Howard Schultz (Starbucks CEO) realized, thanks to the recession, but it is difficult to
maintain the old principle of the company in difficult times (Berfield, 2009). Cut costs,
dismissed "partners" (from Starbucks to mention their staff) and closed the store
just a few examples of this. Also, how companies are trying to increase their
income through new products - such as the new VIA instant coffee, food, coffee in vending
machines - conflict with the price the main value of the company, focused on delivering a unique
experience.
As a consequence of these decisions, the company's brand, "the major long-term
assets of a company" (Kotler, et al, 2005, p.555), can be damaged.
Therefore, it is advisable to adapt a coherent way the values of the brand with
the various elements of the marketing mix. If companies understand that there are
opportunities in the market that they can exploit, but not strictly closely with
brand value, it is advisable to compete under a different brand, which specialized in
marketing specific cases. Moreover, this will allow Starbucks to diversify risk and sources of
income, as well as to the companies the opportunity to compete in different markets
without affecting the value of the Starbucks brand.
Even although this method will not help solve the problem themselves cannibalisation,
but it will allow a better segmentation of the market, as well as serving as a fighter brand
to compete in the low-end market (Kotler et al, 2005). This will solve the difficulty
Starbucks has attracted a number of market segments such as Generation X and younger people
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