Case Study Starbucks

1054 Words5 Pages
Starbucks

Case Analysis

Table of Contents
Business context About Primary Issue Sub-issue
Causes and Difficulties
Analysis
Growth SWOT Consumer Gratification Marketing/Product Mix
Service innovation
Product innovation
Reccomendations

Business content
The objective of this case study is to analyze why Starbucks was not meeting expectations in terms of customer satisfaction thereby losing customer loyalty. Whether or not to invest millions of dollars ($ 40 million) in each store to enhance the labor. How will it impact the sales and profitability if invested? Product mix and marketing approach will also be recommended in this paper.
About
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Product innovation
• The company’s most successful innovation was 1995’s introduction of a coffee and non-coffee- based line of Frappuccino beverages
• The bottled version of the beverage became a $400 million franchise
• New products were launched frequently for example introduction of at least one new hot beverage every holiday season.
• The new product development process operated from 12 to 18-month cycle
Recommendations
To increase customer satisfaction and loyalty, huge investment of $40 million should be made In order to increase the speed of service which was one of the main concerns due to customization of drinks. A strong strategic marketing group is essential to collaborate the efforts of marketing group, marketing research group and category group. Improving the metrics will help in better measuring of service

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