Question

1. Define Starbucks’ niche in the coffeehouse marketplace, both in its early days and today
2. Discuss the factors that caused Starbucks' sales to stumble in the mid-to-late 2000s. If you were the CEO at the time, how would you have reversed this trend?
3. What comes next for Starbucks? What new marketing strategies might the company develop to remain relevant?

Answer 1

Starbucks's niche at the coffeehouse market place has been established to make its costomers happy and satisfied.

The focus is on building a company of ethics and moving on a right trackin a right waymaking an enviornment where costomer comes first and social responsibility and consciousness along with profitability are merged to make the strength of buisness.

The most important factor that led to the decline in sales and goodwill in mid 2000s is the growth of locations inorganically.it led to fall in name and loss of competitive advantage which resulted in losses as growth at mass scale and as a mass brand ,killed the advantage of a premium price .

the company adopted practices which were conrary to its own core competencies and basic ethics.

another factor responsible for decling sales is theeconomic recession as because of expansion in previous years of its stores . to overcome this loss starbucks tried to reconnect with its costomers through social media.

The marketing strategies that can be followed to be more relevant competent and a well equipped brand can be as follows :

-More emphasiz on costomer awareness and involvement with the brand through orientation prograames.

-To create and portray a more ethical and morally elevated brand.

-To foster quality costomer service.

-To categorise on the basis of quality

-To develop and follow more of unconventional techniques of marketing.

-To focus on high brand equity.