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Starbucks' Value Chain and Marketing Metrics

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STARBUCKS CASE STUDY

INTRODUCTION

Starbucks was created in 1971 by 3 coffee fanatics in Seattle, and was originally an Arabica beans store. It started expanding to a coffee shop and opened more stores throughout the country in the 1990’s and today, Starbucks owns more than 15,000 stores in 50 countries, and it had become the premier roaster and retailer of specialty coffee in the world. Starbucks’ mission statement is: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.”
Starbucks also sells coffee beans and coffee products through other retail channels, such as airlines, hotels, restaurants in airports, grocery stores and warehouse clubs. However in this report we are only going to focus …show more content…

Starbucks also creates a social value for its customers, as it enhances their social self-concept by making them a part of the national coffee culture and thanks to its “live coffee” mantra. Starbucks communicates about its sense of community and wants to bring people together. Finally, during the service delivery process, Starbucks generates positive emotions among its customers, which is due to the interaction value created. This value is formed by several components, such as the helpful and smiling baristas delivering the service, as well as the ambience that Starbucks creates in its stores, thanks to the upscale yet inviting environment or the lounging areas. Starbucks’ goal is to be its customers’ “third place”.

STARBUCKS’ MARKETING METRICS

Starbucks tracked its services performance and this is captured throughout a wide range of metrics. Starbucks are questioning themselves about what constitutes an excellent customer service and, what will be the impact on their sales and profitability? According to that they have to take care of their customer expectations that are the metrics that should be collected throughout a public survey where Starbucks would ask people what are they expecting from a coffee store like Starbucks. Then concerning the level of customer satisfaction and its link with customer loyalty Starbucks will have to deal with the metrics concerning the importance ranking of key attributes in creating customer

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