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Starbucks: Delivering Customer Service

An analysis of Starbucks based on the Harvard Business Review Case 9-504-016 on JULY 10, 2006
by

Maxime Jallifier

on 9 February 2013

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Transcript of Starbucks: Delivering Customer Service

onduct environmental assessment C R U I S E eview concerns ncover objectives llustrate strategy tate challenges & alternatives valuate project Starbucks Delivering Customer Service Overview “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” 2006 1971 Increase man power to reduce speed and recover loyalty. 2011 Use of process and technology to regain client base. Experiential branding Consumer reach Value Proposition High quality Customer intimacy PRIMARY CONCERNS GWU: 6 minutes (peak/off peak) Accuracy; loss on redo’s Retention; 42% visit 2 times/month Loyalty; 18  5 visits/month Objectives 3 Minute Service $20,000 weekly sales/store Consumer loyalty New Branding Decaf Tea Speed; 3 minutes Managing Product Supply chain management
QR code/cup; farmer --> consumer

Rebranding
Starbucks not Starbucks coffee Managing Processes Reduce bottlenecks
TPS; achieving JIT delivery to consumer
Manufacture during placing order The Potbelly’s effect
GWU: 10min wait time reduction Process Map Integrated Technologies Order-up screen
Knowledge of wait time Smart card program
Quantitative survey customer v.s. location
Post-purchase reaction Social Media Use
Tweeting your order Managing People High involvement with customer
Personal card program; “the usual”
More interaction
More integrated in ordering process “Partners”Schultz: “10,000 employees & 5hr training”
Continual problem solving; empowerment Expected Challenges Implementation on large scale
Adjusted habits; retraining
Customer confusion/opposition
Loss of culture Potential Alternatives Summary Increase employees & man hours
Clutter, cost, confusion

Assembly line processing
Layout, retraining, atmosphere

Pre-ordering by phone
Bottlenecks, interaction-less, atmosphere DunkinBeatStarbucks.com Brand Assault Unsnobby Coffee Culture Assault Pre-Break Market position
Value Propositon Product, Process, Technology, People
Barriers 2006: increase man power to reduce speed and recover loyalty
2011: use of process and technology to regain client base Post-Break Thesis Questions ? Did You Enjoy Your Drink?
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