Starbucks Case Analysis

Introduction:

Starbucks is one of the most recognizable brands in the world. It enjoys strong brand loyalty from its repeat customers. It is leading retailer of specialty coffee. It has more than 22000 stores in 67 countries all over the world. Starbucks differentiate itself from other coffee shops by providing unique customer experience. It has very high standards of customer service, due to which it enjoys customer loyalty. Starbucks has been facing stagnant coffee sales and to overcome this, the company has decided to continue its global expansion. Starbucks has been looking to expand its product mix. To achieve this Starbucks has come up with a new concept called Starbucks evenings. As per the new program it will start serving wine,

Evening crowd in Starbucks would be very different from the morning one. It can become a place to hangout for people after work during weekday. Some customer would prefer enjoying a glass of wine in nice and cozy Starbucks atmosphere rather than going to a noisy bar.

SWOT Analysis:

Strengths:

• Loyal customer base. Starbucks enjoy a huge base of loyal customers and it can always introduce wine and beer to these customers. Not all may like the new addition but it can pull some customers to their evening menu

• Location: Starbucks enjoy a vast network of stores all across the United States. This provides greater customer reach

• Starbucks sells a great experience and not just coffee. This concept is evident in its stores where the décor is laid back and relaxing. Wine would be an added experience for its customers

• Brand recognition: It has a very strong brand name and introducing a new product is much easier, as the brand I name has already been established

Weakness:

• Starbucks is targeting mostly women for their evening program. As per a study 60% of their evening customer are women. This leaves men out of the picture. Also a lot of customers at Starbucks are underage, so the age restriction for alcohol might prove hard to apply in

It is not being promoted heavily, in order to avoid brand dilution. The concept is being introduced in the stores and being promoted on social media. Even when it comes to layout of the new menu items, they are not displayed on the counters. The evening menu is kept in the background and visibility of these menu items is kept low. The whole idea behind the low key marketing of the new menu items is to introduce the new concept slowly and gradually. The company wants to follow the model of European café’s which serve alcohol. The concept si still new in the US market and Starbucks is introducing the concept gradually to test it before going for a full blown