Beruflich Dokumente
Kultur Dokumente
Assignment
Table of Contents
Innovations Brewing at Starbucks.........................................................................2
Key Issues and need for Innovation:......................................................................2
Key Innovations:.................................................................................................... 4
Starbucks Verifies 99 Percent of Coffee Ethically Sourced...............................4
Honouring Coffee Artistry and Craft through New Beverages.........................4
Product Innovation.......................................................................................... 5
Relevant Store Design..................................................................................... 5
Creating First-of-Its-Kind Digital Experiences...................................................6
Mobile Order & Pay.......................................................................................... 7
Delivery........................................................................................................... 7
New partnerships that enhance the customer experience..............................8
New innovation methods................................................................................. 8
Bibliography........................................................................................................... 9
1
Innovations Brewing at Starbucks
Name: Starbucks
Headquarters: Seattle
Revenue: $14.9 billion
Starbucks has been leveraging its consumer loyalty and lack of elasticity
among its consumers by continuously passing on increases in costs, due
to wages and coffee prices, to its customers. As a result, in the period
between 2014-2016 we have seen four price hikes on its products, two of
which were in 2016 alone. The rise in prices has been mainly aimed at
protecting the companys operating margins. There is a very serious
concern, however, about how long consumers decide to stick with
Starbucks before choosing one of the many competing coffee shops if
prices continue to increase at this pace.
2
A core philosophy that customers and partners (employees) are at the
centre of everything Starbucks does drives innovation throughout the
company and helps shape the future of retail.
Pair this with their strategy of being wherever you are. They have a global
network of 23,043 owned and franchised coffee stores across 68
countries, with an almost inescapable concentration in high wealth and
traffic neighbourhoods in cities around the world. Seoul is the most
Starbucks-filled city in the world with 284 locations, followed by New York
at 277, then Shanghai at 266 and London at 202.
3
Key Innovations:
Starbucks Verifies 99 Percent of Coffee Ethically Sourced
Every Starbucks espresso beverage starts with the finest ethically sourced
coffees from around the world. These high-quality ingredients are
showcased in Starbucks Flat White, which became available in the U.S.
and Canada in January 2015. Flat White is an espresso beverage made
with two ristretto shots, combined with a thin layer of velvety steamed
whole milk and finished with a latte art dot. The Holiday Spice Flat
White is available through the season.
4
In February, Starbucks launched its exclusive subscription delivery of
Reserve Coffee, giving online customers access to super-premium, small-
lot coffees roasted at the Reserve Roaster and Tasting Room in
Seattle and shipped within 48 hours of roasting.
Product Innovation
5
In 2015, Starbucks introduced a new store format its first express store.
The store, just across from the New York Stock Exchange at 14 Wall Street,
is one of the most streamlined experiences in the companys portfolio. Its
designed for Starbucks customers who want high-quality beverages and
food, know exactly what theyll order, and want to receive it quickly so
they can get on their way. Simply put, this format is the espresso shot
version of the store experience Starbucks is known for.
In opening the New York express store, Starbucks vice president for Store
Design Bill Sleeth said, This location on Wall Street was intentionally
designed to take whats at the heart of our cafs and distil that for a
smaller space. It is the perfect example of how to balance high design,
attention to detail and efficiency, while maintaining what is unique to who
we are our coffee and the connection between our customers and
partners.
6
Starbucks continues to innovate with digital experiences that are valuable
for customers either in or out of Starbucks stores. In May, Starbucks and
Spotify established a multi-year relationship that will link Starbucks
7,000 company-operated stores in the U.S. and 10 million My Starbucks
Rewards loyalty members with Spotifys 60 million global users to offer a
first-of-its-kind music ecosystem. This interconnectivity will give
customers access to Starbucks music on Spotify and the ability to
influence in-store playlists.
7
In December 2014, Starbucks Mobile Order & Pay was tested in Portland,
Oregon. Mobile ordering makes it easy for customers to place orders in
advance of their visit and pick them up at their chosen Starbucks store.
The feature is seamlessly integrated into the Starbucks Mobile App and
My Starbucks Rewards loyalty program. After a successful response from
customers in Portland, Mobile Order & Pay expanded in June 2015 to 3,400
additional stores in the U.S.
Delivery
It has been one of the most-asked-for services on the My Starbucks Idea
blog with customers inquiring, When will Starbucks just bring me my
coffee? For some, the answer was October 2015.
New York's Empire State Building is home to the first Starbucks Green
Apron Delivery service where Starbucks baristas bring customers their
favourite beverage or food item. A pilot project designed for a dense
urban environment, the building-specific service complements Starbucks
broad portfolio of stores from immersive coffee bars, to the familiar
neighbourhood store.
But customers arent just in office buildings. Theyre at soccer games with
their kids, at home with family, or gathering at a park with friends. In
many of cases, they also want the ease of getting Starbucks delivered
where they want it, when they want it. To bring this delivery experience to
8
life, Starbucks is collaborating with leading on-demand delivery service
Postmates for a pilot program, where customers can have Starbucks food
or beverages delivered to them within designated areas in
Seattle. Starbucks Delivery by Postmates, is an extension of the Starbucks
Mobile Order & Pay feature.
Our customers are highly engaged with Mobile Order & Pay, placing 5
million transactions a month, so delivery becomes a natural extension
that provides another easy and convenient way to meet them where they
are in their day, said Adam Brotman, Starbucks chief digital officer.
(Innovation from Starbucks, 2015)
9
Starbucks ability to gain and keep customer attention through innovative
reward programs and game changing concepts has been key to driving its
growth.
Bibliography
1. Innovation at Starbucks. (2016). Retrieved from Creativity and Innovation:
http://creativityandinnovation.blogspot.in/2006/12/innovations-rewing-at-
starbucks.html
2. Innovation Cafe to Classroom. (2016). Retrieved from Fortune:
http://fortune.com/2014/10/30/starbucks-innovation-cafe-to-classroom/
3. Innovation from Starbucks. (2015). Retrieved from Ogilvydo:
http://www.ogilvydo.com/topics/features/5-shots-of-innovation-from-
starbucks/
10