Starbucks Case Analysis: Delivering Customer Service
Abstract
Headquarted in Seattle, Washington, Starbucks is the dominant brand as the provider of premium coffee beans, coffee-based beverages, and non-caffeinated beverages. Starbucks opened its first location in 1971 at Pike Place Market in Seattle. Starbucks’ main proposition is to create an “experience” around the event of drinking coffee that its consumers would incorporate into the routines of their daily lives. Currently, Starbucks’ services over 20 million customers in over 5,000 stores around the globe. Starbucks has achieved this expansion with little advertising. However, it has been shown that the customers’ expectations are not being met in terms of customer satisfaction.
Background
The origin of Starbucks dates back to 1971 when three coffee fanatics – Gerald Baldwin, Gordon Bowker, and Ziev Siegl – opened a small coffee shop, as all three had a passion for fresh coffee. They began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1982, Howard Schultz joined the Starbucks marketing team, and then he traveled to Italy where he became fascinated with the Italian coffee culture. A few years later, he gave new life to the company when he set up an espresso bar that was inspired by the coffeehouse culture of Italy. Schultz took over the company after the founders agreed to sell him the company. Since Schultz has taken over the helm, Starbucks has become the most recognized brand in the world of the finest coffee. The brand is a strong global brand that has been built on a reputation of premium products, pleasant atmosphere in every location, and lack of mass advertising. The main form of their marketing is done by word of mouth from their satisfied customers. Starbucks has created very loyal customers who continue to return to Starbucks, despite the recent increase in prices for products. Yet, in 2002, market research