September 5, 2013
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?
Starbucks`s success in the start of the 90`s is attributed to the vision of the Starbucks brand which centered around customers` experience through changing the coffee drinking experience unique. The factors that contributed to the company`s success include the creation of a unique atmosphere at Starbucks stores, superb coffee quality, unique service to customer, partner satisfaction including employees who were the best paid on hourly basis with health benefits, having a specific target audience which included the affluent, educated, working individuals, and finally an attractive market (Marangos, n.d).
Why have Starbucks customer satisfaction scores declined? Has the company`s service declined, or is it simply measuring satisfaction the wrong way?
The emergence of other coffee shops in the market has given Starbucks stiff competition such as Second Cup, Java Centrale, and Caribou Coffee among other competitors, which might explain this perception.
How does the Starbucks of 2002 differ from the Starbucks of 1992?
In 1992, Starbucks marked the dawn of a brand while in 2002 the company was well established as the number one coffee shop in the United States and in other countries. In addition, in 2002 Starbucks was complicated than in 1992 where most of the sales were from roasted coffee unlike in 2002 where sales were majorly from beverages (Marangos, n.d). Demographic profile of target clients in 1992 entailed the affluent educated white collar while in 2002 customer base included younger, less educated and low income earning population. Finally the image of Starbucks in 1992 was “third place” where one could get best quality coffee while in 2002 this changed to a convenient place where one could meet people and enjoy coffee (Marangos, n.d).
Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks?
A loyal customer visiting the store for about 18 times in a month is the ideal Starbucks customer. Customer satisfaction can be achieved by maintaining cleanliness in its stores, promote in store-value card (SCV), treating customers as valuable assets through its experienced partners, delivering it value statement by offering quality services, comfortable environment, power plugs and hotspots for laptop users (Marangos, n.d).
Should Starbucks make the $40 million investment in labor in the stores? What is the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?
Yes, it can make this investment but allocate the money to stores in need. The stores with less customer satisfaction should be given a priority (Marangos, n.d). This will enable Starbucks stores to enhance its services to customers, increase satisfaction, loyalty and hence revenues. Through this, the company can deliver customer intimacy.
Marangos, A. (n.d). Starbucks: Delivering customer service.