Boring Market

In one week Starbucks will have its most important shareholders meeting to date. After a forty percent decrease in stock price and corporate jobs cut this sure to be a popular event. I will be able to attend this years meeting and see Howard Shultz face when he reviews the company’s recent performance, and unveils of the company’s five transformational initiatives for 2008 and beyond. Any loyal reader of my blog knows that I feel Starbucks is going to come back and the stock price rise. Seen here, here and here.  While Starbucks have been making news every few weeks the tension is only being build for these turn around initiatives at this meeting. The direction Shultz has been promoting is clearly a back-to-basics approach with excellent coffee and perfect customer service. Even though his approach will likely be reiterated, I don’t think we have heard the entire plan.

 

The goal is no longer about accelerated store growth with more store openings, but rather with the focus on a consistent Starbucks Experience in existing stores. Retail stores are what the average consumer primarily associates with the brand so it makes sense to put the spotlight on great consumer service. Ever since the infamous Howard Shultz Valentines Day memo which was leaked last year, Starbucks has been struggling to keep the loyalty of their brand alive. Analysts, shareholders and other critics think the luster is lost and the brand is no longer rich and robust as their coffee. The word diluting comes to mind and Howard Shultz has a lot of work ahead of him in order to change this perception. We can only wait and see what things he will say next Wednesday.

 

Boring Market owns Starbucks Stock.

Tags: Back·Basics·Meeting·Shareholder·Starbucks