Customer Analysis of Starbucks

In: Business and Management

Submitted By shinecp20
Words 253
Pages 2
Customer Analysis
Income
Medium income: Considering the high quality of Starbucks coffee, they can’t just sell it for the cheapest price. The price of a cup of coffee from Starbucks is affordable for people with medium income. People with high income is partly included as focused customers of Starbucks, but those with high incomes are likely to find other places with the money they have. Thus, people with medium income, those who think the coffee is affordable, are the main customers.

Occupation:
Students: Especially university students come to Starbucks during their breaks, after school or for projects. As Starbucks serves customers with free wifi connection and a gathering place, it is a perfect place for university students. They can spend their spare time hanging out with their friends. Also, it can be a place for students to conduct group projects.
White collar: They are the people who have enough money to buy the coffee. People working as white collars are the ones who can afford for a cup of coffee in Starbucks. These customers come before work in the morning, during lunch breaks or have short meetings in Starbucks. These people enjoy other things more than just coffee.
Age:
Men and women aged 20-40 account for about 49% of Starbucks’ total business. Also, Starbucks’ 40% of sales are by young adults who are aged 18 to 24. This is due to the fact that Starbucks positions itself as a place for university students to hang out, study and writing term…...

Similar Documents

Analysis of Starbucks Delivering Customer Service

...Analysis of Starbucks Delivering Customer Service Problem statement: • In 2002, market research has shown that Starbucks has a gap in meeting its customer’s expectations in terms of customer satisfaction. • On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service was the main reason for this decline in customer satisfaction. So she proposed to improve the service time such that each order is served within 3 minutes. • However, this solution would cost Starbucks 20 additional labor hours per week thereby $40 million per year. Is 20 seconds increase in speed of service really worth $40 million per year? Situation Analysis: Customers: The demographics of a typical Starbucks customer have changed drastically in the recent years. • From Exhibit 8 in Starbucks case document newer customers of Starbucks are younger, less well-educated, low income, less frequent visited to the coffeehouse and had very different perceptions. • The overall attitude of Starbucks is very low on 25% by new customers whereas the regular customers stood in 44%. • While many factors influenced customer satisfaction, overall service and speed of service were identified as the most influential; a quick glance at Starbucks's recent customer satisfaction (Exhibit 10 and Exhibit 11 in Starbucks case document) reveals that customers did in fact express dissatisfaction with the efficiency and speed of service. • From Exhibit 9 in the...

Words: 2403 - Pages: 10

Starbucks: Delivering Customer Service

...Overview: * Starbucks is a global coffee shop chain and it's headquarter is based in Seattle – U.S. It is considered the largest coffee shop company in the whole world. * It was established by 3 partners (Gerald Baldwin, Gordon Bowker and Ziev Siegl) Seattle – U.S. in 1971. In 1982 Schultz joined the team. Years later, the founders agreed to sell Starbucks to Schultz who took the company public. * The idea behind Starbucks was to make the coffee shop a "third place" beside home and work. * Starbucks operates 16,635 stores in 50 different countries. 11,068 of them are located in U.S. The company's product lines are the following: * Beverages (coffee – juice – tea) * Merchandises (mugs..) * Whole coffee beans * Pastries Starbucks strategy: * providing high quality products * Create profitability * Maximizing market penetration * Offering attractive and comfortable atmosphere The questions: Q1) What factors accounted for the extraordinary success of Starbucks in the early 1990s? The factors accounted for the success of Starbucks in the early 1990’s are: 1. Atmosphere: Starbucks is a coffee shop but the purpose behind it is not just offering coffee, instead providing the customers with a comfortable environment. Customers can relax, enjoy a cup of coffee or whatever Starbucks offers and read the newspaper or simply meet friends. This will result in customers staying more and more inside the coffee shop and makes them...

Words: 2305 - Pages: 10

Starbucks Analysis

...Starbucks Porter’s Five Forces Analysis | |Rivalry | | |Rivalry among existing competitors is high within the industry Starbucks operates in with | | |major competitors like Costa, McDonald’s, Caribou Coffee, and Dunkin Donuts and thousands of | | |small local coffee shops and cafes. | | | | | | | | | | |saturated in developed countries with a range of global brands such as Costa, McDonald’s, and | | |Dunkin Donuts and numerous small local cafes and coffee shops.  This situation presents a massive ...

Words: 2629 - Pages: 11

Starbucks Customer Service

...Memorandum Executive Summary Starbucks, one of the most successful specialty coffee brands in North America is facing a dilemma of recent market research, illustrating that the brand is not meeting customer expectations in terms of customer satisfaction. Christine Day, the vice president of administration, devised a $40 million dollar plan to rectify the issues found in recent market research. Increasing the amount of labor hours in the stores will theoretically increase worker production and speed of service, however the impact on sales and profitability along with the companies’ bottom line is unclear. Identification of several key factors play a major role in decision making; the firm’s problems, corporate strategy, market strategy, market analysis, financial analysis, and a SWOT analysis. A $40 million dollar investment will increase efficiency within stores and improve customer satisfaction to where it should be. I.  Current Situation The purpose of this report is to decide whether or not to invest $40 million in labor costs to increase customer satisfaction. Recent market research shows customer satisfaction is declining. Understanding the evolving customer plays a major role in the long-term success of a company. II.  Current Strategies Originally, the corporate strategy appeared to be more of a marketing strategy with similar properties. Focusing on the product, place, promotion, and price. Specializing in selling premium coffee, while creating an...

Words: 1427 - Pages: 6

Starbucks: Delivering Customer Service

...coffee purists. Schultz joined the Starbucks marketing team in 1982. He traveled to Italy and became fascinated with espresso bars and Italian cultures. Later on, when Schultz got the chance of buying Starbucks, he began opening new stores that are designed as his idea of coffee house. By 1992, Starbucks had 140 stores; Schultz then took the company public that year. By 2002, Schultz had established Starbucks as the dominant specialty-coffee brand in North America. Sales grow rapidly and the stores are keeping expanding. Consumers In year 1992, Starbucks sold whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well-educated, white-collar patrons (skewed female) between the age of 25 and 44. This profile had expanded. Since lower priced coffee is never Starbucks’ goal, consumers of Starbucks are middle or high level of income. Most customers favored coffee drinks back then, while coffee and non-coffee-based drinks or beverages are more popular. Customers used to hang out at the coffee house and chatted with the baristas while most of them just get the drink and leave nowadays. Also, customer types have widened: customers choose to online ordering as well. According to the market research, customers tended to use the stores the same way now. There are types of customers, like most frequent customers averaged 18 visits a month and typical customer visited five times. Competition In U.S, Starbucks competed against a variety of......

Words: 1821 - Pages: 8

Starbucks - Delivering Customer Service

...The case discussed here outlines a number of challenges, which the Starbucks Coffee Company is facing as of late 2002. Starbucks was founded with the intention to deliver a superior coffee drinking experience to a predominantly affluent, well-educated white-collar clientele all across America. Starbucks’ value proposition was built upon three pillars: • The coffee itself: Delivering the highest quality coffee possible • Theservice: Delivering outstanding, uplifting service, delighting customers whenever possible • The atmosphere: Providing a “third place” to its patrons, a place where lounging, relaxing and socializing is encouraged The most recent market research at Starbucks had however revealed to management that there was substantial dissatisfaction especially in the area of service. In a survey, ten percent of customers had indicated, that they would wish the service at the coffeehouse were faster and more efficient. Nineteen percent of customers indicated also, that the service could be friendlier and more attentive. The research also pointed towards an even graver issue. In the consumers perception, Starbucks as a brand was not very well aligned with the core values it wanted to communicate, but rather negatively associated with mere monetary intentions. Also, Starbucks offer was not differentiated enough when compared to independent coffeehouses. People perceived it as a convenient, standardized source of good quality coffee. What also became evident when......

Words: 408 - Pages: 2

Starbucks : Delivering Customer Value

...Starbucks: Delivering Customer value Case Analysis Case facts • Howard Schultz’s idea with Starbucks in the mid 1980’s was to create a chain of coffeehouses with a product differentiation of specialty “live coffee”, service or customer intimacy with an “experience”, and an atmosphere of a “third place” to add to their work and home alternatives • The original stores sold whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well educated, white-collar patrons between the ages of 25 and 44 • By 2002, there were over 5,000 stores around the globe • The specialty items included strategic alliances with Pepsi Cola to sell alternative beverages, Dreyer’s to develop and distribute a line of premium ice creams, Kraft Foods handled sales of coffee and alternative products to warehouse clubs, and various grocery store chains for their coffee. • Baristas (employees) were encouraged to interact with customers in a friendly and prompt manner, and were paid higher than average wages and benefits. Employees were considered partners and promotions were usually from within the company. • While Starbucks was the largest specialty coffee chain, many other chains competed directly with Starbucks, and many other chains could at any time enter retail specialty coffee sales (e.g. Dunkin Donuts, convenience stores, and many similar retail food stores. • New innovation was based upon partner acceptance. Customers rated the new innovations as......

Words: 1752 - Pages: 8

Starbucks : Delivering Customers Service

...Summary Recent marketing researches have shown that customers are becoming less satisfied with the services offered by Starbucks. People are getting the perception that Starbucks only cares about “making money” and “opening more stores”. To increase overall customer satisfaction, Ms. Day proposes that Starbucks invests $40 million to increase the labor of every Starbucks store. After careful analysis, we recommend that Ms. Day focus the investment on high traffic stores that are in need of improvement in the speed of service. Stores with low customers’ satisfaction scores should also get more focus than those with high satisfaction score. Additionally, part time workers should also be hired specifically for peak hour periods. On top of the $40 million investment, we would recommend that Starbucks hire a chief marketing officer in order to create synergy between the three marketing groups within Starbucks. Corporate should also re-train store managers in order to improve their soft skills. The managers will also be able to communicate the message of “customer first” to other “partners” in the store so that they can work on delivering good brand experience to the customers. Lastly, special promotion such as free cup after certain number of visits will create additional value for the customers. All of the above recommendations are for the sole purpose of addressing the decline in customer satisfaction at Starbucks. Market Analysis The outlook for the U.S. retail coffee......

Words: 3455 - Pages: 14

Starbucks External Customer Analysis

...Goals & Objectives, Customer Analysis, and Target Market & Positioning Nan Zhang, Thai Tran, Hollyann Joyner I. Marketing Goals and Objectives A. Have largest market share in US coffee Industry * Objective 1: opening 3000+ net new stores in America by 2017 Starbucks will open more than 3000 stores in 48 states in US depends on population density. High population area like New York and Washington should open more than other states. And US is the largest market for Starbucks, and it’s brand name is well known, open more stores, and have an intensive distribution, so when consumer thirsty or tired, they can find a Starbucks next to them. * Objective 2: US market revenue grow by 12% in 2014. At least half of the new stores are expected to be in the strong, rapidly growing U.S. market, and in 2012, the new store revenue grew by 9 percent. Starbucks should focus on their loyalty program and advertising activities, so people could always see it in TV or internet. So sale will increase gradually. So Starbucks expect higher revenue 12 percent in 2014 is reasonable and possible. B. China on track become second-largest market in 2014 * Objective 1:opening 1000 new stores in different provinces of China by 2016 China had an 8 percent growth in 2013, almost the same as America, Starbucks has a really good brand name, currently there are more than 3,000 stores in China, and they all located in major big cities, so Starbucks should open more......

Words: 4910 - Pages: 20

Starbucks Delivering Customer Service

...9-504-016 REV: JULY 10, 2006 YOUNGME MOON JOHN QUELCH Starbucks: Delivering Customer Service In late 2002, Christine Day, Starbucks’ senior vice president of administration in North America, sat in the seventh-floor conference room of Starbucks’ Seattle headquarters and reached for her second cup of toffee-nut latte. The handcrafted beverage—a buttery, toffee-nut flavored espresso concoction topped with whipped cream and toffee sprinkles—had become a regular afternoon indulgence for Day ever since its introduction earlier that year. As she waited for her colleagues to join her, Day reflected on the company’s recent performance. While other retailers were still reeling from the post-9/11 recession, Starbucks was enjoying its 11th consecutive year of 5% or higher comparable store sales growth, prompting its founder and chairman, Howard Schultz, to declare: “I think we’ve demonstrated that we are close to a recessionproof product.”1 Day, however, was not feeling nearly as sanguine, in part because Starbucks’ most recent market research had revealed some unexpected findings. “We’ve always taken great pride in our retail service,” said Day, “but according to the data, we’re not always meeting our customers’ expectations in the area of customer satisfaction.” As a result of these concerns, Day and her associates had come up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours......

Words: 8584 - Pages: 35

Starbucks Analysis

...ANALYSIS OF STARBUCKS CASE Laurent Werro, Nikola Volchkov, Yuki Toyoshima, Jérôme Jayet Starbucks is a company that was founded in 1971 in Seattle by Gerald Baldwin, Gordon Bowker and Ziev Siegl. It is a specialized coffee roaster and distributor. The Company now operates in four areas: Americas which includes the US, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP). (1) GROWTH AND SUCCESS FACTORS Starbucks pays attention to product quality and shop atmosphere. They brought back the trend of coffee drinking and they also created a social trend. People come to Starbucks for different reasons but most important for high quality coffee. The comfortable atmosphere while drinking a high quality coffee created a gathered spot for customers where they enjoyed meeting a friend, read a book or work. All these factors created a unique "Starbucks experience". By doing so they earned the customers loyalty, some of them were visiting bars up to 18 times a month (2). They also created a partnership with the coffee growers and worked directly with them to ensure the highest quality of their products. Starbucks international rapid expansion is due to joint ventures with local partners and licensing agreements. Starbucks decided to set some criteria to their partners in order to keep the Starbucks experience across the globe. “Starbucks brand is built on passion and you can easily feel the passion of our partners in any of our international......

Words: 2354 - Pages: 10

Starbucks Analysis

...com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must satisfy/address nine concepts (David, 2011): 1) Customers – Addressed by......

Words: 6572 - Pages: 27

Starbucks Analysis

...Future Financial Health Analysis: Starbucks S. Albright Grand Canyon University: FIN 504 March 5, 2016 Starbucks started back in 1971 in Seattle, Washington. Initially, Jerry Baldwin, Zev Siegl and Gordon Bowker sold only coffee beans and coffee making equipment (coffee .org). It wasn’t until the company was sold to its Director of Retail Operations, Howard Schultz, that Starbucks started selling coffee drinks and soon after, Schultz spread the chain of stores throughout the U.S. taking over many small coffee shops in the process (coffee .org) In the 1990’s Starbucks offered stock options to its employees and went public with an IPO which opened the door for higher earnings and more profitability (coffee.org). This analysis will discuss how a single coffee house in 1971 has grown to more than 22,000 stores in 66 countries in 2016. Starbucks’ goals, market strategies, revenue and financial outlook will be discussed. Strategies and Operating Characteristics According to the Global Responsibility Report (2015), Starbucks vision for the future and what will have the greatest potential for impact include working with farmers for ethically sourced coffee beans, pioneering sustainability economically, socially, and environmentally, and creating career opportunities for young people (2015). Starbucks Newsroom reported on March 18, 2015 that their seven strategies would grow market capital to $100 billion (2015). Revenues are currently at $16.4 billion and the U.S. comp......

Words: 3900 - Pages: 16

Starbucks-Delivering Customer Service

...Case Study Analysis Raghuvarma Pasupuleti Narasimha Vangari BUSM5463 Dr. Larry A. Walker Northwest University-Kirkland Author Note Raghuvarma Pasupuleti, MBA College of Business Management, Northwest University. This research was written in context with the Operations Management course within the MBA program at Northwest University. Correspondence concerning this article should be addressed to Raghuvarma Pasupuleti, MBA Program, Northwest University Kirkland WA 98033. Contact: r.pasupuleti15@northwestu.edu Team Case Study Analysis Starbucks – Delivering Customer Service Starbucks – one of the fastest developing companies has its objective to be the “most recognized and respected brand in the world “. The company has built its position in the market by envisioning and creating “third place” beside home and work, where people could go to relax and enjoy others, or just be by themselves. Living up to the long term vision of founder Howard Schultz, who inspired the company to make the customer as the center of its success, company has become the giant of the coffee world. This success can be attributed to Schultz commitment who changed the coffee drinking experience in the U.S. With core values towards presenting quality coffee, atmosphere, and the best service, Starbucks has......

Words: 1575 - Pages: 7

Starbucks' Customer Satisfaction

...How has Starbucks come to dominate the retail coffee industry and also emerged as an icon in millions of people’s daily lives? It is their product? Not at all; many people prefer other brands but remain loyal Starbucks customers. Is it the location? No, because although Starbucks generally has great locations, so do many of their competitors. Is it their facilities or equipment? No, those have also been duplicated by competitors. What the competition can’t seem to duplicate is the way Starbucks captures the emotional capital of their customers, by what I call the ‘Starbucks difference’. At nearly all Starbucks, you can expect the same ambience and atmosphere, the same product quality and the most important, the same way of engaging the customer. Starbucks associates are trained to greet customers in a very friendly and courteous way, with a smile, to remember regulars and treat them as such. They find a way to incorporate the customer’s name into the order; they even greet regulars by their drink order instead of their name, and people love it. Those few things create the ‘Starbucks difference’ and have produced a long-term cult following unlike anything I have ever seen. While this is a very simple strategy, very few companies come close to doing any of this. Starbucks’ President, Howard Schultz, pointed out in his book, Pour your Heart into It, Starbucks is today’s ‘third place’ for people, a place away from work and home where they can safely connect with others area, a...

Words: 634 - Pages: 3

[Read more...] about Operation Mekong 2016 BRRip 720p Dual Audio In Hindi Chinese | Business to Business | Don't Go Breaking My Heart