Starbucks Case Analysis

The document discusses Starbucks' success in the early 1990s and their brand image. Starbucks transformed coffee consumption into an experience by focusing on experiential branding, reach, product variety, and excellent customer service. Their value proposition was to create uplifting experiences of customer intimacy and a sense of community. Starbucks captured the image of "anywhere, everywhere, good coffee on the run." The document also examines why Starbucks' customer satisfaction index scores have declined. It argues Starbucks measures parameters related to product quality rather than service quality, so it is measuring customer satisfaction incorrectly. It describes the ideal profitable Starbucks customer as one who visits frequently and spends more per visit. Highly satisfying these customers ensures loyalty and repeat business that are