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7 P's of Starbucks

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Rui da Silva

on 5 February 2015

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Transcript of 7 P's of Starbucks

7 P's Of Starbucks
Physical Evidence
Core service
An uplifting coffee experience
Supplementary service
Order taking

1) Add Value: 'live coffee', corporate design and servicescape, information distribution
2) Marketing Communications Plan: defined target market and objectives
3) Communications Mix
Personal Communications: Welcoming partners
Advertising: Billboards, magazines, Internet
Sales Promotion: coupons, discounts
Publicity: Special events and sponsorship
Instructional Manuals: Brochures, website
Corporate design: Green, two-tailed siren, comfortable stores
1. 'Partners'
2. Extensive organisational training in both 'hard' and 'soft' skills
3. Keeping a low turnover rate

Happy customers
Buildings/ landscaping- Recognisable
Interior design/ furnishings- 'Third place'
Equipment- Cups and machines with logos
Staff grooming- Uniforms
Front stage
Co production
Moments of truth
Time: 3 minute goal
Physical evidence of front stage activities
Appearance of store
Appearance of partner
Appearance of food/ drink
Taste of food/ drink
Maintain equipment
Suppliers delivery
Preprepare food
Database for loyalty cards
Potential fail points
Long wait times
Mixing up orders


ABC: complexity of services linked to expenses
Fixed Costs
Variable costs
Competitors pricing strategy
Location specificity
Non-price related costs, such as time
Revenue management: High fixed cost structures, perishable inventory
Clear rate fences: time and location of transactions, consumption and buyer characteristics
Value-based pricing
Benefits: Fast food, convenience, consistency, rewards cards
Related monetary costs: Transport, item costs
Related non-monetary costs: Time, physical effort
Hospitality: Greetings, 'just say yes'
Safekeeping: Security cameras
Consultation: Advice, order customization
Exceptions: complaint-handing and special requests
Negotiation Flow: Order Taking and payment in-store or online for certain products
Product Flow:
Customers visit service site
Specialty operations: hotels, airlines, restaurants
Relationships with third parties
Convenient Hours (specific hours for each store)
Open most public holidays
Over 21,000 stores
Convenient locations: High traffic and high visibility areas
Multi-purpose facilities eg. airports
Majority of stores in the USA
Products for purchase over the Internet
Full transcript