Product Innovation Strategy: Case Study Of The Starbucks Company

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Starbucks has been opened in 1971 by, Gordon Bowker, Gerald Baldwin & ziev Siegl, based in Seattle, Washington, United States. In 1982, Howard Schultz joined the Starbucks Marketing Team. The founder sold the entire business to Howard Howard begun opening new stores. In 1992, 140 stores in Northwest and Chicago. By 2002, it served 20 million unique customers in 5000 stores across the globe, by 40% earnings and by 50% of sales. Vision: to become American’s third place, a place that would be separate from home and work Mission: to establish Starbucks as the most recognized and respected brand in the world. Starbucks, the coffee brand in North America failed to meet the customer expectations and deliver satisfaction which leaded to losing customer…show more content…
How has Starbucks changed since its early days? According to the retail Expansion, the store had expanded rapidly, from 140 stores in 1992 to 4500 stores in 2002. The company added new products and sold equipment and accessories. Product innovation strategy. 4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable to Starbucks is a highly satisfied customer? Visiting the store 18 times a month by loyal customers, not exceeded 3 minutes of the service. Surpass their expectations and fulfill their wants and needs. Guarantee that the service speed is fast, as customer wants it to be. Add relaxing areas and more comfy chairs and tables in a way that customers feel peaceful and comfortable when using the Internet offered. In this case, Customer satisfaction will create loyalty towards Starbucks and better profits. 5. Should Starbucks make the $40% million investment in labor in the stores? What’s the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy? In my opinion I believe that they should make the investment in labor as it will improve the ‘service’ which will improve the value proposition and increase service efficiency, to exceed customer

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