Star Bucks

A case study Star Bucks

Channels of Distribution Services marketing Mix Target marketing position Delivering of service / Service performance Services Gap analysis Service blue print Conclusion

CONTENTS

STARBUCKS - An Overview The Starbucks Coffee, Tea, and spices company was founded in Seattle in 1971 It is the largest Coffee house company in the world, with 20366 stores in 61 countries.

To inspire and nurture the human spirit --- one person, one cup, and oneneighborhood at a time. ---- Starbucks Mission statement

Target Market and Positioning

Positioned it self as an upscale brand - not just coffeeproducts but a rich experience Selling point

Social Classes

Small towns, rural communities, ethnic neighborhood.

THE HISTORY OF STARBUCKS

SERVICES MARKETING MIX - 7Ps

PRODUCT

30 varieties of whole bean coffee to ecofriendly cappuccino, pastries,Smoothies, wraps. Live coffee Mantra Sodas, juices, coffee-related accessories, equipment, music CDs, novelty Items.Varied from store to store.JV with Pepsi-Cola for Frappucino, Dreyers for premium iceCreams.

SERVICES MARKETING MIX - 7Ps

PLACE

Located in high traffic, high visibility settings retail settings, officeBuildings, university campuses.In-store at Barnes & Noble and Target.Target - Individuals on the go.Localization Stealth outlets.

we want to reach customers where they work, travel, shop, and dine. -----Starbucks philosophy.

SERVICES MARKETING MIX - 7Ps

PRICE

Priced high perceived upscale image.Later introduced value strategies.Breakfast pairings.The average ticket price is $3.85.

SERVICES MARKETING MIX - 7Ps

PROMOTION

Starbucks card referral system.Corporate sales card.Delivery to offices without restriction.Appealing to diverse customer base international products.Philanthropy contribution to non-profit organizations.

SERVICES MARKETING MIX - 7PsPeople

Core ingredient Happy customers start with happy staff we are not employees we are partnersEmployee turnover rate of 70% compared to the fast food industry averages of 300%

SERVICES MARKETING MIX - 7PsPhysical Evidence

Custom made cup of beverage. Clean, friendly environment , cozy chairs, sofas. Alluring pastries menu , tasty show cases, tempting coffee pictures.

SERVICES MARKETING MIX - 7PsProcess

Legendary Service Sequence service reducing queue. Contact less payment Barclay , I phone and Android app

Service BlueprintStage in Production ProcessTarget time (minutes)Critical time ParticipantsVisible evidenceLine of visibilityInvisible processObtainSeatTake OrderMakeOrderDeliverOrderPay for Order1515383813CustomerCustomerWaiterCookCustomer WaiterCustomer CashierFurnishingsStaff AppearenceTea, Crockery, Manner of serviceCash Collection ProceduresCleaning of roomPreparation of Ordering of suppliesAccounting Procedures

Layout

Expected Service Perceived ServiceService DeliveryCustomer driven service designs and standardsCompany perception of consumer expectations

Gap Analysis Customer satisfaction gap could primarily be attributed to a service gapBetween key attributes and customer expectations. Speed of Delivery considered as critical

Bridging the GapAn additional 20 hours of labor, per week, per store

Service time down to a strict 3 minute level.

Conclusion :

We arent in the coffee business, serving people. We are in the people business Serving coffee --- Howard Schultz (Serwer, 2004)Starbucks claimed their leadership by focusing on a strategy of new products,

A stronger connection with customers, rapid expansion, and

uncompromised quality