What should starbucks do next

In addition to competitive market factors, worldwide external shocks like the global recession have also severely impacted businesses at both local and global level. The key question that emerges is that whether there is now a continual need for brands to adapt or face the threat of extinction if they practice consistency.

Founded in in the city of Seattle, USA, the brand has changed the way the world drinks coffee outside home and work. Starbucks has been responsible for creating the concept of a third place between home and work where people can relax, enjoy a cup of coffee and experience the inviting ambience. It is often said that Starbucks taught America how to drink coffee and is now continuously teaching the world. The global expansion of Starbucks has been rapid and strategic.

It opened its first international store in Tokyo in , entered UK in and opened its first Latin American store in Mexico City in The footprint of the brand increased to cover Russia in and it opened its first store in Ho Chi Minh City, Vietnam in In February , it entered Brunei, the 15th market in the Asia Pacific Region and the 64th market globally for the company.

The company has more than 30, stores in 80 countries worldwide as of June , and is expected to maintain a strong growth momentum. Kevin Johnson served the company in its board of directors since and has been the COO of Starbucks since Since Kevin Johnson took over as CEO, the company has successfully executed on its strategic plans, including innovation in coffee, elevated food options and innovation in premium craft iced teas.

Since its founding days in the early s, Starbucks has strived to build its brand identity by offering customers a relaxing and enjoyable experience. From the very beginning, the experiential aspect of the brand has been consistently and effectively implemented in all its stores across the world.

In addition, Starbucks has also built its brand on things that tend to be out of the box, by consistently defying conventional wisdom. When companies were aggressively advertising, Starbucks decided not to advertise. When cost cutting was the dominant paradigm of the industry, Starbucks chose to emphasize non-routine procedures to create excitement among the baristas instead of streamlining procedures to minimize cost.

Unlike most other companies, Starbucks made its employees its partners, by offering them stock options and health insurance. Going against rigorous and complex customer surveys, Starbucks chose casual and informal chats with customers to capture overall mood, understand experience with the store and gather valuable feedback. It is not that Starbucks does not conduct quantitative market research. It has in fact successfully used research findings to shape its market entry strategies in many countries.

The key aspect to highlight here is the fact that the organisation does not have a rigid, compartmentalized view of understanding customers. These clever and innovative ways of understanding its customers has enabled Starbucks to build an iconic global brand that has resonated with customers across the world for almost 50 years now.

An interesting piece of research conducted in using neuroscience research techniques in Germany suggested that customers would be willing to pay more for a Starbucks coffee, if the brand decides to charge it. Because neuroscience research looks at changes in brain activity when exposed to brands and price points, the results were considered more believable than traditional market research.

The real-world evidence of this power in the mind for the brand is the popularity level it enjoys even though the pricing is higher than many of its competitors. Large numbers that once captivated me — 40, stores — are not what matter. One cup. One customer. One partner.

The company operates with a strong sense of attention towards details, and replicating a consistent customer experience across all its stores and its products is a critical focus area. This includes responsible purchasing practices, including supporting farmer loans and forest conservation programs; as well as creating opportunities through education, training and employment.

Starbucks also initiates many programs to reduce its environmental footprint through energy and water conservation, recycling and green construction. In its latest letter to shareholders, it has announced its aspiration to be resource positive — storing more carbon than the company emits, eliminating waste, and providing more clean freshwater than it uses.

It plans to do this through:. These are examples of consistency, attention to detail and a strong customer orientation in practice. Branding has been one of the pivotal elements of Starbucks strategy over many years. The company has invested significantly in creating a standardised look and feel of its stores, merchandise and food and drinks.

The Starbucks Siren logo is one of the most recognisable logos in the world. The global expansion strategy has a key objective of recreating the Starbucks experience in every new country the company enters. This essentially results in a similar kind of experience in its stores, whether it is located in New York, New Mexico, Moscow, Tokyo or Shanghai.

The brand strategy, as mentioned before, focuses in detail on the experience the store creates. In the United States, where the company estimates that majority of its stores will become drive through, it has embraced stunningly appealing design principles to create stores out of unused shipping containers. Interiors of stores are continuously spruced up through clever and artistically appealing ways of using definite materials, lighting arrangements etc.

In its international stores, the strategy is around localising some of the store elements but still staying true to the Starbucks experience. This logo is in use till date and is one of the most visual and recognisable elements of the company. The company operates a website called ideas.

The brand has a sizable social media and digital presence, which has received renewed focus in recent years. This has been driven by the need to better engage with customers and also be visible on platforms where target or future customers spend time online. In , Starbucks collaborated with Duracell Powermat to roll out wireless charging in its UK stores, thereby adding to the customer experience and bringing digital innovation into its stores.

Every time a new person walks into a Starbucks, the chain has the opportunity to create a loyal customer. That requires making people unfamiliar with the brand feel like they are part of the club. This isn't hard, but it's an area that the coffee chain has mostly ignored. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception.

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Personal Finance. Credit Cards. About Us. To share in the experience, please visit us in our stores or online at www. These statements include statements relating to: the estimated financial impact related to the COVID pandemic including the outlook, guidance and projections for revenues, earnings per share, comparable store sales, net new stores, and future year guidance; the nature and extent of the impact of COVID on our business, operations and financial results; the anticipated timing and effects of recovery of our business; our plans for streamlining our operations, including changes in store formats and models; our ability to continue steady business improvement and improve customer and partner experiences; and our ability to emerge from this global crisis and drive long-term growth.

These forward-looking statements do not represent historical data, are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: further spread of COVID; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID, including restrictions on business operations or social distancing requirements and the duration and efficacy of such restrictions; the potential for a resurgence of COVID infections; fluctuations in U.

The company assumes no obligation to update any of these forward-looking statements. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures.

Such items may include acquisitions, divestitures, restructuring and other items. Starbucks today announced a wave of investments for its partners, building on its year history and tradition of listening and learning, while investing its success back into its people. Well Positioned for Shifts in Consumer Behavior. Rollout of oatmilk nationwide in the U.