Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is thei...Rezbeen Nahar Richi
Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is their customer?
This Presentation has case included insided it and also the answers are included.
The document provides an overview of the coffee industry and market research conducted for a business pitch for Starbucks. Key findings from consumer surveys and interviews showed that people value the coffee shop experience as much as the coffee, and sometimes feel Starbucks lacks attention to their needs as caffeine lovers. The research also revealed a wide variety of Starbucks customers and reasons for visiting.
The document provides details on the proposed store FoxFace Boutique that will be opening in Tulsa, Oklahoma. It discusses the store's branding and personality, focusing on having a whimsical and vintage feel through its logo design and subtle hints of foxes throughout the store. It also analyzes Tulsa as the ideal city for the store, noting its growing economy focused on wealthy industries, as well as its Pearl District neighborhood which is being developed into an artistic area with many new businesses. Specifically, the store will be located in a brick building in the Pearl District and will have exposed brick walls contrasted with sweet colors and patterns to create an energetic yet appealing atmosphere for its target market of women ages 21-45.
12 hot business lessons from starbucks ceo howard schultzzubeditufail
Starbucks has experienced phenomenal growth from 425 stores in 1994 to over 21,000 stores globally today. The document outlines 12 key lessons that can be learned from Starbucks' success, including having a clear mission to inspire customers, knowing customers and employees, being innovative while staying true to roots, embracing social media, ensuring consistency, fitting into local environments, and having strong leadership.
The document summarizes research conducted on Starbucks and its competitors. It outlines Starbucks' growth from 1971 to 2008 and issues it currently faces around declining profits. Focus groups and interviews were conducted to understand customer perceptions and priorities when purchasing coffee. Research identified potential over-saturation of locations and preference for competitors' lower prices and food offerings as problems for Starbucks.
The media plan aims to reinforce Starbucks' brand image and increase profitability through a targeted media strategy. The plan will advertise Starbucks specialty coffees across traditional and non-traditional media outlets to develop brand awareness and ensure repeat purchases. The target audience is Americans ages 15-49, with a focus on magazines, newspapers, television, outdoor and internet advertising that will reach consumers in their daily media consumption. Recommended magazines and newspapers target professionals with high incomes matching Starbucks customers. The plan seeks to actively involve consumers and maximize brand exposure through various media channels.
Starbucks had a very successful fiscal year in 1999, opening 625 new stores globally, the most in company history. They expanded internationally, opening over 150 stores outside North America. Starbucks also saw success introducing new products like Tazo Tea and lunch programs. While missing an earnings target for the first time, the company remained profitable and continued its strategy of global expansion and community investment to build its brand.
Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is thei...Rezbeen Nahar Richi
Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is their customer?
This Presentation has case included insided it and also the answers are included.
The document provides an overview of the coffee industry and market research conducted for a business pitch for Starbucks. Key findings from consumer surveys and interviews showed that people value the coffee shop experience as much as the coffee, and sometimes feel Starbucks lacks attention to their needs as caffeine lovers. The research also revealed a wide variety of Starbucks customers and reasons for visiting.
The document provides details on the proposed store FoxFace Boutique that will be opening in Tulsa, Oklahoma. It discusses the store's branding and personality, focusing on having a whimsical and vintage feel through its logo design and subtle hints of foxes throughout the store. It also analyzes Tulsa as the ideal city for the store, noting its growing economy focused on wealthy industries, as well as its Pearl District neighborhood which is being developed into an artistic area with many new businesses. Specifically, the store will be located in a brick building in the Pearl District and will have exposed brick walls contrasted with sweet colors and patterns to create an energetic yet appealing atmosphere for its target market of women ages 21-45.
12 hot business lessons from starbucks ceo howard schultzzubeditufail
Starbucks has experienced phenomenal growth from 425 stores in 1994 to over 21,000 stores globally today. The document outlines 12 key lessons that can be learned from Starbucks' success, including having a clear mission to inspire customers, knowing customers and employees, being innovative while staying true to roots, embracing social media, ensuring consistency, fitting into local environments, and having strong leadership.
The document summarizes research conducted on Starbucks and its competitors. It outlines Starbucks' growth from 1971 to 2008 and issues it currently faces around declining profits. Focus groups and interviews were conducted to understand customer perceptions and priorities when purchasing coffee. Research identified potential over-saturation of locations and preference for competitors' lower prices and food offerings as problems for Starbucks.
The media plan aims to reinforce Starbucks' brand image and increase profitability through a targeted media strategy. The plan will advertise Starbucks specialty coffees across traditional and non-traditional media outlets to develop brand awareness and ensure repeat purchases. The target audience is Americans ages 15-49, with a focus on magazines, newspapers, television, outdoor and internet advertising that will reach consumers in their daily media consumption. Recommended magazines and newspapers target professionals with high incomes matching Starbucks customers. The plan seeks to actively involve consumers and maximize brand exposure through various media channels.
Starbucks had a very successful fiscal year in 1999, opening 625 new stores globally, the most in company history. They expanded internationally, opening over 150 stores outside North America. Starbucks also saw success introducing new products like Tazo Tea and lunch programs. While missing an earnings target for the first time, the company remained profitable and continued its strategy of global expansion and community investment to build its brand.
This document outlines Starbucks' social media strategy and objectives. The main objective is to increase overall sales by sharing relevant and valuable content online to improve customer relationships. Key strategies include reducing response times, enhancing cohesive messaging, and sharing useful content. The document details Starbucks' social media presence, objectives, brand persona, timeline, roles and responsibilities, and metrics for measuring success.
Content Sells Coffee is showcasing coffee brands’ content marketing best practices.
Did you know coffee drinkers make better lovers? Swipe in and discover how content is converting coffee brands' audiences into more loyal and more profitable customers.
Get content: http://www.sqills.be, info@sqills.be
To improve profitability in Japan, Starbucks should reposition its product offerings and services to better appeal to Japanese customers. Japanese customers prefer brighter shops and spending time on dates or online. Starbucks could provide better lighting, smoking areas, pre-ordering systems, and cultural or entertainment campaigns. Competition from other coffee chains is also an issue, so Starbucks should restructure prices and increase benefits to differentiate itself. Understanding Japanese culture could help Starbucks implement stronger customer service and attract more customers long-term.
Starbucks is a global coffee company founded in 1971 that has grown to over 16,000 locations in 50+ countries. It aims to be the premier purveyor of high-quality coffee while maintaining principles of respect, diversity, excellence and community. Starbucks has a variety of coffee, food and merchandise products sold through company-operated and licensed stores. It uses strategies like opening new stores, expanding into new retail channels, developing new products and concepts, and continuing international growth to remain profitable and successful.
Snapple's brand identity and popularity had diminished over the years due to inconsistent branding messages, a cluttered label design, and lack of advertising presence. While consumers still enjoyed Snapple's flavors and bottle design, the brand was no longer top of mind. The document outlines a campaign to reintroduce Snapple by refreshing consumers' minds with a cohesive brand identity and refreshing their mouths with the flavors, in order to make Snapple a memorable brand again.
Starbucks was founded in 1971 in Seattle, Washington and has grown to become the largest coffeehouse company in the world with over 21,000 stores globally. In 1996, Starbucks introduced the Frappuccino, a ready-to-drink coffee beverage. The Frappuccino has been highly successful, with Starbucks Frappuccino capturing nearly half (49%) of the US ready-to-drink coffee market share. The document analyzes market share and sales growth data for Starbucks and its Frappuccino product over time.
The document discusses Starbucks' potential entry into the entertainment market through a music strategy. It analyzes the threats and opportunities of such a move, and outlines minimal, moderate, and comprehensive music strategies. The moderate strategy is described in detail, involving interactive music displays in stores, a music link on the Starbucks website and app, and the ability to purchase music. Japan and the UK are selected as initial countries based on analyses. Marketing and staffing plans are provided for each country. Financial projections show an NPV of $3.663 million and IRR of 290% over 5 years.
Brand and Reputation Management – StarbucksHassaan Elahi
This report has analyzed the reputation management strategy of Starbucks that helped it to maintain its brand reputation for which it is famous globally. The report has also provided details associated with different theories of branding and relate it with existing strategies of Starbucks that have enabled it to create brand awareness and brand recall among its customers. Furthermore, it has also highlighted how successful Starbuck was in improving its image through its brand reputation management strategies that allowed it to win back the trust of its customers.
This document provides a marketing campaign summary and strategy for Starbucks to retain customers and market share in response to competition from McDonald's premium coffee drinks. The campaign's theme is "Note to Self" and will use humor to remind people that financial shortcuts, like switching from Starbucks to cheaper coffee, may not be the smartest choices. The target market is 18-34 year-olds who are newly independent. The campaign will use various traditional and non-traditional media to reach this audience over the course of a year with the goal of increasing customer retention and feelings that Starbucks is worth the price.
Capitol Media is proposing a media campaign plan for Quack's Bakery to help with their expansion to Omaha, Nebraska. The 44-week campaign aims to generate 500 weekly visitors and 800 social media fans within 8 months. The $52,000 budget will target "Foodies" ages 25-54 in specific Omaha zip codes making $50,000-$99,000 annually. Competitors in the Old Market district include Bliss Old Market Bakery next door and Culprit Cafe a few minutes away. Research found Omaha residents interested in new food and the area attracts visitors.
The presentation gives overview of specialty coffee market and highlights Starbucks position in the category and its business strategy with Porter's five forces analysis.
Starbucks is an American coffee company and coffeehouse chain. It has over 22,000 retail stores around the world. The memo recommends that Starbucks expand into new international markets like China, India, and Mexico to pursue growth opportunities. It also suggests expanding their tea and healthy product lines to attract more customers. Closing underperforming stores and cutting costs are ways Starbucks is addressing some weaknesses like decreasing financial ratios. The recommendations are based on an internal analysis of Starbucks' strengths and weaknesses and an external analysis of opportunities and threats in the industry.
Starbucks is a global coffee chain founded in 1971 in Seattle. It has over 25,000 stores worldwide making it easy to find a Starbucks in over 70 countries. Starbucks is known for its customized coffee options and distinctive tastes from coffee beans sourced from North America and countries like Ethiopia and Ghana. While a premium brand, Starbucks has built loyalty over the years through consistent quality service and premium coffee. The report examines Starbucks' economic and social responsibilities as a large business, including profitability, shareholder returns, and various charity initiatives.
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from March 2016 outlines how you can reach new buyers and find new markets at ASD.
ASD Market Week Post Show Report August 2015ASDExhibitor
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from August 2015 outlines how you can reach new buyers and find new markets at ASD.
This document provides a summary of a speech given by Alec about how he grew his Scottish deli business internationally without much additional spending. Some key points:
- Alec utilized existing resources like his computer and networking on LinkedIn to find contacts and opportunities abroad.
- He worked closely with Scottish Development International for support with exporting, regulations, and contacts in different markets.
- Alec traveled extensively to meet people in person, learn about new markets, and promote his products directly to customers.
- Through passion and persistence, Alec was able to successfully export Scottish food products to countries in Asia and significantly increase his business revenues.
Starbucks achieves commercial success through a variety of factors:
1. It offers a large product variety including coffees, teas, foods and merchandise.
2. It has globally expanded to over 19,000 stores worldwide through strategic high-traffic locations.
3. It cultivates a café culture that targets young professionals and mirrors Italian coffee houses as a "Third Place."
4. It balances profitability with social responsibility initiatives like hiring veterans and fair trade coffee.
5. It forms partnerships through co-branding with companies and celebrity endorsements which increase sales and brand awareness.
6. It innovates through mobile technology like free Wi-Fi, a rewards app, and mobile payment which enhance the
This document contains an examination paper for Managerial Economics. It is divided into three sections: Section A contains 30 multiple choice and short answer questions; Section B contains two case studies with multiple questions each worth 20 marks; Section C contains two long answer theory questions worth 15 marks each. The paper tests concepts related to microeconomics, demand and costs, market structures, national income, and business decision making tools like decision trees.
This document contains an exam paper on international business management. It has 3 sections - Section A contains objective type questions, Section B contains case studies, and Section C contains applied theory questions. Section A has 2 parts - multiple choice questions and short answer questions. Section B contains 2 case studies on the EU's competitiveness and the country of Peru. Section C asks students to imagine they are the director of an international lending institution and analyze different export financing instruments. The exam tests students' knowledge of key concepts in international business and their ability to apply theories to real world case studies and scenarios.
This document outlines Starbucks' social media strategy and objectives. The main objective is to increase overall sales by sharing relevant and valuable content online to improve customer relationships. Key strategies include reducing response times, enhancing cohesive messaging, and sharing useful content. The document details Starbucks' social media presence, objectives, brand persona, timeline, roles and responsibilities, and metrics for measuring success.
Content Sells Coffee is showcasing coffee brands’ content marketing best practices.
Did you know coffee drinkers make better lovers? Swipe in and discover how content is converting coffee brands' audiences into more loyal and more profitable customers.
Get content: http://www.sqills.be, info@sqills.be
To improve profitability in Japan, Starbucks should reposition its product offerings and services to better appeal to Japanese customers. Japanese customers prefer brighter shops and spending time on dates or online. Starbucks could provide better lighting, smoking areas, pre-ordering systems, and cultural or entertainment campaigns. Competition from other coffee chains is also an issue, so Starbucks should restructure prices and increase benefits to differentiate itself. Understanding Japanese culture could help Starbucks implement stronger customer service and attract more customers long-term.
Starbucks is a global coffee company founded in 1971 that has grown to over 16,000 locations in 50+ countries. It aims to be the premier purveyor of high-quality coffee while maintaining principles of respect, diversity, excellence and community. Starbucks has a variety of coffee, food and merchandise products sold through company-operated and licensed stores. It uses strategies like opening new stores, expanding into new retail channels, developing new products and concepts, and continuing international growth to remain profitable and successful.
Snapple's brand identity and popularity had diminished over the years due to inconsistent branding messages, a cluttered label design, and lack of advertising presence. While consumers still enjoyed Snapple's flavors and bottle design, the brand was no longer top of mind. The document outlines a campaign to reintroduce Snapple by refreshing consumers' minds with a cohesive brand identity and refreshing their mouths with the flavors, in order to make Snapple a memorable brand again.
Starbucks was founded in 1971 in Seattle, Washington and has grown to become the largest coffeehouse company in the world with over 21,000 stores globally. In 1996, Starbucks introduced the Frappuccino, a ready-to-drink coffee beverage. The Frappuccino has been highly successful, with Starbucks Frappuccino capturing nearly half (49%) of the US ready-to-drink coffee market share. The document analyzes market share and sales growth data for Starbucks and its Frappuccino product over time.
The document discusses Starbucks' potential entry into the entertainment market through a music strategy. It analyzes the threats and opportunities of such a move, and outlines minimal, moderate, and comprehensive music strategies. The moderate strategy is described in detail, involving interactive music displays in stores, a music link on the Starbucks website and app, and the ability to purchase music. Japan and the UK are selected as initial countries based on analyses. Marketing and staffing plans are provided for each country. Financial projections show an NPV of $3.663 million and IRR of 290% over 5 years.
Brand and Reputation Management – StarbucksHassaan Elahi
This report has analyzed the reputation management strategy of Starbucks that helped it to maintain its brand reputation for which it is famous globally. The report has also provided details associated with different theories of branding and relate it with existing strategies of Starbucks that have enabled it to create brand awareness and brand recall among its customers. Furthermore, it has also highlighted how successful Starbuck was in improving its image through its brand reputation management strategies that allowed it to win back the trust of its customers.
This document provides a marketing campaign summary and strategy for Starbucks to retain customers and market share in response to competition from McDonald's premium coffee drinks. The campaign's theme is "Note to Self" and will use humor to remind people that financial shortcuts, like switching from Starbucks to cheaper coffee, may not be the smartest choices. The target market is 18-34 year-olds who are newly independent. The campaign will use various traditional and non-traditional media to reach this audience over the course of a year with the goal of increasing customer retention and feelings that Starbucks is worth the price.
Capitol Media is proposing a media campaign plan for Quack's Bakery to help with their expansion to Omaha, Nebraska. The 44-week campaign aims to generate 500 weekly visitors and 800 social media fans within 8 months. The $52,000 budget will target "Foodies" ages 25-54 in specific Omaha zip codes making $50,000-$99,000 annually. Competitors in the Old Market district include Bliss Old Market Bakery next door and Culprit Cafe a few minutes away. Research found Omaha residents interested in new food and the area attracts visitors.
The presentation gives overview of specialty coffee market and highlights Starbucks position in the category and its business strategy with Porter's five forces analysis.
Starbucks is an American coffee company and coffeehouse chain. It has over 22,000 retail stores around the world. The memo recommends that Starbucks expand into new international markets like China, India, and Mexico to pursue growth opportunities. It also suggests expanding their tea and healthy product lines to attract more customers. Closing underperforming stores and cutting costs are ways Starbucks is addressing some weaknesses like decreasing financial ratios. The recommendations are based on an internal analysis of Starbucks' strengths and weaknesses and an external analysis of opportunities and threats in the industry.
Starbucks is a global coffee chain founded in 1971 in Seattle. It has over 25,000 stores worldwide making it easy to find a Starbucks in over 70 countries. Starbucks is known for its customized coffee options and distinctive tastes from coffee beans sourced from North America and countries like Ethiopia and Ghana. While a premium brand, Starbucks has built loyalty over the years through consistent quality service and premium coffee. The report examines Starbucks' economic and social responsibilities as a large business, including profitability, shareholder returns, and various charity initiatives.
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from March 2016 outlines how you can reach new buyers and find new markets at ASD.
ASD Market Week Post Show Report August 2015ASDExhibitor
Learn why ASD Market Week is the most comprehensive B2B trade show in the US! Our Post Show Report from August 2015 outlines how you can reach new buyers and find new markets at ASD.
This document provides a summary of a speech given by Alec about how he grew his Scottish deli business internationally without much additional spending. Some key points:
- Alec utilized existing resources like his computer and networking on LinkedIn to find contacts and opportunities abroad.
- He worked closely with Scottish Development International for support with exporting, regulations, and contacts in different markets.
- Alec traveled extensively to meet people in person, learn about new markets, and promote his products directly to customers.
- Through passion and persistence, Alec was able to successfully export Scottish food products to countries in Asia and significantly increase his business revenues.
Starbucks achieves commercial success through a variety of factors:
1. It offers a large product variety including coffees, teas, foods and merchandise.
2. It has globally expanded to over 19,000 stores worldwide through strategic high-traffic locations.
3. It cultivates a café culture that targets young professionals and mirrors Italian coffee houses as a "Third Place."
4. It balances profitability with social responsibility initiatives like hiring veterans and fair trade coffee.
5. It forms partnerships through co-branding with companies and celebrity endorsements which increase sales and brand awareness.
6. It innovates through mobile technology like free Wi-Fi, a rewards app, and mobile payment which enhance the
This document contains an examination paper for Managerial Economics. It is divided into three sections: Section A contains 30 multiple choice and short answer questions; Section B contains two case studies with multiple questions each worth 20 marks; Section C contains two long answer theory questions worth 15 marks each. The paper tests concepts related to microeconomics, demand and costs, market structures, national income, and business decision making tools like decision trees.
This document contains an exam paper on international business management. It has 3 sections - Section A contains objective type questions, Section B contains case studies, and Section C contains applied theory questions. Section A has 2 parts - multiple choice questions and short answer questions. Section B contains 2 case studies on the EU's competitiveness and the country of Peru. Section C asks students to imagine they are the director of an international lending institution and analyze different export financing instruments. The exam tests students' knowledge of key concepts in international business and their ability to apply theories to real world case studies and scenarios.
This document compares and contrasts the leadership styles and careers of Bill Gates and Steve Jobs, the visionaries behind Microsoft and Apple, respectively. It describes how Gates started Microsoft in 1975 and focused on dominating operating systems and office software, while Jobs co-founded Apple in 1976 with a vision of personal computers being easy to use. While Gates recognized the need for professional management, Jobs was overconfident and neglected management. This led to Apple's decline in the 1990s until Jobs returned and revitalized the company, having matured as a leader. It outlines their trajectories through 2006, with Gates focusing on philanthropy through his foundation while preparing new Windows, and Jobs continuing Apple's success after being rehired.
This document is an examination paper for a Management Information Systems course. It consists of 3 sections - Section A with multiple choice and short answer objective questions, Section B with two case studies requiring analysis and recommendations, and Section C with two essay questions requiring explanation of e-commerce and database models. The paper tests students' knowledge of key MIS concepts like data warehousing, e-commerce, databases, and how information systems can help analyze business problems and improve decision making.
This document contains an examination paper on Principles and Practices of Management. It is divided into three sections. Section A contains 10 multiple choice questions and 4 short answer questions testing concepts like Maslow's hierarchy of needs, management by objectives, coordination vs cooperation, and theories of authority. Section B presents two case studies, each followed by 2-3 questions requiring analysis and recommendations. Section C asks two long answer questions about drawbacks of classical and neoclassical management theories and defining and comparing training methods. The paper tests a range of foundational management concepts.
This document is an examination paper for Semester 1 of the Human Resource Management course at IIBM Institute of Business Management. It contains two sections - Section A with objective type multiple choice and short answer questions, and Section B with two case studies related to HR strategies at telecom companies India Tele Linkages and Kusum Laboratories. The paper tests students' understanding of key HR concepts like performance appraisal, training, compensation and motivation strategies through real-world case examples.
This document contains 10 multiple choice questions testing knowledge of skeletal muscle structure and function. The questions cover topics like proprioceptors, terminal cisternae, myasthenia gravis, muscle fiber components, skeletal muscle innervation, conditions affecting the neuromuscular junction, and the T-system. An answer key is provided with the correct response for each question.
This document contains an examination paper for Human Resource Management. It is divided into three sections - Section A contains objective and short answer questions, Section B contains two case studies for analysis, and Section C contains two long form questions requiring explanations of interview types and organizational change and development. The paper tests knowledge across key HR topics like recruitment and selection, performance management, training and development, and managing organizational change. It requires students to apply their understanding of HR concepts to analyze workplace scenarios and explain theoretical HR frameworks.
Ours is a caffeinated nation that consumes around 100 billion cups of coffee per year. Coffee is the second most traded commodity globally. Throughout history, public gathering places have been vital to a culture's socialization and have reflected their patronage - currently in North America, coffeehouses serve as the social hub. Tim Hortons has taken this concept of the communal coffeehouse and standardized, branded, and marketed it to devoted consumers. They have found a way to provide feelings of social connection and refuge that people crave.
This document provides an overview of Starbucks, including its history, products, growth strategy, and competitors. It was founded in 1971 and has expanded from 55 stores in 1989 to over 2,200 today. Under CEO Howard Schultz, Starbucks pursued aggressive international expansion. While this strategy helped Starbucks become a global brand, some question if it has stretched too far by moving into non-coffee areas. McDonald's and Dunkin' Donuts pose the biggest threats as competitors by offering cheaper coffee options. The document evaluates Starbucks' partnerships and international growth strategy, finding that most markets still have room for expansion but the company risks diluting its brand by expanding too broadly.
Starbucks Corporation was founded in 1971 in Seattle, Washington. It began as a small coffee bean roaster and seller but grew significantly after CEO Howard Schultz was inspired by Italian coffee bars. Starbucks now operates over 28,000 stores globally and has become the largest coffeehouse company in the world. The company focuses on high-quality coffee and customer experience. Starbucks bases its strategy on environmental sustainability and social responsibility. It aims to inspire communities one customer at a time.
12 hot business lessons from starbucks ceo howard schultzzubeditufail
Starbucks has experienced phenomenal growth from 425 stores in 1994 to over 21,000 stores globally today. The document outlines 12 key lessons that can be learned from Starbucks' success, including having a clear mission to inspire customers, knowing customers and employees, being innovative while staying true to roots, embracing social media, ensuring consistency, fitting into local environments, and having strong leadership.
1) Starbucks was founded in 1971 in Seattle, Washington and initially only sold coffee beans. In the 1980s, Howard Schultz had the idea to open coffee shops like those he saw in Italy, serving coffee and creating a third place for the community. However, the original founders did not want to get into the restaurant business.
2) In 1987, Schultz convinced the original founders to sell Starbucks to him so that he could open coffee shops serving coffee and creating a community space. Under Schultz's leadership, Starbucks expanded rapidly across the US and internationally.
3) Starbucks focuses on creating an uplifting experience for customers through well-trained employees, comfortable seating, and digital platforms like WiFi
Starbucks was founded in 1971 in Seattle, Washington by three partners who sought to bring high-quality coffee beans and brewing equipment to customers. In the 1980s, Howard Schultz joined Starbucks and was impressed by Italian espresso bars, inspiring him to transform Starbucks into a retailer of brewed coffee. Under Schultz's leadership, Starbucks expanded rapidly through the 1990s, opening new stores daily and entering international markets like Japan. Today, Starbucks has over 18,000 stores globally and has become the dominant specialty coffee retailer in the world.
For their final project, second semester Northern Virginia Community College Composition students (ENG 112) work in groups to create presentations that introduce, analyze, and draw a conclusion about a significant American cultural artifact, (a trend, a celebrity, or anything that significantly impacts American culture). Students work together to build a persuasive argument using a combination of text, multimedia, and visual design. Students develop a claim about the negative or positive impact of the artifact on the demographic of American culture it affects. Alternatively, students may discuss what the artifact says about our culture.
These students are asked to explore a cultural artifact and determine its significance and/or role in our society. Students are encouraged to present their findings using any media they wish to implement.
Starbucks is an international coffee chain founded in 1971 in Seattle, Washington that currently has over 17,800 locations across more than 59 countries. It sells coffee, tea and other beverages and food items. Starbucks' mission is to inspire and nurture the human spirit through coffee. Its goal is to reach 40,000 cafes globally, with half located outside the United States. Starbucks employs various business strategies to encourage customers to purchase more, such as designing its stores to make people stay longer and placing counters in the middle to promote additional purchases.
Starbucks has grown from a single store in 1971 to over 20,000 stores worldwide. However, the global recession in 2007 and McDonald's entry into the coffee market with $1 coffee has challenged Starbucks. They closed 600 underperforming U.S. stores in 2008 and slowed new store openings to 200 in 2009. McDonald's attacks Starbucks with cheap coffee, claiming $4 coffee is "dumb." Starbucks needs a strategy to offset these attacks on pricing while maintaining their brand positioning and quality.
Starbucks is an international coffee and coffeehouse chain based in Seattle, Washington. It is the largest coffeehouse company in the world with over 18,000 stores globally. Starbucks sells coffee, tea, baked goods and other products. The company ensures product differentiation through direct sourcing of high quality coffee beans, careful roasting and brewing processes, extensive employee training, and socially responsible practices like fair trade. Starbucks has experienced rapid growth but is now focusing on international expansion and new product lines to drive future growth.
Starbucks primarily sells coffee drinks and food items. It targets young adults and professionals aged 18-40, especially those who are well-educated and interested in social causes. Starbucks positions itself as a premium brand that offers a relaxing third place experience beyond home and work. It focuses on upscale locations in busy areas. Through its products, store environment, and corporate social responsibility efforts, Starbucks aims to appeal to customers seeking quality, comfort, and community.
Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".
Starbucks started in 1971 in Seattle's Pike Place Market with one store and has grown to a global company with over 18,000 stores in 62 countries. Starbucks prides itself on customer service and high quality coffee and products. The chairman wanted to create a place for community and conversation. Starbucks offers reasonably priced products from $5 coffee to $200 coffee machines. Their target market is ages 13-40 who enjoy coffee and busy lifestyles.
Starbucks began as a small coffee shop in 1971 and has since grown into a global brand with over 16,000 locations worldwide. The company aims to establish itself as the most recognized brand globally through its focus on coffee quality, creating a third place experience in its stores, and innovation. While facing competition, Starbucks is expanding its retail presence internationally and developing new products to continue its long-term goal of dominating the specialty coffee market.
Starbucks faces the strategic problem of continuing to provide exceptional employee benefits while pursuing global expansion. The company began in 1971 and has grown significantly, going public in 1992. It aims to be the leading retailer and brand of high-quality coffee through superior customer service. While financial performance has been strong, Starbucks must determine how to maintain benefits as it expands globally in a sustainable manner.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
1. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
Note: Solve any 4 Cases Study’s
CASE: I Starbucks
In 2003, Starbucks accomplished something that few companies ever do: It became a Fortune 500 company
—a phenomenal achievement for a company that went public only 12 years earlier. The company had over
6,000 stores worldwide—all company owned, as Starbucks does not franchise its outlets—and planned
to expand rapidly to over 10,000 stores.
Starbucks created not only a successful business but a thriving industry. When the company started
its massive expansion in the early 1990s, the United States had about 200 coffeehouses. In 2003 there were
over 14000 coffeehouses, the majority of them not Starbucks but mom-and –pops that bloomed after the
dawn of the $3 cup of coffee. According to a Starbucks executive, “We changed the way people live their
lives, what they do when they get up in the morning, how they reward themselves, and where they meet.
That’s more important to me than just building a company.”
More than 10 million coffee lovers spend an average of $3.60 at Starbucks weekly, and 10 percent of
them come in twice a day. Starbucks has 7 percent of the U.S. coffee-drinking market and less than 1
percent abroad, suggesting ample room for growth. The coffee market is huge; coffee is the second
most consumed drink in the world (water is first).
Starbucks’ iced beverages, which offer larger profit margins than regular drip coffee, are big sellers
in the South and Southwest. After making some adjustments, such as adding outdoor seating and couches
to stores to better serve the needs of its customers, Atlanta locations have shown double-digit sales growth.
Atlanta boasts 33 successful Starbucks, and plans for expansion are in the works. Plans for further
expansion in cities with even more Starbucks stores, such as New York City and San Francisco, are also on
the drawing board. Although 70 stores operate in New York City alone, it is estimated that growth there will
continue until 200 stores are operating in the city! As for fears of market saturation, Starbucks has none. In
fact, the java giant has two highly profitable outlets that face each other on Robson Street in Vancouver,
British Columbia. Each store has more than $1 million in annual sales. International expansion is also taking
place. In fact, the number one Starbucks in the world is located in Tokyo, and a total of 500 stores are
slated to be operational in Asia in the next three years.
What is the secret of Starbucks’ phenomenal success? According to Howard Schultz, chairman and
CEO of Starbucks Corporation, the company’s success is due to the experience created within the stores
as well as the unsurpassed quality of the coffee. A steaming café au lait must be perfectly replicated,
whether the store is in Seattle or New York City. In a world filled with people leading busy, stressful lives,
Schultz believes he has created a “third place” between home and work where people can go to get their
own personal time out or to relax with friends.
Schultz also attributes his company’s success to the 40,000 employees working worldwide.
Starbucks’ employee training program churns out “baristas” by educating 300 to 400 new hires per month in
classes such as “Brewing the Perfect Cup at Home” and “Coffee Knowledge.” Here they are taught to remind
customers to purchase new beans weekly and that tap water might not be sufficient when brewing the
perfect cup of coffee. They are also encouraged to share their feelings about coffee, selling, and working for
Starbucks. Employees are also given guidelines to maintain and enhance self-esteem, to learn how to listen
and acknowledge, and to know when to ask for help. E-mail, suggestion cards, and regular forms allow
unsatisfied workers to communicate with headquarters. If the annual barista turnover of 60 percent,
compared with 140 percent for hourly workers in the fast-food industry, is any indication of quality of its
training programs, Starbucks seems to have a handle on how to gain and maintain employee loyalty. What
about the demographic makeup of the work force? About 80 percent of the employees are white, 85 percent
have some education beyond high school, and the average is 26.
The Starbucks success story is continuing into the 21st century as the company is quickly expanding
into Europe and Asia. However, one question remains regarding the success of the company in countries
already known for their coffee-making expertise: Will such Romans and Parisians care for Starbucks?
Continued expansion and visibility has been created domestically as Starbucks has formed partnerships with
companies such as United Airlines and Barnes & Noble Booksellers, both of which draw form the same type
of knowledgeable customer.
More recently, Starbucks has opened several full-service dining establishments (Café Starbucks) in
response to customers who want more at lunch and dinner. The menu offers full meals, breads, pastries,
alcohol, and of course coffee. The company has also launched an Internet site that sells not only expensive
coffee but also pricy kitchenware, home furnishings, and gourmet food. After some skepticism by analysts
and a subsequent drop in share price, Schultz emphasized that “Every company must stick to its knitting,
1
2. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
understand its core competency, know what the value proposition is for the customer, and do everything
possible to get close to the customer. So you won’t see us getting far afield from what we do now” As for the
present, Starbucks is not likely to fall victim to a fad-driven society any time soon. The company seems to
be doing fine.
You can learn more about Starbucks at http://www.starbucks.com.
Question:
1. Based on the case information and your personal experiences, list at least five things you know
about Starbucks. This list offers you some idea about your cognitions concerning the coffee shop
chain.
2. List at least things you like or dislike about Starbucks. This list gives you some idea of your affect for
the coffee shops.
3. List at least five behaviors involved in buying a gourmet coffee drink from Starbucks. This list gives
you an idea of the behaviors involved in a coffee purchase.
2
3. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
CASE: II Barnes & Noble
For decades, bookstores were simply that—places that sold books. The typical mom-and-pop bookstore on
the corner was small, quaint, sometimes a little musty, and bursting at the seams with books. It was a
wonderful place to visit now and then, look around for a bit, find a book you like, and go home. Today that
old bookstore seems like a relic of a bygone era. Barnes & Noble’s approach to book selling has
revolutionized the entire industry.
Barnes & Noble has risen from rather ordinary beginnings to become the largest bookstore chain in
the world. Founder and CEO Leonard Riggio began his empire by purchasing a struggling Manhattan
bookstore in 1971. Riggio opened his first superstore, with 100,000 square feet of selling space, in New York
in 1975. That store was so successful that he quickly opened more superstores throughout Manhattan and
downtown Boston. The formula worked and the number of stores multiplied. In the early 1990s, the
company began spreading the superstore concept throughout the United States. Today Barnes & Noble
operates around 950 bookstores and another 426 video game and entertainment software stores. The
company boasted sales of nearly $3.5 billion and operating profit of $232 million in 1999.
Riggio took a decidedly different approach to selling books. “Shopping is a form of entertainment,”
he says. “To customers, shopping is a social activity. They do it to mingle with others in a prosperous-feeling
crowd, to see what’s new, to enjoy the theatrical dazzle of the display, to treat themselves to something
interesting or unexpected.” Riggio made sure both the layout and operation of his stores provide customers
with what they want. Barnes & Noble superstores are huge, yet clubby and inviting. They typically cover
about 25,000 square feet (some are much bigger) and offer a selection of up to 150,000 titles, compared to
10,000 to 20,000 at the typical independent book seller. Books usually are discounted 20-30 percent. But a
Barnes & Noble superstore is not defined merely by size and volume. The atmosphere is friendly, even
somewhat luxurious—almost a cross between a public library and a den. There are large, overstuffed chairs;
reading tables; background music; a coffee bar; bright lighting; and even well-maintained public restrooms.
Book-store used to discourage customers from reading in the store—spend more than a few minutes with a
book and you would have expected an employee to tap you on the shoulder and suggest that you either buy
the book or put it back. But Barnes & Noble actually wants you to pull a book or magazine off the shelf, grab
a cup of coffee, flop down on a sofa, and make yourself at home. A company spokesperson explains, “The
philosophy behind this is, the more customers we attract into the store and the longer they are encouraged
to stay, the more books we sell.” Many Barnes & Noble locations also offer a music section where the same
philosophy applies. Customers are welcome to sit down with a pair of headphones and listen to a CD before
they buy it.
Barnes & Noble also works to ensure that its superstores evolve into community meeting places.
Each store or region is staffed with a public relations coordinator who works to bring events to the store.
Live performances, readings, and book signing are common. Classes of elementary school kinds are
invited to come in and browse on a regular monthly basis. Stores even offer classes, book
discussion groups, puppet shows, and story hours for children. The long store hours (9 AM to 11
PM) also provide a compelling lure. “For people who work all day, this is their leisure time,” explains
Lisa Herling, vice president for corporate communications. “Whether it’s after a movie or after
dinner, it’s a destination location.” Riggio puts it more succinctly: “If I get you for two hours, I’ve got you.”
In 1995, a competitor with an entirely different value proposition emerged. Amazon.com began
selling books over the Internet. Barnes & Noble countered two years later with BarnesandNoble.com,
which tries to replicate the superstore experience on the Web. At the site you can participate in live
chats with authors and listen to audio from one of the many archived book readings (featuring such
renowned writers as Kurt Vonnegut, Susan Sontag, and Salmon Rushdie). Now the largest bookseller in the
U.S., BarnesandNoble.com, also offers free online courses through “Barnes & Noble University,” where you
can study subjects ranging from the humor of Shakespeare to overcoming shyness. You can even purchase a
bag of Starbucks coffee and select the music you want to hear while you’re browsing the site. Oh, yes, they
do sell books on the site, too—750,000 titles—along with music, software, and posters. BarnesandNoble.com
has attracted more than 5 million customers since 1997 and has emerged as the fourth-largest e-commerce
site on the Web. Sales were up 4.5% in 2002 as were expectations that the venture would turn a positive
cash flow soon.
Barnes & Noble’s success comes not so much from what it is selling but how it is selling it. Both
the brick-and-mortar stores and the online site provide customers with an atmosphere that turns
book buying into a warm, friendly, inviting experience.
3
4. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
Question:
1. What affective responses do you think the Barnes & Noble environment creates? How might
consumers’ cognitive systems interpret these responses? From a marketing perspective,
which is more important to Barnes & Noble—affect or cognition?
2. Rob goes to Barnes & Noble location to hang out and meet people. Lisa goes only when she
wants to purchase a specific book or CD. Describe how their integration processes might
convince them to choose Barnes & Noble over the myriad other options they have.
3. Many of the activities that take place at Barnes & Noble stores (or at BarnesandNoble.com)
do not require a purchase. Participating in discussion groups and going to in-store
performances are free. And obviously it doesn’t cost anything to simply go in, sit in a chair,
and read a book. So why do people buy? How do these free activities (behaviors) influence
consumers’ affect and cognition?
4
5. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
CASE: III Rollerblade Inc.
In 2002, in-line skating ranked among the most popular sports for children ages 6 to 17, behind basketball
and soccer, according to the Sporting Goods Manufacturers Association. About 7.5 million youths skate an
average of over 25 times per year. This is quite a change from 1980, when Minneapolis-based Rollerblade
Inc. introduced its first in-line roller skate.
Rollerblade’s founder, Scott Olson, was a hockey player with the Winnipeg Jets’ farm teams who
envisioned a roller skate with the action of an ice skate that hockey players and skiers could use to train
during the off-season. At first, the plan was to use modern materials to construct a model based on an 18-
century design. However, Olson discovered a similar in-line skate already on the market and purchased the
patent from Chicago Roller Skate Company. Olson and his brother, Brennan, perfected the design using a
plastic molded ski-type boot atop a blade of polyurethane wheels. Their first sales were to Olson’s
teammates as well as a few to sporting goods stores. Thus began the sport of blading
Although they generally cost twice as much as conventional roller skates, in-line skates are
purchased for two reasons. First, they are faster and therefore more exciting to use than conventional
skates. Second, they provide skaters with a better aerobic workout, requiring the use of more muscles.
However, it is more difficult to learn how to use in-line skates because they require greater balance and their
speeds may cause more severe injuries if a skater falls.
By 1986, wholesale sales of in-line skates had risen to $3.5 million. Recognizing an opportunity to
get in on a growing market, a number of companies began producing competitive products. First Team
Sports, Inc., also based in Minneapolis, started manufacturing its Ultra-Wheels brand skates, which included
the first in-line skates for children. Roller Derby Skate Corporation in Litchfield, Illinois, a manufacturer of
standard roller skates since 1936, produced an in-line skate with a toe-stopper for those accustomed to
conventional skates (Rollerblades had a rubber stopper located on the heel). The ice skate manufacturer
Bauer entered the market with a skate that had a leather rather than plastic boot.
Rollerblade Inc.’s sales increased when it expanded its target market. At first, the product was
targeted to hockey players, who were 95 percent male and 18 to 25 years old. However, by broadening the
target to include 18-to-35-year-old males and females, the company increased sales considerably.
By 1990, industry wholesale sales of in-line roller skates topped $50 million, which almost equaled
sales in the conventional roller skate business.
Rollerblade Inc. maintained a 66 percent market share, First Team Sports had 22 percent, Bauer had 5
percent, Roller Derby had 3 percent, and other competitors combined had the remaining 4 percent.
Rollerblade could have done better, but it could not fill store orders for several months because it ran out of
inventory early in the year. By 1998 there were 30 million in-line skaters, although growth in the number of
skaters was slowing down; skate boarding was taking off as a cool alternative.
The fierce competition in the industry involved not only product features but also marketing
elements. Companies rushed to sign celebrities to promote their products. Competitors also moved into new
retail markets, including discount and departmental stores. Rollerblade expanded its market by
selling to Macy’s and Nordstrom.
Although the name of Rollerblades may become generic term for this type of skate, the
company’s management will have to work hard to maintain its market lead. “We have been
pioneers and continue to maintain an edge,” a company spokesperson said. “You only get one shot
at pioneering a new sport, and that’s exciting.”
Question:
1. What role do you think modeling could have played in the diffusion of this innovation?
2. How could you use modeling to teach a friend how to use Rollerblades?
3. If you were designing a commercial for Rollerblades to be used for an in-store videotape
demonstration, how would you design the commercial to take advantage of your knowledge
of modeling?
5
6. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
CASE: IV The Saturn Family
Consumers are bombarded with advertisements and marketing hype everyday. When you log onto the
Internet, watch television, listen to radio, read a newspaper, or open your mail, you are inevitably greeted
with a plea to purchase brand X or visit store Y or website Z. In any given day, you are exposed to more
information than you can realistically process. In the 1990s, marketers began to look fresh, innovative ways
to make their companies stand out from the media clutter. Few have been as successful as General Motors’
subsidiary Saturn, whose 1994 “homecoming” of car owners has been described as “the mother of all
marketing programs.”
Saturn’s mission statement emphasizes the concept of “family.” In an industry whose history is
replete with labor conflict, Saturn has tried to erase the line between labor and management are somewhat
taboo. Regardless of their positions in the company, all Saturn boasts that no one punches a time clock and
that members of labor and management even eat in the same cafeteria! Moreover, the company expects its
employees and dealers to make customers feel like a part of the Saturn family.
According to Joe Kennedy, Saturn’s corporate vice president of sales, service, and marketing,
“Everything at Saturn hinges on our retail operations being enthusiastic about serving their
customers.” Indeed, salespeople (or, as Saturn prefers to call them, “consultants”) have gone far
out of their way to make current and potential customers happy. In one legendary story, a woman in
Wyoming was interested in purchasing a Saturn only to find that the nearest dealership was hundreds of
miles away in Salt Lake City, Utah. Not to worry. A salesperson from Salt Lake City flew to Wyoming, picked
the woman up, flew back with her to the dealership in Utah, showed her the car, and made the sale. Saturn
instituted a “no-haggle” pricing policy to reduce the traditionally antagonistic relationship between
automobile salespeople and customers. Saturn’s television ads have featured employees discussing the
family feeling at the company and actual customers sharing their own Saturn stories.
The “Saturn family” concept took hold with consumers. Soon delighted customers began
calling and writing the company’s plant in Spring Hill, Tennessee (near Nashville), to learn how they
could tour the facility and maybe meet other Saturn owners from across the country. So
management decided to spend $1 million to hold its first “homecoming” of Saturn owners and their cars the
weekend of June 24-25, 1994 in Spring Hill. It mailed out 650,000 invitations to Saturn owners and also
purchased commercial time on CBS’s late Show with David Letterman.
The response was overwhelming. About 30,000 Saturns—and their owners—made the pilgrimage.
If you were on the highway that week and saw a Saturn with an orange ball on the radio antenna,
that car was probably headed home to Tennessee. Saturn owners came from as far as Taiwan and
filled most of the 24,000 hotel rooms in the Nashville area. In fact, a dealer from Taiwan brought
home the first Saturn ever sold in that country. That car was honored with its own tent. Throughout the
weekend, car owners met members of the Saturn team, toured the plant, and shared their own Saturn
stories. The homecoming had all the trappings of an old-fashioned outdoor revival with music, dancing,
testimonials from celebrities (Olympic speed skater Dan Jansen), and food (everything from “southern
Chinese egg rolls” to barbecued catfish).
Even though two Herculean thunderstorms blew over some tents, injured a few people, and
forced the cancellation of a scheduled concert by country music star Wynonna, it didn’t seem to
dampen many folks’ spirits. Mary Taylor, age 60, was part of a 22-car caravan that trekked 1,800
miles from Nevada to Tennessee to be part of the homecoming. She couldn’t stop raving about the
dealer. “I couldn’t believe how much they cared,” Taylor said. “They know us when we walk in. It’s
such a friendly atmosphere, I look forward to going to the dealership.” Another Saturn owner
compared the weekend get-together with Woodstock: “This is another gathering in a field, except
it’s about cars, not music.” Ruth Morrissey from South Dakota perhaps summed up the weekend
best as she gushed, “We love our Saturns. We are all just a bunch of walking ads.” For those who
couldn’t make it to Spring Hill, Saturn sponsored smaller-scale get-togethers at dealerships around the
United States. An estimated 100,000 additional people attended those events.
The homecoming was just a part of Saturn’s overall strategy of making customers feel like
part of a big Saturn family. Was this approach successful? Apparently it was. Company research in
1994 showed that out of the approximately 650,000 people who owned Saturns, 80 percent planned
to buy another Saturn. Furthermore, Saturn reported that during the homecoming ad campaign (which ran
from January through June 1994), sales were up 25 percent compared to a year earlier.
Other carmakers took notice and copied Saturn homecoming model. Daimler Chrysler’s Jeep
division sponsored an event called Jeep 101 in which Jeep owners—many of whom drive exclusively
on paved urban streets—took their vehicles off-road. Mercedes-Benz of North America invited
100,000 current and potential customers to Los Angeles for an unveiling of new models. The
6
7. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
opportunity to ogle these pricey new automobiles—plus the lure of good food and wine—apparently
was quite compelling. So many people showed up that they had to close down a highway. In
another promotion, Mercedes invited 1 million people to “fall in love” with a new Mercedes by
attending one of a variety of special customer bonding events at local dealerships.
To be sure, Saturn has had its share of problems since that first homecoming event in 1994.
Some critics have sniped at Saturn’s boring styling and limited choice of models. Others believe
Saturn has slipped compared to other carmakers in terms of performance and reliability. Sales of
the L-series mid-size car were very disappointing, which forced production slowdowns and lay-offs
in 2000. In addition, the harmonious relationship between labor and management hit a snag when
Saturn’s 7,000 unionized employees began to express dissatisfaction with their special labor
agreement with the carmaker. Seeing a problem, General Motors in 2000 pledged to invest $1.5
billion to expand the Spring Hill facility and provide Saturn with a SUV and a redesigned compact
car in time for the 2002 model year. (To check out Saturn’s current model line and other company
information, visit the company’s website at www.saturn.com.
But make no mistake, Saturn’s innovative marketing efforts have accomplished their goal.
Even with the recent problems, surveys reveal that most consumers—especially younger people—
still believe Saturn is, as its ad campaign declares, “a different kind of car company.” In 1999,
Saturn held another large, successful homecoming and many industry experts believe that with new
models in the offing, Saturn can regain the momentum it had in the mid-1990s.
Question:
1. Visit the Saturn website and try to determine the market segments the carmaker is targeting. What
should Saturn do to better serve those segments? How might Saturn tailor its offerings to address
the different stages of the family life cycle?
2. Other vehicles—such as Porsches, Mustangs, and Harley-Davidson motorcycles—also have
“cult” followings. But these products also have very strong symbolic meanings associated
with them. The Saturn is a solid and reliable, but basically unspectacular, car. Identify and
discuss three reasons that you think Saturn has such a devoted following of involved
customers.
3. An automobile is a high-involvement purchase. Discuss how the manufacturer of a lower-cost,
lower-involvement product could generate greater personal relevance and long-term
loyalty. Find and discuss an example of a company that has done so.
7
8. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
CASE: V Harley-Davidson, Inc.
Harley-Davidson, Inc., founded in 1903, is the only remaining American motorcycle manufacturer,
although there are some new upstart companies. During the 1950s and 1960s, Harley-Davidson has
virtual monopoly on the heavyweight motorcycle market. Japanese manufacturers entered the
market in the 1960s with lightweight motorcycles backed by huge marketing programs that
increased demand for motorcycles. These manufacturers, which included Honda, Kawasaki, Suzuki,
and Yamaha, eventually began building larger bikes that competed directly with Harley-Davidson.
Recognizing the potential for profitability in the motorcycle market, American Machine and
Foundry (AMF, Inc.) purchased Harley-Davidson in 1969. AMF almost tripled production to 75,000 units
annually over a four-year period to meet increased demand. Unfortunately, product quality deteriorated
significantly.
More than half the cycles came off the assembly line missing parts, and dealers had to fix them to
make sales. Little money was invested in improving design or engineering. The motorcycles leaked oil,
vibrated badly, and could not match the excellent performance of the Japanese products. Although hard-core
motorcycle enthusiasts were willing to fix their Harleys and modify them for better performance, new
motorcycle buyers had neither the devotion nor the skill to do so.
In late 1975, AMF put Vaughn Beals in charge of Harley-Davidson. Beals set up a quality control and
inspection program that began to eliminate the worst of the production problems. However, Beals and the
other senior managers recognized that it would take years to upgrade the quality and performance of their
products to compete with the faster, high-performance of their products to compete with the faster, high-
performance Japanese bikes.
To stay in business while the necessary changes in design and product were being
accomplished, the executives turned to William G. Davidson, Harley’s styling vice president. Known
as “Willie G.” and a grandson of one of the company founders, he frequently mingled with bikers
and, with his beard, black leather, and jeans, was accepted by them. Willie G. understood Harley
customers and noted:
They really know what they want on their bikes: the kind of instrumentation, the style of bars., the
cosmetics of the engine, the look of the exhaust pipes, and so on. Every little piece on a Harley is exposed,
and it has to look just right. A tube curve or the shape of a timing case can generate enthusiasm or be a
total turnoff. It’s almost like being in the fashion business.
Willie G. designed a number of new models by combining components form existing models.
These included the Super Glide, the Electra Glide, the Wide Glide, and the Low Rider. Although
these were successful, Harley-Davidson was still losing market share to Japanese competitors that
continued to pour new bikes into the heavyweight Market.
By 1980, AMF was losing interest in investing in the recreational market and sold the
company to 13 senior Harley executives in a leveraged buyout on June 16, 1981. Although the company
was starting to make money in the early 1980, its creditors wanted payment, and Harley-Davidson nearly
had to file for bankruptcy at the end of 1985. However, through some intense negotiations, it stayed in
business and rebounded to become a highly profitable company.
In 1996, Harley-Davidson controlled more than 47 percent of the heavyweight (651cc and larger)
motorcycle market, far more than its all-time low of 23 percent. Its products are considered to have
“bulletproof reliability” because of manufacturing and management changes that resulted in products of
excellent quality.
Owners of Harleys are highly brand loyal, and more than 94 percent of them state they would buy
another Harley. The company sponsors the Harley Owner Group (HOG), which has more than 1,200 chapters
and 750,000 members worldwide. Executives of the company frequently meet with chapters to obtain
suggestions for product improvements.
In 2002, Harley sold 215,454 motorcycles domestically and 48,199 in the global market. It also
sold 10,943 Buell motorcycles in that year. Its net revenue for 2002 was over $4 trillion, about
double its 1998 net revenue. Its net income for 2002 was $580 million compared to $213 million 5
years earlier. In 2003, its 100th anniversary product line included 7 Softail models, 7 Sportster
models, 5 Dynaglide models, and 7 Touring models. In addition, its VRSCA V-Rod, a new-style,
$17,000 Harley was selling quickly even though it was a departure for the retro look of traditional Harleys.
Harley-Davidson motorcycles are distributed worldwide by a network over 1,300 dealers. These
dealers typically have upgraded facilities that merchandise not only motorcycles and service but also a
variety of parts, clothing, and accessories. Clothing and accessories are highly profitable items that
enhance the motorcycle-owning and riding experience. For more information, visit the company’s
website at www.Harley-Davidson.com.
8
9. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
Question:
1. What kind of consumer owns a Harley?
2. What accounts for Harley owners’ satisfaction and brand loyalty?
3. What role do you think the Harley Owner Group plays in the success of the
company?
9
10. The Indian Institute of Business Management & Studies
SUBJECT: Consumer Behavior Marks: 100
Question:
1. What kind of consumer owns a Harley?
2. What accounts for Harley owners’ satisfaction and brand loyalty?
3. What role do you think the Harley Owner Group plays in the success of the
company?
9