* Starbucks is a global coffee shop chain and it's headquarter is based in Seattle – U.S. It is considered the largest coffee shop company in the whole world.
* It was established by 3 partners (Gerald Baldwin, Gordon Bowker and Ziev Siegl) Seattle – U.S. in 1971. In 1982 Schultz joined the team. Years later, the founders agreed to sell Starbucks to Schultz who took the company public.
* The idea behind Starbucks was to make the coffee shop a "third place" beside home and work.
* Starbucks operates 16,635 stores in 50 different countries. 11,068 of them are located in U.S.
The company's product lines are the following:
* Beverages (coffee – juice – tea)
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Therefore, it made sure to control as much as possible the supply chain through direct dealing with bean growers before purchasing the coffee beans. Moreover, Starbucks personally oversaw the roasting process, in addition to controlling the distribution process to retailers.
3. Service: Starbucks made sure that its employees or as Starbucks call them "partners" undergo through two types of training. The first type (hard skills) which is using the cash registers, mixing and preparing the drinks. The second type (soft skill) which is being enthusiastic while communicating with customers. For example, partners should practice eye contact with customers, smile and welcome them in addition to have small conversations with them. After that Starbucks service would be great and customer satisfaction would be accomplished.
4. Partner satisfaction: Schultz believed that if the partners are happy this will lead to customer satisfaction. Therefore, they had the highest pay per hour. In addition they enjoyed health insurance and stock options. This resulted in very low employee turnover rates in the industry and a high partner satisfaction rate.
- What is so compelling about the Starbucks value proposition?
It was the branding strategy. Starbucks had three components in its branding strategy. The first component was the coffee itself. The second component was the service "customer intimacy" as referred to by Starbucks. The third component was the atmosphere. (as explained above).
- What brand image did Starbucks develop during this period?
Starbucks’ brand image in that period was declining. Research showed that customers believed that Starbucks cares primarily in making profit and opening new stores, in other words customers believed that Starbucks brand image focused on the growing plans rather than on value provided to its customers.
Q2) Why have Starbucks’ customer satisfaction scores declined?
Starbucks customer satisfaction scores has declined because the company, instead of focusing on the right things and the value of their customers, they just care about the growth, making more money, expanding plans, building brand image and introducing new products which leads to a struggle between customers satisfaction and the business growth. They were looking at the big picture and forgot about the small details. They were not on the right path towards customer satisfaction and they didn`t meet new customer expectations in terms of satisfaction even though it has a powerful presence and existence. There was a tiny difference between Starbucks and the smaller coffee chains in coffee lover’s minds; however, there was a huge difference between Starbucks and the independent specialty coffee house.
- Has the company’s service declined or is it simply measuring satisfaction the wrong way?
In general company’s service has not declined. Starbucks customers were not satisfied due to the slow service and the waiting time between ordering and...