Starbucks has success to operate in CSR. There are various factors to affect the company succeeds of Starbucks in CSR. First of all, A company need development of a good brand image and responsibility into society. Company builds conscience of brand image is the most important in business. Starbucks is demand to provide high-quality
They ensure to get the best coffee beans that grow at higher altitudes, where they are denser and have deeper and more complex flavors, tasted in each cup of Starbucks coffee. According to (Linn, 2014) "there is a lot of specialty coffee out there; it's just a matter of finding it." Starbucks employs a wide range of specialized agricultural engineers to grow coffee beans in a better way, where they deal well with crop production and soil management. Starbucks collaborates with them to promote growing practices and improve the quality and size of their crops. To improve productivity and sustainability, Starbucks has established farmer support centers on four continents.
Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
Starbucks’ Customer Appeal 1) What can any retailer learn from this case? Starbucks provides customers with a personalized service strategy that allows them to keep their customers. The personalized service provided by Starbucks includes flexible changes of orders, personal greetings and memory customers ' favorite orders. Customer intimacy and humanization are key factors to ensure customer attractiveness. The Starbucks case study shows the importance of paying attention to customer needs.
Starbucks is known to be the number one brand in the coffeehouse segment. Starbucks has had and still has a strong reputation associated with quality coffee and excellent customer service. Having a strong brand name is a marketing strategy with the capability to make any product or service a household name. Strong brand names have the ability to increase customer loyalty and product sales. Starbucks is also said to deliver to their customers with perfectly blended coffee, premium music, friendly staff & a warm atmosphere, which results in incomparable customer service as compared to their competitors.
There are countless flavors of Starbucks coffees available in “k-cups” for, giving the consumers more choices for their morning cup without having to wait in line. Due to the international presence of the Starbucks brand, consumers can travel to another country and still be able to order their favorite cup of coffee. There are other brands, like Biggby, that have tried to copy the Starbucks business model by offering similar products (coffee, scones, bagels, etc. ), but Starbucks is at an advantage due to their early presence in the market. Consumers are more than willing to wait in line, listening to countless complicated orders just to get their coffee.
Unlike before, not all baristas were hand-picked who had mastered ‘both’ the hard-skill and soft-skill required for the job. Moreover, the diversification of customer base and increased product portfolio meant that they had to deliver ‘customer-made’ beverages as quickly as possible and maintain the ‘customer intimacy’ quotient at the same time. The above table clearly states that the most profitable / valuable customer for Starbucks is a ‘Highly Satisfied Customer’ with an average lifetime revenue of
However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape. Overall, the PESTEL/PESTLE analysis framework indicates that Starbucks Coffee has plenty of room for further global growth. The preceding analysis proves the point that Starbucks is operating in a relatively stable external environment. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely.
Customer The stakeholder between Starbucks and customer is Starbucks have to make sure the quality of specialty coffee. How to make sure the quality of the coffee is Starbucks must be ethically sourced the coffee bean for their coffee and also Starbucks also have to roasting it carefully. Between Starbucks and customer must be fair trade and organic so they can main the relation of the stakeholder as long as possible. Next, it’s customer service that Starbucks give to customer, employees of Starbucks have to fully engaged with customer and also give sense of belonging. Starbucks also can commitment to wellness through healthy food, Starbucks can provide more low calories options and also reduced fat breads and pastries.