Service strategy Analysis of Case Study- Starbucks- Delivering Customer Service
Introduction
Founded in 1971.
- Founded by:Gerald Baldwin, Gordon Bowker & Ziev Siegl
-The founders sold the entire business to Howard Schultz who joined the marketing team in 1982
-By 2002, it served 20 million unique customers in 5000 stores across the globe
-Sales had a CAGR of 40% , while Net Earnings had a CAGR of 50%
Howard schultz : building starbucks communitySaurabh Arora
Reason for success
Having well developed values, culture and charter
Willingness to move out of comfort zone – Introduces flavours of milk
Ensuring that the organisational culture is adhered to globally
Making changes and customising according to local culture
Providing employee benefits and making them feel a part of the family – ESOPs, Training
Conclusion
Howard Schultz’s vision has ensured that Starbucks has been a market leader
He revolutionized the coffee experience – From a regular to commodity to a third place experience
Having their own culture and innovative spirit has kept them ahead of their competitors
Recommendations
Starbucks must maintain the competitive advantage by keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture in each location that is apt
New products should be developed – Look beyond coffee to attract the Asian market
Service strategy Analysis of Case Study- Starbucks- Delivering Customer Service
Introduction
Founded in 1971.
- Founded by:Gerald Baldwin, Gordon Bowker & Ziev Siegl
-The founders sold the entire business to Howard Schultz who joined the marketing team in 1982
-By 2002, it served 20 million unique customers in 5000 stores across the globe
-Sales had a CAGR of 40% , while Net Earnings had a CAGR of 50%
Howard schultz : building starbucks communitySaurabh Arora
Reason for success
Having well developed values, culture and charter
Willingness to move out of comfort zone – Introduces flavours of milk
Ensuring that the organisational culture is adhered to globally
Making changes and customising according to local culture
Providing employee benefits and making them feel a part of the family – ESOPs, Training
Conclusion
Howard Schultz’s vision has ensured that Starbucks has been a market leader
He revolutionized the coffee experience – From a regular to commodity to a third place experience
Having their own culture and innovative spirit has kept them ahead of their competitors
Recommendations
Starbucks must maintain the competitive advantage by keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture in each location that is apt
New products should be developed – Look beyond coffee to attract the Asian market
Starbucks, a leading specialty-coffee brand and coffee store chain based in the US was founded in 1971 by Gerald Baldwin, Gordon Bowker, and Ziev Siegl.
In 2002, Starbucks had achieved a CAGR of 40% since its IPO and owned approx 5000 stores
Its competitors range from small-scale specialty coffee chains to independent specialty coffee shops, and donut and bagel chains.
Further growth in untapped national and international markets and unreached saturation levels.
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The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
Starbucks, a leading specialty-coffee brand and coffee store chain based in the US was founded in 1971 by Gerald Baldwin, Gordon Bowker, and Ziev Siegl.
In 2002, Starbucks had achieved a CAGR of 40% since its IPO and owned approx 5000 stores
Its competitors range from small-scale specialty coffee chains to independent specialty coffee shops, and donut and bagel chains.
Further growth in untapped national and international markets and unreached saturation levels.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
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2. The central issue around which all the problems lying is
that “company services are not meeting customers
expectation”.
How to differentiate STARBUCKS from competitors?
Should the company roll out $40 million plan for
reducing the serving time under 3 minutes?
How to link customer satisfaction to increase in sales &
profitability?
3.
4. Gap between scores on key attributes and customer expectation.
Customers perception about brand:
Starbucks cares primarily about making money
Up from 54% to 61%
Starbucks cares about building more stores
Up from 48% to 55%
Changes in the target customer.
How can service time of 3 minutes can assure customer satisfactions
already service time of 3.10 minutes has been achieved.
5. Instead of rolling out $40 million for increasing labor
hours company should focus on the following
aspects:
Right guidance for baristas during first 90 days.
Promotion campaigns for regular customers.
To convert satisfied customer into highly satisfied
customer.
6. Concluding, we would like to add that an investment in
adding more labor to stores might help the company increase
some of its satisfaction levels and maybe even get a good
return out of it, but from the data available in the case it
appears that Starbucks has a lot of other problems that needs
to tackle. They need to re‐evaluate their value proposition,
examine how their expansion strategy has led to the
deterioration of their brand image and find new ways to
satisfy the customer
Few Recommendations
Launch a program to improve staff’s friendliness and offer a
free coffee after certain visits
Pilot projects in selected locations
Loyalty program like Loyalty card
CRM based application
7.
8. Risks in rolling out $40 million plan:
Company profit rises to $33.9 million during FY02
and if company is investing $40 mill there is chance
that next year company will have net profit zero.
Company is planning to open 525 company operated
and 225 licensed outlet so they need capital.
9. If the baristas lasted beyond 90 days, there is chance
he will stay for three or more years which in turn can
make regular customers more recognizable by the
staff and friendly approach can be there.
19% of customer feel if they can get free coffee
(promotions)after particular visits they will feel
“valued customer”.
Service time can be reduced by using “automated
machines.
The company should follow ROCE. (asset
management).
10. As compare to satisfied customer , highly satisfied
customer will visit 67.44 % more per month.
Can do joint ventures as only 4% market share in
home utilized coffee.
Advertisement in mass media
Corporate tie ups as coffee is becoming more official
these days. ( meeting & interviews).
Can improve the ambience of the outlets turning
them into more greenish and natural as the theme of
STARBUCK logo goes.
Editor's Notes
Employee turn over rate is 70 vs 300. , internal promotion
If the baristas lasted beyond 90 days, there is chance he will stay for three or more years which in turn can make regular customers more recognizable by the staff and friendly approach can be there.19% of customer feel if they can get free coffee (promotions)after particular visits they will feel “valued customer”.Service time can be reduced by using “automated machines” at high customer footfall outlets which will keep data of customer and in turn will give options based on the likings in turn reducing the order time.As compare to satisfied customer , highly satisfied customer will visit 67.44 % more per month.Can do joint ventures as only 4% market share in home utilized coffee.Advertisement in mass mediaCorporate tie ups as coffee is becoming more official these days. ( meeting & interviews).Can improve the ambience of the outlets turning them into more greenish and natural as the theme of STARBUCK logo goes.
