In the recent quarterly report issued by Starbucks reaffirms the growing problems that is experiencing the famous and ubiquitous coffee chain.
This report highlights four important points exemplifying the situation of the company:
- The SBUX shares have not moved virtually values reached two years ago, during the heyday hipster which he led the franchise to stardom.
- This slowdown in growth It has coincided in time with a higher estimate of the market value.
- The true market value of the company continues to grow even though the pace of growth also continues in perpetual decline.
- The company could find serious funding problems in the near future since the value of SBUX shares should fall to the level of fifty dollars for economically profitable.
With these serious structural problems, it is logical that a multimillionaire and mature company like Starbucks look alternatives to increase performance. And as usual, is the technology that comes to the aid a company that, although it is not in deep water, you need to increase your profits based coffee to stay relevant in an ever-changing market and extreme competition, as is the restoration.
Macrodata and its possible applications to revitalize the company
Specific, Starbucks sets sights on data compiled over the years and that may obscure trends or promising business strategies. With 90 million weekly transactions, the size of these macrodata makes the most ambitious salivate analysts.
Through the use of Big Data technologies, Starbucks wants to customize orders and customer experiences. Executive Director chain technology, Gerri Martin-Flickinger, exposed him well: “We know a lot about what people are buying, where they are buying and how they are buying; and if we combine this information with other data such as weather, promotions, inventories, perspectives related to local events, then we could really offer a better service to our customers ".
Although the pace of opening new franchise locations is down timidly in recent months as a consequence of slower growth, The truth is that during 2017 it went from 25 085 Local globally 27.339 shops Worldwide.
Before taking the decision to open, you must have information to help determine local economic projection.
Again, come into play here those macrodata that keeps Starbucks in the pantry. Director planning services Market, Patrick O'Hagan, He has recently made some comments about the Atlas system used by the company to model the distribution of your business network: "Starbucks is linked to many internal and external API as possible, connecting the data with R [a statistical program power users]to create cannibalization models to determine the impact on existing stores If a new store is installed in the zone '.
Atlas is a GIS module developed by the dominant company in the sector, Esri. Thanks to mapping package, You can have geographic information as traffic patterns, and population density data on demographics.
Another field in which Starbucks intends to make use of the macro data is focused on marketing. At the moment, It is being tested through new mobile app that has been launched and offering discounts on products that the user of the application has already consumed.
It should be noted that it is not necessary to make acquisitions in digital form from the mobile terminal so that the app can get the information needed to force the mentioned personalized promotions.
The POS terminal Starbucks store accessed by the consumer may be provided with a receiving device attempting to synchronize with existing cellular nearby. Although access is denied from our mobile, records stored in the TPV shares in listed the serial numbers of devices involved and later to identify the person behind the screen when it finally opens the app are.
The last point which affect the cafeteria think green mermaid is the loyalty program and rewards for repeat customers. Again, macrodata analysis using artificial intelligence can help the company encourages its performance through sales, otherwise, not come to fruition.
Son 13 million active users (Y 17 'I discharged there first objective accounts on which to work, the abandonment of Profiles-) that from now could benefit from a system of rewards based on their habits, As expected winnings from more meaningful and interesting. logically, in that case, HE increase the involvement and the level of consumer satisfaction.
Fight against stagnation outside technological innovation
The company not only committed to the latest technology. In addition to AI, macrodata and analytical, Starbucks is exploring possibilities of expansion in China and India, where acceptance is still suboptimal. It is two large markets with highly concentrated populations in cities so that a low number of establishments, Or what is the same, with a very low investment, provide reap significant benefits. They also have the fascination of western fashions and trends in the subcontinent and the Asian giant.
Another factor on which you can make positive changes is the menu. Now that sales have stagnated, You can agree enhance specialty coffees with higher amount. In this case, You would not need to sell more items to make more cash.
Finally, Starbucks will continue exploring new items, Promotions and systems that capitalize on coffee and the brand have erected. You never know when an idea priori unpromising can become the new Frappuccino.