Disruptive Brand Plan
Starbucks™ is a world-renowned brand that offers customers a wide variety of coffee drinks and desserts in a cozy atmosphere. The brand’s branches (coffee shops) are often used not only for coffee but also as workspaces. Starbucks has long been a symbol of modern coffee culture, uniting coffee lovers from all over the world, as the brand’s coffee shops are open in many countries. However, the relevance and innovation of Starbucks are declining rapidly, and many consumers are opting for other brands that offer drinks at lower prices or that cater to the consumer’s added value.
One only needs to turn to actual customer reviews to determine what shortcomings are noticeable about Starbucks. For example, customers write, “Asked for no foam. 1/3 of my grande cup was foam. Will go to another coffee place…” or “I’ve tried Starbucks…. It tastes AWFUL…”, or “…today the lady who was working… as barista was unprofessional and doesn’t have customer value…” (CA, 2024).
It is worth noting that Starbucks has a large number of positive reviews, but the brand value is currently declining, as evidenced by numerous reviews and analytics data (Fabino, 2023; Limmer, 2023). Since Starbucks can be seen as a service company, it is recommended that it take reactive measures in order to increase marketing value and create a more positive brand perception. Specifically, it is suggested that Starbucks adopt innovative technologies to increase audience loyalty and create opportunities for quality sales growth and brand positioning in the market.
Marketing Mix
Product
Starbucks offers a wide range of products that consumers like, but the very image of those products should be transformed. Firstly, there should be a continuous introduction of innovative drinks and desserts made with high-quality ingredients, including seasonal menus. Seasonal food and beverages timed to coincide with a particular holiday are known to increase sales and create increased customer loyalty (Rajawat et al., 2020). Secondly, a significant expansion of product offerings is recommended to cater to customers’ diverse taste preferences, including caffeine-free, vegan, and gluten-free options for classic beverages. An essential product aspect is improving service quality, including training staff in beverage preparation and enhancing customer communication skills, as this has been identified as Starbucks’ weak point.
Price
A price reduction can hardly be called a competent or prioritized strategy for Starbucks. On average, for example, the cost of a cappuccino at Starbucks does not exceed $5 for the most significant volume (It’s Yummi, 2024; Shishkina, 2023). This is a low cost, and given the large number of beverages and variations offered, it creates a brand foundation that does not require change. However, pricing in the marketing mix can be transformed. First, it is well known that promotions and special offers to attract customers, including discounts on popular products or loyalty programs, contribute to quality sales growth (Mostafa & Kasamani, 2021). Second, it is acceptable to offer a variety of pricing options, including affordable drinks for students or promotional offers for regular customers, without using discount cards to emphasize customer appreciation.
Distribution (Place)
This is one of the most critical aspects of the marketing mix to emphasize. At the moment, Starbucks drinks and desserts can be purchased both in physical coffee shops and through a delivery app, creating a positive opportunity to increase availability. However, new store formats are recommended, including convenience coffee shops with work and meeting options, as well as coffee shops at checkout or major transportation hubs, to increase accessibility for drivers. An important direction is to expand the store network into new geographic regions, enter new markets, and increase the audience in absolute terms.
Promotion / Communications
To date, the brand has an active presence across multiple product areas, including social media, streaming services, and billboard advertising. It is recommended that Starbucks continue utilizing several practical promotional strategies to gain new audiences. On the one hand, digital marketing strategies such as social media and email newsletters can be used to inform customers about new products, promotions, or events. This will erase the line between offline coffee shops and the brand’s virtual presence and, therefore, create a closer, omnichannel connection between consumer and producer (Frasquet-Deltoro et al., 2021).
On the other hand, it is acceptable to organize events and activities that would attract public attention to increase brand awareness. This can include author programs as well as participation in charitable foundations. In addition, collaborating with influential personalities and celebrities to promote Starbucks products and strengthen the brand image carries much weight. If such celebrities are popular among specific audiences (for instance, teenagers), it can be a positive predictor of attracting teenagers to coffee shops.
Target Market
The brand’s current target market comprises several customer segments, including coffee drinkers, customers who appreciate the establishment’s cozy atmosphere, people who use Starbucks coffee shops as places to work, and brand fans. The large number of segments creates positive signals for Starbucks as it allows it to build up its audience and target each segment. However, the proposed changes, including events and promotions, increased innovation and employee training, further increasing the range of audiences. Thus, after implementing the proposed changes, an influx of young consumers interested in innovation and new products, conscious customers for whom vegan and natural options are essential, and price-sensitive consumers looking for discounts and promotions is expected. In addition, due to geographic and digital expansion, one can expect to see quantitative growth in customers who seek fast service.
References
CA. (2024). Starbucks reviews. Consumer Affairs.
Fabino, A. (2023). Starbucks loses $11 billion in value amid boycotts. News Week.
Frasquet-Deltoro, M., Molla-Descals, A., & Miquel-Romero, M. J. (2021). Omnichannel retailer brand experience: Conceptualisation and proposal of a comprehensive scale. Journal of Brand Management, 28, 388-401.
It’s Yummi. (2024). Starbucks menu with prices.
Limmer, D. (2023). Why is Starbucks on the decline, and can the situation be turned around? Retail Wire.
Mostafa, R. B., & Kasamani, T. (2021). Brand experience and brand loyalty: Is it a matter of emotions? Asia Pacific Journal of Marketing and Logistics, 33(4), 1033-1051.
Rajawat, A., Kee, D. M. H., Malik, M. Z. B. A., Yassin, M. A. Q. B. M., Shaffie, M. S. I. B. A., Fuaat, M. H. B., & Santoso, M. E. J. (2020). Factors: Responsible for McDonald’s performance. Journal of the Community Development in Asia, 3(2), 11-17.
Shishkina, A. (2023). Starbucks menu prices: How much does a cup of coffee cost? LinkedIn.