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1 page/≈275 words
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Business & Marketing
Statistics Project
English (U.S.)
MS Word
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Starbucks Duetto Visa Card (Statistics Project Sample)


The task is to explore the current state of store branded cards and report on a potential strategy for Starbucks to follow


In the very mature financial services industry, it is rare for a new financial product to garner much attention, let alone be named one of BusinessWeek’s outstanding products of the year. But what started as a way for Starbucks to add value to its existing Starbucks Card program developed into a financial product that many other institutions are interested in exploring. This case reveals the research that was done to develop this new payment option for Starbucks customers.  www(dot)starbucks(dot)com; www(dot)bankone(dot)com; www(dot)visa(dot)com

Starbucks Coffee Company is the leading retailer, roaster, and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim.1   It has long prided itself on offering an enriched customer experience as much as on great-tasting, high- quality coffees. The company’s prepaid stored-value card, known as the Starbucks Card, has been a tremendous success since its launch in late 2001. By 2002, Starbucks was looking to evolve the program. Colette Courtion, Director of Starbucks’global card services, indicates “We had been regularly enhancing the Starbucks Card with new benefits for its ongoing use—like protecting the Card’s balance and adding auto-reload [a process whereby the customer has his or her selected credit card charged for reloading the Starbucks Card with spend- able cash when the Starbucks Card reached a predetermined level], but we wanted to build on the Card’s success in a way that would reward our loyal customers.”2

Similar to other businesses’ cards, Starbucks prepaid, stored-value card can be used in its stores to purchase food, beverage and merchandise. Many Starbucks customers reload their Starbucks Cards for ongoing purchases at Starbucks. “The success of the Starbucks Card gave us the idea of creating an entirely new payment product.” This new payment product would marry the functionality of a Starbucks Card with the functionality of a major credit card. “With a dual function card we could reduce the number of cards our customers carry. It was also an opportunity to reinvent an industry that was mature and saturated and make it relevant and unique to our customers.” Early secondary research indicated such a product did not exist in the credit services industry. The card would also be entry into Starbucks first formal loyalty program. “Consumers expect rewards from their credit cards. But we didn’t want to be too prescriptive with our rewards structure. If something is expected, it doesn’t feel special.”


Starbucks Duetto Visa Card- case study
Starbucks Duetto Visa card case study focused on the viability of the dual functionality card integrating the services of Visa and Bank One. There is viability of store branded store cards rather than having two different cards, but research is needed to decide whether partnering with other companies adds value to the company. In the case of Starbucks, it was necessary to determine whether the target market would associate the dual functionality with Starbucks image or whether this would hurt its image. Thus, the success of these cards is hinged on brand enhancement, as customers positive review on a brand will likely increase enthusiasm for adoption of the cards (Schinder, 2006). This paper explores the current state of store branded cards and highlights potential strategy for Starbucks to follow.
Starbucks needs to focus on strategies that are not readily predictable by the customers. This includes special promotions and instant discounts, as this would i...
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