The Future of Starbcuks (according to me)

Starbucks rocks. Personally, I love it! I love their coffee, love the ambiance, and love their marketing strategy. Don't love their prices so much, but hey, it's worth it.

I think things won't be that easy for them anymore, though. With competition like McDonald's and Dunkin Dounts gaining strenght in the coffee department, Starbucks will have to think of new ways to attract and retain customers. They have to reevaluate their product line (some new, cool drinks would be interesting), their pricing strategy and where they will open new stores.

Starbucks has everything to keep on going, and to keep on being the strong brand they have been up until now. However, it may not be as crystal clear as it used to. Things could get more complex for them, but they should take this situation as an opportunity to be even better. To strengthen their brand even more and to become THE coffee everyone wants to drink. Right now, they have everything they need to achieve that, they just have to take careful steps and follow the right path. It could be a matter of becoming the best of the best and #1 in customer's minds or going down the drain pretty fast.

Starbucks still on the rocks

Starbucks has announced that it will launch its first ever TV advertising campaign to attract customers. You may be thinking: huh? Starbucks has to attract customers? Apparently so, since their sales were lower and their earnings guidance is something they have to watch over. Their cost of sales has risen and their operating margin has fallen 11.2%.

American customers are expected to buy less lattes and coffees due to an expected increase in dairy costs. Starbucks is preparing itself for harder times. Things will be different as they were in previous years, where no publicity was needed and the products basically sold themselves. Now, they must watch over their over their financial situation and take careful steps to avoid losses. They had intended to open 100 more stores than what they just announced they would. They will only be opening 2,500 new stores (only, right?).

Let's hope Starbucks has all the right strategic moves to continue in the game for many years to come. I personally love their coffee and it would be a shame for them to have to change their original concept to survive these harsh economic times.

Java in China!

Starbucks has officially begun to sell bottled coffee in China. As part of an alliance between this company and Pepsico, called the International Coffee Partnership, they have launched their ready-to drink Frapuccino drink in this country.

This seems like a pretty good move for Starbucks, considering the power that PepsiCo has all over the world, especially because of their agressive and successful distribution strategies. PepsiCo has said that China is their largest beverage market.

The bottled coffee drinks will be sold at convenience and grocery stores and other retail outlets in Shanghai, Beijing and Hong Kong.

PRETTY COOL!

Quick!! Think of new ideas for Starbucks!

It was reported that the share price for Starbucks dropped 23% at the end of September (which marks the end of the company's fiscal year). Analysts are saying that Starbucks needs some "brand buzz" to shed some light on their future.

Starbucks is a company that in the last years, has taken huge steps, becoming one of the world's most famous and also opening up to 7 stores each day!! With that level of growth, they were bound to start seeing the bottom of the hill at some point.

Some blame it on Starbuck's sky-high prices, others say that domestic expansion has slowed. Another factor that may have affected them are strong competitors such as Dunkin Donuts and McDonalds. Speaking of which, Micky D's is beginning to have the products and has always had the cash flow to compete with Starbucks and who knows? They may even take the coffee throne away from them. Hmm sounds interesting to me...

Starbucks

Starbucks is a global company, with operations in 37 countries the world.

I chose this company because it is one that has grown at the speed of light, and because it is one of the most highly respected enterprises in the world. The image of this company is a very important one, and they have been intelligent enough to grow in a manner that has made them even more successful and attractive as time passes by.

I visited their webpage, checked out their mission statement, and noticed that they also have an environmental mission statement, which could be a very important part of their strategy, not only are they hip and successful, they are also tree-huggers!

Starbucks basically buys and roasts high quality beans wich they make into Italian style espresso beverages. They also sell sandwiches, pastries, coffee equipment, whole bean coffee, etc. Starbucks sell some of their products through specialty stores and supermarkets.

Their objective is to establish the company as the most recognized and respected brand in the world, and, in my opinion, they are getting there. People who consume Starbucks products and visit the coffeehouses buy a brand more than a product. They have managed to carry out their strategy in a way that they have become a part of a lifestyle, an atmosphere and also a product. I believe that Starbucks is one of the strongest brands in the world and they are one of the few that represent not just a good, but a whole experience.