Comments on: Starbucks: Big Investors’ Divorce Grounds http://www.coffeestrategies.com/2008/08/18/starbucks-big-investors-divorce-grounds andrew hetzel on better coffee, better business Fri, 12 Mar 2010 18:32:54 +0000 hourly 1 By: Edward Cobb http://www.coffeestrategies.com/2008/08/18/starbucks-big-investors-divorce-grounds/comment-page-1#comment-8659 Edward Cobb Sun, 24 Aug 2008 05:34:48 +0000 http://www.coffeestrategies.com/?p=265#comment-8659 Starbucks recently closed 61 of its 84 Australian stores. In my view, they've failed to understand the Australian coffee beverage consumer; made the wrong product offerings and had an insufficient range of coffee accompaniments to purchase. If you believe Starbucks the company got hurt because it also had stores in low foot traffic locations. Sure some of their stores may have been in low foot traffic locations, but 61 out of 84? I think the low foot traffic excuse is just a smoke screen. About the only thing Starbucks are particularly good at is choosing the right location for a store. I can't accept that it got location choice wrong in Australia 72% of the time! Marketing is about identifying customers needs and satisfying them. Starbucks took its eye off the ball and failed to do that. In Australia, the company unsuccessfully tried to apply a formula that seemed to be a success elsewhere and made no attempt to adjust to local market requirements. I'll be generous and give Starbucks another 5 years before it's exited the Australian market completely. Starbucks recently closed 61 of its 84 Australian stores. In my view, they’ve failed to understand the Australian coffee beverage consumer; made the wrong product offerings and had an insufficient range of coffee accompaniments to purchase. If you believe Starbucks the company got hurt because it also had stores in low foot traffic locations. Sure some of their stores may have been in low foot traffic locations, but 61 out of 84? I think the low foot traffic excuse is just a smoke screen. About the only thing Starbucks are particularly good at is choosing the right location for a store. I can’t accept that it got location choice wrong in Australia 72% of the time! Marketing is about identifying customers needs and satisfying them. Starbucks took its eye off the ball and failed to do that. In Australia, the company unsuccessfully tried to apply a formula that seemed to be a success elsewhere and made no attempt to adjust to local market requirements. I’ll be generous and give Starbucks another 5 years before it’s exited the Australian market completely.

]]> By: David Donde http://www.coffeestrategies.com/2008/08/18/starbucks-big-investors-divorce-grounds/comment-page-1#comment-8650 David Donde Tue, 19 Aug 2008 08:37:24 +0000 http://www.coffeestrategies.com/?p=265#comment-8650 Playing to the wrong fiddler will always cause one to hit a wall. Interesting observations, thanks Playing to the wrong fiddler will always cause one to hit a wall.

Interesting observations, thanks

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