Starbucks was facing declining customer satisfaction due to perceived issues like prioritizing profits over experience and slower service times. While it was highly successful initially by focusing on quality coffee and atmosphere, the brand was seen as less trendy and partners were providing unsatisfactory service. It is recommended that Starbucks invest $40 million to improve partner training and speed of service to convert satisfied into loyal customers. Converting just 46 more customers per store per day to highly satisfied would allow the investment to break even.
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
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?
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.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
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?
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.
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.
We look at the role of the Brand Leader, how to develop marketing execution strategy, tools to make marketing decisions and how to give direction to an agency.
At Beloved Brands, we make brands stronger and we make brand leaders smarter. We can build a Brand Management Training Program, to unleash the full potential of your team.
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2, Creating a Beloved Brand
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4. Brand Positioning
5. Brand Plans
6. Creative Briefs
7. Brand Analytics and the business review
8. Marketing Execution
9. Strategic Media Plans
10. Winning the Purchase Moment
Workshop on How to Think Strategically.
We teach brand leaders to think strategically. We show them how to ask the right questions before seeing solutions, how to map out a range of decision trees that intersect and connect by imagining how events will play out. We take them through the 7 elements of good strategy: vision, opportunity, focus, speed, early win, leverage and gateway. We look at strategy from a competitive position, consumer connectivity, core strength and situational
Starbucks has adopted a unique market strategy, which entails product differentiation and growth. The firm has achieved this goal by dealing with speciality products. ... In line with its differentiation strategy, Starbuck has adopted a unique marketing strategy
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%
This presentation slides are strictly for education purposes.
Please do not download this presentation template and try to make money out of it. Contact me if you want to have your very own business presentation.
Similar to Starbucks delivering customer service (20)
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Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
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Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
2. Brief Introduction
• Founded in 1971 by three coffee fanatics- Gerald Baldwin, Gordon Bowker & Ziev
Siegl
• Schultz joined the marketing team in 1982
• Later, the founders sold the entire business to Schultz
• 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%
Key people in the CASE:
VP of Administration in North America: Christine Day
CEO: Orin Smith (A Harvard MBA who joined 1990)
Chairman & Chief Global Strategist: Schultz
CRM SECTION A
2
3. Problem Statement
Starbucks failed to meet customer expectations and deliver satisfaction thereby losing
customer loyalty
Whether to invest the $40 million dollars to enhance the labor in each store?
If invested, How it will impact the sales and profitability?
CRM SECTION A
3
4. Factors responsible for the early success of Starbucks
Experiential Branding Strategy consisting of the three major components:
• High quality coffee- It monitored roasting process to distribution around the world
• Service- Provide intimate and uplifting experience each time
• Atmosphere- Friendly environment with universal appeal, encouraged lounging
and layouts
Other factors that contributed the early success includes:
• Attractive Market- Unexploited without strong competitors
• Partner Satisfaction- High satisfaction rate(80-90%) & low turnover rate
• Company’s Distribution strategy and location of stores- high traffic & high
visibility
CRM SECTION A
4
5. Core Value Proposition
• Starbucks focused on the intangibles associated with drinking coffee
• It was not only about taste and quality, but the experience of drinking coffee in a Starbucks Store
• It provided emotional benefits and tried to enhance the national coffee culture through its offerings
STARBUCKS
Coffee
Atmosphe
re
Service
CRM SECTION A
5
6. Declining Customer Satisfaction
Imperfect tool for measuring customer satisfaction: Customer Snapshot
– Mystery shopping program thrice in a quarter
– Rated based on 4 criteria- service, cleanliness, product quality & speed of service
– Legendary services- behaviour that created memorable experience for customer
Reasons based on research outcomes:
• Rough brand image of primarily making money & building more stores
• Perceived differentiation between Starbucks and others was very less
• Somehow less trendy as compared to others
• Unsatisfactory service of partners
• Low speed of service- customized drinks slowed down the process of delivering
CRM SECTION A
6
7. Changing Landscape
• The Starbucks of 1992 had 140 stores, whereas in 2002, it had more than 5000 stores across the world
• 77% of the sales were from beverages, while in 1992, half of the sales constituted of whole bean
coffees
• The Starbucks of 2002 was far more complex with the addition of new products on the menu
• The Partners had to spent more time as beverages became more customized
• The demographics of the customers changed Earlier only the affluent, well educated and high income group used to visit
In 2002 another group evolved which was less educated, younger and had low income
CRM SECTION A
7
8. Ideal Customer & Satisfaction
• The most ideal customer will be the most loyal (frequent) customer with around 18 visits per month
[ A Loyal customer will also be a highly satisfied customer too, so he/she will spend $ 4.42 dollar per
visit;
From Exhibit 9]
• So total lifetime value of a loyal customer is = (4.42*18*12*8.3) = $ 7924 dollars
• While lifetime value of a highly satisfied customer is = (4.42*7.2*12*8.3) = $ 3169 dollars
Satisfaction can be increased by:
• Speeding up the service
• Free cups: reduce the perception that Starbucks is only obsessed with expansion and money making
• Better training of partners to treat customers better
CRM SECTION A
8
9. Recommendation
• Starbucks can significantly increase its sales by converting the satisfied customers into loyal
customers
• However, that will require better handling of customers by partners and shortened service time
YES! They should make the investment in labor as it will improve the ‘service’ which
is the major factor driving the value proposition.
Further, $ 40 million results in investment of $ 8000 dollar per store (5000 stores)
Now the difference between income of a satisfied ($ 209.49) and highly satisfied customer ($ 381.88) is =
$ 172 dollar
Therefore, It will require (8000/172)= 46 customers to break even in each of its stores
From Exhibit 3, no of visitors per store each day = 570
CRM SECTION A
So, daily 46 more customers (out of 570) need to be highly satisfied to break even.
9