Case Study : Starbucks And Brand Image

Decent Essays
Xiaodong Chen

Factors accounted for the extra-ordinary success of Starbucks in the early 1990s
⎫ Atmosphere: Starbucks’ new design gave people a location to not only go and purchase refreshments but spend time to relax.
⎫ Product quality: The stores being franchised allowed Starbucks to maintain quality control.
⎫ Service: Employees were trained in skills to both interact with customers and create the refreshments.
⎫ Partner satisfaction: Starbucks firmly believes that satisfying their employees in-turn satisfies the customers. They adopted a positive working environment to facilitate this.

⎫ Specific target audience: In the 1990’s, Starbuck primarily targeted towards the affluent, well-educated, white-collar patrons (skewed female).
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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.

The difference between Starbuck in 2002 and Starbuck in 1992
Main differences:
⎫ In 2002, beverages accounted for 77% of sales while in 1992 about half of store revenues had come from sales of whole-bean coffees.
⎫ Evolving customer base: Starbucks’ newer customers tended to be younger, less well-educated, and in a lower income bracket than Starbucks’ more established customers.
⎫ Expanded customer profile. Example would be a larger number of Hispanic customers.
⎫ The major difference between the Starbucks of 2002 and 1992 is customer satisfaction. In 1992, customer satisfaction was high unlike now when it is declining. Again, the 2002 Starbucks has experienced remarkable quick growth.

The ideal Starbucks customer from a profitability standpoint.

Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are
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