Starbucks: Delivering Customer Service Starbucks is dominant coffee brand in North America‚ which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists‚ in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent‚ well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores
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Introduction In 1982 Howard Schultz‚ an employee of a small coffee-bean store called "Starbucks" was enlightened while sipping an espresso in a coffee shop in Milan‚ and the rest is history. He envisioned America’s "third place" next to home and work‚ where coffee-connoisseurs could linger and relax in a classy‚ pseudo-European atmosphere while enjoying their favorite bean beverage. After buying the company a few years later‚ he vigorously pursued his vision of selling a wide-selection of hand-crafted
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Starbucks: Delivering Customer Service Case synopsis: Baldwin‚ Bowker and Siegl were masterful in opening the coffeehouse in Pike Place Market. Schultz was doubly masterful in taking Starbucks to an unprecedented level. As of 2002‚ this familiar household name had a total of 4500 stores which is impressive considering in the ‘80s it had about 100 stores in Chicago and the Northwest. Schultz had his eye on Wall Street although they were incredulous about selling gourmet coffee in a paper cup
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Why have Starbucks satisfaction scores declined? Has the company’s service declined or is it simply measuring satisfaction the wrong way? Based on the data in the case‚ we can’t conclude if the company’s service is declining or is there is an error in measuring satisfaction the wrong way. What is clear though is the fact that the customer perception‚ customer’s attitude and the overall differentiation of the Starbucks brand have declined. It is possible that competition‚ shift in customer demographics
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신제품마케팅 조별 사례 발표 Starbucks : Delivering Customer Service Contents • • • • • • • Case Summary Company Background The Starbucks Value Proposition Delivering on Service Caffeinating the World Starbucks’ Market Research: Trouble Brewing? Rediscovering the Starbucks Customer • Suggestion Case Summary • > 5% ann. sales growth during 11years in a row (~2002) • close to a recession-proof product (Howard Schultz) • Lack of strategic marketing group and customer relationship management : Overlooking
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Preliminary Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers‚ and create “third place” beside home and work‚ where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However‚ within the new customer satisfaction report‚ there is shown some concerns
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STARBUCKS: DELIVERING CUSTOMER SERVICE Background Case P.1 According to their data‚ Starbucks are not always meeting our customers’ expectations in the area of customer satisfaction. They came up with a plan to invest an additional $40 million annually in the company’s 4‚500 stores‚ which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction. P.1 Day‚ Starbucks’ senior vice president of
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Case Discussion Questions 1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? First of all‚ Starbucks has created the entire “coffee culture” in North America. From the idea to create a chain of coffeehouses that would become America’s “third place” other than home and work‚ Starbucks has become another place for relaxation and joy. This
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Starbucks: Delivering Customer Service Starbucks: Delivering Customer Service The elusive goal of customer satisfaction has long provided companies with endless headaches and difficult decisions. In the end‚ associating specific customer satisfaction metrics to company profit and loss would provide the undeniable proof needed to make changes‚ and then invest the required capital to address any concerns. Starbucks‚ not unlike the rest of the business world‚ has found itself in the same situation
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Case Brief- Starbucks: Delivering Customer Service Introduction Starbucks is a successful premium coffee retailer. Its target market sets as well-educated‚ white- color patrons between the ages of 25 and 44. There are three components of the brand‚ live coffee‚ service‚ and atmosphere. However‚ its brand image is losing while they focus on retail expansion. SWOT analysis [pic] Define the problem Starbucks loses its original image for target and customer satisfaction. Identify the alternatives
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