The slowing economy, along with overall slow sales because of increasing competition, has left Starbucks (Nasdaq:SBUX) struggling to find answers to its declining sales.
To combat that, they've decided to introduce a new flavor called Pike Place Roast, which they've been handing out free today to get people in the stores and try it.
Much of what Starbucks is doing it to draw back many of its former fans through reminding them of the roots of the company and their willingness to offer up again what made them so great in their customer's eyes in the first place.
Other strategies the company has recently offered are new expresso machines, hyped retraining of its baristas, and a new rewards program.
It seems the company is attempting to remind people they hear their dissatisfaction with them abandoning why they loved coming to Starbucks in the first place, and will do what it takes to earn their trust again.
The question seems to be if they waited too long to respond to customers' complaints and competitive pressures. They lost the strong positioning they had in people's minds when stretching things too far from their roots and losing their way. McDonalds (NYSE:MCD) and Dunkin' Donuts, among others, seized the moment, and it'll be difficult for Starbucks to regain the momentum they formerly had.
Even so, I do like the strategy they're imploying, especially during the difficult economic times we're entering into.
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» Is Starbucks "Pikes Place Blend" Strategy a Good One? from TheAlphaMarketer
...or marketing in tough economic conditions.The introduction of Starbucks (Nasdaq:SBUX) new "Pikes Place Blend" is a good study in how to market in tough economic and competitive conditions.If you haven't heard, Starbucks offered custome... [Read More]
Tracked on: April 9, 2008 9:55 PM | Permalink to Trackback