Starbucks Case- Help

Question

What are the pros and cons of Starbucks implementing these ideas to help maintain/bring back their unique atmosphere?

1- Improving their design- making sure ALL Starbucks has comfortable seating (sofas, chairs with cushions etc)

2- Cleanliness/Hygiene- ensuring that machines are cleaned throughly and frequently. All tables are cleaned throughout the day, gloves are used when serving people.

3- Freshly grinding their coffee on site to have the coffee aroma in the air.

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I think price would definitely be a factor for design improvement idea, and for hygiene probably time consuming and it's not the most pleasant job. Aside from that though what are the pros and cons? If you have any better ideas then mine to help its atmosphere from a MARKETING perspective (no price adjustments/coupons) please feel free to offer them. I would really appreciate the help. Thank you!

Answer 1

The biggest issues with SB's right now are over-pricing and market over-saturation.  

1.  Over-saturation into the same markets and how they decided to open stores has been weird.  Two stores in the same block in the cities and medium size towns with none.  They have made it too convenient for the masses, which has allowed competition to increase market share in less populated areas.  In my local city, there are two stores within 1/4 mile from each other - one in a grocery store and one in a mall.  If I lived in the neighborhood, I would only visit when shopping - too inconvenient parking, going in, waiting for coffee, and leaving - would take 30 minutes - too much time for a coffee!  There is a local coffee shop stand alone building that I can get a coffee in 10 minutes.  And the mall location is only open mall hours.  

2. Over-pricing.  SB's is overpriced compared to other coffee places.  In the current economy, SB's should offer discounts for a temporary basis tied in with advertisements about this.  And to get the customer's back and introduce SB's to new ones, offer a standard 8oz cup of coffee for 50 cents, undercutting places like McDonald's, who is honing in on their gourmet marketshare.  Another idea is instead of buying dessert items for one source, they should partnership with local bakeries for fresh product.  I would love to try local deserts when traveling vs getting the same thing across the country.

Another thing that would help is to tie their stores with their cliental.  If you have a lot of business people, offer wireless and printing services, or a least a discount to a local Kinko's.  If the store is in a college district, offer music nights.  Partner with local clubs to offer space for the event, or a least catering.  

In reference to your number 2, SB's seem to be pretty clean in the customer areas.  As far a the machines being cleaned more, as a customer, how are you going to notice?  And personally, I think the personal hygiene countermeasures have been over-emphasized recently.  If someone at SB's grabs a muffin from the case, if they use a wax wrap to pick it up, that's sufficient.  Not all bacteria is bad for people!!!  

For your #3, they got rid of the sandwiches in their stores because it interfered with the coffee smell.  I always notice the coffee smell in the stores, so I don't think that would be a additional benefit.  

In general, SB's did the "Subway" - rapid growth quickly.  But SB's did it so-so.  They did not get involved in the communities to not only promote SB's, but to be a good citizen.  They seem to have the attitude of "We Starbuck's - come to our Grand opening and spend your money.  You want us to do what?  A charity event?  Sorry, we are busy opening new stores.  If you pay us, we may consider it.  AFTER ALL WE'RE STARBUCK'S - WE CREATED GOURMET COFFEE! HAIL US!"     I state this due to the local events I have been involved with and they have always been standoffish.  A little charity goes a long way in the eyes of the public.  They state they are community oriented, but don't live it from my experience.  

They also have to train ALL of their employees to be customer service oriented.  Now don't get me wrong, most Barista's at SB's are friendly, but it is not consistent across the country.  I would never tolerate some of the attitudes I have run into with my employees and have not gone back to certain SB's due to poor service.  I do say something, but I usually take my money elsewhere.  Spending my money somewhere else hurts them, as they are currently seeing.  

Many people I know have stopped going to SB's for two reasons - poor/substandard service and price.  We are upper management/owners of companies, so money is not much of an issue, but when I can get a better price for an identical item without the attitude, that's where I will spend my money.