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    Case Study No. 18 - Starbucks - Namujhe

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    alessandranicolen
    Starbucks developed a coffee culture in the 1990s that was compelling to customers. It presented coffee not just as a commodity but as part of culture. Starbucks built its brand image around three interconnected areas: function, quality, and customer satisfaction. More recently, Starbucks' customer satisfaction scores have declined, though it's unclear if satisfaction is truly decreasing or if Starbucks is just measuring it incorrectly. Starbucks has changed significantly since the early 1990s - it has greatly expanded its store count, menu options, and global presence. However, this expansion has introduced new challenges and made it harder for Starbucks to focus on improving existing stores.

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    Case Study No. 18 - Starbucks - Namujhe

    Uploaded by

    alessandranicolen
    27 views3 pages
    Starbucks developed a coffee culture in the 1990s that was compelling to customers. It presented coffee not just as a commodity but as part of culture. Starbucks built its brand image around three interconnected areas: function, quality, and customer satisfaction. More recently, Starbucks' customer satisfaction scores have declined, though it's unclear if satisfaction is truly decreasing or if Starbucks is just measuring it incorrectly. Starbucks has changed significantly since the early 1990s - it has greatly expanded its store count, menu options, and global presence. However, this expansion has introduced new challenges and made it harder for Starbucks to focus on improving existing stores.

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    Case Study No. 18_ Starbucks - Namujhe

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    Starbucks developed a coffee culture in the 1990s that was compelling to customers. It presented coffee not just as a commodity but as part of culture. Starbucks built its brand image around three interconnected areas: function, quality, and customer satisfaction. More recently, Starbucks' customer satisfaction scores have declined, though it's unclear if satisfaction is truly decreasing or if Starbucks is just measuring it incorrectly. Starbucks has changed significantly since the early 1990s - it has greatly expanded its store count, menu options, and global presence. However, this expansion has introduced new challenges and made it harder for Starbucks to focus on improving existing stores.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views3 pages

    Case Study No. 18 - Starbucks - Namujhe

    Uploaded by

    alessandranicolen
    Starbucks developed a coffee culture in the 1990s that was compelling to customers. It presented coffee not just as a commodity but as part of culture. Starbucks built its brand image around three interconnected areas: function, quality, and customer satisfaction. More recently, Starbucks' customer satisfaction scores have declined, though it's unclear if satisfaction is truly decreasing or if Starbucks is just measuring it incorrectly. Starbucks has changed significantly since the early 1990s - it has greatly expanded its store count, menu options, and global presence. However, this expansion has introduced new challenges and made it harder for Starbucks to focus on improving existing stores.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Alessandra Nicole A.

    Namujhe
    4BMC

    1. What factors accounted for Starbucks’ success in the early 1990s and what
    was so compelling about its value proposition? What brand image did Starbucks
    develop during this period?
    Starbucks is well-known for its distinctive and inventive business approach, which
    transformed a simple everyday commodity into a vital component of culture.
    Consumers value products not merely for their quality, but also for how they are
    presented. Starbucks developed the coffee culture in the 1990s, which was
    generally recognized and liked by customers. Customers were driven by
    Starbucks coffee's value proposition because it provided a new viewpoint on
    drinking coffee. The firm envisioned a spot where consumers could relax after a
    long day of work, get a cup of coffee and a doughnut, and unwind. A brand is
    defined by the uniqueness of a product or enterprise. Customers appreciate a
    brand based on the level of satisfaction it offers. Starbucks built its brand image
    by concentrating on three distinct yet interconnected areas of function.

    2. Why have Starbucks’ customer satisfaction scores declined? Has the


    company’s service declined or is it simply measuring satisfaction the wrong
    way?
    Starbucks is well-known for the presentation of their coffee. It has provided
    excellent customer service while complementing the client's preferred type of
    coffee. Customers have always been drawn to Starbucks because of the staff's
    customer-focused mentality. Starbucks employs the mystery shopping approach
    to assess customer satisfaction in all of the company's locations. It is unclear if
    consumer satisfaction is improving or decreasing, but it is evident that Starbucks
    is currently confronting new obstacles and difficulties. Rather than
    concentrating on and improving the present outlets, the corporation has begun
    to focus on expansion and the creation of a lot of locations.
    3. How has Starbucks changed since its early days?
    Starbucks in different ways from 1992 to 2002, and these 10 years resulted in the
    company's reasonable performance, leaving all other things unchanged. It has
    also had several obstacles over this period. First and foremost, the biggest shift is
    the company's expansion from 144 shops in 1992 to 5886 locations in 2002. It has
    expanded not just domestically, but also globally. It has created a number of
    agreements in order to expand its consumer base. For its effective operations
    and client comfort, the organization has depended on technical improvements.
    Starbucks has greatly expanded its menu selection so that consumers may
    select the precise combination they like. They have also introduced chocolate
    drinks and tea to their menu, along with a large range of coffee. However, the
    industry has become more competitive in the last 10 years, requiring the
    corporation to work on improvisation on a daily basis.

    4. Describe the ideal Starbucks customer from a profitability standpoint. What


    would it take to ensure that this customer is highly satisfied? How valuable to
    Starbucks is a highly satisfied customer?
    When a company's revenue exceeds its running costs, it is said to be profitable.
    Profitability is the financial gain generated by a company's operations.
    Starbucks has placed a high value on the company's profitability as a result of
    future expansion ambitions and the provision of high-quality products. It must
    focus on the correct clients, i.e. target market, for this aim. Starbucks' ideal client
    would have three characteristics. He will cherish coffee as a crucial element of
    his life and will frequent Starbucks.

    5. Should Starbucks make the $40 million investment in labor in the stores?
    What’s the goal of this investment? Is it possible for a mega-brand to deliver
    customer intimacy?
    Starbucks' plan to invest $40 million in labor in its locations should be evaluated
    in the context of the company's marketing strategy and its influence on
    consumer happiness. The purpose of this expenditure is most likely to improve
    consumer connection and experience. Starbucks hopes to increase service
    speed, product quality, and overall customer pleasure by expanding personnel
    levels.

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