Sunteți pe pagina 1din 2

1. What factors accounted for the extraordinary success of Starbucks in the early 1990s?

What was so compelling about the Starbucks value proposition? What brand image
did Starbucks develop during this period?
The strategy of making the company as public in appropriate time, the idea of
trying to become a third place, the high-quality of a coffee and locating near
swarming places such as university campuses, office buildings, retail centers are the
key elements to account for extraordinary success of Starbucks in the early 1990s.
Also making partnerships with renowned companies brings Starbucks to be promoted
and attracted by new customers. In addition, applying efficiently two important
components such as Customer Focus and Competitive Advantage made Starbucks
successful.
The high quality of a coffee , customer intimacy which also refers to service and
the coffee shops atmosphere are the components of branding strategy which sums up
as a live coffee mantra. To achieve these components, Starbucks checked most of
the supply chain of coffee, offered high coffee variety and designed its stores with
fancy furniture because Starbucks tried to reflect the notion of not only selling the
coffee but also selling my brands as a sign of a hip modern and fashionable attribute
to its customers. As a result, compelling value positions consisted of combined these
things.
Trendy, widely available and to be satisfied with production and services was the
brand image of Starbucks at first. But after some market researches, it was seen that
the image shifted from caring customer values to company growth.

2. Why have Starbucks' customer satisfaction scores declined? Has the company's
service declined?
Although there was no considerable declining score in service area according to
Customer Snapshot scores, customer satisfaction scores declined. Changing in
customer base from well-educated and wealthy middle-aged customers to less welleducated and middle-class youth customers, overmuch customization opportunity in
coffee selection which leads to discrepancy in customer focus and product quality and
directly affected service speed are the main reasons to explain this situation.

3. How does the Starbucks of 2002 differ from the Starbucks of 1992?
The norm of Starbucks was changed from Customers go to the Starbucks to
Starbucks goes to customers. Also, the companys image was reaching expeditiously
high-quality coffee where one can easily hang out in 1992 but unfortunately reaching
just good coffee where one meets people and move on took the place in 2002. As a
result rapidly growing generated increase in customer unsatisfaction ultimately.

4. Describe the ideal customer from Starbucks' standpoint. What would it take to
ensure that this customer is highly satisfied? How valuable is a highly satisfied
customer to Starbucks?
The ideal customer of Starbucks is who visits the store 18 visits per month, spends
$4.42 per visit, have an 8.3 years customer life averagely. Improving efficiency and
speed of services, paying special attention to cleanliness, focusing on friendlier and
more attentive staff ensure customer to be highly satisfied. Creating delighted
customers who are less price sensitive, talk about the company and products to others
and reducing customer defects whose 5% decrease level leads company to improve
profits about 25-80% are highly valuable to Starbucks.

5. Should Starbucks make the $40 million investment in labor in the stores? For what
purpose?
Partners satisfaction will lead to production and servicing of better coffee and it
also will lead to customer satisfaction and increase in turnover and profit. But
Starbucks should examine how much to spend for reaching customer intimacy and
how much to want for impacting their bottom line .

Nejdet Ayberk Erdogan


23241

S-ar putea să vă placă și