July 26, 2012 Mr. Howard Schultz C.E.O. Starbucks Coffee Company 2401 Utah Avenue South Seattle, WA 98134 RE: Starbucks Marketing Changes Proposal Dear Howard: Currently, Starbucks is experiencing some serious difficulties in terms of executing its major strategies. Unfortunately, as we continue to push towards greater and greater expansion, it is clear that we are loosing some of our core customers. Many are becoming disillusioned with the idea of an overly corporate and diluted image of the brand they once held great devotion to. After reviewing the environment in correlation to recent and current strategies, it is clear that Starbucks has to make some decisive changes in order not to loose this consumer group entirely as we continue to push forward with out expansion strategies. Based on my findings I am recommending the following: Increased unbranding of certain Starbucks locations Active community involvement that engages the consumer more on a local level Expansion that acknowledges and embraces local flavors I have included details in the following proposal. I look forward to discussing the recommendations in greater length when you have the time. Thank you, YOUR NAME/ TITLE Executive Summary The situation today is continuing to get more and more challenging. Many of the core customers Starbucks relied on so much as it was growing are now becoming more and more cynical with the brand image and reputation. To these local coffee shop goers, the
Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks
* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.
Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry. Starbucks success reside in many factors : the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication
Starbucks started its growth in the early 1990s, with a game plan for Atmosphere, Quality Coffee, Customer Service, and Partner (employee) Satisfaction. Customers find the stores Welcoming and friendly for a great place to meet friends for a great cup of coffee or a local place for a great cup of coffee and a good book. Starbucks worked with coffee growers to offer a consistent brew and enforcing standards that have become the industry’s norms. Starbucks have put a lot into their training program to ensure properly trained employees to provide that consistent cup of coffee as well as improve employee retention. Starbucks believed in happy employees would promote a better experience for the customer. Since the 90s Starbucks have followed their 3 step plan. 1. Atmosphere: Every time you walk into a Starbucks, you know you will be greeted with a smile and a friendly attitude. 2. Continuity of Brand and Product: Every Starbucks has a similar feel, and your drink order will taste the same whether you are in New York or Spain. 3. Employee Satisfaction and Training: The training of the staff, in both how to be personable with customers and knowledge of the product offering
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
I can see an up in the personal experience for customers. Social connection is key to staff interaction with customers as these services to products and merchandise just adds to the Starbucks experience. Now changing things in the structure of selling coffee is what Starbucks does best. The easy going stages of the processes are streamlined. Culturally they are very good at fitting in to provide employees with training that allows not only greater knowledge, but a chance to be a part of not just a company, but a family of teams that work very close together. The only thought that if I could influence the change would be that some of the locations selected are very hard to get access to, and cause traffic issues. Over-all Starbucks has a strong leadership team and is very focused on keeping the flow of coffee going for years to come.
Starbucks is striving to build a better company by expanding our focus in three areas that can have a significant impact. These areas include working with farmers to develop a future, bringing green retail to a global scale, and building opportunities for the younger generation.
Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are
This assignment is based on the Starbucks case study; Trouble Brews at Starbucks written by Lauranne Buchanan and Carolyn Simmons (2009). The aim of this paper will be to discuss the the changing consumer experience, competitive landscape and external circumstances affecting marketing opportunities for Starbucks, while determining how Howard Schultz can provide Starbuck’s customers a greater long-term value.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.
Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability.
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Since its foundation in 1971, Starbucks has been working uncompromisingly to achieve the company objective of becoming the world's leading coffee brand. Having gone through various stages of growing pain, today the Company is operating with over 10,000 stores in 37 countries. Starbucks' success was mostly a direct result of its aggressive expansion plan, that consequently turned the Starbucks coffee beverages into a most familiar and popular world-leading brand. Although Starbucks has been successful over the past 34 years, there are some potential drawbacks as identified on this Marketing Audit that might warrant some careful
Once Howard Schultz led the Starbucks and became the CEO of it, the organization was changed and re-designed to be among the best brands in the US market. He finds himself able to oversee and save the organization from its troublesome position into aggressive coffee around US. To achieve this success, it’s not one day work, it’s need hard work and with a specific end goal to finish such huge pivot. Mr. Howard Schultz believed that all issues and difficulties need a supportable solution in order to handle those challenges ahead of Starbucks. Based on the realities that happened in the case study following are some of the significant efforts that Mr. Howard Schultz did which made a huge change in the entire organization.