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
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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
Starbucks is an American coffee company and coffeehouse chain which founded in Seattle and Washington from 1971, Starbucks already operated more than 20000 locations worldwide. (Starbucks Coffee Company, 2016) As one of the bestselling coffeehouse chain, Starbucks need to find a long term corporation supplier to provide coffee beans. Costa Rican coffee beans are considered among the best in the world. (Kummer, 2003)
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality
Starbucks is committed to TQD in the quality in his standard and statements ,Be Welcoming, Be Genuine,Be Considerate , Be Knowledgeable, and Be Involved. Also Starbucks first develop program with coffee growing nation to select the best and good quality products ,secondly Starbucks develop partnership training program quality for in service to boost employees performances. To develop quality standard , Starbucks take feedback from leaders, partners,and customers and use it for continuous improvement. The connection between contribution of employees help with the growing value of the
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Therefore this budget would help in their orders in good time. Starbucks initially believed in employee satisfaction to be a factor greatly enhancing customer satisfaction and this investment will cause less stress on the employees as there will be extra time for customer intimacy which is a key factor in the value proposition at Starbucks. However since the investment is huge, it is advisable to conduct a primary market research and test this idea in the main franchises and proceed with the investment once all factors are
Starbucks Corporation is one of the world’s largest coffee roaster, marketer, and retailer of coffee. Some people call Starbucks as one the most success stories in the American history. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin came together with $8000 and opened first Starbucks store in Seattle, WA. They were inspired by the style of roasting beans of Alfred Peet, founder of the Peet’s Coffee & Tea. They started the company with a dream of selling high-quality coffee beans and coffee machines. During their first year of operation, Starbucks used to buy the green coffee beans from Peet’s Coffee but later they started buying the coffee from coffee planters.
The story of Starbucks transformation from a small independent coffee shop tucked away in a corner of Seattle’s Pike Place Market to a cultural phenomenon spanning the globe is legendary. A number of factors have been attributed to the success - one being a keen understanding of its patrons. There are multiple methods used to obtain customer information and the value derived therein. Customer lifetime value is one.
Starbucks has many stakeholders who are interested in the business’ success and failure, as they can be positively or negatively affected by the business. One of Starbucks’ main stakeholders is its consumers, this because consumers are the company's most influential stakeholder group and that Starbucks should listen to, to make the business successful. There are many types of consumers, therefore Starbucks should be aware of this and meet their consumer's needs and desires. Starbucks welcomes all type of people to their stores this is shown through Starbucks’ values which is to “create a culture of warmth and belonging, where everyone is welcome”. This emphasises that Starbucks knows that their consumers are an essential part of their business and believe it is important to please their consumers as they can have an influence on Starbuck’s activities. For that reason, Starbucks welcomes anyone to their business and makes them feel comfortable and also part of the business. Furthermore, if Starbucks didn’t have consumers the business wouldn’t survive, as they would have no-one to sell their products to. This means that it is important that Starbucks listens to their consumers but primarily pleases them with reasonable prices, a wide product range, and also easy access. However, there could be a conflict between consumers and Starbucks if the consumers are not satisfied with the product or services they have received which may lead to the failure of the business.
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
If the service is excellent and the customer has a memorable experience, there will be an emotional aspect that connects the customer to Starbucks. Excelling in service also benefits existing customers and deepens customer loyalty.
Starbucks has put heavy concentration on product innovation, new product launches and branding strategies and as a result, the company has lost sight of the customer’s wants and needs. Ultimately, Starbucks is not properly or correctly measuring customer satisfaction. They are basing these scores on characteristics affecting the product, and not precisely measuring the quality of their services. As Exhibit 10 from the case study shows, Starbucks’ customers ranked a clean and convenient store as the most important attributes of creating customer satisfaction. As marketing research is beginning to reveal, this should not be the only focus. Starbucks needs to shift their priorities and rank fast service, customer experience, and atmosphere as most important, as new studies suggest.
Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability.
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.
The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)
These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.