Transcript
V/sJeremy Dorosin
Submitted To:
Prof. P.K.Bansal
H.O.D- M&S Deptt.
Amity Business School
Submitted By:-
PPT Group:- 5
Group No. :- 4
MBA-2011 Batch
Amity Business School
Team MembersRohit Chopra (C-54)Nikita Malhotra (F-19)Shalvi Sharma (F-20)Nancy Chopra (F-23)Ankit Middha (F-32)Eshan Bhateja (F-39)Ankit Sawhney (F-42)Saurabh Mediratta(F-55) (Group Leader)
Dorsin as VoicerProblem
M/c broke twice.Broken packaging of the product Missing Manual½ lb. of complementary coffee not provided
Action taken
Dorosin called the customer service regarding the complain
and asked for:- Replacement of M/c. that broke second time Send his friend and the bride a letter of apology Top of the model M/c($ 495) to his friend
Steps to Dorsin as Activist
Instruction Manual & ½ lb. of coffee not received.
Damaged box of M/c.
No response to several telephone calls to various offices.
Rust in the Espresso M/c and missing parts in the gift for the friend.
Demanded Top of the line Replacement ($2500) & letter of apology.
Disagreement of negotiating terms
Actions taken by Dorsin as Activists
Published ads in regional edition of Wall Street Journal
Installed a toll-free number for unsatisfied customers of Starbucks.
Appeared on several Radio and Television programs
Service Recovery SystemOn hearing the Complain of Dorsin, Store
Manager apologized and asked him to pick the manual & coffee from the Store.
In Telephonic Conversation, the customer service supervisor offered a proposal:-
Letter of apology to Dorsin`s friend (Ms. Cohen)
Replacement of both the M/c with better Quality M/c
Against the apology in newspaper, Starbucks offered to donate the same amount in charity
Failure Points of Service Recovery
Instead of asking Dorsin to pick the Manual and coffee from store, it should have been delivered at his home.
Initial demand of better M/c with apology letter should have been accepted.
Huge delays were caused in communication with store manger and customer care supervisor
Empathy and urgency of event lacked
Product Mix
55
21
1410
0
10
20
30
40
50
60
Co. Retail Sales
Coffee Beverage
Whole Bean Coffee
food items
H/w
The Product Mix varied for each store depending upon its size and location
Importance of H/w & Equipment
10% of Co. Total retail Sales.
Prices range from $75-$2000.
Objective:- To Establish Premier Specialty Coffee Brand
Gives competitive advantage of competitors.
Intense Competition in Coffee making M/c Market.
The company believed customers believed primarily on quality and convenience, and, to a lesser extent, on price.
Scenario in Coffee related Product Division
Intense competition for the Espresso machine market
Coffee makers also available at local department stores, gourmet kitchen specialty stores, and the national discount retails at a wide range of prices.
Big retail stores carried range of coffee-related products, including high quality coffee-making equipment (with 2 yr warranty) and over 30 varieties of whole bean coffees.
Smaller stores and kiosks carried a more limited selection of whole bean coffees.
Scenario in Coffee related Product Division
Stores also sold accessories bearing the Starbucks logo.
Coffee beverages competed directly against all restaurant, beverage and increasing no. of espresso stands, carts, and stores.
Whole bean coffee sales competed with numerous franchise operators and locally-owned specialty coffee stores in both the United States and Canada.
Coffees priced at or above the prevailing high-end coffee prices reflecting the higher quality of the company’s coffees and its higher level of customer service.
Average customer transaction was approx. $3.01, about the price of a large espresso
Broad Target Mkt.
Differentiation Focus
Cost Focus
DifferentiationCost Leadership
Narrow Target Mkt.
Cost-Efficiency Preferred Product or Service
Competitive Scope
Competitive Advantage
Porter`s Model of competitive Advantage
Customer Loyalty programs.
Increase After Sales Service efficiency to reduce the delay of resolution of problem for convenience of customer & Co.
Vending M/c in Corporate offices.
Exploratory Survey to understand taste preferences.
On experimental Basis increase the prices of equipment by small extent
Demands of DorosinDorosin’s demand was justified till the time
when he proposed that Starbucks:
Replace his machine (the Vapore) which had just broken for the second time.
Send his friend, the bride, a letter of apology.
Send the bride the nicest replacement they had, then asked what the next best machine was, which was the $495 model.
But later his demands became unreasonable ($2500 M/c) and no correlation could be between the shelter and his original complaints.
Resolution to Problem
Some of the ways to resolve this problem:-
To donate towards Dorosin`s Shelter through CARE,
the international relief organization.
To Launch an ad of apology in newspaper and promising best quality service. Also, sending the best M/c($2500) to Dorosin and his friend Ms. Cohen.
To counter attack Dorosin by publishing the letters of apology and the negotiation terms among them and prove him wrong.
top related