Starbucks will open 1,175 new Stores this year (1,250 Stores including foreign Openings), but is worried about the 1% growth in Sales last year. Maybe it is only me, but Starbucks is trying to push into already saturated markets (covered by other Business stores), with a format of higher Prices than current Coverage, during a downturn of Consumer Spending. I would suggest they need to get rid of more than Breakfast Sandwiches, possibly returning to their original Company format, but more likely to insist on a Cut in Pricing. Of course, I may be one of the older Generation, who does not understand Precepts of Status Marketing; still, the later Concept may require less-congested Stores to be effective. I knew that I should have taken Marketing courses in college.
I like this article about the advantages of Small Business going global. I think it is a question of Marketing Costs compared to Volume, but with a possible extended Consideration. Small Business Executives may be in search of free Tourism in Europe. Can any Product of less than 3000 Sale units be marketed in a foreign land at extreme Distance? The Mark-Up of Product due to Transportation Cost would seem to alienate Sales, unless the Product was of high Price and complexity, and not facing regional competition of relatively equal quality.
I seem to remember JC Penneys’ trying something like this in previous years, and suffering some Sales loss because of it. Their Stores cater to a clientele who likes to evaluate the quality of the Product before Sale, plus a wider market who need an immediate source of high-quality Product for unexpected Events. They could actually lose in Sales because of this change in format, which will not serve Customer interests. I could be wrong in this assessment, as I could possibly be in my other commentary on this Post; it basically being an attempt to outguess the Consumers. I personally would make a reconsideration of such Moves. lgl
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