Starbucks Delivering Customer Service - 2050 Words

Introduction: Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval. Situation Analysis: Numerous factors accounted for†¦show more content†¦Starbucks has put heavy concentration on product innovation, new product launches and branding strategies and as a result, the company has lost sight of the customer’s wants and needs. Ultimately, Starbucks is not properly or correctly measuring customer satisfaction. They are basing these scores on characteristics affecting the product, and not precisely measuring the quality of their services. As Exhibit 10 from the case study shows, Starbucks’ customers ranked a clean and convenient store as the most important attributes of creating customer satisfaction. As marketing research is beginning to reveal, this should not be the only focus. Starbucks needs to shift their priorities and rank fast service, customer experience, and atmosphere as most important, as new studies suggest. The market research team has also discovered that Starbucks’ customer base is evolving. The customers tend to be younger and less well educated. Regardless of this insight, customer behavior remains the same. According to Figure A in the case study, the typical customer visits just five times a month. I believe this is in part due to Starbucks’ inability to meet customer expectations and increase satisfaction. In order for the company to increase the frequency of customer visits, customer satisfaction must improve. Thus, the ideal, most profitable consumer for Starbucks is one who is aShow MoreRelatedStarbucks : Delivering Customer Service1278 Words   |  6 Pagesì‹  Ã¬  Å"í’ˆë §Ë†Ã¬ ¼â‚¬Ã­Å'… ì ¡ °Ã« ³â€ž ì‚ ¬Ã« ¡â‚¬ ë °Å"í‘Å" Starbucks : Delivering Customer Service Contents †¢ †¢ †¢ †¢ †¢ †¢ †¢ Case Summary Company Background The Starbucks Value Proposition Delivering on Service Caffeinating the World Starbucks’ Market Research: Trouble Brewing? Rediscovering the Starbucks Customer †¢ Suggestion Case Summary †¢ 5% ann. sales growth during 11years in a row (~2002) †¢ close to a recession-proof product (Howard Schultz) †¢ Lack of strategic marketing group and customer relationship management : OverlookingRead MoreStarbucks: Delivering Customer Service1374 Words   |  6 PagesStarbucks: Delivering Customer Service Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 storesRead MoreStarbucks Delivering Customer Service2297 Words   |  10 PagesSatisfied And Highly Satisfied Customers The story of Starbucks transformation from a small independent coffee shop tucked away in a corner of Seattle’s Pike Place Market to a cultural phenomenon spanning the globe is legendary. A number of factors have been attributed to the success - one being a keen understanding of its patrons. There are multiple methods used to obtain customer information and the value derived therein. Customer lifetime value is one. Customers are assets, and their valuesRead MoreStarbucks: Delivering Customer Service2332 Words   |  10 PagesSTARBUCKS: DELIVERING CUSTOMER SERVICE Background Case P.1 ïÆ'   According to their data, Starbucks are not always meeting our customers’ expectations in the area of customer satisfaction. They came up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction. P.1 ïÆ'   Day, Starbucks’ senior vice president ofRead MoreStarbucks : Delivering Customer Service1155 Words   |  5 PagesPROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability. SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positionedRead MoreEssay on Starbucks : Delivering Customer Service1476 Words   |  6 PagesStarbucks: Delivering Customer Service Starbucks: Delivering Customer Service The elusive goal of customer satisfaction has long provided companies with endless headaches and difficult decisions. In the end, associating specific customer satisfaction metrics to company profit and loss would provide the undeniable proof needed to make changes, and then invest the required capital to address any concerns. Starbucks, not unlike the rest of the business world, has found itself in the same situationRead MoreStarbucks: Delivering Customer Service3831 Words   |  16 PagesStatement of the Problem How can Starbucks increase customer satisfaction while growing at the same time? Recommended Course of Action After evaluating each alternative (Exhibit 2), we recommend that Starbucks invest $40 million per year to increase labor hours per store in order to solve the problem with the quality of service. Starbucks should also set up an internal strategic marketing team. This will allow Starbucks to have a proactive feedback of customer satisfaction and hence faster improvementRead MoreStarbucks : Delivering Customer Service1149 Words   |  5 PagesPROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability. SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positionedRead MoreStarbucks : Delivering Customer Service Overview Essay1243 Words   |  5 PagesStarbucks: Delivering Customer Service Overview Problem statement: In 2002, market exploration has exposed that Starbucks has an opening in gathering its consumer’s outlooks in relations of customer pleasure. On explanation of the marketing research statistics, Christine Day, Senior Vice President determined that the speediness of service was the foremost motive for this deterioration in customer contentment. So she proposed to increase the service period such that each order is served within 3 minutesRead MoreStarbucks: Delivering Customer Service Essay2319 Words   |  10 PagesOverview: * Starbucks is a global coffee shop chain and its 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