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