Preview

Starbucks Delivering Customer Service

Powerful Essays
Open Document
Open Document
1307 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Delivering Customer Service
CASE ANALYSIS
Starbucks: Delivering Customer Service

MARKETING-II
DATE OF SUBMISSION-19.11.2012

SUBMITTED BY:-
SECTION-C, GROUP 13:
Abhijit Das- 2012PGP005
Ashwin Vijayan- 2012PGP073
Kumar Abhishek- 2012PGP178
Payal Anand- 2012FPM10
Rajat- 2012PGP292
Sumit Bapuji Gedam- 2012PGP382
Vikash Kumar- 2012PGP438

Situational Analysis
Customers:
Affluent, well-educated, white-collar patrons(skewed female) between the ages of 25 and 44
Most loyal customers visit Starbucks as often as 18 times a month, but typical customers visited just 5 times a month
Context:
Stores located in high-traffic, high-visibility settings such as retail centers, office buildings and university campuses
Along with whole-bean coffees, company-operated stores also sold rich-brewed coffees, Italian-style espresso drinks, cold-blended beverages, premium teas, pastries, sodas, juices, music CDs, games and seasonal novelty items
Beverages accounted for the largest 77% of sales in stores. This represented a change from 10 years earlier, when about half of store revenues had come from sales of whole-bean coffees.
Company encouraged promotions within its own ranks. About 70% of the company’s store managers were ex-baristas, and about 60% of its district managers were ex-store managers
Not easy to strike up a conversation with customer as before because today every customers orders a handcrafted beverage
Coffee consumption was on rise in the United States. More than 109 million populations drank coffee every day, and an additional 52 million drank it on occasion.
Consumption of specialty coffee was rising and it was estimated that about one-third coffee will be consumed outside of the home
New product development process took 12-18 month cycle and its success mainly dependent on partner acceptance
Starbucks’ customer base was evolving. Newer customers tended to be younger, less well-educated and in the lower income bracket.
Company:
Dominant specialty-coffee brand in North America
Starbucks

You May Also Find These Documents Helpful

  • Good Essays

    It might be argued that Starbucks is no more than a fast food company paralleling such chains as McDonalds, Wendy’s, and Taco Bell. The company appears to provide the same basic service customers expect from a fast food giant. One sharp marketing contrast however, consistently has Starbucks standing out far above the others. Starbucks Corporation counts on the same customers visiting their local stores daily and sometimes multiple times in a day. Most fast food chains cannot typically tout such a claim.…

    • 629 Words
    • 3 Pages
    Good Essays
  • Best Essays

    * Robert Gibson. (2007). Starbucks Corporation: How to Improve the Current Marketing Strategy. Available: www.plu.edu. Last accessed 29 September 2011.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Coffee is the second largest commodity market next to oil, and growth is expected to continue at a strong pace. The US coffee market is approximately US$40 billion (inclusive of both retail and food services sales). The US ground coffee market is about US$1.9 billion and it is estimated to grow up to 2.8 billion by 2012. Folgers retail sales is 44% of the overall ground coffee market.…

    • 1540 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    In the past several years the demand, or desire, for coffee has increased in countries more widely known for their consumption of other beverages. For instance, the people in China are traditionally considered consumers of tea, but in recent years this has changed. “The demand for coffee in China has been growing so rapidly analysts have a hard time gauging it though estimates have been a growth of about twenty…

    • 942 Words
    • 4 Pages
    Good Essays
  • Better Essays

    ECON 101 - Essay 1

    • 881 Words
    • 3 Pages

    The demand for coffee and specialty coffee products have been steadily increasing. One of the leading factors affecting the demand for coffee beans is an increase in specialty coffee shops, such as Starbucks. Starbucks has become one of the most favorite coffee spots with over 21,160 stores in 63 countries and territories, including the United States, China, Canada, Japan and the United Kingdom (Starbucks Corporation 2013 Fiscal Report). Their locations serve hot and cold infusions, ranging from a regular Americano to Frappuccino’s and a whole array of whole-bean coffee, micro ground instant coffee, full-leaf teas among other goodies. It is no surprise that Starbucks has become a significant success, controlling a high percentage of the coffee supply.…

    • 881 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Traditional coffee has dropped in its consumption now at 49% from 56% in 2012 as gourmet coffee has become more desired posting in strong numbers in recent studies (Prepared Food Networks, 2013). In 2012, gourmet coffee consumption moved from 37% to 46% (Vending Marketwatch.com, 2013). Overall, there is an average of three cups a day per person or a 587 million cups (“Coffee Grinds Fuel for the Nation,”2013). Coffee has become an important part of America’s daily need just as much as other necessities.…

    • 797 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Starbucks vs Dunkin Donuts

    • 4779 Words
    • 16 Pages

    The coffee industry and the coffee shop business has boomed in recent years, especially with regards to specialty coffees. Companies in this industry sell coffee drinks and other food and beverages for consumption on the premises or for takeout. Major companies include Starbucks, Dunkin Donuts, and Krispy Kreme and so on. The US coffee shop industry includes about 22,000 stores with combined annual revenue of about $12 billion.(Starbucks Website) Coffee shops are part of the specialty eatery industry, which also includes outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream.…

    • 4779 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food snacks and coffee accessories Starbucks has attracted consumers and turned them into loyal customers. (Starbucks Coffee Company, 2012)…

    • 1052 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    restaurant or taken away. 51% of sales come from coffee beverages, 34% from food, and the remaining…

    • 2448 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Equal Exchange Term Paper

    • 801 Words
    • 4 Pages

    | 1. The trend in coffee consumption among Americans has been increasing in the sense that this will be a great opportunity for equal…

    • 801 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Tui Mkt 501 Module 1 Slp

    • 2251 Words
    • 10 Pages

    This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.”…

    • 2251 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    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.…

    • 2288 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Paper

    • 1732 Words
    • 7 Pages

    There are approximately 20,000 coffee shops in the United States with combined annual revenues equaling almost $10 billion. This industry is highly concentrated in that the top 50 companies generate 70% of total industry sales, (First Research, 2011).…

    • 1732 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Article Analysis

    • 766 Words
    • 4 Pages

    People all across the country are craving coffee despite the increasingly soaring prices. Coffee has become more popular than ever. There are many versions of coffee drinks that entice the public of all ages from teenagers to elders. Coffee has enticed the country with all its different variations and flavors.…

    • 766 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Thirty years ago Starbucks was a single store in Seattle 's Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with over 7,000 stores in U.S. and outside U.S. Starbucks Co. set out on its current course in the 1980s when the company 's director of marketing came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz persuaded the company 's owner to experiment with the coffeehouse format-and the Starbucks ' experience was born. The basic strategy was to sell the company 's own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company also stressed providing superior customer service. Reasoning that motivated employees provide the best customer service, Starbucks ' executives devoted a lot of attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. (Hill, 2003)…

    • 2423 Words
    • 10 Pages
    Powerful Essays

Related Topics