Case Study Analysis: Starbucks

In looking at our product, Folgers Coffee, a sure way to see where a product is going sometimes is to look at where it has been. In 1992, Kraft’s brand of coffee, Maxwell House, had gained the lead in market share and appeared to be poised

According to recent studies, the age group of 25-40 year old males and females purchase a reliable amount of small appliance to bring in this product. A household income of $40,000 a year is enough purchasing power for a household to afford this product. Through recent studies, it has shown that cocktails are mostly popular with individuals that like to share their experience with others and go to bars and restaurants because of the specialty cocktails that are offered. The United States has been chosen as the target location because of Company G’s location.

negative form. In order to have good marketing an engagement of this size must begin

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

The extraordinary success Starbucks experienced during the early 1990s resulted from Howard Schultz’s passion and vision to create a coffee culture in the United States similar to the coffee culture he experienced while traveling to Italy. Schultz’s vision of the Starbucks brand evolved around providing a quality product while delivering exceptional customer service in an inviting atmosphere. Starbucks’ success can be attributable to the following factors:

It was believed that there was a service gap between Starbucks scores on key attributes and customer satisfaction. Furthermore, according to a poll, the speed of service delivery was the biggest concerns of customers. Overall, customers are pleased with the cleanliness, atmosphere, and product quality. However, the main problem was that waiting time was steadily increasing. I believe this one of the factors that caused the decline in satisfaction.

ticket size) X (4.4 customer life years)] $921.78. Calculating sales amount for the highly satisfied customer using the same method shows an amount of [(7.2 visits/mo) X (12 months) X ($4.42 avg. ticket size) X (8.3 customer life years)] $3,169.67. The sales figure for the highly satisfied customer is nearly three and a half times as much as the satisfied customer. This is why it is very important for Starbucks to figure out how to provide more customer satisfaction. The company needs to do research to find out if quality of service has actually declined. There is always the societal perception that a large mega brand is incapable of delivering customer intimacy. This perception is not necessarily a foregone conclusion. It’s just a matter of Starbucks collecting accurate information regarding both quality and quantity of its customer service. The company needs to take a look at itself and determine if its customer service strategy had changed from 1992 to 2002. This is an era indicative of the massive growth. Starbucks needs to answer the question, “Did we lose our focus on customer service quality by concentrating too much on opening more stores?”.

What customers need is consistent quality services, which is discovered in the report by Chen and Hu (2010) that if customers feel confident that they can have a consistent quality consumption experience each time they come, they tend to choose the same coffee shop to enjoy their coffee. And such favorable attitude towards the service they have received could evolve into customer loyalty, since the essence of customer loyalty is, as Barnes (2001) depicts, “all about how you make them feel”, vice versa. Customer loyalty may result in consistent purchasing behavior of the brand over time. Therefore, it could be concluded that the all-round quality service performed by staff with high consistency could be the competitive advantage of Starbucks, which can make it special and achieve long run sustainability in Australian market.

Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.

Customers: The demographics of a usual Starbucks consumer have altered extremely in the new years. In the Starbucks case documents innovative consumers of Starbucks are younger, a smaller amount knowledgeable, low pay, less frequent visited to the coffeehouse and had very dissimilar insights. The general outlook of Starbucks is very short on 25% by novel consumers while the consistent consumers stood in 44%.Although numerous features subjective customer satisfaction, generally service and quickness of service were recognized as the greatest significant; a rapid glimpse at Starbucks 's fresh customer satisfaction reveals that consumers did in

12,000 employees will lose their jobs…Starbucks will offer relocation packages to many employees, severances to others.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The brand produces both fresh products and long shelf-life drinks and the distribution operates through dual channels: direct sales and indirect sales. In the direct sales, the brand distributes the fresh products through franchising networks. The indirect sales, the long shelf-life drinks are distributed through intermediaries including supermarket and distributors.

There are several reasons why business is so good at Starbucks. The first reason is that it is a place for everyone, and by everyone I mean that one does not have to like coffee to go there. They have plenty of more options onfrom the menu. Second, the service is really good and fast for those who are in a hurry. Starbucks had a strong year in financial performance in Q3 and had demonstrated the devotion to delivering excellent economic and managing results while providing prosperity to the company. The growth was extremely influenced by the establishment ofas a Starbucks branch in Japan, a 7% increase in international store revenue, and installation

This paper will examine Starbucks, Inc. CSR and sustainability practices from the viewpoint of a potential socially responsible investor performing due diligence. Two indices will be used to compare and contrast the company 's CSR report which measure the CSR practices of corporations; also, the usefulness of these two indices for research purposes will be evaluated, critiquing the credibility and limitations of each index. A report will be formed addressing Starbuck’s CSR performance and strategies based on the analysis.