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Marketing Management - I
A case study on StarBucks

Group – 8
Nishanam Jonah Kamalakar
Lalit Choudhary
Sahil Grover
Chaitanya Burri
Raghvi Maheshwari
Ambreen Shah
• Main idea was to create a “third place”
between home and work.
Value Proposition

The Atmosphere
The Coffee

Customer Intimacy
Value Proposition
• Adopted ‘Experiential Branding’ Strategy
– Highest Quality and Supply Chain Control
– Service component in the form of “Customer
Intimacy”
– ‘Ambience’ is what makes the customer stay.

• Channels of Distribution:
– High traffic, high-visibility settings
– “Specialty Operations” through non-companyoperated channels
Employee Satisfaction

“Partner satisfaction leads to Customer satisfaction”
Delivering on Service
• Two types of training:
– Hard Skills
» How to use Cash Register
» How to mix drinks

– Soft Skills
»
»
»
»
»

Connect with Customers
Welcome Enthusiastically
Establish Eye Contact
Try to remember Names and Orders for Regulars
Smile 

• “Just Say Yes” Policy
• VERISMO Machines
Measuring Service Performance
• “Customer Snapshot”
1.
2.
3.
4.

Service
Cleanliness
Product Quality
Speed of Service

• Legendary Service
– A memorable experience
Caffeinating the World
• Aggressive growth strategy
– Retail Expansion
» Cannibalization and Opening up new Stores
» International Expansion

– Product Innovation
» New products were launched every Holiday Season
» 12 to 18 month product development cycle

– Service Innovation
» Smart Card
» T-Mobile Hotspot Wireless Internet Service
Trouble Brewing?
• Lacked a Strategic Marketing Group
• Starbucks’ Brand Meaning
– Interpreted as “Starbucks cares primarily about
making money”

• The Changing Customer
• Customer Behavior
• Measuring and Driving Customer Satisfaction
Rediscovering Starbucks Customer

Challenge : Tie customer satisfaction to
the bottom line.
Rediscovering Starbucks Customer
Recommendations:
We believe that Starbucks should only invest the money in labour wherever needed
and in what amount needed. A good way to do that would be to do a more
thorough analysis of its customer base and identify areas where people are less
satisfied because of the speed of service and then invest in those locations only.
Hopefully the addition of extra labour in those locations would eliminate problems
associated with fast service and treating the customer as valuable.
Starbucks

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Starbucks

  • 1. Marketing Management - I A case study on StarBucks Group – 8 Nishanam Jonah Kamalakar Lalit Choudhary Sahil Grover Chaitanya Burri Raghvi Maheshwari Ambreen Shah
  • 2.
  • 3.
  • 4. • Main idea was to create a “third place” between home and work.
  • 5. Value Proposition The Atmosphere The Coffee Customer Intimacy
  • 6. Value Proposition • Adopted ‘Experiential Branding’ Strategy – Highest Quality and Supply Chain Control – Service component in the form of “Customer Intimacy” – ‘Ambience’ is what makes the customer stay. • Channels of Distribution: – High traffic, high-visibility settings – “Specialty Operations” through non-companyoperated channels
  • 7. Employee Satisfaction “Partner satisfaction leads to Customer satisfaction”
  • 8. Delivering on Service • Two types of training: – Hard Skills » How to use Cash Register » How to mix drinks – Soft Skills » » » » » Connect with Customers Welcome Enthusiastically Establish Eye Contact Try to remember Names and Orders for Regulars Smile  • “Just Say Yes” Policy • VERISMO Machines
  • 9. Measuring Service Performance • “Customer Snapshot” 1. 2. 3. 4. Service Cleanliness Product Quality Speed of Service • Legendary Service – A memorable experience
  • 10. Caffeinating the World • Aggressive growth strategy – Retail Expansion » Cannibalization and Opening up new Stores » International Expansion – Product Innovation » New products were launched every Holiday Season » 12 to 18 month product development cycle – Service Innovation » Smart Card » T-Mobile Hotspot Wireless Internet Service
  • 11. Trouble Brewing? • Lacked a Strategic Marketing Group • Starbucks’ Brand Meaning – Interpreted as “Starbucks cares primarily about making money” • The Changing Customer • Customer Behavior • Measuring and Driving Customer Satisfaction
  • 12. Rediscovering Starbucks Customer Challenge : Tie customer satisfaction to the bottom line.
  • 13. Rediscovering Starbucks Customer Recommendations: We believe that Starbucks should only invest the money in labour wherever needed and in what amount needed. A good way to do that would be to do a more thorough analysis of its customer base and identify areas where people are less satisfied because of the speed of service and then invest in those locations only. Hopefully the addition of extra labour in those locations would eliminate problems associated with fast service and treating the customer as valuable.