Strabucks performance

PERFORMANCE OF STARBUCKS
Starbucks is now serving 20 million unique customers in well over 5,000 stores around the globe and was opening on average three new stores a day. The company employed 60,000 partners worldwide, about 50,000 in North America. Starbucks brand strategy was best captured by its live coffee mantra, this meant creating an experience around the consumption of coffee, an experience that people could weave into the fabric of their everyday lives. The performance of Starbucks is based on its 3 componentsThe Coffee itself Service Atmosphere

Beverages accounted for the largest percentage of sales in these stores (77%). Starbucks also sold coffee products through non-company-operated retail channels; these so called Specialty Operations accounted for 15% of net revenues.

PERFORMANCE OF STARBUCKS
Out of these 15 %27% of these revenues came from North American food-service accounts 18% came from domestic retail licensed stores in North America Remaining 55% of specialty revenues came from a variety of sources, including international licensed stores, grocery stores and warehouse clubs and online and mail-order sales. As on October 2011 Company has 10,787 stores in US (Company operated stores 6,705 & Licensed stores 4,082) and 6,216 International Stores (Company operated stores 2,326 & Licensed stores 3,890). Net revenue of the company in the fiscal year 2010 was $10,707.4 million.

FEELINGS OF STARBUCKS
Warm- soothing, sense of calm, peacefulness. Consumers may feel sentimental, warmhearted or affectionate about that brand Fun - upbeat type of feeling amused, light-hearted, joyous Self Respect brand makes consumer feels better about themselves. Sense of pride, accomplishment & fulfillment Relaxation Calmness and soothing atmosphere

LOYALTY OF STARBUCKS
Loyalty is faithfulness or a devotion to a person, country, group, or cause.

Loyalty of Customers
Three components- Consistency, Rewards & Customer Service Consistency- Guarantees the same experience in every store Rewards- Starbucks coupons, Gift cards, Starbucks golden cards Customer service- Gains customer intimacy by creating an atmosphere of third place. Provides highest quality coffee, build good relationship with them. Atmosphere- People come for the coffee but it is the ambience that makes them to stay. Spends millions of dollars annually to differentiate from the competetors. They have provided Wi Fi in their coffee houses.

Loyalty of Employees
Employees are called Partners 60,000 partners Partner satisfaction leads to customer satisfaction Provides health insurance stock options to entry level partners Partner satisfaction rate 80-90% Lowest employee turnover rate- 70% Life time job Promotions from within its own ranks

Starbucks Brand Resonance Pyramid

Loyalty Attachm ent Communi ty Engagem Quality Warm ent Emotional Rational Credibility Fun Route Route Considera Relaxation tion Self Respect Superiorit Quality y Sophisticated & ingredients elegant Exotic variety Casual & Personalized comfortable service Third Place Comfortable Progressive & Salience Highly accessible & convenient (ideally atmosphere cool anywhere & anytime)