starbucks case analysis and recommendation

1. STARBUCKS: DELIVERING
CUSTOMER SERVICE
Presented by:
Anish Man Singh Basynat
Sameer Pradhan
Shyam Sapkota
Suraj Pd. Rouniyar
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2. History
70’s
• 1971- Starbucks
opens first store
in Seattle’s Pike
Place Market.`
80’s
• 1982-Howard Schultz joins
Starbucks as director of
retail operations and
marketing.
• He was so fascinated to
have coffee culture in US
• Few years later he buys
the company, and starts
selling premium-priced
coffee.
• 1992- 140 stores in
Chicago and Northwest.
• Mid 2002- established
as a dominant player
in the US market.
• At present, Starbucks is
largest coffeehouse in
the world with nearly
20,000 stores in a 60
countries.

3. STARBUCKS VALUE PROPOSITON
 To create an experience around the consumption of
coffee.
 To create an uplifting experience in “ customer intimacy”
 To create an ambience based on human spirit, sense of
community and the need for people to come together.

4. Key success factors
 Atmosphere
 Coffee quality
 Service
 Partner satisfaction
 Specific target audience
 Attractive market
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5. Core and supplementary products
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6. Product positioning
 The company has positioned its as premium coffee store
 High price and quality with great experience
 Target audience of age between 24-44 years.
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7. Positioning map
Starbucks
Caribou
Mc Donald’s
Dunkin’ Donuts
7 Eleven
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8. Major issues
 Declining the customer base.
 Delivery time of coffee.
 Competition
 No centralized department of marketing; didn’t focus on
marketing strategy and promotion of its product.
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9. Customer expectations and
customer service
Customer
expectations
Customer services
1992
2002
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10. $ 40 million investment plan
 As the case tells investing this amount increase the
amount of labor and increases the services.
 BUT…
 Investment in the amount of labor also increase the
expense of the company
 Should be invested in the internal strategic marketing
that will concentrate on marketing research, and the
marketing group.
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11.  Most of the revenue comes from customized and
handcrafted beverages so investment on automated
technology.
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12. Recommendation
 Train the partners for better customer interactions and
speedy performance.
 Place automated and customized coffee machines
within the star bucks outlets as well as in other convenient
locations.
 Introduce Starbucks privilege cards to its customers.(free
cup of coffee after every X number of coffees).
 Engage in charity activities and gain trust from the
society and customers
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13. Cntd….
 Introduce some funky tastes of coffee within a low price
brackets to attract and retain young customers.
 The company should re-evaluate its product positioning.
 Concentrate new store openings that will not cannibalize
existing sales
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14. Major Takeaways
 Focus on the experience
 Pay attention to your Brand awareness
 Don’t accept conventional price ceilings.
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15. THANK YOU
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