Beruflich Dokumente
Kultur Dokumente
Group 3
Akshay Bapat | Ankit Baghel | Ashish Ranjan | Deepak Kumar
Khushboo Rawat | Sahil Patel | Shubhi Dangi
Core Issue: Not Meeting Customer Expectations
2002: 11th consecutive year of ~5% sales growth; recession-proof product
Place where customers can go and relax, enjoy with others or be by themselves
History:
1971: Gerald Baldwin, Gordon Bowker and Ziev Siegl start coffee shop in Seattle
1982: Howard Schultz joins Marketing Team; inspiration from Milan trip (Espresso
Bars)
Atmosphere People come for coffee but ambience is what make the
stay
Channel of Distribution
To reach customer where they work, travel, shop and dine
Good location: company operated stores located in high traffic, high visibility settings
Hard skills- How to use the cash register and learning how to mix drinks?
Soft skills- How to connect with customersto welcome them to the store, to
establish eye contact, to smile, and to try to remember their names and
orders if theyre regulars.
Service
Cleanliness
Product quality
Speed of service
Retail Expansion:
Market was far from saturation ( only 7 states had >100 Starbucks locations)
To open stores in new markets while geographically clustering stores in existing ones
Product Innovation:
Service Innovation:
Category group
Marketing group
Everyone was involved in marketing. But this organisational structure also meant that
market- and customer- related trends could sometimes be overlooked
Starbucks Brand Meaning
There was little image or product differentiation between Starbucks and smaller coffee
chains
There was significant differentiation between Starbucks & independent speciality coffee
houses
Given the product variation- tension between product quality & Customer focus
Need to bring service time down to 3 minutes level in all the stores
To create difference and to have competitive advantage over smaller coffee chains