Starbucks Management Strategy Essay Example | Topics and Well Written Essays - 1500 words

Starbucks Management Strategy - Essay Example However, the global financial crisis slowed down the economy; many similar competitors entered the market and downplayed Starbucks by offering low priced, high quality coffee. Since Starbucks’s establishment this was the first time that its growth slowed down and in 2007, its stock value dropped down by almost 50 %. In 2008, its net revenue growth saw a decline of 11% compared to the previous years. Customer/ target audience of Starbucks: Starbucks targets a diverse audience. The fragments of target audience are different based on products that Starbucks provides. However, Starbuck’s overall target audience can be defined as men and women whose age is between 18 to 60 years and who consume coffee or enjoy special beverages that are offered by Starbucks. Starbucks appeals to these target age groups through contemporary and clean designs that are presented in a consistent way in its product and package designs, interior of the store and advertising. For young adults whose age is between18 and 24, Starbucks positions itself as a place where college students can study, write, read and hang out with others. This target market tends to grow by 4.6% every year. The targeted age group for Starbucks is 24- 60 years which includes people living in urban areas who have professional careers with relatively higher incomes and are socially responsive individuals who care about sustainability and environment. This target audience grows at a rate of 3 percent annually. Both these age groups consider customer service and experience at the retail store with the brand as important. The company’s offerings are targeted relatively to higher income individuals who are people who go to Tim Horton’s or McDonalds. The journey (The process and how... This essay stresses that Starbucks’ reward program operates by giving a customer a Starbucks gift card so that he can register it online and reload the money to continue using it after he finishes the amount of money that comes preloaded in the gift card. After he registers card, he gets a star on every transaction and after gaining 5 stars he gets to the green level. Reaching the green level gives certain advantages to the customer. When a customer collects 30 stars, a Starbucks gold card is made which has engraved on it the cardholder’s name. After obtaining the gold card, with every 15 stars the customers gets a free beverage coupon. This report makes a conclusion that this is a good idea to reward customers. Also, providing a personalized slick design of the Starbucks gold card made its customers feel more attached to the company. Starbucks also created iPhone apps called â€Å"My Starbucks†, which allows customers to register their card number on the phone and which can be used to make payments when customers forget to bring their card to the store. Social responsibility is being implemented both outside and inside the company’s stores. Starbucks started to use reusable cups and cup holders with environmental friendly materials as much as possible. Also, they pushed themselves hard to mark their role in supporting fair trade coffee and markets. The company’s clean packaging of coffee beans also gives a good impression to the customers.