Starbucks Customer Acquisition Case Study

The growth of the coffee industry is expected to keep growing even become larger in the near future. Without new innovation the industry would never grow. There have been some tiny and some large changes in the coffee world that in toll add up to a new experience that many cannot refuse to be a part of. One of the goals of many coffee shops is to make the customer comfortable and happy. To do this many Starbucks’ around the world have installed new wireless charging stations in there stores so that when costumers are there they can easily charge their phones without worrying about bringing a charger of their own. This new addition to the stores is just one part of getting ready for the future. Phones and technology in general is a huge part of everyday life and this has to be incorporated into many places people shop. By adding technology to stores it makes the entire buying process more streamline. Starbucks has also integrated the use of phones in to the payment system at every store. Customers use their own phone that has a barcode to pay for their goods. With just the touch of a button the entire buying process can be completed. This makes it easy because you do not need to worry about remembering your wallet all you need is your phone and many people already have it with them. Included in the app is also a rewards system that provides user with rewards bases on how often they go and even recommendations for what a customer may enjoy next time. One of the newest changes

Technological advances: Starbucks has utilized the utilization of portable applications and has a venture association with Square, a portable installments application that is incorporated with its Starbucks application. This makes a simplicity of utilization process for clients, adjusts client steadfastness through reward

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks tracked the trend of customers using cell phones determining it contributed to at least 90% of mobile transactions made buying Starbucks goods (Boden, 2014). Starbucks capitalizes on the strong relationship between the present-day utilization of cell phones in the daily lives of consumers through the Starbucks cell phone application. The Starbucks app contributes to their differentiation strategy while maximizing marketing potential and profitability. The application is available through both the Apple and Google Play Stores. Customers sign up and can pre-order food and drink items, recharge their reward cards or add funds available for purchases directly onto their mobile devices. The app also provides Starbucks with an avenue to distribute of special information on different promotional

Starbucks also launched an I-phone mobile payment application. With this application, the customers would be able to have an access of their favourite Starbucks card application. The use of technology will help the enterprise to break through the various distribution channels & be a step ahead of its immediate competitors.

It’s all about the coffee for Starbucks. Starbuck’s core competence is in its ability to effectively leverage its coffee product to entice customers to be repeat customers. There are several ways that they have achieved this successfully.

To ensure brand richness, Starbucks bring the best ingredients and quality control, they also assure that all the employees are constantly involved and be aware of its mission and vision.

Starbuck being one of the biggest coffee house in Canada but in the world as well, focus on achieving competitive advantage by product differentiation as the delivery of quality products or services that are perceived to be unique and valued by consumers ("Sustained Competitive Advantage of Starbucks", 2016) Starbucks is well-known for tailoring their drinks to a broad customers’ needs by preparing orders that meet customers’ wishes, no matter how crazy they are. Starbucks is also well known for quality products, with stringent guidelines outlining how they pick and harvest their coffee ("Coffee Quality", 2016), to how their coffees are to be prepared, to as detailed as espresso must be served within twenty-three seconds of brewing. (Groth

Starbuck is the nation’s largest coffee house with 21,160 stores throughout the world. Starbuck is known for it hot and cold signature beverages along with its pastries and snacks. Starbuck evening locations serve wine, beer and limited appetizers after 4 pm. Along with its unique beverages and pasties, Starbucks also provides free Wi-Fi to its customers. In today’s society, free wireless internet connection is a feature customers seek in choosing locations to eat. Due to the high volume of customers and multiple locations throughout the world, Starbuck serves as an ideal location for a partnership with Apple Corporation.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

There are a few benefits of Starbuck’s product. First is high quality products. They are growing the coffee plant, selecting the coffee nut, roasting the nut, grinding the nut until mixing with ingredients by themselves.Other than that, they also consider the taste and lifestyles of customer. They are not only provide coffee product but also the tea product. They are considering the taste of other customer that are prefer tea instead of coffee.

“Starbuck’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (as cited in Our Company, 2014). Starbucks vision is to “Establish Starbucks as a premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Shah, Hawk, & A, 2011) In order to perform our mission and see our vision we must conduct business by the following values:

Starbuck realised that pure licensing agreement would not give Starbuck the control needed to ensure Japanese licensee followed it succesfull formula, therefor the company had established a join venture with Sazaby Inc in Japan. Starbuck first foreign direct investment. After Japan, the company embarked on aggresive foreign investment program by purchasing Seattle Coffee, a British company chain, opened stores in Taiwan, China,Singapore,South Korea and Malaysia. Starbucks expand aggresively to Switzerland by entering join venture with a Swiss company Bon Appetite Group. Starbucks license its format to the Swiss company by

Starbucks is a highly socially engaged company. According to the Social media Index, Starbucks is enjoying the 36th position as a most effective company in social media in the United States. One important success factor is that for Starbucks, social media is a way to build the customer relationship environment rather than mere marketing channel. Starbucks has made a significant investment in social media to reconnect with the customers. Because Starbucks firmly believes that social media enhances the customer experience and improve customer interactions (Poirier, 2014).

Research Question 1 asks were the recent Starbucks Public Relations campaigns effective at creating buzz for the company. Survey Questions 1 and 6 gave the consumer a chance to provide information on social media sites their most active on and also their awareness on Public Relations campaigns Starbucks have featured over the recent years. While the research shows that Facebook had the most active participants 70.89% of all the social media sites features. The survey showed that of the 79 total participants, 62 participants or 78.48% were unaware of the selected Starbucks campaigns.