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!