Starbucks Delivering Customer Service Essay - 1106 Words

PROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability. SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience. Customers However, data from the market research team has shown that there is a shift on Starbucks’ brand recognition in customers’†¦show more content†¦Surveys and analysis have been carried out to gather data and understand more about the key attributes to increase customer satisfaction. Exhibit 4 points out that friendlier and faster service is highly expected as well as free cup and lower prices incentive programs. In addition, Exhibit 5 illustrates being ‘treated as a valuable customer’ and ‘friendly staff’ hold more value compare to ‘fast service’, while ‘fast service’ and ‘appropriate prices’ are perc eived equally important. Competitors Starbucks faces competition from variety of small-scale specialty coffee chains, such as Caribou Coffee, Peet’s Coffee and Tea, Dunkin Donuts, and thousands of independent specialty coffee shops. Each of them applies different strategies to differentiate itself from Starbucks; some of them deliver highly personalized service. Complements Starbucks has introduced stored-value card (SVC), which is one of its successful service innovation to its customers. This prepaid and swipe-able smart card was positively accepted, resulting in sales of 6 million cards and $160 million in revenues in the first year it was launched. Starbucks has learned that cardholders tend to visit Starbucks twice as often and experience reduced transaction times. This SVC also proves to bring new customers to Starbucks’ brand. ALTERNATIVES After carefully analyzing the situation, the best plans are to improveShow MoreRelatedStarbucks : Delivering Customer Service1278 Words   |  6 Pagesì‹  Ã¬  Å"í’ˆë §Ë†Ã¬ ¼â‚¬Ã­Å'… ì ¡ °Ã« ³â€ž ì‚ ¬Ã« ¡â‚¬ ë °Å"í‘Å" Starbucks : Delivering Customer Service Contents †¢ †¢ †¢ †¢ †¢ †¢ †¢ Case Summary Company Background The Starbucks Value Proposition Delivering on Service Caffeinating the World Starbucks’ Market Research: Trouble Brewing? Rediscovering the Starbucks Customer †¢ Suggestion Case Summary †¢ 5% ann. sales growth during 11years in a row (~2002) †¢ close to a recession-proof product (Howard Schultz) †¢ Lack of strategic marketing group and customer relationship management : OverlookingRead MoreStarbucks: Delivering Customer Service1374 Words   |  6 PagesStarbucks: Delivering Customer Service Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. 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They came up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction. P.1 ïÆ'   Day, Starbucks’ senior vice president ofRead MoreStarbucks: Delivering Customer Service2050 Words   |  9 PagesIntroduction: Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bringRead MoreStarbucks : Delivering Customer Service1155 Words   |  5 PagesPROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability. SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positionedRead MoreEssay on Starbucks : Delivering Customer Service1476 Words   |  6 PagesStarbucks: Delivering Customer Service Starbucks: Delivering Customer Service The elusive goal of customer satisfaction has long provided companies with endless headaches and difficult decisions. In the end, associating specific customer satisfaction metrics to company profit and loss would provide the undeniable proof needed to make changes, and then invest the required capital to address any concerns. Starbucks, not unlike the rest of the business world, has found itself in the same situationRead MoreStarbucks: Delivering Customer Service3831 Words   |  16 PagesStatement of the Problem How can Starbucks increase customer satisfaction while growing at the same time? Recommended Course of Action After evaluating each alternative (Exhibit 2), we recommend that Starbucks invest $40 million per year to increase labor hours per store in order to solve the problem with the quality of service. Starbucks should also set up an internal strategic marketing team. This will allow Starbucks to have a proactive feedback of customer satisfaction and hence faster improvementRead MoreStarbucks : Delivering Customer Service1149 Words   |  5 PagesPROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability. SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positionedRead MoreStarbucks : Delivering Customer Service Overview Essay1243 Words   |  5 PagesStarbucks: Delivering Customer Service Overview Problem statement: In 2002, market exploration has exposed that Starbucks has an opening in gathering its consumer’s outlooks in relations of customer pleasure. On explanation of the marketing research statistics, Christine Day, Senior Vice President determined that the speediness of service was the foremost motive for this deterioration in customer contentment. So she proposed to increase the service period such that each order is served within 3 minutes