Customer Strategy Cube - Essay Sample

Introduction

Customer strategy cube is an assessment used by the business to know the health of the company in terms of strengths and weaknesses and opportunities and threats (SWOT) before introducing a new marketing strategy. Starbucks Company, the largest coffeehouse company, is in some state of struggle because of some of the market strategies it has taken. Opening too many retails means that it is spreading too thin in too many markets. Some of the retail stores are not doing well because they are located in areas that are experiencing a decline in retail traffic. The continued economic rivalry from its competitors has also led to a relative decrease in turnover. Despite enjoying the best technology, not all customers use them, and the heavy use of online services have driven some members away. The bad public relations for the top personnel has also caused more criticisms and therefore a decline in customers. The company has sought customer strategy cube to find a solution for customer relationship management (CRM) to go back to its sales.

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Market Segments

The company targets the broader public even globally but serves the financially stable upper-middle class in Europe because of its relatively high prices. The company objectifies to be the largest coffee seller and makes about $ 61.3 million daily (Latif, Gulzar, Bukhari & Sameen, 2014). It also enjoys excellent opportunity in Europe because people are coffee lovers. The people thus require Starbucks to deepen its footprint in the European market for satisfaction. Most of its customers are delighted because of its emphasis on quality making it command the largest market share of about 39.8% in all its operations (Latif et al.,2014). It also creates an engaging platform with customers where they can make requests that are sometimes actually considered. This creates a kind of customer partnership that is fundamental for the business.

Market Offerings

The company offers quality coffee beverages, snacks and has also introduced musical materials. It uses a unique logo that surprisingly does not describe its products, but customers associate easily with it and attempt to change it has not been received well. The uniqueness and less detailed logo make it widely known because it is easy to remember and catchy. The main competitors of the coffeehouse are McDonald and Dunkin' Donuts who are on the race of dominating the coffee industry among other companies. A competitive advantage is maintained through trademark protection that ensures that no one can copy anything associated with the company. Personalizing orders by putting a name tag to each creates special customer attachment. The ambiance in its retail shops has also made it more lucrative because the customers enjoy the calm environment. The company is however disadvantaged because of its relatively high prices losing some less customer.

Channels

The company uses both direct and indirect distribution, but the indirect distribution channel is more effective because it penetrates widely. The company uses a proactive approach to change the management process of planning customer service while technology improves product delivery by solving the crisis of delays and long lines. Use of blueprinting technique as a hospitality tool improves the chain. The direct channels are becoming less effective because they do not reach many customers. The company's competitors also distribute in retail in the European market.

Reference

Latif, M., Gulzar, H., Bukhari, S. R., & Sameen, S. N. (2014). Starbucks sustained during the economic crisis. International Journal of Accounting and Financial Reporting, 4(1), 307. https://www.researchgate.net/profile/Madiha_Latif2/publication/267636543_Starbucks_sustained_during_economic_crisis/links/545616170cf2cf51647e671c.pdf.