Starbucks’ growth trajectory is based on a decidedly ambitious five-year plan, announced in 2014—one that involves plans for global expansion, new retail offerings, and innovation demonstrated through new products and experiences.
Starting with its product strategy, Starbucks is investing is some key areas—from the expansion of core products to the exploration of new ones. This includes the development of a premium sub-brand Starbucks Reserve coffee and its Teavana tea line, the continued segmentation of retail stores, and ongoing partnerships with the likes of Dannon and PepsiCo.
Access and availability are equally important to Starbucks. The company continues to explore new retail formats, like its recent New York City trial of an express, or “espresso shot,” store. Designed for speed and convenience, the store builds on Starbucks’ success with drive-through formats and joins the company’s portfolio of diverse sales approaches, which also includes immersive experiences like that of the Starbucks Reserve Roastery & Tasting Room, neighborhood cafés, roadside stores, and—going a step further—a delivery app, as it considers breaking into food and beverage delivery.
With the national rollout of a new Mobile Order & Pay feature for its app, Starbucks engages with consumers even before they’re through the door. The app has also become a broader publishing platform for the company, as Starbucks forges partnerships with digital music and media companies like Spotify and The New York Times. A customer loyalty feature built into the app offers Starbucks greater insights into customer habits and preferences, so that it can in turn deliver more personalized offers.
Starbucks continues to grow globally, with the goal of increasing its store count to 30,000 by 2019. On the heels of a European turnaround, it’s setting its sights on Asia, with plans to double its store count in China to 3,000 by 2019 and to acquire the remaining portion of Starbucks Japan, in order to expand into markets where tea and coffee culture is rich. The brand is also enhancing its role as a casual community gathering place with the introduction of its Evenings menus, which offer a curated selection of wine, craft beer, and shareable small plates. The new venture represents an opportunity for Starbucks to bring in an incremental USD $1 billion by fiscal year 2019, with 2,000 planned Evening stores making up 20-to-25 percent of the company’s U.S. portfolio.
Starbucks is committed to delivering the innovation, execution, and elevated customer experience necessary to remain one of the world’s most trusted consumer brands.