My Marketing group and I have worked on the Harvard Business Review case and identified a solution to the Starbucks: Delivering Customer Value case.

1. starbucks - delivering
customer value
GROUP - 4

2. Founded in
1971 by
three coffee
fanatics
Schultz joined
marketing
team in 1982 Schultz
became the
new CEO
More than
just coffee
beans
1
2
3
4

3. Ambience

4. Starbucks Employees = Partners = Barista
Around 60,000 partners
Perks (health insurance & stock options)
"Partner satisfaction leads to Customer
satisfaction"
Lowest employee turnover rate in the
industry
'Manager stability is the key'

5. • Two types of training-
1. Hard Skills:
- how to use the cash register
- how to mix the drinks
- Handcrafted Beverages
2. Soft Skills:
- to connect with customers
- establish eye contact
- Smile
•"Just Say Yes" Policy

6. CUSTOMER SNAPSHOT
SELF-REPORTED CHECKLIST
MONTHLY STATUS REPORT
BASIC SERVICE
LEGENDARY
SERVICE
1. MEMORABLE
EXPERIENCE
2. SERVICE
ATTRIBUTES

7. Retail Expansion
Product Innovation
Sercice Innovation

8. Strategic market group
Competitors
Brand Image
Target Audience
Service Gap

9. PROS-
Faster/Simpler
CONS-
Single Process
Sans Hand Craft
process
PROS-
Customer loyalty
Option Plans
CONS-
Extra Expense for
the company
Time Lag
PROS-
Human
Operating
Financial
(Performance)
CONS-
Labour Turnover
Extra Expence

10. Unsatisfied Customer - $181.584
3.9 x $3.88 x 12 = $181.584
Highly Satisfied Customer - $381.82
7.2 x $4.42 x 12 = $381.82

11. Partner Cost Per Week = $360.00
Per Annum Cost Per Partner = $18,720.00
360 x 52 = $18,720.00

12. HUMAN PERFORMANCE
OPERATING PERFORMANCE
FINANCIAL PERFORMANCE