
Africa’s economic reset requires moving from ambition to execution
The Africa Commerce Convergence Summit keynote address identified four elements that must converge if the continent is to achieve a meaningful economic reset.
BUSINESS STRATEGY
By our African Marketing Confederation News Team | 2024
New CEO wants to simplify the menu, review pricing, be more welcoming, and refocus on what made the business great in previous years.
Global coffee chain Starbucks is aiming to boost its stagnating business by, among other things, simplifying what it believes has become an overly complex menu and reviewing its pricing strategy.
Photo: Şahin Sezer Dinçer from Pexels
The impending changes, which are part of a wider overhaul of the business, have been announced by new CEO, Brian Niccol.
Starbucks has been struggling for some time and Niccol recently took over from former chief executive, Laxman Narasimhan, who lasted only 18 months in the role before being ousted.
The new CEO believes the chain, which was founded in the US in 1971 and now has more than 38,000 stores worldwide, must ‘fundamentally change’ its strategy to win back customers.
Profits will be down 25% versus last year
Starbucks’ global sales reduced by 7% in the three months to the end of September, while profits will be 25% lower than in the same period a year earlier. Sales at US branches were 6% lower in the past three months, and went down by 14% in China.
“Figures revealed that Starbucks’ customers have cut back on spending as the rising cost of living squeezed budgets, particularly in China,” the BBC reports. “But Mr Niccol also admitted that there were issues in its stores such as not enough staff and customer bottlenecks.”
The new CEO has made a pledge to “get back to Starbucks”, adding: “We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit.”
In a message sent to company staff, Niccol said: “We’re refocusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. This is our enduring identity. We will innovate from here.”

The Africa Commerce Convergence Summit keynote address identified four elements that must converge if the continent is to achieve a meaningful economic reset.

Vongani Mageza brings more than 20 years’ experience across financial services and FMCG) companies such as FNB and Diageo.

AI agents will influence shopping, algorithms will supersede social connections, and the clip economy will change how brands connect.

The brand partnership includes a new TV commercial featuring Kipchoge, digital storytelling, wellness initiatives and community programmes.

Modern retail in Africa is still dwarfed by the traditional trade. Marketers who dismiss this relationship-heavy retail model do so at their peril.

Research finds brands don’t just sell products. They can also provide employees with stories through which they feel their work is meaningful

Honesty must be demonstrated through transparency, accountability and action – shaping both reputation and future trust following a crisis.

In the funeral plan category, where most advertisements look like an obituary, Standard Lesotho Bank opted to ‘sell the cow’, not the policy.

Strategic Marketing for Africa, the publication for deep-thinking African marketing professionals, is not to be missed.

CEO of Scopen says the expansion into East Africa is a natural progression following the success of the research in South Africa.

Report says around 80% of Africa’s annual goods export potential to the Caribbean remains untapped.