Starbucks

• 1. STARBUCKS: DELIVERING CUSTOMER SERVICE Presented by: Anish Man Singh Basynat Sameer Pradhan Shyam Sapkota Suraj Pd. Rouniyar 1

2. History70s 1971- Starbucks opens first store in Seattles Pike Place Market.`80s 1982-Howard Schultz joins Starbucks as director of retail operations and marketing. He was so fascinated to have coffee culture in US Few years later he buys the company, and starts selling premium-priced coffee. 1992- 140 stores in Chicago and Northwest. Mid 2002- established as a dominant player in the US market. At present, Starbucks is largest coffeehouse in the world with nearly 20,000 stores in a 60 countries. 3. STARBUCKS VALUE PROPOSITON To create an experience around the consumption of coffee. To create an uplifting experience in customer intimacy To create an ambience based on human spirit, sense of community and the need for people to come together. 4. Key success factors Atmosphere Coffee quality Service Partner satisfaction Specific target audience Attractive market4 5. Core and supplementary products5 6. Product positioning The company has positioned its as premium coffee store High price and quality with great experience Target audience of age between 24-44 years.6 7. Positioning map Starbucks CaribouMc Donalds Dunkin Donuts7 Eleven7 8. Major issues Declining the customer base. Delivery time of coffee. Competition No centralized department of marketing; didnt focus on marketing strategy and promotion of its product.8 9. Customer expectations and customer serviceCustomer expectations Customer services19922002 9 10. $ 40 million investment plan As the case tells investing this amount increase the amount of labor and increases the services. BUT Investment in the amount of labor also increase the expense of the company Should be invested in the internal strategic marketing that will concentrate on marketing research, and the marketing group.10 11. Most of the revenue comes from customized and handcrafted beverages so investment on automated technology.11 12. Recommendation Train the partners for better customer interactions and speedy performance. Place automated and customized coffee machines within the star bucks outlets as well as in other convenient locations. Introduce Starbucks privilege cards to its customers.(free cup of coffee after every X number of coffees). Engage in charity activities and gain trust from the society and customers 12 13. Cntd. Introduce some funky tastes of coffee within a low price brackets to attract and retain young customers. The company should re-evaluate its product positioning. Concentrate new store openings that will not cannibalize existing sales13 14. Major Takeaways Focus on the experience Pay attention to your Brand awareness Dont accept conventional price ceilings.14 15. THANK YOU15