Starbucks write up
Starbucks
Charles Hunt
Write-Up 2
November 22, 2013
At Starbucks we have a different view of the coffee experience. We developed our own value proposition based on our ideals and our belief that coffee drinking did not need to be brown water in a paper cup. At Starbucks we have three core components to our value proposition, great coffee, a unique and inviting atmosphere designed for people to linger in our stores and to provide great service through customer intimacy. Understanding these core components and executing them in all stores lead to our current confusion. Our customer satisfaction had always scored very well in our research. However, our most recent study has shown us that we are not meeting our customers’ expectations in the service category. It is my job to present a plan to our Chairman and to our CEO. My plan calls for an investment of 40 million dollars to increase the number of staffed hours in each store by 20 hours per week which I believe will lower the wait times and increase the customer satisfaction levels. As we have grown and expanded our customer profile has changed. When we first opened our typical customer was an affluent and well educated adult, skewed towards women. The diversity of customers was also not very high. Currently, in 2002, our market research has shown us that our customer profile has shifted. As we have grown the number of our stores and the diversity of locations, our customers have progressed. The typical customer is now less affluent, less educated and more diverse. While this change occurred, we did not shift our focus to adapt to the changing customer base. Some of our marketing strategies were specifically targeted at acquiring new customers. When we introduced our store value card we found it was being given frequently as a gift to people who were not frequent customers. Through a number of different partnerships we were able to broaden our reach through avenues less
Charles Hunt
Write-Up 2
November 22, 2013
At Starbucks we have a different view of the coffee experience. We developed our own value proposition based on our ideals and our belief that coffee drinking did not need to be brown water in a paper cup. At Starbucks we have three core components to our value proposition, great coffee, a unique and inviting atmosphere designed for people to linger in our stores and to provide great service through customer intimacy. Understanding these core components and executing them in all stores lead to our current confusion. Our customer satisfaction had always scored very well in our research. However, our most recent study has shown us that we are not meeting our customers’ expectations in the service category. It is my job to present a plan to our Chairman and to our CEO. My plan calls for an investment of 40 million dollars to increase the number of staffed hours in each store by 20 hours per week which I believe will lower the wait times and increase the customer satisfaction levels. As we have grown and expanded our customer profile has changed. When we first opened our typical customer was an affluent and well educated adult, skewed towards women. The diversity of customers was also not very high. Currently, in 2002, our market research has shown us that our customer profile has shifted. As we have grown the number of our stores and the diversity of locations, our customers have progressed. The typical customer is now less affluent, less educated and more diverse. While this change occurred, we did not shift our focus to adapt to the changing customer base. Some of our marketing strategies were specifically targeted at acquiring new customers. When we introduced our store value card we found it was being given frequently as a gift to people who were not frequent customers. Through a number of different partnerships we were able to broaden our reach through avenues less