Why Starbucks is Losing Market Share

Author: Tommy Leung | 10.21.2008 | Category: Business, Life, Marketing

I had mentioned my switch from Starbucks to Dunkin Donuts for my usual coffee a while back. Since then, I had actually started buying coffee from Starbucks again. For the most part, it wasn’t the same pleasant experience I had remembered from when they were a company to be modeled after. The product was better and the staff was friendlier. I don’t know what Starbucks’ is doing since its fall in stock price and reduction of expansion but, it isn’t making things better.

The quality of the coffee appears to have gone down significantly. I have received less than preferable temperature for a regular tall coffee more than once. The Starbucks I remember always had their coffee at a certain temperature and the staff were well-trained to make sure that happens. The new pike roast is just not as good as what Starbucks used to have.

Last week, I had went into a Starbucks to accompany someone who was actually buying a cup of coffee. I had went to Dunkin Donuts prior and bought a medium cup of coffee and a bagel with cream cheese. We entered this Starbucks and the staff behind the counter proceeded to heckle me about the Dunkin Donuts’ product I was holding. It would have been friendly teasing if the barista had not suggested that they provide me with a paper bag with place my DD in as to not embarrass Starbucks when I walk out–how insulting.

The barista should leave the marketing to the marketers. Due to the barista’s faulty misplacement of brand image over customer service, I have since told many friends and acquaintances about this story. And now, I have made it available to the internet. This whole social network thing is a rather powerful means of spreading a message.

I am unlikely to buy coffee from a Starbucks again in a long time and I would suggest that when you have the option of Starbucks or some other coffee house, go with the latter. A company that is no longer operating in a fashion that justifies its price should be punished by decreased revenues and market share.