Customer perspective has three very important objectives to focus on which includes: Customer retention, customer satisfaction, and recruiting new customers. The first objective under Starbucks' customer perspective is to customer retention. "Customer retention is the single most important variable considering the growth of a company" (Boyce, 2015). Starbucks makes it easy for consumers to become loyal customers and remaining that way. One solution has been the creation of the Starbucks rewards programs that rewards customers with free drinks, discounts, and free merchandise.
Price discrimination is a practice of charging different prices to different consumers under the circumstances of keeping the same cost of production. The manufacturers always set the high price in one particular region to gain excess profit because they have the certain ability to monopolize or control consumers’ demand. However, for those markets which have lower demand, manufactures will set a relatively low price to encourage the consumption. Starbucks charges the relatively higher price in Shanghai than in New York and Mumbai to pursue the higher profit. The high price elasticity of demand of Starbucks ' coffee in Shanghai can be one factor and Starbucks also maintain the high price through taking action to influence consumers’ sensitiveness for high prices.
I propose to review all necessary appropriate literature of the Starbucks Company as well as on strategic management and CSR. In my review I will achieve the ensuing goals; 1. Investigating and getting to understand how the Starbucks company’s use of the corporate social responsibility strategy resulted in the succeeding its business undertakings. 2. Consideration of the CSR strategy in evaluating how the company’s innovative technology can result in an increase of its products and the reduction of its damage to its environment as well as the costs.
The conclusion is first Starbucks should avoid any conflict with the government because the goverment have the power to change or make new regulations that might affecting starbucks business. It could be the government united states deprive permission starbucks to operate, because Starbucks have to obey the law whereby build the company. Secondly, Starbucks have to consider the price not too expensive than competitors because it could affect to a buyer that shift to buy coffee in other brands. Starbucks can use by means of coupons free or such as giving discounts on the day that could attract buyers. Starbucks is a company that are very well known so easy to attract customers.
The customers had to decide the type as well as the quantity of drink they want to have. The coffee was made as per the instructions of the customer. Success and complexities: This was a risky approach, which could have backfired, but luckily it didn’t in this case. Customers liked this customization of their drinks giving them a personalized feeling. Transformational Change: Starbucks became the first company (private) to introduce stock options for its employee.
3. Starbucks is recommended to have a team of cross-functional members from various departments and functions in order to deal with any such eventuality. It’s preferred to have open team with representation of Starbucks store managers, which are in direct link with customers and thus are best suited to identify the issues as they develop. 4. Starbucks should leverage on its goodwill developed over the years of delivering quality products in a socially responsible manner.
In this market, there are also concerns affirming costs, which are price makers, providing a corporation an opportunity to charge higher or lower prices. Hence, the reason Starbucks may charge higher prices for their coffees. Then again, the reason it is imperative to evaluate and study the horizontal
Food security will seriously affect the health of the customer, and make the company reputation damage. However, if Starbucks is willing to pay more careful attention to the beverage and food materials, such as sugar content, it can avoid unnecessary complaints. Otherwise, customers have opportunities to recover damages. But, Starbucks also has a commendable place. For example, in environmental conservation, Starbucks avoids the use of precious wood to build a new store, but with recycled wood.
Another weakness is product pricing. Starbucks offer great quality of coffee and services to customers. This affects the price of the coffee become expensive. The price of new product will be expensive because of this weakness. The opportunity is Starbucks can increase their product offerings.
The Starbucks case study shows the importance of paying attention to customer needs. The company has built an image that appeals to a broader segment of the market, with the idea of "leveraging the need to interact with people from the workplace or home." The Starbucks experience can create a unique service experience for other retailers with customer-oriented marketing strategies. In addition, retailers should ensure that they fully understand the target market segmentation and distinguish the strategic importance of their products, so that not only in the traditional market and succeed in the global market positioning. 2) Based on the information in this case at Starbucks’ web site (www.starbucks.com), describe the market segment(s) to which the firm appeals.