Are there two possibilities for Starbucks to increase their brand loyalty for its product?
And how can those possibilities help Starbucks to maintain their market share?
Brand loyalty is a situation where the clients of a certain brand bear an entirely positive instinct and commitment to the products thereof. Loyal customers of a certain do not pay attention to market changes or competitive fluctuations between the brand and its competitors.
Answer and Explanation: 1
Yes, there are possibilities for Starbucks to increase their brand loyalty. There is also a need for Starbucks to increase its brand loyalty because the products provided by Starbucks are deemed elastic, such that the demand is adversely affected by a change in prices bearing in mind that the products are not basic needs but quite luxurious.
These possibilities are:
a) Enhancing customer service. This is achievable by highly valuing their customers irrespective of whether they are a one-off customer or a regular client. This can also be attained by ensuring good rapport between clients and employees. Lastly, handling customer feedback with apt concern is a reliable strategy.
This strategy helps maintain Starbucks' market share because there is the maintenance of a proper relationship between clients and the company both at the premises and online.
b) Offering periodic incentives whereby certain products are offered at a discount. The strategy will breed an increase in the demand for those products for that period and after.
The market share will be maintained and even increased when this strategy is observed because the brand name will keep growing with the establishment of those incentives, which will eventually promote a good reputation for the entity.
This will also be a way to outwit its competitors in the market.
Learn more about this topic:
fromChapter 2 / Lesson 10
Brand loyalty in marketing occurs when consumers continually purchase the same product due to a perception that the product is superior to the competition. Learn about the definition of brand loyalty, examples, and why brand loyalty is beneficial for companies.