Case Study on Starbucks Service Marketing

8/20/2019 Case Study on Starbucks Service Marketing

1/9

Case studyStarbucks: delivering

service

By: Abrarul haque

Group - 8


2/9

Key Challenges for Starbucks

Invest $ ! "illion to increase labor hours in each store#


3/9

hat %actor accounted %or&'traordinary success#

• Great quality products,• Customized coffee, served in clean, convenient placed

stores for everyday coffee• Friendly and fast serving Baristas• Everything in a pleasant atmosphere Their US !as a place !here every "merican could escape

from home or !or#, for a coffee drin#ing ritual$ high

quality coffee, according to each customer%s taste, served ina special, intimate am&ience


4/9

Brand I"age ( )alue proposition

Value proposition• Star&uc#s value preposition is &est captured &y' ()ive Coffee* +antra• t means creating an e-perience around the consumption of coffee.• Three component of this e-periential &randing'/. Coffee itself

0.Customer ntimacy 1."m&ience

Brand Image:+ar#et research team did ta#e notice, several things./. 2ery little image or product differentiation &et!een Star&uc#s and thesmaller coffee chains.

0.

The num&er of respondents !ho strongly agreed !ith the statement(Star&uc#s cares primarily a&out ma#ing money* !as up from 314 in 0555to 6/4 in 055/, !hile the num&er of respondents !ho strongly agreed !iththe statement (Star&uc#s cares primarily a&out &uilding more stores* !as upfrom 784 to 33


5/9

Why customer satisfaction score declined?

9eason for decline'• Focus more on partner satisfaction than on customer

satisfaction• :eglecting the mar#et and customer trend• ncreased lead time• Unsatisfactory service of partner as it sets high

slandered &y the company• )o! speed of service as customized drin# slo!ed

do!n the process of delivery.• :e! stores canni&alized e-isting store sales


6/9

s it simply measuring satisfaction !rong!ay;

• Star&uc#s measuring only on ho! customer vie! the company not service'+ore customer agreed !ith the fact that Star&uc#s cared a&out primarilyma#ing money and &uilding more stores &ut generally customer are satisfied!ith the company.

• o!ever, these do not represent customer satisfaction, &ut theyhardly measure the level of fe! services offered.

• ?ay &elieves that they =tend to &e great at measuring things, at collectingmar#et data=, &ut o&viously they have collected !rong or useless information,and, to ma#e matters !orse, they !ere =not very disciplined !hen it comes tousing this data to drive decision ma#ing=


7/9

*o+ does the Starbucks o% ,!!,di er %ro" Starbucks o% .//,#

• n /@@0, 354 of the sales of Star&uc#s camefrom !hole &ean coffee &ut in 0550, AA4 ofsales comes from &everages.

• Customer &ased changed from highlysophisticated !hite collar peoples to ne!young age , students and professional.

• Coffee got more customized.• +ore products on the menu.


8/9

• Starbucks has beco"e a corporate0 accessible and consistent

place to drink a good co ee on the +ay to +ork - it is not ane'perience any"ore today it appeals to custo"ers +ithco"pletely di erent li%estyles0 needs and +ants2

• It "ay satis%y this ne+ custo"er base up to a point0 but theyare not the initially targeted sector2

•

Since nothing has been done to sti"ulate intellectually thesector targeted in .//,0 they "ost probably le%t %orindependent co ee shops0 +hose brands are associated +ith3diverse0 intellectual0 artsy0 %unky0 %ree-spirited30 etc2

• Starbucks is no+ appealing to younger people0 looking %or a

quick cup o% good co ee0 spending less ti"e and "oney inthe shops2 Also0 +e can read in the case that the gro+thplans +ere based pri"arily on de"ographic data0 not onpsychographic in%or"ation2 4arket sectors instead o% "arketseg"ents have been targeted during e'pansion2


9/9

Documents

Case Study on Starbucks Service Marketing