KAMIST

Starbucks: Coffee Shop For The New Normal

Hello, Optimist People!

We are back again with KaMIST! Every week on Thursday we’re going to give you an insight about marketing.

[ Starbucks: Coffee Shop For The New Normal ]

As one of the go-to coffee shop for years, Starbucks has come up with another sales idea to justify themselves to COVID – 19. Financially, the pandemic has already put a serious dent in Starbucks’ bank account. The company said that at the peak of the crisis in April it was losing $125 million a week in free cash flow, and the coffee chain now estimates that the pandemic will cost it $3 billion to $3.2 billion in revenue in the third quarter, the April-June period, or close to half of its sales from the quarter a year ago.

In order to fix its dent, Starbucks made a Pickup store concept to adapt with current situation. Smaller space that don’t have customer seat-in, not only lower rents but also more efficient to operate. Since Starbucks has just been testing this new strategy, there are two Pick-up stores, Manhattan and Toronto. But Starbucks’ CEO, Kevin Johnson, is planning to expand the amount of Pickup stores as a reaction to the pandemic.

Customers can experience the Pick-up stores with ordering through Starbucks’ app, get the estimated wait time, and pick up their order inside the store. On the past July, Starbucks established Starbucks Now in Beijing that focuses on mobile orders and delivery. Pickup lets Starbucks save expenses on real estate and labor while delivering its customer since people tend to be more comfortable ordering through the smartphone.

Source: GeekWire

Wanna get more insight on marketing? Tune in every Thursday for more KaMIST!

You can reach us at:
LINE: @mistfebui
Instagram: @mistfebui
Twitter: @mistfebui
Facebook: MIST FEB UI
LinkedIn: MIST FEB UI

#optiMIST

General Info:
publication@mist-febui.com

Partnership:
partnership@mist-febui.com

Location:

Management Student Society Office, Student Center Building, 2nd Floor Faculty of Economics and Business, University of Indonesia. Depok, Indonesia

The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.