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Starbucks case
1. Starbucks: Delivering Customer Service
Group 5
Anis Desai, Ankush Huddar, Gaurav Vaish
Jeet Bhatt, Kislay Kumar, Sidharth Utreja
2. Starbucks Story in Brief
1971 1982-85 1987 1992 2002
5,000 Stores
140 Stores 20 Million
Customers
Schultz took US, UK
over the Schultz takes
Starbucks Japan, Mexic
company o
Howard and opened Public
Schultz new stores
Joined and
Initiated
Specialized the Coffee
Coffee Bean Bar Culture
Store
3. Product Portfolio
Coffee Based Hot Equipment &
& Cold Beverages Accessories
Merchandise, Ap
Specialty Teas
parel & Music CDs
Industrial / Office
Whole Beans
Equipment
Pastries, Sodas, S Off the Shelf
alads, Sandwiche Bottled Drink -
s Frappuccino
4. Value Proposition & Success in 90’s
Use of well sourced and quality coffee beans &
teas
Personalized service & attention to details
Experience & Compelling Ambience to linger
The ‘Third Place’ concept
Accessibility & reach
Innovation through Holiday Drinks and scope for
customization
Strategic locations (Offices/ Universities/
5. Value Proposition & Success in 90’s
Hidden Factors…
Employee satisfaction & Low turnover
Scope for growth within the organization
No questions asked policy
Importance to ‘Hard Skills’ & ‘Soft Skills’
BRAND
IMAGE
Easily Accessible Service Oriented-Specialty
Coffees
6. Customer Satisfaction Levels
Parameters Used By Starbucks (Exhibit 6):
Service
Cleanliness
Product Quality
Speed of Service
Actual Symptoms
Decreasing customer retention
Difference in perception among old and new customers
Change in customer base …. new customers
Change in preferences (Table A)
Cannibalization
Economic Downturn