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The following article was published in our article directory on June 5, 2018.
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How Starbuck's Problems can Help You

Article Category: Advice

Author Name: Jack Marshall

With Starbucks recently in the news about their significant retraining programme the Tapside Group recommends a look at the larger picture that might help your project.
Lessons From Starbucks' Product Managers - Ways To Protect Your Product's Rear
So there you are product supervisor, resting on the cloud nine in charge of the # 1 selling brand name of coffee and you're pulling in a few pounds per cup. All of an abrupt: Blam! The global economy falls off a cliff, and suddenly there are a whole lot of competitors who start to poach your customers by using premium coffee at a much lower rate. Exactly what's a product supervisor to do?

Starbucks' Low-End Problem
Everyone learns about Starbucks coffee - it appears like there is a Starbucks store on every corner today and brand-new ones seem to be popping up all the time. Well, inning accordance with the Starbucks item supervisors, that's inadequate.

Lately, McDonald's, Dunkin Doughnuts, and practically every other fast food chain out there have begun to provide espresso-based coffee products. Oh, and they've been doing it at costs that are lower than Starbucks. The Starbucks product supervisors have seen this taking place. However, they have been constrained from doing anything since by need Starbucks has a restricted menu (to keep things moving quickly), and most of their company is done in the early morning.

While all of this has been going on, the number of Americans who drink premium coffee has increased. In just the last three years alone the number doing so has jumped from 29% to 35%. Great, so exactly what's a coffee item manager to do?

Is It Time For A New Brand name?
Seven years ago Starbucks bought one of their competitors: Seattle's Finest Coffee. They haven't done that much with them since then, however, thanks to the Starbucks item supervisors that will soon be changing.

Starbucks plans on rolling out a second coffee brand, you thought it, Seattle's Best Coffee. This is the brand that they are going to utilise to compete with the lower-priced junk food coffee offerings that have been nipping at their heels.

This is where the genuine item management innovation will happen: this brand-new brand name is going to be offered everywhere. That indicates that you're going to begin to see it in about 30,000 different locations ranging from fast-food outlets, grocery stores, bookstores, and even vending makers.

Can We Discuss Danger?
I can nearly hear a few of you beginning to mumble concerns about this approach. You've got an asset. Because Starbucks is going to be selling the majority of the Seattle's Best Coffee through franchisees, they are going to have a significant quality assurance issue. Furthermore, the coffee that is offered through vending makers is typically the worst coffee out there - what is Starbucks thinking?
The product managers at Starbucks mention that they do not have all that much to risk. Now Starbucks has a minimal share of the brewed coffee market There's no location to go however up. Additionally, the engineers at Seattle's Finest have produced a brand-new kind of vending device that they believe can actually deliver an excellent cup of coffee.
What All This Means For You
Starbucks discovers itself in a delicate area: it's got the # 1 selling coffee item; however, the competition is coming on strong. The item supervisors at Starbucks understand that if the game achieves success at taking away the lower end of their consumer base, then there will be absolutely nothing to stop them from moving up and catching increasingly more consumers gradually.
Starbucks is taking the novel approach of launching another brand: Seattle's Finest Coffee. They hope that by dispersing this product everywhere, they will have the ability to take some of the wind from the sails of their competitors (and a loan from their pockets).
For item supervisors everywhere we have been provided with a front row seat to a significant item method relocation. If you keep your eyes open and see what Starbucks does and how their competitors respond, then you'll be able to find out how this story turns out ...

Keywords: coffee shop, coffee shop manager, coffee shop marketing, coffee shop customer care.

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