Potential Growth Strategies for Starbucks
Starbucks is an international coffee chain, based on the U.S. The company has large number of coffee store chains all over the world and is serving with exotic coffee flavors. The below mentioned are the growth strategies of Starbucks, which have been mentioned on the basis of their risk, mentioning the most risky on the top.
Diversification:
This growth strategy is concerned with launching new products into new markets for the purpose of growing sales. This strategy is the most risk as if customers will do not like the products, the company will lost its identity completely hampering its growth and profits. The first strategy recommended for Starbucks is to launch a different range of cookies, which customers can enjoy with their coffee. Secondly, the company can also confectionery products and thirdly it can provide fast-food products to customers along with coffee (Lamb, Hair & McDaniel, 2015).
Product Development:
This is related to launching new products for the purpose of increasing sales. In this regard, the first strategy recommended is that Starbucks should come up with coffee flavors produced with exclusive beans. Secondly, the company can launch reasonable pries coffee products to attract low and medium class customers. Thirdly, the company can launch different types of biscuits including chocolate and coffee flavors so that customers can take pleasure of both (BachmeierK. (2013).
Market Development:
This strategy of the company is related to launching current and new products in new market in order to expand the market and increase the customer base. In this context, the company can increase its presence in developing countries like India, China, Korea, Middle East, Africa, and so on. Secondly, the company can rely on novel distribution channels for grasping the attention of more customers. Thirdly, the company can change the packaging of its products by serving it in bottles with caps for new customer base (Lamb, Hair & McDaniel, 2015).
Market penetration:
It is related to the growth of sales of current products in the current. For this growth strategy, it is recommended that Starbucks should launch loyalty cards so that customers will get attracted towards it. Secondly, the company can increase customer’s satisfaction by writing customer’s name on their coffee cups. Thirdly, the company can ask customers to rate the coffee they order in terms of the taste and their satisfaction with the coffee as this will also allow company to grow customer satisfaction (Thomson & Baden-Fuller, 2010).
Potential Growth Strategies for Chipotle Mexican Grill
Unlike Starbucks, Chipotle Mexican Grill is restaurant chain in the US, UK, Canada, Germany, and France, and the specialty of the chain is burritos and tacos. The below mentioned are the growth strategies of Chipotle Mexican Grill, which have been mentioned on the basis of their risk, mentioning the most risky on the top:
Diversification:
The first strategy recommended for Chipotle Mexican Grill is to frequently add and perk up kid’s meal so that they can have alternatives too. Secondly, the company can diversify by launching take away service for customers. Thirdly, the company can renew the restaurant experience for customers to maintain their interest (Thomson & Baden-Fuller, 2010).
Product development:
The first strategy recommended for the company is that it should add more vegetarians’ choices in its menu to attract customers. Secondly, the company can launch range of Mexican grill chicken and other flavors. Thirdly to attract customers and increase its customer’s base, Chipotle can launch drinks of different flavors.
Market Development:
It is notable that Chipotle is currently present in the developed countries and the company has not opened up its restaurants vigorously in developing countries like its competitors. Therefore, the first recommendation for the company is that it must launch its restaurant in developing countries and other developed countries apart from the ones it is currently serving. Secondly, the company should take care that the tastes of customers and their food choices vary from country to country, and thus, the company must take care of customer’s taste in each region. Thirdly, the company should properly advertise Chipotle experience to customers in foreign countries (Lamb, Hair & McDaniel, 2015).
Market Penetration:
It is related to the growth of sales of current products in the current. For this growth strategy, it is recommended that the company should execute an incentive program for its current suppliers who incessantly adhere to the organization’s strict standards in developing its animals naturally. Secondly, the company can also engage with different large, commercial produce farms across the U.S. and the UK, and thirdly it can start a backwards integration initiative (Thomson & Baden-Fuller, 2010).
Single Growth Strategy Recommend for Overall Company
The overall strategy recommended for Starbucks is diversification, even though it is the most risky one, but it has the potential to quickly grow the sales of the company. Principally, for Starbucks, coming up with the new food range can become a chief source of revenue. Sales of food products have been flat for the last three years, but the coffee chain is planning to increase its sales by 30%. Thus, launching food items will allow the company to increase per customer spend in the store, which is significant for coffee outlets that are restricted by the amount of customers that can be seated. Hence, this strategy is the most efficient strategy for Starbucks that will it to increase its customer base and sales.
On the other hand, the overall strategy recommended for Chipotle Mexican Grill is market development considering the fact that the restaurant chain is present in limited number of countries only and a lot of market are still untapped by the company. Thus, adopting this strategy will allow the company to increase its customer base and consequently sales.
References
Bachmeier, K. (2013). Analysis of Marketing Strategies Used by PepsiCo Based on Ansoff’s Theory. GRIN Verlag
Lamb, C., Hair, J., & McDaniel, C. (2015). MKTG Cengage Learning, 2013.
Thomson, N., & Baden-Fuller, C. (2010). Basic Strategy in Context: European text and cases. John Wiley & Sons.