It's been a rough year for Starbucks stockholders (see picture). One major change that has already been introduced is that the company has launched a national advertising campaign. Other tweaks are doubtless also on the horizon.
Here's my take on the situation:
1) The novelty is wearing off—I think most commentators think this is too obvious to mention (and would explain the crowds Starbucks draws in Germany, for example).
2) What many consumers perceive as the core product—drip coffee—has been neglected. Though the company swears high and low that drip coffee is only allowed to sit for an hour after brewing, experience shows that this is not the case. Many consumers, myself included, believe that the best and most consistent cup of drip coffee is to be had at McDonald's (many choose Dunkin Donuts), providing those two companies with a huge wedge to launch an attack against Starbucks.
(To be continued.)
Comments