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“Starbucks’ marketing department functioned as three separate groups, a market research group that gathered and analyzed market data requested by other business units, a category group that developed new products and managed the menu and margins, and a marketing group that developed quarterly promotional plans. Such an organizational structure meant that market and consumer related trends could sometimes be overlooked.” (Moon & Quelch, 2003). It was stated by Day, “We tend to be great at measuring things, at collecting market data, but we are not very disciplined when it comes to using this data to drive decision making” (Moon & Quelch,
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Without a structured strategic marketing unit to develop a true customer focused strategic marketing plan, conduct market research, and establish ongoing communication with the customer, the corporate objective to become the most recognized and respected brand, ultimately lost sight of their original value proposition.
Solutions
The following is a list of possible alternative solutions to the aforementioned problems:
• Create a centralized marketing department to coordinate all marketing efforts, which would focus on customer and eliminate inter-departmental communication breakdown.
• Define marketing strategies starting with proper research metrics to evaluate what the customer wants.
• Invest in major marketing campaign focusing on product differentiation, positioning the Starbucks’ brand image, and highlighting customer service.
• Analyze the innovative product sales to determine the effect on labor costs and determine if sales support the cost and the potential investment in labor because research indicates that innovative products are not as important to the customer as quick and pleasant sales; product mix may be …show more content…
In order to accomplish this, Schultz must recall the company’s original value proposition, which from a retail perspective, means creating an ”experience” around the consumption of coffee. I recommend that Starbucks immediately organize a centralized strategic marketing unit and adopt all of the solutions previously listed. I believe if Starbucks has the capital to invest $40 million, annually, in providing each store with 20 extra labor hours a week, those funds can be better served if used to build a centralized marketing department to lay out a strategic customer-centric marketing plan, identify growing economic regions within the remaining 150 metro areas to open stores, develop a CRM program and use in-store promotions to encourage use of the store value card, which has customer tracking
Without a structured strategic marketing unit to develop a true customer focused strategic marketing plan, conduct market research, and establish ongoing communication with the customer, the corporate objective to become the most recognized and respected brand, ultimately lost sight of their original value proposition.
Solutions
The following is a list of possible alternative solutions to the aforementioned problems:
• Create a centralized marketing department to coordinate all marketing efforts, which would focus on customer and eliminate inter-departmental communication breakdown.
• Define marketing strategies starting with proper research metrics to evaluate what the customer wants.
• Invest in major marketing campaign focusing on product differentiation, positioning the Starbucks’ brand image, and highlighting customer service.
• Analyze the innovative product sales to determine the effect on labor costs and determine if sales support the cost and the potential investment in labor because research indicates that innovative products are not as important to the customer as quick and pleasant sales; product mix may be …show more content…
In order to accomplish this, Schultz must recall the company’s original value proposition, which from a retail perspective, means creating an ”experience” around the consumption of coffee. I recommend that Starbucks immediately organize a centralized strategic marketing unit and adopt all of the solutions previously listed. I believe if Starbucks has the capital to invest $40 million, annually, in providing each store with 20 extra labor hours a week, those funds can be better served if used to build a centralized marketing department to lay out a strategic customer-centric marketing plan, identify growing economic regions within the remaining 150 metro areas to open stores, develop a CRM program and use in-store promotions to encourage use of the store value card, which has customer tracking