Starbucks Case Analysis

1488 Words Oct 28th, 2013 6 Pages
mkt 3000 | Starbucks | Delivering Customer Satisfaction Case Analysis | | Nathan Hood | 9/30/2013 |

1. What explains the Starbucks success story?
The success Starbucks saw in the early 1990’s is a result of Howard Schultz’s vision for the company. Schultz’s goal was not primarily about the coffee itself; it was about creating an experience around drinking coffee in a Starbucks store. He wanted to create a “third-place” for those whose lives were centered on home and work. In creating this experience, Schultz focused much of his attention and resources on customer satisfaction, which lead to Starbucks’ quick success. There were a few key elements of the Starbuck’s value proposition that led to its success; coffee
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He created a place where people can go to relax, socialize, or just spend some time by themselves. With this atmosphere Schultz made buying coffee an entire experience.
Starbucks original target market was the “affluent, well‐educated, white‐collar patrons between the ages of 24 and 45. These are people who are very picky but willing to spend a good amount of money on the things they want. With that said, they also expect the highest quality when purchasing items because they feel as though they’ve paid good money for whatever it is they’ve purchased. By having a customer base that expects the best, it helped keep Starbucks honest and helped them consistently provide top-notch service.
In the early 90s Starbucks had developed a brand image of being an “upscale, pseudo-European establishment focused on customer service/intimacy while having a very relaxed and inviting look and feel. Most of its competition came from small, regionally concentrated coffee chains such as Caribou Coffee based in Minnesota, or California-based Peet’s Coffee & Tea. Starbucks also competed against many independent specialty shops which offered a wide range of foods and beverages, as well as, donut and bagel chains such as Dunkin Donuts. 2. So what is the problem? 3. How could this happen? 4.

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