Relationship Activities Of Starbucks

The employees of Starbucks--Howard Schultz refers to them as the most important asset--are trained to open a new world of coffee for customers. Howard Schultz wants customers to perceive Starbucks as a friendly environment. He treats his employees exceptionally well too. Starbucks offers full health benefits and stock options to its workforce (Bollier 167). The employees are treated with great appreciation; they have no other reason why they shouldn’t treat the customers with respect in a Starbucks restaurant.

Additionally with its growth strategy Starbucks seemed to have lost the ability to communicate its values to its customers. Note that Starbucks research team discovered that between 2000 and 2001 there was an increase in customers who felt that Starbucks primarily cared about making money and building more stores. This is an indication that the company lost sight of the components making up its value proposition. Customer service was a major component of Starbucks value proposition but according to the research team by 2002 it discovered that Starbucks was not meeting expectations in terms of customer satisfaction. In fact the data collected by the research team indicated that 10% of customers would like to see improvements in service especially speed of service and 19% would like to have friendlier more attentive staff.

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

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.

Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers, and create “third place” beside home and work, where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there is shown some concerns, that company has lost the connection with customers and it must been taken some steps to help Starbucks to go back on the right path regarding customer satisfaction.

Starbucks is a multinational firm that mainly sells roasted specialty coffee in its established retail stores. With headquarters in United States, Starbucks also operates in more than 50 countries across the world. The company was established in 1971 and has expanded its operations within the US borders consistently since then (Seaford & Brooks, 2012). One of the most significant drivers for the good performance of the entity prior to 21st century was good reputation as an organization that was socially responsible and willingness to cater for the interest of its stakeholders. Remarkably, the current status of Starbucks has been attained mainly through the support of its hardworking and committed employees. For the first three decades,

The ambiances at each bar were different and the energy was electrifying. It was in this setting that he realized that creating an atmosphere and bonding with customers around a cup of coffee was monumental in improving his business. Coffee would be only the automobile for a place where people want to stay for a while, a place-like-home, and office. These variables will become the differentiating factor for Starbucks.

One of the main strength of Starbucks is their robust financial performance which in turns helps it to become the market leader in the category of coffee. According to (Forbes, 2014) Starbucks Market cap is around $55.94 Billion which is the main edge over its competitors. Achieving the Top of the mind strategy, whenever we listen coffee or best customer care and quality, we automatically refer Starbucks in our mind. With over 21000 stores in more than 65 countries, it shows great expansion and connection in the world (www.Starbucks.com). Due to great expansion, Starbucks can afford a premium price of coffee and other products. Starbucks is known for its management skills in terms of quality and customer service. They put a lot of emphasis on people skills and soft skills which is critically important in terms of success and failure. It creates a soft ambiance for its employees in which they remain happy and at the end of the day they make customers happy. My StarbucksIdea.com enable customer to provide their feedback on the customer and product services. On the other hand Starbucks uses experiential marketing, in which customer always wanted to experience the environment of Starbucks.

Starbucks had a very tight value proposition that matched the needs of the well conceptualized target customer base. Its mantra was ‘Live Coffee’. Their unique value proposition was based on three elements, premium coffee, the right ambience and best service. Starbucks claimed its coffee quality to be the best in the world. A lot of their revenue came from the sale of whole beans. They strived to get a perfect ambience. The labors were trained on honing their soft and hard skills to provide “Customer Intimacy”.

As more products were introduced and added, customers felt the Starbucks experience had changed with added orders of hot breakfast sandwiches. Furthermore, the atmosphere aroma smelled more like McDonald 's basic coffee than the quality brand coffee in the Starbucks coffee shop (Ferrell & Hartline, 2014).

Starbucks is active when it comes to expansion into other countries. The organization adapts their products in order to fit local tastes and preferences. This strategy is has been well received and profitable in all locations the company has penetrated. Starbucks has done an exceptional job strategically determining the consumer tastes and preferences and that are associated globally. Based on this strategy the organization has been able to offer one common line of products to satisfy customer needs around the world. For example, coffee lovers in Latin America may enjoy a bitterer coffee taste over the milder brews that are actually more popular in Asia (Starbucks.com).

Starbucks have one vision from day one to present, which is to be the premier provider for the world’s finest coffee. In doing so they also achieved being one of the most recognized brand and maintained principles and values form the first step of planting the coffee seed to handing a cup of coffee to their customers. Starbucks are very fond to their employee who they call their partners. They focus a lot on the happiness of their partners since they believe that happy employees will create a better environment and experience for the customers. They strive to be the most appreciated and positively graded coffee brands by all the different class levels of customers and employees around the world.

Besides that, Starbuck realize that the element of human is a very important chain in success in the industry. But they are not start with the top of the human resource but from the bottom one. That is why they have a lot of places to educate for the new employees. According to many survey and research, Starbucks is one of business place have the best customer service. Every time I come to Starbucks, the employees there behave very friendly and helpful. They tried to serve customers with the best behaviors which they studied from Starbucks. Even if any customers complained anything about the drinks or food, they also be friendly and smile, after that, that employees tried to fix the problems. That makes people are willing to spend money in this brand name than the others like Dunkin’s Donut or Mc Donald even though they are also have some similar products. The products that Starbucks sell in their store is not only the coffee but also the value of brand name and the feeling of respect when people come there. Starbucks can become a place for students who want to go for group work, it is also become a place for people who can come for do business and discussion or the basic idea is a place to enjoy a cup of coffee. In any purpose, Starbucks can perfectly become a good place for that. The atmosphere which Howard tried to create for Starbucks is suitable for many kinds of people.

The main aim of the corporation remained the same: to be the leading company at selling exclusive coffee and increase market share in the North America, which was prosperously achieved. As a customer-oriented entity Starbucks place their clients in the centre of the business activity, having satisfaction of customers’ needs as a priority (Boşcor & Tălpău, 2011). Howard Schultz explains, “We are not in the coffee business serving people, we are in the people’s business serving coffee” (Schultz & Yang, 1999). Starbucks does not just sell coffee; it sells the “Starbucks experience”. The store designers with the HR and Operations departments have created a place where people would come back again and again. As of November 4, 2015 there are 23,132 Starbucks stores operating all over the world (Loxcel Geomatics, 2015) and they are not planning on stopping the rapid expansion. However, due to the cultural differences people have diverse needs, which cannot be met by using one universal international standard for every store in every country. Therefore, in order to gain necessary competitiveness in local markets Starbucks Corporation has to adapt its marketing mix so it could correspond to the existent demand. What strategies Starbucks Corporation applies entering new markets (like in Japan and Australia instances) will be discussed in the following

The target customers were women aged between 24 and 44, well educated, wealthy and professional. The aim for Starbucks was to obtain company growth by providing its costumers with the best experience. The customers appreciated to be called by name by the waitresses in the shop and to chat with them during their stay at Starbucks. The company originally had the aim to open 10.000 new stocks in only 4 years time and right after Mr Schultz pressed to build 40.000 new Starbucks stocks. The comfortable and pleasant atmosphere made people fall in love with Starbucks and desire to come back even more than once a