Thursday
Mar202008
Retail Strategy - The Starbucks Way
Thursday, March 20, 2008 at 2:39PM
The new retail strategy (2008+) for Starbucks comprises the following 6 initiatives:
1 | New Espresso Machines
Product development & technology upgrades
2 | Ethically-Sourced Coffees
Societal marketing & responsiveness to key target markets
3 | A Social Media Strategy
Innovation and adoption of new communications/ engagement platforms.
(See this post about 100% free loyalty program)
4 | A Customer Rewards Program
Great customer service: The clever bit about is that it isn't about 1 free coffee in 10 visits or something stupid like that; it is free milk types/ syrups with ANY drink, and it is for REGISTERED members only.
5 | Improved Brewed Coffee
Continuous product improvement
6 | Acquisition of the Clover Brewing machine
Buying out a key supplier & some vertical integration.
Your homework:
Compare your strategy to that of a former benchmark company that is responding to changing markets.
1 | New Espresso Machines
Product development & technology upgrades
2 | Ethically-Sourced Coffees
Societal marketing & responsiveness to key target markets
3 | A Social Media Strategy
Innovation and adoption of new communications/ engagement platforms.
(See this post about 100% free loyalty program)
4 | A Customer Rewards Program
Great customer service: The clever bit about is that it isn't about 1 free coffee in 10 visits or something stupid like that; it is free milk types/ syrups with ANY drink, and it is for REGISTERED members only.
5 | Improved Brewed Coffee
Continuous product improvement
6 | Acquisition of the Clover Brewing machine
Buying out a key supplier & some vertical integration.
Your homework:
Compare your strategy to that of a former benchmark company that is responding to changing markets.
Reader Comments (2)
i m a retail mgt student & i want to know the retail strategy of starbucks.
Ashok - big question!
My view: I don't think Starbucks knows.
They are trying to go faster (instant coffee is introduced) - but they say they want to re-capture their old 'vibe' as they feel they have strayed from the brand. Not sure how these marry up?
They are also cutting costs by closing stores.
Not much of a strategy I am afraid