Starbucks Hbr Case Study

782 Words Jul 12th, 2011 4 Pages
Starbucks Case Study
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Introduction Problem Identification Situation Analysis Alternative Actions Recommendation and Implementation Conclusion

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Starbucks’ brand strategy was captured by its “live coffee” mantra. Branding strategy:

coffee itself service atmosphere

Areas of focus:

ethical sourcing environmental stewardship community involvement
The way I see it # 263 – Run when you can, walk when you have to, crawl if you must; just never give up. Dean Karnazes Runner and author of Ultramarathom Man.

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Coffee Handcrafted beverages Merchandise Fresh food Consumer products Brand portfolio

Starbucks story began
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Partners with Conservation International to promote environmentally responsible methods of growing coffee. Introduces the Starbucks Card. Starbucks enters into licensing agreements with national Fair Trade organizations to sell Fair Trade Certified coffee in the countries where Starbucks does business.

Problem Identification
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Slow customer service. Inadequate evaluation methods. Lack of a solid marketing team. Change in customer base.

Slow Customer Service
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Increased variety Same number of employee’s Did not want to increase number due to economy. Worked on enhancing barista efficacy.

Inadequate Evaluation Methods
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“Customer Snapshot” “Legendary service” Both gave great ratings. Customers had different ratings.

Lack of a Solid Marketing Team

Split into 3
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Marketing research Category Marketing

No chief marketing manager.

Change in Customer Base

Used to be

More educated , higher income bracket.

Now are

Younger, less educated, lower income bracket

Situation Analysis
Scope for Expansion (2003)

By 2003 there were 5,886 starbucks with a scope of expansion to almost 10,000 stores in US.
Total Market Potential = Population X % spending on beverage X % spending on hot beverage X % of Coffee Drinkers

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Specialty coffee drinkers was an untapped market There were still 8 states with no starbucks and infact company was only in

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