Trouble Brews at Starbucks Case Solution

1. Use your marketing skills, research, and experience to make TWO strategic recommendations for Starbucks based on information in the case. For example, if one of your recommendations is that Starbucks should create a customer loyalty program, don't just say that Starbucks should have a customer loyalty program. Instead, talk about a company that has a successful customer loyalty program that Starbucks could emulate and explain why.

Strategies and innovation are vital for all firms to succeed and flourish. By using a unique technique, companies are able to attract customers and focus on growth in the long run. Different companies, including Coco-Cola, Nestle, Tesla, and Apple, use differentiated tactics to appeal to and attract consumers to them. 

Creating a customer loyalty program could be a beneficial approach for Starbucks. Customers are a vital component part of any business, and in order to expand your loyal customer base, it is vital that they are provided with incentives accordingly. Customer loyalty and profitability tend to have a direct positive relationship. It is vital for entrepreneurs to fixate on attracting consumers, so they remain in the long run and reflect as a symbol of the company. 

The frequent flyer program for American Airlines was called AAdvantage. It was the second such loyalty program to be introduced in the world (the first having been at Texas International Airlines in 1979) and was still the largest as of October 2011, with more than 67 million members. In order to reward their most devoted customers, American Airlines introduced the Gold tier in 1982. The first contemporary coalition campaign was built on relationships they began that year with Hertz, Holland American Line, and British Airways.

The loyalty program of American Airlines is representative of how early loyalty programs were established and how they became relevant. In today's times, all major companies tend to have loyalty programs, including Amazon, Sephora, etc. This reflects how purchasing products and providing incentives for the future tends to be beneficial for the company's image. By opting for this strategy, Starbucks would be enabled to develop a more direct connection with the customers and provide them with motivation to revisit the store and continue the purchase of the product. Customers, if loyal to your company and if provided with the inducement to do so, continue to purchase your product no matter the entry of other competitors, and this ensures profitability in the long run. 

In 2007, Facebook Pages became available, which enabled brands and celebrities to post original content and media. By the end of October 2007, Facebook had almost 50 million active users. This indicates how many viewers Starbucks could have had if it had launched a proper Facebook page back in 2007. With so many users of Facebook, Starbucks could have gained enormous attention and enabled many more customers to acknowledge Starbucks.