Starbucks is a transnational coffeehouse chain situated in Seattle, Washington. The corporate has since been recognized for its quality beverage products and customer focus. Additionally, it offers an extensive collection of beverage products comprising coffee and tea. Starbucks does not only provide quality coffee but also establishes an environment convenient for all its customers (Kumar 2016, p. 6).The company prioritizes all its stakeholders, including its work personnel, consumers, and partners.
Figure 1 A Starbucks product
Figure 2A Starbucks product
Starbucks recently encountered damage to its repute when its employee was involved in a racial incident that sparked an upheaval within social media sites. This has impaired its repute and led to a decrease in the number of customers. As a result, there is a need for the firm to develop new strategies and measures that will help it gain confidence amongst the prospective consumers , and boost its number of sales.
Figure 3A Starbucks Store in Seattle
Figure 4 Workers at a Starbucks store
Communication weaknesses – the company’s communication strategies are weak .Consumers require to receive immediate feedback and to be constantly engaged.
After extensive research, the circumstances affecting Starbucks Company appear to include:
The attitudes of consumers towards Starbucks shifted from one of convenience and comfort to that which does not enjoy the social aspect of the coffee stores. Consumer relationship and quality were negatively affected after the incident, and the company’s reputation was damaged. Moreover, it lost approximately US$16 million in sales as a result of the incident (Novy-Williams, 2018).In comparison with leading competitors; Starbucks is performing strongly in the following areas:
Some of the weaknesses of Starbucks Company seem to be:
The benefits will constitute an increased customer loyalty, a gradual change of individuals’ perspectives regarding the company, and increased acceptance. It will also ensure that it constantly updates its website by including positive messages about itself.
More consumers will want to be associated with this recognized brand. The company will receive a consistent flow of clientele, even when a particular crisis is involved.
The target audience will comprise the consumers, the media, and the entire industry. The Chinese are increasingly appreciating Starbucks products. Since Chinese consumers like to converge in groups, their stores have been designed to accommodate multiple individuals. The Japanese customers have integrated a different approach whereby their coffee stores utilize traditional architectural designs that provide smaller servings and less sweet products than those served in American stores (How Starbucks Adapts to Other Cultures, 2019) . As for the French consumers, there initial speculation was that the company served low-quality premium products. Hence, Starbucks opted to combine the Viennese coffee and a variety of continental items such as red fruitcake that are considered delicacies in the area, in order to attract more French customers.
The company’s target audience will include both men nad women aged between 25 to 40 who are hip, contemporary and wiling to use an amount of money on drinks, more so coffee. In Kazakhstan for example, the company’s largest target market are people of both medium and high income level. The target population visits the stores for either catching up with friends or for business meetings.
Target media will constitute the utilization of messages and social networks. Social media will attract most young individuals. There will be the use of bloggers and social media influencers, who will pass on messages regarding the advantages of visiting the Starbucks stores. The need for the influencers is attributed on the high following and influence they command on the platforms.
First, Starbucks Company should begin by convincing its customers that it is working on managing its reputation. It should then randomly select a few of its customers, and conduct a survey on how it can incorporate particular improvisations to address the situation (Alverez, 2020). So far, platforms, including Twitter, have facilitated the success of the company as they have enabled information-sharing and action-inducing content (Taecharungroj 2017p.552). It should post positive messages demonstrating its accomplishments and how it participates in community development.
|Reward loyal customers||· Develop a loyalty card scheme
· Provide discounts for loyal consumers
· Invite loyal customers to try out new company products.
· Offer purchases and free items to loyal customers.
· Provide preferential service terms to loyal consumers.
|Customers||Request customer feedback||Update the website||Reward loyal consumers|
|Media||Have social events||Tradeshow planning and implementation||TV sponsorship|
PR agency costs
|Purchase of marketing equipment||$15,000|
|Tradeshow planning and implementation||$12,000|
The costs have been acquired from past company openings and the amount of charges that are likely to be incurred.
Increase the number of customers by 15% between 2020 and 2022.
Receive positive feedback from customers and industry media outlets.
Expand the company to new regions with diverse populations.
Alverez, C., 2020. How to Restore A Business After It Has Gained A Bad Reputation. [Online] Available at: <https://channels.theinnovationenterprise.com/articles/how-to-restore-a- business-after-a-bad-reputation> [Accessed 19 June 2020
Kumar, K., 2016. An Analysis on Brand Loyalty: A Case Study on Starbucks.
Novy-Williams, E., 2018. [Online] Available at: <https://www.bnnbloomberg.ca/starbucks-lost- us-16m-in-sales-due-to-racist-incident-1.1085051> [Accessed 17 June 2020].
Sholihah, P.I., Ali, M., Ahmed, K. and Prabandari, S.P., 2016. The Strategy of Starbucks and its Effectiveness on its Operations in China, a SWOT Analysis. Asian Journal of Business and Management (ISSN: 2321–2802) Volume.
Taecharungroj, V., 2017. Starbucks’ marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), pp.552-571.