit margins without significantly affecting the demand for its products.

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Instead of trying to compete with more affordable chains, such as Dunkin, Starbucks uses price hikes to distinct its brand from others and reinforce the premium perception of it. Considering Starbucks' most loyal customers are not price sensitive, Starbucks coffee drinks remain in demand and a slight increase in price actually has a huge positive impact on the company's margins without affecting the demand.

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Pricing Strategies

Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...

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