Starbucks - 2874 Words

Starbucks: Delivering Customer Service Howard Schultz’s idea with Starbucks in the mid 1980’s was to create a chain of coffeehouses with a product differentiation of specialty â€Å"live coffee†, service or customer intimacy with an â€Å"experience†, and an atmosphere of a â€Å"third place† to add to their work and home alternatives. The original stores sold whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well educated, white-collar patrons (skewed female) between the ages of 25 and 44. By 2002, there were over 5,000 stores around the globe. The company spent minimal dollars on advertising to promote a brand concept. Enforced exacting coffee standards by controlling the supply chain as much as possible,†¦show more content†¦Baristas jobs were complicated by the fact that many products required numerous steps to complete the order. They had installed automated espresso machines in some stores for the customers use to reduce wait tim e. Introduced a prepaid card that could be used to pay for products in the stores Starbucks had no centralized marketing program. Sales data was accumulated, and it was the responsibility of management to request that specific data be analyzed. The goal of Starbucks was to expand store openings as rapidly as possible. They were opening almost 3 new stores a day. New stores cannibalized existing store sales, but Starbucks did not see that as an important issue. There was very little image or product differentiation between Starbucks and competing chains. The newer customers were younger, less educated, in lower income brackets, had less frequent visits, and had a different perception of Starbucks. Concern had been expressed that Starbucks had lost the connection between satisfying our customers and growing the business, Starbucks wanted to serve the customer within 3 minute time window. Is that going to add customer loyalty? Starbucks wanted more handcrafted time consuming choices for consumers. Is that going to add to customer loyalty Starbucks sees themselves as selling innovative products, do the customers see them this way or as a specialty coffee commodity store? Rise of coffee consumption in the US with the largest growth being that of specialty coffee.Show MoreRelatedStarbucks And Starbucks : Starbucks1047 Words   |  5 PagesIntroduction: Rumors have fluttered about a widely known company that specializes in coffee called Starbucks. The rumor accused Starbucks in 2004 over an email. A Sargent in the Marines helped make the email go viral. A friend of his informed him about the email and it then began to spread like wildfire. According to the Sargent, he actually con tacted the disgruntled sender and got a â€Å"real story† from him, but this was never actually verified as to whether or not it’s true. The whole situation upsetRead MoreStarbucks : The Success Of Starbucks1080 Words   |  5 Pages What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in ItalyRead MoreStarbucks : The Entry Of Starbucks923 Words   |  4 PagesThe entry of Starbucks in Australia began in July 2000. The Starbucks Australia is a wholly owned subsidiary as a joint venture between Markus Hofer and Starbucks Coffee International, subsequently licensed its local chain to the Withers Group, which operates 7-Eleven in Australia. Began selling espressos, frappuccino, and filtered coffee from its first store in Sydney’s Central Business District (CBD). The company was facing difficulties in the Australian cafà © market. However, the company aggressivelyRead MoreStarbucks And Its Impact On Starbucks1054 Words   |  5 PagesA total weighted score at 2.67 for Starbucks po ints to an average but good internal standing in the Internal Factor Evaluation. The first strength of Starbucks is its diverse and inclusive workforce that allows this corporation to cater to a wider market reflecting today’s current demographics. This key strength has put Starbucks as a well-recognized brand among this young and diverse market. According to the Starbucks website, their workforce has led the way in diversity, 65% of U.S. employeesRead MoreStarbucks694 Words   |  3 PagesIntroduction 1.1 Purpose of report The economic impact of Starbucks on the UK economy June 2013 The objective of this report is to investigate the economic contribution of Starbucks to the UK economy. This contribution is quantified in terms of impacts from: ï€  The operation of Starbucks in the UK; ï€  The supply chain effects created by Starbucks purchases of inputs from elsewhere in the UK economy. ï€  The consumer expenditure of Starbucks’ staff and those employed directly in its supply chain spendingRead MoreStarbucks And Its Effect On Starbucks1079 Words   |  5 Pagesyear Starbucks made 10.7 billion dollars? Who here has ever been to Starbucks? Well I have, they have delightful hot and cold drinks and scrumptious desserts. But did you know Starbucks also owns Teavana. Today I’m going to talk to you about one of the world’s most well-known coffee shops in the world; Starbucks. Firstly I’m going to talk about its history. When first started it was called Pequod’s coffee because Pequod was the name the owner’s first ship. But they soon settled on Starbucks. StarbucksRead MoreStarbucks : Starbucks Economic Analysis1673 Words   |  7 PagesStarbucks Economic Analysis 1 Starbucks Economic Analysis PATTEN UNIVERSITY JULY 29, 2015 MGT407 Managerial Economics Starbucks Economic Analysis 2 The coffee industry had never been the same since the early 1970s when three investors started a Seattle business called Starbucks Coffee, Tea, and Spice in Pikes Peak Market. Each invested about one thousand dollars and-and borrowed five thousand more from a bank to launch their endeavor. The coffee-loving character in Herman Melville’s great novel MobyRead MoreStarbucks, A Large Portion Of Starbucks1055 Words   |  5 Pages For Starbucks, business is good. Starbucks continues to come up with more and more innovations and ways to market their products. Last year Starbucks started bottling their iced coffee and selling them as a new product lines in their stores, as well as many new sandwich choices. The ability to provide fresh new ideas year after year provides Starbucks with a growing customer base and a growing net gain. Starbucks will continue to come up with new ideas and products that will continue to bring inRead MoreStarbucks Case Analysis : Starbucks1580 Words   |  7 Pages7/25/15 Starbucks Case Study I chose to do a case analysis on Starbucks because I am a huge fan, as a college student I am addicted to caffeine and Starbucks is how I get my caffeine fix! I am a gold card member with Starbucks meaning, I drink so much of their coffee they rewarded me as a valuable customer. Some perks include a free food or beverage after twelve purchases, a free food or beverage on my birthday, as well as discount coupons and exclusive member deals. The first Starbucks locationRead MoreStarbucks1117 Words   |  5 Pagesï » ¿Starbucks started in 1971 and by creating a cozy third place to customers beyond home and work and offering a slightly higher price yet fine quality coffee, within 25 years, it had opened just over 1000 stores. In order to maintain its leadership position, Starbucks had continued pursuing growth opportunities by selling Starbucks products through mass distribution channels and expanding its retail footprint. Along with the rapid expansion and success, Starbucks has encountered financial downturn