Starbucks - Customer Relationship Management

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Starbucks - Customer Relationship Management

  1. 1. Starbucks Experience Management M ade I n V ietnam S tarbucks Vo Thi Thuy An (Anna) Ly Le Trinh (Kelly) Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  2. 2. Company Overview <ul><li>Largest coffeehouse chain (16,120 stores/44 countries) </li></ul><ul><li>Since 1971 in Seattle, Washington, USA </li></ul><ul><li>Restaurant/Retail Coffee and Tea Beverages/Entertainment </li></ul><ul><li>Net income: US$672 mil (2007) </li></ul><ul><li>Brand values ranking: 35 </li></ul><ul><li>Employees: 172,000 (2008) </li></ul><ul><li>CEO: Howard Schultz </li></ul>Made In Vietnam Starbucks
  3. 3. Key Milestones Made In Vietnam Starbucks 1971 First Starbucks store 1982 Howard Schultz joined 1987 Schultz took over Starbucks 1992 Initial Public Offering - 165 outlets 1997 Japan, UK, Singapore 2003 6,400 stores worldwide 2008 + Schultz to CEO + New espresso system + Starbuck Cards + Selling Product Red goods 2006 Partnership with Apple 2009 Into Vietnam?
  4. 4. What have Starbucks done? Vo Thi Thuy An (Anna) Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  5. 5. Competition <ul><li>Caribou Coffee </li></ul><ul><li>Peet’s Coffee & Tea </li></ul><ul><li>Dunkin Donuts </li></ul><ul><li>Mc-Donald’s </li></ul><ul><li>And thousands of independent specialty coffee shops </li></ul>Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  6. 6. Starbucks’ Past and Current CRM Strategies Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  7. 7. PRM – Partner Relationship Management <ul><li>External: </li></ul><ul><ul><li>Control supply chain as well as possible </li></ul></ul><ul><ul><li>Partnership with Apple, T-mobile, PepsiCo, Dreyer’s Grand Ice Cream… </li></ul></ul><ul><li>Internal: </li></ul><ul><ul><li>Partner satisfaction </li></ul></ul><ul><ul><li>Training courses </li></ul></ul><ul><ul><li>“ Just say yes” policy </li></ul></ul><ul><ul><li>“ Customer Snapshot” program </li></ul></ul>Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  8. 8. CEM – Customer Experience Management <ul><li>Customer Intimacy </li></ul><ul><li>Diversified menu </li></ul><ul><li>Promotion campaign </li></ul><ul><li>One moment of life… </li></ul><ul><li>Distribution channel & grocery stores </li></ul>Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  9. 9. SRM – Social Relationship/Responsibility Management <ul><li>Employ over 172,000 partners </li></ul><ul><li>Coffee farmer supporter </li></ul><ul><li>&quot;Grounds for your Garden&quot; program </li></ul>Vo Thi Thuy An (Anna) Made In Vietnam Starbucks
  10. 10. What Starbucks has? Ly Le Trinh (Kelly) Ly Le Trinh (Kelly) Made In Vietnam Starbucks
  11. 11. SWOT Analysis <ul><li>Quality coffee in the world </li></ul><ul><li>Industry market leader </li></ul><ul><li>Legendary service </li></ul><ul><li>Professional staff </li></ul><ul><li>Pleasant atmosphere </li></ul><ul><li>Good location </li></ul><ul><li>Product diversification & innovation </li></ul><ul><li>Company operate retail stores & international stores </li></ul><ul><li>Good working environment + valued and motivated employees </li></ul><ul><li>Consistent on quality product + operation </li></ul>Ly Le Trinh (Kelly) Made In Vietnam Starbucks STRENGTHS
  12. 12. SWOT Analysis <ul><li>Retail expansion, lack of internal focus </li></ul><ul><li>Self cannibalization </li></ul><ul><li>High labor expense & high rental rate </li></ul><ul><li>Problems in some international operations </li></ul>Ly Le Trinh (Kelly) Made In Vietnam Starbucks WEAKNESSES
  13. 13. SWOT Analysis <ul><li>Global famous coffee brand </li></ul><ul><li>Growth in coffee market </li></ul><ul><li>Technological advance </li></ul><ul><li>Market expansion </li></ul>Ly Le Trinh (Kelly) Made In Vietnam Starbucks OPPORTUNITIES
  14. 14. SWOT Analysis <ul><li>Economic recession </li></ul><ul><li>Competition </li></ul><ul><li>US market saturation </li></ul><ul><li>Coffee price volatility in developing countries </li></ul><ul><li>Rising dairy cost </li></ul><ul><li>Negative publicity from poorly treated farmer in supplying countries </li></ul><ul><li>Cultural and Political issues in foreign countries </li></ul><ul><li>Changing customer </li></ul>Ly Le Trinh (Kelly) Made In Vietnam Starbucks THREATS
  15. 15. Starbucks and Global Financial Meltdown Ly Le Trinh (Kelly) Made In Vietnam Starbucks
  16. 16. What will Starbucks do? Thai Thanh Son (Vincent) Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  17. 17. Do you know what is your major problem, Starbucks? Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  18. 18. Recommendations Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  19. 19. Retaining the Right Customers Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  20. 20. Different Perceptions from Different Customers Thai Thanh Son (Vincent) Made In Vietnam Starbucks I’m drinking Starbucks! Moment of mine
  21. 21. Starbucks Customer is Changing Thai Thanh Son (Vincent) Made In Vietnam Starbucks Repeat purchase Relative attitude Strong Weak High Low Dick and Basu’s Model of Customer Loyalty
  22. 22. Moment of… Starbucks Thai Thanh Son (Vincent) Made In Vietnam Starbucks Me & Starbucks Me & Entertainment & Starbucks Me & My Work & Starbucks
  23. 23. Restructuring the Chain System & Operation <ul><li>Re-allocating the stores </li></ul><ul><ul><li>Internal competition </li></ul></ul><ul><ul><li>Financial center </li></ul></ul><ul><li>Separating with Fast foods industry </li></ul><ul><ul><li>Drive thru </li></ul></ul><ul><ul><li>Hot food </li></ul></ul><ul><li>Consistent but not cloning </li></ul><ul><ul><li>Coffee taste </li></ul></ul><ul><ul><li>Decoration </li></ul></ul><ul><ul><li>Atmosphere </li></ul></ul><ul><ul><li>Local adaptability </li></ul></ul>Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  24. 24. Increasing Customer Lifetime Value Thai Thanh Son (Vincent) Made In Vietnam Starbucks Factors Driving “Valued Customer” Perceptions Improvements to Service (total) 34% Friendlier, more attentive staff 19% Faster, more efficient service 10% Personal treatment (remember my name, my order) 4% More knowledgeable staff 4% Better service 2% Offer Better Prices/Incentive Programs (total) 31% Free cup after x number of visits 19% Reduce prices 11% Offer promotions. specials 3% Other (total) 21% Better quality/Variety of products 9% Improve atmosphere 8% Community outreach/Charity 2% More stores/More convenient locations 2% Don’t Know/Already Satisfied 28%
  25. 25. Customer is not only Starbucks’ drinker… Thai Thanh Son (Vincent) Made In Vietnam Starbucks
  26. 26. Made In Vietnam Starbucks Thank you for your attention
  27. 27. Do you want to watch some Starbucks’ TVC? Thai Thanh Son (Vincent) Made In Vietnam Starbucks

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