Starbucks' pricing strategy is carefully calculated and based on a combination of the target market, using a

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Starbucks' pricing strategy is carefully calculated and based on a combination of the target market, using a premium approach to branding. The strong brand identity drives sales, despite having higher priced products. Additionally, Starbucks' promotion strategy also drives awareness and sales around special events and holidays.
The Starbucks Menu
The menu at Starbucks is highly specialized and focused. The menu items are relevant to the pricing strategy, because the pricing strategy demonstrates how the company is able to price high while also achieving optimal margin. The menu is exactly the same at every single store, and the lack of variables means that Starbucks can source product in bulk to drive down the costs.
Starbucks also offers a nice selection of options, without overwhelming the customer. For example, food options are a fraction of the offerings at many other shops and they are pre-made and ready to heat. The company loses on that special touch that you might see at a local cafe, but Starbucks restaurants are extremely efficient.
Selling the Brand
The Starbucks branding is exceptional and it falls into a small group of stores that have locations spanning the globe. Starbucks has achieved its large scale branding via strategic store placements, as well as consistency in the menu and service.
Starbucks stores actually spend far less on advertising than do many other brands – and as one of the first major players in the coffee space – the brand association is organic. Although Starbucks uses a premium pricing strategy, it does so below the luxury threshold. Starbucks stores price in a way that brings greater returns without diminishing volume sales.
For example, a luxury coffee brand will sell organic imported coffee with an emphasis on exotic at a $7 cup price point, while Starbucks keeps its Grande standard coffee below the $5 threshold. Although many of its specialty drinks break over $5, maintaining a black coffee below that price point means that Starbucks stores are still priced high but that their prices are below an exorbitant price.
Although you can find similar coffee at a lower price point, you pay extra for the brand association and the comfort in knowing exactly what you will get for that price. The pricing strategy reflects the consistency and a willing marketplace. In fact, Starbucks has raised prices in the past, when the actual costs of coffee decreased. This shows that Starbucks has priced its offerings based on market demand and on brand association and not on the price of the raw coffee bean.
Starbucks Promotion Strategy
Starbucks does not rely solely on organic branding to drive business. The company is very promotion heavy and the strategy is a clear success. Starbucks uses holiday and seasonal promotions along with strategic marketing campaigns to build anticipation for time-limited beverages, such as the Pumpkin Spice Latte.
The seasonal promotion strategy enables the company to maintain its infrastructure and existing menu, while adding a twist that incorporates itself naturally into the offerings. Starbucks management already have the machines and the capabilities to make a latte and nothing additional outside of the seasonal pumpkin ingredient, which is required to complete the transaction.
This means that they avoid supply chain disruptions and have plenty of time to secure the seasonal raw materials that are added to regular shipments for each store. This style of promotional strategy can work with a number of different business niches. Essentially, you are bringing a temporary up-sell to the table, while marketing it ahead of the actual release.

Replicating the Strategy
Using the same pricing model for your own coffee shop is not necessarily the best option. If a Starbucks is located within a mile of your coffee shop – then differentiating your shop from that of a Starbucks – is a solid approach. Focus on being the local brand that supports the community, as your way to make a case for your shop. Consider pricing your offerings above or below Starbucks, based on the economic strength and volume potential in your specific geographic area.
Replicating the prices of a Starbucks restaurant has no benefit, but the Starbucks business strategy has few downsides, if the market can support your business alongside that of a Starbucks.

1. Which global pricing strategy is used by Starbucks? Explain.

2. Is Starbucks affected or adapting to the environmental influences? Justify your answer. *

3. During the current situation in Lebanon(Economic Crisis due to currency rate rising/Lebanese Protest(google to find out more)/Corona pandemic lockdown), what do you think are the environmental influences that Starbucks and other brands are being confronted with?

4. What do you propose as a strategy to face these environments?