Starbucks Way: Five Principles For Connecting With Your Customers, Your Products And Your People

After purchasing a drink I settled down to the left of the shop just by the window from this location, I observed several rituals through watching interactions and general behavior. My vantage point of view proved useful in the first trip so it was used for observation in subsequent visits as well. I also obtained information by interviewing an informant. The informant is an employee at the coffee shop: a barista who works mainly in the morning shift. The barista has been an employee at this particular Starbucks for three months. According to the informant, having been on duty during the early morning rush has provided sufficient material, which they have used to observe customer behavior, maybe for business strategy.

There is one primary ritual that takes place regularly, although it is not particularly work related it does enlighten some aspects of the culture. Every day at around 4 most of the people on the team will go out to the break room and have tea and biscuits. It’s a very British tradition really and is by no means remotely unique. Its a cultural byproduct of the British colonization of

In 1985, participating Harley Davidson dealerships facilitated local organization in the form of “chapter”. Through their local chapters HOG members are able to meet other rides, develop social ties, participate in community service and ride their motorcycles together.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

Former Starbucks Executive Scott Bedbury once said “Brands need to communicate that they are along for the ride. They are made of flesh and emotion. That they are made possible by people” (10 Quotes from Starbucks Executives, 2010, para. 6). Starbucks’ beliefs in customer service, community solitude, and a strong business core stretch far behind just a belief in a quality caffeinated product. “We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly” (About Us, 2011, para. 4). Thus, this commitment is the motivation behind Marketing Team A’s proposed

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

in or between 1946 and 1964 (Rybolt, 2009). In particular, the (target) customers are older males

Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.

We think it would be interesting to quote first Harley-Davidson 's mission, in order to get a first approach of what is the purpose of the company from their point of view. The mission talks first about dreams, rather than motorcycles, which is what the public has in mind. This mission says:

Problem statement: In 2002, market exploration has exposed that Starbucks has an opening in gathering its consumer’s outlooks in relations of customer pleasure. On explanation of the marketing research statistics, Christine Day, Senior Vice President determined that the speediness of service was the foremost motive for this deterioration in customer contentment. So she proposed to increase the service period such that each order is served within 3 minutes. Nevertheless, this explanation would price Starbucks 20 supplementary employment hours per week thus $40 million per year. Is the 20 seconds escalation in speed of service actually worth $40 million per year? I am trying to examine evidence in this brief case, while looking for different methods, in demand to accomplish greater profits.

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.

I can always look forward to starting my day off, with a steaming cup of coffee, I love that even if it 's a cold, dark, and gloomy day outside, a big cup of coffee can get me through the day. I could go on and on about my appreciation and fondness over the drink itself, but I won’t. However, I would like to share with you a remarkable phenomenon that I’ve come to notice, it is other people sharing this experience, this love for coffee, and they do it all across the globe in shops known as “cafes,” or “coffee shops.” And this is exactly what Howard Schultz (The CEO

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

The CEO (Chief Executive Officer), Howard Schultz pointed that the main reason from the decline of “Starbucks Experience” was that the number of Starbucks shops increased sharply from only 1,000 to 13,000 within ten years. Other people considered their brand has been commercialized, and the customers hadn’t had enough enthusiasms to appreciate every moment of their coffee any longer. He suggested that Starbucks should re-find its origin. Nevertheless, his advice apparently was opposite to the

It can be assumed that consumers always have a cellphone nearby which allows mobile marketing to be pervasive (Kotler, Keller 2016). Consumers have the option to download the Starbucks app where they can register for Starbucks Rewards. The rewards program can only be used by downloading the phone app. The app allows customers to pay by phone, pre-order menu items, receive free drinks, coupons, and in store refills. The app can send notifications to the consumer when they qualify for rewards or a free drink. App users will also receive notifications when promotions are active in Starbucks retail stores. Mobile marketing in the form of the rewards app is an ideal form of communication because it allows Starbucks to “inform, persuade, and remind consumers-directly or indirectly about the products and brand they sell” (Kotler, Keller p. 558).