Starbucks Case Study

1452 Words6 Pages
Starbucks Case Study 1
MKTG 220
September 18th, 2012

Table of Contents

Case Review3
Determining the Root Problem4
Identifying the Problem Components4-5
Generating Alternatives5
Evaluating Alternatives6
Choose an Alternative7
Implementation Plan7
Alternative Choice8
Work Cited9

Case Review

Starbucks is one of the leading coffee retailers in the world; according to their company profile they are operating nearly 18,000 retail stores in 60 countries. They serve millions of customers daily; our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (STARBUCKS COFFEE COMPANY, 2012) Starbucks has become much more than just a place to get coffee, it has become a brand.
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Generating Alternatives 1. Close all failing locations in Europe 2. Re-position Starbucks in Europe to echo smaller boutique café’s 3. Take price increases in successful markets to offset ailing business in Europe 4. New staff trainings to stress the importance of being personable and emotional connectivity to improve customer service. 5. Continue renovating European retail stores to give a new smaller feel instead of a corporate branded giant carry out coffee shop. 6. Run strong holiday incentives and discounts to entice new customers 7. Invest heavily in different forms of media advertisements Evaluating Alternatives 1. Close all failing locations will not work because Starbucks has invested too much money in the last 10 years to establish a market presence. 2. Re-position Starbucks in Europe to echo smaller boutique café’s is definitely an option but will require a significant investment. 3. Take price increases in other markets might damage the overall price strategy and result in a loss of market share. 4. New staff trainings to stress the importance of being personable and a renewed focus on emotional connectivity to improve customer service will be part of the improvement plan. 5. Continue renovating European retail stores to give a new smaller feel, this will still require a significant investment but less

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