Starbucks may introduce loyalty card to stem poor sales

Starbucks Corporation (NASDAQ: SBUX) is struggling and with Howard Schultz back in as CEO, the company is looking to get its sales moving upward again. One possible strategy? Free coffees, discounts with a rewards card, and a possible expansion of the company's $1 coffee campaign -- with free refills.

Will these plans help boost sales in the midst of a struggling economy? Probably. But, if I were a Starbucks shareholder, I'd be concerned about the damage to the brand. The fact is that Starbucks has become one of the best companies in the world -- that's not an exaggeration -- with an emphasis on quality and customer experience that made it, for a long time, essentially immune to the competitive pressures that other companies deal with.

If Starbucks has to resort to value-oriented marketing like every other company does, then Starbucks is no longer as special as it was in its heyday as a great growth stock.

That said, the stock is down more than half from the 52-week high it reached in 2006, and the company's woes may already be priced in -- leaving the company's strong brand undervalued.