This website uses cookies to ensure you have the best experience. Learn more

Analysis Of Starbucks Delivering Customer Service

2438 words - 10 pages

Analysis of Starbucks Delivering Customer Service

Problem statement:
• In 2002, market research has shown that Starbucks has a gap in meeting its customer’s expectations in terms of customer satisfaction.
• On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service was the main reason for this decline in customer satisfaction. So she proposed to improve the service time such that each order is served within 3 minutes.
• However, this solution would cost Starbucks 20 additional labor hours per week thereby $40 million per year. Is 20 seconds increase in speed of service really worth $40 million per year?

Situation ...view middle of the document...

Please refer the Appendix Exhibit A.

Competition: Starbucks is clearly ahead of its competitors in terms of size of operations and profitability.
• In the US, its main competitors are small-scale specialty coffee chains like Caribou Coffee, other independent specialty coffee shops and donut and bagel chains like Dunkin Donuts.
• From Exhibit 6 of Starbucks case document we can observe that despite of the fact that there are many specialty coffee shops on the raising, Starbucks still holds a leading edge.

Company: Starbucks pursued its overall objective to establish itself as the most recognizable and respected brand in the world by focusing on retail expansion and product innovation.
• Starbucks had 20 million customers and 5000 stores and still growing.
• From Exhibit 2 and 6 in Starbucks case document it is clear that Starbucks was constantly expanding and growing its market share in the specialty coffee market.
• The Starbucks market share in the specialty coffee market grew by 29.92% between 2000 and 2002 and it’s expected to grow by an additional 61.11% by 2005. Please refer appendix Exhibit B.
• Historically, Starbucks invested minimal on advertising. Starbucks was also an employee friendly organization. Starbucks has approximately 60000 partners/employee, of which most are hourly wage employees called baristas. Employees were highly valued and well taken care of by providing insurance coverage, stock options, and internal promotions.

Context: Starbucks was constantly investing in new product innovation to drive sales and growth. The financial numbers reflect this growth (Exhibit 1 from Starbucks case document). But recent market research showed that customer service, on which Starbucks prided itself, was perceived as unsatisfactory. Customers viewed Starbucks as a corporate giant focused on making money and growing in size. It showed that Starbucks’s strategy of using customer snapshot scores to measure service performance was proving ineffective.

Analysis of Alternatives
Strengths: Some of the key strength are its large market share, well known brand name and generally trusted, reasonably well accepted for having a good quality, Good coffee on the run - associated with speed of service, Accessible and convenient and Consistency. Speed of service is one of the main strength of Starbucks is now found to be declining.

Weaknesses: Starbucks' "Valued Customer" Perceptions Survey is key in helping to determine what areas customers are most disappointed with or where they feel Starbucks need to improve. This survey essentially identifies that gaps that exist between customers’ expectations and what Starbucks delivers. "Importance ranking of key attributes in creating customer satisfaction” survey points to what customers consider most important in creating customer satisfaction. As shown Appendix Exhibit C, Starbucks weaknesses and their importance can be highlighted by finding the gaps between customers’...

Other Papers Like Analysis of Starbucks Delivering Customer Service

Pest Analysis of Starbucks

680 words - 3 pages , economic growth, commerce cycle the country follows, and unemployment rate and procedures. • Social – analyzing the socio-economic environment of the market through fundamentals of consumer demographics, lifestyle assertiveness, cultural limitations, and education. With this analysis, the company can identify the customer needs and determine what to bring to the market for purchasing. • Technological – whether it can negatively or positively impact

Impact of Research on Customer Service Quality

821 words - 4 pages An exploratory study on the impact of research and development on customer service and quality   1.0 Introduction Research and development simply refers to the constant improvement of product and services and which enable the business to continuously thrive in terms of its operation. Research and development also leads to innovations intended for these products and services. In generating high impact innovations, it is important that

The Impact of Communication Styles on Customer Service

573 words - 3 pages The Impact of Communication Styles on Customer Service Unit 5 AB221 Malana Crofoot Kaplan University 02/07/2012 The Impact of Communication Styles on Customer Service Great customer service is a direct result of the communication style that the company uses. Do not get this confused with personality styles. That is something altogether different. Communication style is the way people interact with each other

Data Collection and Analysis of Starbucks Coffee Corporation

1482 words - 6 pages Data Collection and Analysis of Starbucks Coffee Corporation Keller Graduate School of Management HRM 592: Training and Development February 10, 2013 Data Collection Analysis of Starbuck Coffee Corporation Starbucks, as we know, is the largest global coffee company and coffeehouse chain in the world. Employees, otherwise known as “partners”, serve hot and cold beverages, whole-bean coffee, instant coffee, tea and food to its customers or

Experiment Analysis in Increasing Productivity of Police Service Employees

855 words - 4 pages Experiment Analysis in Increasing Productivity of Police Service Employees Roger W. Clark University of Phoenix Research 320 Foundations of Research June 20, 2010 Experiment Analysis in Increasing Productivity of Police Service Employees Introduction In 1973, the city manager of Orange California is looking to boost the pay of police officers, without alienating the taxpayers. The city manager determined the police force is highly

Analysis on Level of Customer Satisfaction of Luminous India Private Ltd

5791 words - 24 pages of the customers on purchase and services of the Luminous’ inverter and battery. Luminous generally follow the following steps to ensure customers’ satisfaction: 1) Respond to Messages Promptly & Keep Your Clients Informed. 2) Be Friendly and Approachable. 3) Have a Clearly-Defined Customer Service Policy. 4) Attention to Detail. 5) Honour their Promises. Etc. These were some of the points that followed by the

D2- Asess the Impact of Different Sales Techniques and Customer Service

763 words - 4 pages analysis – reviewing the job and responsibilities * Make a job description – describe the job * Person specification – essential and desirable * Advertisement – online/newspaper/poster * Shortlist – review skills of applicants * Interview and testing – telephone interview/ face to face interview * Series of online verbal and numeracy tests – eligible for the vacancy * Training – preparation for the job Decision to recruit

Starbucks Case Study Answers

4616 words - 19 pages M512 MARKETING STRATEGY Starbucks: Delivering Customer Service R.A I have neither given nor received unauthorized aid on this assignment 1. What factors accounted for the success of Starbucks in the early 1990’s? What was so compelling about the Starbucks value proposition? The success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand. Schultz inspired of a company which would make the customer

Mkt421 Marketing Plan Phase Ii Starbucks

1840 words - 8 pages to point toward the mid-to-higher class for Starbucks coffee consumption. Speculation states only 30% percent stay for coffee while other 70% enjoy the buy-and-go, (, 2009). The highest selling products will need to hit the home delivery service first, in the metropolitan areas. Starting in the quaint parts of those cities initially chosen will interest the customer base. After researching and verifying the test area, the

Starbucks Business Analysis

1698 words - 7 pages , quality service and a nice environment (Starbucks and McDonalds winning strategy, 2013). Some other attributes include, the leadership of Company founder Howard Schultz, and the expansion to China. “…This means that there is a strong demand for Starbucks as a “third place.” Last year, Starbucks opened 500 new stores in China, bringing the total to 1500” (Starbucks and McDonalds winning strategy, 2013). SWOT ANALYSIS Strengths: Starbucks is a

Starbuck Marketing

4072 words - 17 pages competitor to the new summer drinks is Jamba Juice with its smoothies. Comparatively, Starbucks summer drinks are priced significantly lower. In addition to low comparative price, the perceived benefits for consuming a Starbucks drink are quite high for most consumers. Therefore, when a customer does a value analysis and divides perceived benefits by the price, the resulting value for the customer is quite high. With the price of the summer drinks

Related Essays

Starbucks: Delivering Customer Service Essay

2305 words - 10 pages there drink and customize it just the way they like it. This can be accomplished through intensive training on "hard skills" and "soft skills". SWOT Analysis Strength- Global presence- Brand name- Market leadership | Weakness- Price- Competitor Increase- Reliance on beverage innovation | Opportunities- Technology development- Distribution channel upgrade- Market expansion- New products | Threats- Domestic market saturation- Coffee price volatility- Rising dairy costs- Competition | References: "Starbucks: Delivering Customer Service"; Youngme Moon & John Quelch; July 10,2006.

Investigation Of The Harvard Business School Case Study "Starbucks: Delivering Customer Service"

3563 words - 15 pages fast and generating profits and cash.The Four P's of MarketingProductThe brand components at Starbucks are products, service, and atmosphere. The tangible products are coffee beverages, food items, whole beans, and equipment/accessories. Other products such as service and atmosphere are intangible. Service is geared toward customer satisfaction, giving the customer what he/she wants, including customized beverages. This process can take a little

Starbucks Delivering Service Essay

1766 words - 8 pages Starbucks: Delivering Customer Service In late 2002, Christine Day, Starbucks’ senior vice president of administration in North America, discovered that the company was not meeting customer expectations and that there was a decline in customer satisfaction. Day attributed the decline in customer satisfaction to a service gap, particularly service speed. Day must decide whether she will proceed with her plan to invest an annual $40 million

Starbucks External Customer Analysis

4977 words - 20 pages game zones designed for children aged 4 to 12 What causes non-customer to look else where * Starbucks takes the lead when it comes to regular coffee, while Dunkin’ holds onto the lead for iced coffee. * Not enough Drive-through service * Starbucks’ locations are scarce in suburban areas * Not enough bilingual employees to deal with foreign customers * Size of stores: stores can become crowded at times