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Starbucks Strategy to Face the Coffee Business Competition in Indonesia

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The rise of new local coffee shops that have sprung up today has led to fierce competition in the cafe business in the country.

Coffee startup industries such as Fore Coffee, Tuku Coffee Shop, Coffee Memories and others also become heavy competitors of conventional coffee retailers such as Starbucks, Coffee Bean & Tea Leaf, to Excelso.

Responding to the rampant competition in the coffee retail business, Head of Corporate Communication of PT Mitra Adi Perkasa Tbk. (MAPI) Fetty Kwartati said that Starbucks as a coffee shop under the auspices of MAPI currently has 404 outlets spread across more than 30 cities with a very large network and reaches the upper middle and middle class segments.


How is the Strategy?

“With a very strong brand awareness, Starbucks continues to improve business and performance so that it can survive amid high competition that not only comes from coffee, but also from other types of drinks,” he said when contacted by, Wednesday (7/8) / 2019). Fetty said, to face the competition Starbucks remained focused on customer satisfaction and always tried to provide better choices and services. She even suggest that the best strategy to make customers feel comfortable is by inviting them into online casino in judi online poker while sitting on with some friends and drinking their coffee.

In addition, the marketing strategy is also tailored to the needs of customers and the current situation, namely integrated marketing activities.

“For example, creating special campaigns every month, creating attractive new seasonal drinks, collaborating promotions with digital wallets, creating unique Starbucks merchandise, building special Starbucks concepts such as the Starbucks Reserve Store that further provides customer experience and engagement, optimizing CRM through Starbucks Loyalty Card, optimize Gofood delivery market. ”

Fetty said, she was confident that Starbucks coffee sales trends would continue to grow considering the performance in the first semester of 2019 increased by more than 20% compared to last year.

“Performance in semester 1 of this year is quite good with sales growth of more than 20%. We hope this performance can continue to be improved until the end of 2019. ”

Meanwhile, Chairperson of the Association of Indonesian Cafes and Restaurants Entrepreneurs (Apkrindo) Eddy Sutanto said that currently the coffee startup shop was indeed in the public interest. Moreover, the price is priced quite affordable and millennial.

“For us to see, it is a growth of coffee drinks or the enlargement of the coffee beverage market in Indonesia, and when compared to our population I think the market is still very large. Of course there is an influence on the sales of traditional coffee shops such as Starbucks, Coffee Bean & Tea Leaf and the like, “he said when contacted by Business, Wednesday (07/08/2019).

To overcome this, Eddy said, the traditional coffee shop must re-brand or adjust current market demand.

According to him, it is probable that the trend of sales of traditional coffee shops could decline and have an impact on closing outlets.

“It could happen like in China, Starbucks lost to their Luckin Coffee in 2 years opening 2400 outlets,” he added.

Meanwhile, related to the coffee business growth trend this year, Eddy predicts it will be quite large.

“In terms of growth, we do not have exact numbers, but what is clear is growing very rapidly. For the transaction target, we don’t have exact figures yet, but the total number of business copies [potential market size] is more than IDR 10 trillion. “

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