Starbucks Summary Objective
Objective: Establish the brand as the most recognized and respected brand globally
Initially, Starbucks specialized in selling Arabica beans to a narrow market of coffee purists. Under Schultz, Starbucks became the most successful company to sell coffee in the world even without using advertising methods. Schultz used a mix of three components in his branding strategy, first being coffee, second was service and the third was the atmosphere. The company still holds a dominant position in the coffee market. Starbucks operated through stores located in crowded areas such as corporate buildings and shopping centers. The company delivered its service through employee engagement with its customers who ensured the delivery of quality products. The competitors of Starbucks was a variety of small scale coffee chains which were regionally located.
Starbucks also monitored the service performance using various metrics such as self-reported checklists and monthly status reports . One additional metric of measuring service performance was Consumer Snapshot which measured the services on four basic criteria: service, Cleanliness, Product Quality and Speed of service. This metric was highly effective in measuring trends over the quarter. Starbucks expanded its service through retail expansion. The other reasons for company’s growth were product innovation and service innovation.
Despite being the world’s most effective marketing organizations and a high Customer Snapshot scores Starbucks was not able to meet their customer satisfaction standards. On conducting a market research they found that their customer base was evolving. Their customers tend to be younger, less well educated and were in the middle income bracket segment. Responding to the market research findings it was decided to bring down the duration of delivering the service to increase consumer satisfaction and build a strong long term customer relationship.