Starbucks - perception of corporate coffee houses which in...

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Dear Starbucks, There is a great opportunity to cater to 8,000 additional customers with an alternate wireless plan. The ability to have free access to wireless internet will attract the additional students of the nearby university. This added customer traffic will allow Starbucks to cover more than the cost of the lost internet service sales. With the location of this new shop being close to the University of Wisconsin-Stout, a lap- top campus, it would be beneficial to your customers, therefore increasing your net sales. For example, Acoustic Café, who you are competing for market share with, started offering free internet service a year ago and has since experienced an increase in sales with students and faculty. Also, Caribou Coffee has reported increased sales since implementing a free internet service for customers. A recent survey conducted by the Harvard Business Review stated that sales were increased when free internet service is put into coffee shops. Also, it helps with the public
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Unformatted text preview: perception of corporate coffee houses which in turn, draws patrons away from their locally owned shops and brings them to Starbucks. A partnership with T-mobile allows for increased brand recognition, however, increased costs associated with such a partnership will keep customers away. Other way to incorporate T-mobile into your marketing strategy would be to include bonus programs with the purchase of certain items. (i.e. punch cards, gift cards, etc.) Using T-mobile’s name as a service provider does nothing for Starbucks ‘ image. Starbucks’ continuing efforts to get away from the corporate image is greatly set back by this partnership with T-mobile. The effort of Starbucks to offer free internet will entice the students to use it as a “social hub,” offering them a place to study, socialize, and grab a snack. This good-will gesture by Starbucks will increase student patronage and solidify Starbucks as a premier coffee house for UW-Stout Students....
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