The case is dedicated to the history of Starbucks company. It also reveals the problem the company is facing nowadays. The authors call it as “commoditization of the brand” (Buchanan L. & Simmons C.J., 2009, p. 109). Specifically, the problem is that the Starbucks brand started losing their unique “Starbucks experience” from the customers’ perspective. Here are the reasons of the probem. Firstly, they decided to decrease the amount of comfortable furniture and, therefore, made the places less inviting. Secondly, they made too broad product mix (salads and other things not connected to coffee). Thirdly, there are too many cafes that people think that they are everywhere. Finally, the company are more perceived as too affordable and a fast-food chain (Buchanan L. & Simmons C.J., 2009, p. 109). So, the problem is the change in customers’ perception of the brand: people don’t get the “Starbucks experience” anymore.
The solution to the problem is getting back customers’ perception of the authentic Starbucks experience. The company need to distinguish themselves from fast-food restaurants and stay focused on their image. So, the company needs to fix the reasons of the problem in accordance to their image. First, the interior should be cozy, so, it’s necessary to add comfortable furniture and make the places look like home. Secondly, the company should make the whole product mix connected to the experience of drinking coffee, because people go to Starbucks for a coffee, not lunch or having a “fast food” . Thirdly, they need to decrease the amount of places in the cities. It’s an economic crisis now, that affects the market, and people have less purchasing power, but the café should become a place where customers escape from their problems, chat to their friends and have a break. Then, the customers will get the “Starbucks experience” back and become loyal to it again.
Bibliography
Buchanan, L., & Simmons, C. J. (2009). Trouble brews at Starbucks. Marketing
Management Winter 2016, 109-122.
