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Case Study - Starbucks: Delivering Customer Service

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on 4 November 2013

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Transcript of Case Study - Starbucks: Delivering Customer Service

Starbucks: Delivering Customer Service
Customer Service Mission
Customer Intimacy
Customer Satisfaction
- Hard Skills
- Soft Skills
Competitive Advantages
Customer Profile
Background Info
Vision: become America's
, a place that would be separate from home or work.
Goal: establish Starbucks as the
"Most Recognized and Respected Brand in the World"
Marketing Objective--
Starbucks Development
In 1971
In 1982
Howard Schultz
joined the marketing team
Set up an espresso bar at downtown shop
Schultz took over and began opening new stores
In 1992

stores in Northwest & Chicago
Competed against Gloria Jean's Coffee Bean and Barnie's Coffee & Tea
From 1998 - 2002
Starbucks Mission Statement
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time
Our Customers
When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.
Opened by Gerald Baldwin, Cordon Bowker & Ziev Siegl
A small coffee shop in Seattle's Pike Place Market
Specialized in selling whole arabica beans
Competitive advantage is at the heart of a firm's performance in competitive markets. Competitive advantage means having low costs, differentiation advantage, or a successful focus strategy. (Porter, 1980)
Large Investment in Training
Compensation & Benefits
Low Employee Turnover Rate
High Employee Satisfaction
Brand Strategy
Keep the national coffee culture alive
Create "experience"
Environmental friendly
Fusion of local cultural
Consumer-oriented Company Philosophy
Customized Drinks
Customer Connection: welcome, eye contact, smile, remember names & orders, create conversations
Quest for customer satisfaction
Aim at creating customer loyalty
Quelch, J, & Moon, Y 2003, 'Starbucks: Delivering Customer Service', Harvard Business School Cases, p. 1, Business Source Premier, EBSCOhost, viewed 27 October 2013.
Youtube. (2008). Starbucks Coffee. Available from: http://www.youtube.com/user/Starbucks [Accessed: 26 October 2013].
Starbucks Coffee Company. (2013). Available from :http://www.starbucks.com/ [Accessed: 27 October 2013].
Porter, M.E. (1980). Competitive strategy, The Free Press, 1980.[Accessed: 26 October 2013].
Design Innovation
Product Innovation
New (coffee) products launch on regular basis
Verismo System in 2013
Service Innovation
Wifi Hotspot
Starbucks' stored-value card (SVC) in 2001
My Starbucks' Rewards in 2012
Pay with your mobile phone
Target Market
Customer Behavior
Aged 25-44
Less well-educated,
Lower income bracket
Aged 24-44
Meet Customers' Expectation
-- Coffee
"Live Coffee"
Committed to be the highest-quality coffee
Sourced from Africa, Central & South America, Asia-Pacific regions
Supply chain control
Swanky yet inviting
Measuring Service Quality
Self-reported Checklist on monthly basis
"Customer Snapshot" -- Mystery Shopper
Starbucks Partners
Fierce Competition
Changing Customer Expectation
Product Diversification
Starbucks first
was opened on Oct 23 in New York
Starbucks in Campus
Allocate Starbucks quota to campus students
Offer promotions, specials regularly
Student Career Path with Starbucks
F&B Reservation Service
Reserve food & drinks in advance
Delivery Service
--Currently available in US & Canada only
Innovation Goes On
Online Community
Growth & Development
Presented by
Weiwei LIU
Carmen LYU
Customer Profile
April LIN
Customer Service Mission
Competitive Advantages
Full transcript