UNIVERSIDAD SAN FRANCISCO DE QUITO MARKETING SERVICES NAME: Francisco Romero C.

DELIVERY DATE: 28 04 2013 3RD Home Work, Service Marketing, Starbuck's Please read the case carefully. This case is probably the easiest of the three we have for this semester. Even so, make a solid effort, and it is excellent example customer satisfaction, loyalty and employee productivity. This case draws - on a lot of information from chapters 8, 9, 11, and 12 In your written report please use the case to answer the 5 questions at the end of the case. Quote from the case itself and from the text. Provide clear examples when answering the questions Discuss the distinctions between services and products; that services often involve the participation of customers and frontline employees in order to create the value proposition. Use the chapters mentioned above to discuss how services present unique challenges to marketers when trying to gain and maintain customer loyalty and how the employee management is critical to success. Some of the concepts that should be addressed in your report are: - Frontline work is guys - The service talent cycle - Levels of employee involvement - Internal Marketing - Strategies for developing loyalty bonds - The wheel of Loyalty - Why customer loyalty is important to a firm's tracking salesrep

The company in recent years showed a significant growth and has been considered by the magazine Fortune as one of the 500 largest corporations in the world. In his career of 30 years, have been open about 8000 coffee shops in the United States, Canada, Europe,

Middle East, Asia and Latin America. Currently leads the sales area of coffee prepared by means of a distribution system in which the wine tasting of a high quality coffee, in a comfortable and pleasant environment, which is served by an expert team, it has become an entire concept of business known as "Starbucks Experience" (Starbucks News, May, 2004). The decor of the place, the aromas, music, and so on creates a scenario of convenience led to listening to the customer and fulfill through innovation. In addition, the company produces economic, environmental and social benefits to communities where does business (as in the case of success of CSR: Starbucksby ExpokNews on July 11 2012 in cases of successful CSR by: Maria Jose Evia H. ) Starbucks Corporation purchase and toast Coffee beans of the highest quality for your retail sales, and trades, through its shops operated by the company and its stores with license, coffee brewed and grain, drinks Italian style coffee, cold drinks prepared, a variety of food products, accessories and equipment related to coffee, a selection of fine tea, ice cream and a line of compact discs (Starbucks, through its strategic alliances, sells its products in different distribution channels; it is as well as sells coffee espresso Frapuccino or just and doubleshot, in addition to a line of select ice cream. The company s objective is to be the most recognized brand and respected at the global level, in order to achieve this goal the company plans to continue its rapid expansion of stores and continue with the growth of the brand through the introduction of new products and the discovery of new distribution channels. It is very interesting to see because it has come to have a very

successful commercial, already that the conventional models of marketing do not provide a comprehensive explanation of the origin of these, therefore , it can explain the success through the theory of dynamic Marketing (DazAltamirano, D. , Lara Rodrguez, N. 2005:

Theory dynamics of marketing applied to the Case Starbucks Coffee. Thesis Degree.Business Administration, Department of Business Administration, Business School, University of the Americas Puebla.January Copyright 2005.) Starbucks as a unit of business is not a franchise, it prefers to train its staff and have the control in all its stores through to give licenses to companies recognized the vast difference between grant a franchise and a license is that giving a franchise not only transmits the brand and the rights, such as in the licenses, but also the "know-how" or "know-how" of the business or, what is the same thing, the operating system to expand the business unit, Starbucks opens stores in existing markets and manages to get into new markets by offering products of the highest quality (Starbucks is famous not only for its quality coffee or by its rapid expansion at the global level, but by offering a "third place", that is to say, a place where customers can take a while to relax by enjoying a good cup of coffee, which is why Starbucks is taken into account any detail, by at least that this is, in its slogan, "everything matters". Since the customers enter to Starbucks are formed a print, because the reputation of the brand and the quality of the coffee are two fundamental aspects for the company, each shop is carefully designed to highlight the quality of all the things that customers look, hear, smell or taste. The tables, the music, the scents, the surfaces and the coffee must send the same message to the client feels satisfied and thus create a feeling of loyalty to the brand (Starbucks maintains its image using fresh posters colorful to evoke different seasons and thereby enrich the brand with a impact of visual interest (Starbucks is paying attention to everything that surrounds them to customers as the style of the chairs, the texture of the floor, and so on, and even the cleaning is a part of the experience of the shop and is a factor

that is constantly monitors the Starbucks stores are a place with an environment designed to provide benefits. All this type of work in which the relationship of the customer, with the staff of attention, is direct and complying with strict policies on the culture of the company, which seeks to the satisfaction of the customer, has produced a phenomenon of excess of work of such personnel and a voltage constant, by the pressure to comply with the purpose of excellence in the service, this also joined, to the fact that increasing the variety of products are much more complicated the task, the front-line workers have required a continuous training in order to be able to adapt to the circumstances and does not decrease its efficiency, counting with the support of the company, which in addition has increased the staff to lower voltages, maintain the service, and create a work environment comfortable. All these actions allow the prologue, the delivery phase and the conclusion of the ceremony, we develop smoothly and efficiently. The fact that the company might have very well defined, all its processes and standards that must be addressed, and they are not fixed, but is continually refining, allow the attention to be the best, adding that all the staff as a result of their training and the contribution of each one, with their skills and attitudes make it possible to provide a quality experience to customers, fidelizandoles with the brand. A basic element i think is that employees take a stand, to the tasks and the client that denote naturalness and fluidity, otherwise the perception on the part of the client that this is just a theatrical production can have counterproductive consequences in the degree of acceptance.

It is the forceful as the stability of the staff contributes to their industrial action is more relaxed with confidence and the consistent degree of reduction of stress at work. At this point we can mention a very unique feature of these premises, which have created what they call as the third place and for this purpose built larger spaces and studied in detail, so that people can sit and enjoy good music, be within a friendly atmosphere, accompanied by feeling, that is to say an experience. The product goes beyond the coffee customers choose go to Starbucks by three essential experiences: the coffee, its people and the shops. Here is when all employees play a key role, as his performance and relationship with the customer the difference with business of the same type, but that does not have the same culture. The staff, have a direct contact with customers and pursue a personalized attention, require knowledge and skills that go beyond the routine tasks of production of the service, they need to have a general education, handling qualities of relationship, language skills, positive attitude and a individual involvement with the company and its philosophy, all of this has been achieved thanks to policies that include the worker as a partner of the company and security with a more stable work the possibility of a successful career within the same. It is also imported cite the fact that the customers, the search for a unique experience, come with very high expectations, which is why the general attention has to overcome those desires, in order to obtain customers highly satisfied and that create links with the permanent signing, apart from serving as a means of promotion.

I believe that loyal customers, in this case, cease to be mere buyers and take a degree of active participation in the obtaining of the experience they are looking for, and that is what gives them Starbuck'S, their knowledge of the products offered, the desire to enjoy the whole experience, and their willingness to do so, imbued with the physical environment and with the people in the country allows them to obtain what they want, of course, count on the staff that participates in first line to facilitate their wishes. The central piece of the strategy of Starbucks is the quality of the labor force, for it directly affects the quality of the products and services that customers receive for this reason, we have to hire people with a sense of commitment to the company with skills and then give it the freedom to do your work rewarding them in different ways through the innovation in all areas of the business, Starbucks continues to refine the "Starbucks Experience" to make every client always live that go to the stores in any part of the world. On 18 August 1987 was born the modern Starbucks with the aim of building a national company in where the members were proud of the values and principles of the company. It was meant to grow the company, but always adding value to Starbucks. At that time, the morale was very low among the nearly 100 employees, because had divisions of labor; the employees were cynical and distrustful and felt abandoned. Howard discovered that the only way to win the confidence with the employees was to be honest with them and teach them the desire for expansion (Schultz, 1997, p 43). In December 1987, he started the expansion in Chicago and Vancouver, as Schultz was realized that Chicago was a good market, the following two years were invested in open two other shops there, and until this time, there were 17 stores open. The

trust between the members of the company began to grow because of that started to have confidence in the company, the first profitable year was 1991, the company was ready to move into its next market: California Executives decided to come on the basis of the results of studies of the market. It was observed that could be achieve economies of scale if it opened up many shops at the same time before opening, The Los Angeles appointed to Starbucks as "the best coffee in America," they discovered that the advertising by word of mouth was the best tool to make themselves known, invested in new systems. This contributed to the success of Starbucks, because the companies fail because they do not invest in their people, systems and processes required. confidence increase between employees or "partners" and initiated programs of health And rewards for everyone, even the half-time. For Starbucks the value of the coffee is as important as the employees and customers, established the principle that the employees are free to say whatever they want without fear of what others think, open forums were established. The previous story on part of the creation and expansion, and the situation of the staff, it is important to understand why the company throughout its existence, has been intensely concerned in getting their employees are aware of the company, its culture, its requirements or needs and their policies for the future, all this to ensure their safety, confidence in the company and finally that the awareness that they are the best, be transmitted efficiently to customers through the experience provided to them. This internal promotion, consolidated with the achievements was reinforced when, in 1997 was formed the "Starbucks Foundation" with the purpose to contribute to the social welfare through grants to health programs in different parts of the world. In this year, we began to document the knowledge of partners with the goal of becoming a company based on the

knowledge and make both the process and the skills were documented for not losing quality and convert the tacit knowledge to explicit. Unequivocally, we could say that the internal marketing, has borne fruit for the successful development of the company, the pride of belonging to a company recognized for its high standards of quality, become the pioneer in concepts of service and worrying about having policies of sustainability have been converted to employees in their ardent admirers, strategic partners, and consequently in optimal service providers. The appropriate management of policies in the management of human resources, from the selection of staff, their permanent training, their involvement as partners and the commitment of identification with the company are some of the aspects that starbucks, has known how to manage with great success to ensure that workers are the main drivers of customer loyalty, they are able move forward the requirements, meet in a timely manner, they know their customers, and develop relationships personal, all aspects that influence the wizards to a services business will little by little by joining to the company and remain loyal customers of the brand. In this aspect it is important to point out how that first impression, which goes to the customer through all their senses has been known handle correctly, first the staff and their ways of acting, the facilities and ambience, the impact of sensory phenomena, and finally the excellence of the products, with all of this has been achieved not only increase the number of customers but, and perhaps more important, to make that new data is transformed into usual consumers . in loyal customers.

All the policies implemented by the company has been designing a process by which, the loyalty of the customers is manifested in the repurchase and the word of mouth propaganda that gives you so many benefits from its inception to date. The fair assessment of each client has provided the economic benefit product of that relationship between the company and the customer, of here has emerged the differentiation between having non-loyal customers and non-profitable, non-loyal profitable , loyal not profitable and loyal profitable that are the objective achieved by Starbucks. This way it has been traveled, giving an excellent service of extraordinary quality, which is to experience starbucks, with this came to obtain a high customer satisfaction which in turn has been materialized in the growth of the company and obtaining a greater profitability. These goals are only possible when the company as in this case, build a foundation of loyalty and profitability, designing the appropriate proportion of value to each customer by adding bows of loyalty by means of economic aspects, egonomicos, and structural and finally knowing manage these relationships occur when defections, or the value of the client has not been measured adequately and measuring the results for learning and keeping up in a continuous process of improvement. I think that the whole activity of the company has succeeded in reaching that clients get that proportion of value that is its final experience, that you feel the consumer as a result of what da starbucks, compared to what he would get with other alternatives, all of this when confronted with the total costs that he means to access your service. Finally I will cite certain policies that give much benefit commercial, economic and image. 1.- Create a cozy place where you'd like to be.

2.- Treat all equally. 3.- Use the coffee as a pretext to sell. 4.- The waiting is not to wait, this is to generate need. 5.- there isnt temp products, all for all the stations. 6.- simple processes, standardized to ensure the quality of the product. 7.- it is not a question of price and quality is about to status, presence, environment. 8.- Caring for the form and substance, sort the saturation of the products within the shops. 9.- You serve people just like you. 10.- Create communities with consumers. 11.- Loyalty, looking for the loyalty with your customers. 12.- customize the visit of the customer. 13.- love to talk about them, stories of success. 14.- To help the community. 15.- Create, strengthen and preserve the brand personality. 16.- the brand lives inside and outside the store. 17.- it is not a coffee to go is a brand to carry. 18.- Everything is an opportunity to communicate, communicate clearly what it means the brand. 19.- Are retailers and sensitive with the details. 20.- the location of its premises is key. 21.- Attract with the 5 senses, sensory marketing. 22.- Focus on the client's view, Light and sensory quality. 23.- the music, they use it seriously. 24.- THIS IS NOT TO SELL A SERVICE, BUT TO OFFER A GENUINE EXPERIENCE

Francisco Romero c. BIBLIOGRAPHY Schultz, 1997, p 43. Fundamentals of marketing services / Hoffman / 2e / 2002 Diaz Altamirano, d., Lara Rodrguez, n 2005 theory dynamics of marketing applied to the case starbucks coffee. Thesis degree.Business Administration, Department of business administration, business school, university of the Americas Puebla, January rights reserved 2005.) Case of success of CSR: Starbucks by Expok News on July 11 2012 in cases of successful CSR by: Maria Jose Evia H. Starbucks News, May, 2004 Service Marketing Christopher Lovelock and rue rueWirtz Jochen.