Starbucks

1. Starbucks: Delivering
Customer Service

2. Background
Vision of the company: Become America’s “Third
Place”, a place that would be separated from
home and work
Goal of the company: Establish Starbucks as
“Most Recognized and Respected Brand in the
World”
Marketing Objective: Coffee, Service and
Atmosphere

3. 1971
Opened by Gerald Baldwin, Cordon Bowker &
Ziev Siegel.

4. 1982
Howard Schultz joined the marketing team.
He set up an espresso bar at downtown shop.
Schultz took over and began opening new stores

5. 1992
140 Stores in Northwest and Chicago
Competed Against Gloria Jean’s, Coffee Bean
and Barnie’s Coffee & Tea.

6. Store Growth From 1971-
2010

7. Customer Service Mission
Customer Intimacy
Customer Satisfaction

8. Mission Statement
Our Mission: to inspire and nurture the human
spirit- one person, one cup and one
neighborhood at a time.
Our Customers: When we are fully engaged, we
connect with, laugh with, and uplift the lives of
our customers – even if just for a few moments.
Sure, it starts with the promise of a perfectly
made beverage, but our work goes far beyond
that. It’s really about human connection.

9. Competitive Advantages
Competitive advantage is at the heart of a firm's
performance in competitive markets. Competitive
advantage means having low costs, differentiation
advantage, or a successful focus strategy. (Porter,
1980)

10. Products
Coffee Servic
eAtmosphere

11. Growth And Development

12. Starbucks Partners
Large Investment in Training
Compensation and Benefits
Low Employee Turnover rate
High Employee Satisfaction Rate

13. Brand Strategy
Keep the national Coffee Culture Alive
Create “Experience”
Environmental Friendly
Fusion of Local Culture

14. Consumer Oriented
Company Philosophy
Customized Drinks
Customer Connection: welcome, eye contact,
smile, remember names and orders, create
conversations
Quest for customer satisfaction
Aim at creating customer loyalty, gift and
membership cards.

15. Target Market
Well Educated White Collar Jobs
Aged 25-44
Younger Less
Educated
Aged 16-30

16. Customer Behavior
Customer Visit Frequency

17. Customer Satisfaction Data
Percentage of Satisfied Customers

18. How do they meet the
customers expectations?
Product- Coffee
“Live Coffee”
Committed to be the highest quality coffee
Sourced from Africa, Central and South America,
Asia Pacific Regions
Supply Chain Control.

19. Measuring Service Quality
Self-Reported Checklist on Monthly Basis
“Customer Snapshot”– Mystery Shopper

20. Atmosphere
Swanky Yet Inviting

21. Reasons For Their
Success
Design Innovation
Learning from the local culture
Different Menu at different locations

22. Product Innovation
New Coffee Products are launched on regular
basis.
Verismo System in 2013
https://www.youtube.com/watch?v=JwwmVTETn54
(copy and paste the link in google crome)

23. Service Innovation
Wifi Hotspot in Every Store
Starbucks store-value card (SVC) in 2001
My Starbucks Rewards in 2012
Pay with your mobile Phone
https://www.youtube.com/watch?v=BlQDttTWM6o
https://www.youtube.com/watch?v=8UTyusMA2Pk
(copy and paste the link in google crome)

24. Challenges Faced by the
Company
Fierce Competition

25. Changing Customer
Expectations

27. Reference
Quelch, J, & Moon, Y 2003, 'Starbucks: Delivering
Customer Service', Harvard Business School Cases,
p. 1, Business Source Premier, EBSCOhost, viewed
27 October 2013.
Youtube. (2008). Starbucks Coffee. Available from:
http://www.youtube.com/user/Starbucks [Accessed:
26 October 2013].
Starbucks Coffee Company. (2013). Available from
:http://www.starbucks.com/ [Accessed: 27 October
2013].
Porter, M.E. (1980). Competitive strategy, The Free
Press, 1980.[Accessed: 26 October 2013].