The Case of Starbucks - C3

THE CASE OF STARBUCKS:
Starbucks is a popular hangout for Gen X and yuppies. Despite selling coffee
and other baked products at a higher price than regular food stores, they were able to
generate awareness and patronage thru word of mouth and publicity instead of relying
on media advertising.
In 2014, Coffee Project was tested in the Philippines tested then an innovative
neighborhood coffee house that sells coffee together with organic pastries, gourmet
cheese and meat plates. This was an attempt to capture the upscale market by offering
with cheaper lattes and Frappuccino’s that are now facing competition with Mc Donald’s
McCafé. Both stores are in Makati and Manila area which is the headquarters of most
Starbucks branches. Jollibee is on the expansion strategy for Coffee Bea
QUESTIONS:
1. The Brand Starbucks has been associated for coffee and cozy ambience and a
market leader for the longest time, now that newer coffee bar are entering the
market, what will be you immediate action considering that some of your customers
are trying to shift to other brands which duplicates their strategy.
As a result, one of the action plans that can be implemented immediately is to
increase the number of rewards Starbucks offers to its customers. The number of
reward categories should be increased by the company. Because most customers
perceive it as a high-end coffee shop, this would help to increase its market presence.
However, Starbucks can do more for their customers so that continuous positive
word of mouth and publicity are being done by their customers. Other initiatives that
Starbucks can consider as well are becoming more involved with green initiatives and
engaging more to community-focused activities. The company needs to increase its
participation in the green initiative to be more effective. To demonstrate that it is
preventing soil pollution, the company must use recyclable cups and continue to source
coffee from suppliers who do not use fertilizers in their coffee production.
In addition, the company needs to raise awareness of the work it does to benefit the
local communities, which is currently lacking. The company should sponsor more
community events and educate the needy in poor countries as part of its initiative to
give back to society, as well as sponsor more community events. When compared to
the other companies in the market, this would make it more competitive.
2. How can you protect and maintain your brand leadership from aggressive strategy
done by your newer current “Me too” competitors who duplicates the success of your
brand?
To sustain Starbucks' position as a market leader, the brand must do a variety of
things to safeguard its place. Starbucks is a superb example of a well-known brand
worldwide. Thus, to protect its position from newer competitors, it should avoid changes
that counters devalue the brand's image and maintain the quality and value they offer,
and meticulously put its advertisements across multiple platforms to ensure that its
products are available to its end customers. Starbucks may create a campaign that
would entice a wider market, accommodating and integrating multiple cultures and
employ influencers that are established to be popular or wealthy persons, implying
superiority. Because Starbucks is a high-end brand, many people are attracted by it,
which is why when people can finally afford to purchase one, they will want to buy
anything that will offer them a sense of belonging in the privileged class, such as
Starbucks. The brand should not feel obligated to change but should maintain its loyalty
to its values since branding success requires authenticity.
3. Looking back the success of Starbucks, what made Starbucks the brand they are
today?
Starbucks is a brand they are right now purely because of the quality and the service
they consistently provide to their customers. Starbucks created a unique strategy that
made the customers loyal to them: getting customers' names to put on the cup,
Collecting Starbucks stickers for a planner, and Starbucks loyalty cards to gain more
points and rewards. Starbucks ’success came from the fact it delivered an encounter
that changed the way people think about coffee shops where they go just to buy coffee
and then leave, but Starbucks has made a place and different experiences where
people can relax, drink a cup of coffee, spend their time and enjoy the pleasant
ambiance.
Starbucks is more than just a coffee. It has established a brand that unites people
and brings like-minded people together to share the love of coffee. The company was
able to flourish as a brand and succeed because of this relationship. It is a culture that
can be understood and related to by individuals across the world. Even though the
company's logo has changed multiple times, its essential values remain the same: The
brand impact, which has developed over time, still contains the alluring feeling that
mesmerizes every coffee lover, not only with its beauty but also with its love for coffee.

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THE CASE OF STARBUCKS:

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