Starbucks Case
1. At the time of the case, why had Starbucks been so successful?
Target Audience – Identifying the right audience was the key to success for Starbucks. Well educated white collar females ages 25-40 was Starbucks original idea. Providing excellent service tailor made for the demographic paid off and as a result of the stores multiplied and brand loyalty increased.
Partner happiness – Another key aspect of Starbucks success was that it kept its partners happy and invested in their training. In some occasions it also allowed partners to hold stocks which demonstrated loyalty and togetherness. Partners were also provided health benefits and had the highest customer satisfaction rate as well. Lastly, most of the hiring to senior levels were made through in house promotions.
Metro/Modern atmosphere – The idea was to create an atmosphere where people would come for recreation as their third place. This idea struck well with the target audience and created an environment where people could enjoy coffee in a fun and relaxed environment. It was also credited with a non intimidating and inviting atmosphere.
Customer service and quality – All the workers and partners were provided training with regards to man management skills as well as administrative skills. This allowed partners to serve the customers better and also allowed them to connect with the customers at a personal level often by striking conversations. The partners would often demonstrate exceptions customer service by going out of the way to customize the customers experience and always say “yes” to whims and fancies of the customer. Lastly, their strategy to own stores rather than franchises allowed the owners to customize and closely monitor each store. Starbucks also took control of the supply chain which in turn helped them better manage the quality of the coffee and the roasting of the coffee as well.
2. What concerns should they have about the results?
Lack of a Marketing department – One of the key concerns is the unavailability of a sustained marketing effort in order to promote the brand, since the company is already making substantial profit. However a lack of marketing strategies has blind sighted Starbucks into the actual demands of customers. A sustained marketing effort would also allow Starbucks to integrate the market better.
Customer satisfaction – Starbucks reliance on customer satisfaction with regards to delivery time is vague. It does not consider store size, average customer number and intricate details such as the location of the store and the demographics of the people visiting the stores. Further evaluation of the parameters on which customers satisfaction is based on is needed.
Lack of attention to detail – Over the course of massive un adulterated expansion, Starbucks lost the focus