The value proposition of Starbucks to its target customer focused on a brand strategy that was comprised of three components. The brand strategy was best captured by the phrase "live coffee." This phrase reflected the importance of keeping the national coffee culture alive. From a retail perspective, this meant creating an "experience" that people would want to include into their everyday lives. The first of three components to the branding strategy component was the quality of the coffee.
This empowers Starbucks to progress with the help of customer responses consequently resulting in higher level of overall satisfaction. In addition, Starbucks Loyalty Program has also added on to improve Starbucks CRM. The program is created for customer retention through the three levels – welcome, green and gold. (Appendix B) Starbucks consumers can work their way to a gold status by increasing their purchases which earn them “stars”. These stars can subsequently be redeemed for free food and drinks at
Starbucks’ primary goal is to provide total customer satisfaction by affording a perfectly made coffee at reasonably affordable price. The company is well known for its efficient and effective way in controlling operations. Starbucks Operations management Two main points will be discussed here; material flow to explain how the beans flow from suppliers to Starbucks retail stores, and purchasing systems to explain the way Starbucks manages the purchase of large volumes in global market. Material Flow The process of selecting the finest quality of coffee beans starts from procuring the green or unroasted beans directly from the farms and then transport them to the storage points after being roasted and packaged. Beans are now ready to be sent to the distribution centers located across six continents, and managed by one centralized system.
The performance measurement mechanisms will provide the different partners with common standards and definitions of measurement to ensure that they meet Starbucks performance levels in relation to activities that influence the brand image (Mahlendorf et al., 2012). Similarly, the agreements established between Starbucks and business partners should ensure that expatriates from Starbucks work in franchisees and joint
It is an American company founded in 1971, it is a leading retailer and marketer of specialty coffee around the world and according to (Starbucks, 2016) it has a majority of market share having 32,8% in U.S. alone. This is a brand that has grown from a small retailer to a multibillion-dollar company and gained global recognition and worldwide success. Starbucks has opened over 20,000 operated and licensed stores in 70 countries and currently has employed over 180,000 employees (ibid.). Starbucks product assortment consists of premium coffee, high variety of beverages, fresh food and healthy snacks as well as offering an upbeat environment in their coffee shop. This research paper uses SWOT as analytical tool to examine internal and external factors, which affect the operation process of this coffee industry leading company.
That’s what people want! 3. Accessible locations and have Starbucks Rewards Cards- Starbucks was smart and strategic when thinking about location and design. They have built great ambiance and have accessible locations (ToughNickel, 2013). This is great for the customer's experience and keeps them coming back.
CHAPTER 1 INTRODUCTION 1.1 Research Background The food service industry has gone through a virtual revolution since past two decades. New type of soft drinks, juices, tea and hot chocolate and dairy dispenser were introduced. In general, beverage industry is large compared to other industries. For example, coffee accounting for trade worth approximately US$ 16.5 billion in 2010, when some 97 million bags of 60kg were shipped. Coffee is one of the most widely consumed beverages and internationally most traded commodity in the world (Weinberg & Bealer, 2001).
Planning is very important to Starbucks as it provides direction by helping Starbucks to set and achieve their desired goals such as earning higher profits and having positive financial results. It also helps to set control standards in Starbucks by performing activities differently and better than other businesses, creating good reputation and better work standards such as customers’ service. Starbucks uses various types of plans, including strategic and long term plans to manage their company. Strategic plan is a plan that emphasizes on the major goals and the strategies to achieve those goals. Starbucks wishes to grow revenue by 10% each year by satisfying customers by all means and having employees to be involved and contribute in making Starbucks a better company.