9-504-016 REV: JULY 10, 2006 YOUNGME MOON JOHN QUELCH Starbucks: Delivering Customer Service In late 2002, Christine Day, Starbucks’ senior vice president of administration in North America, sat in the seventh-floor conference room of Starbucks’ Seattle headquarters and reached for her second cup of toffee-nut latte. The handcrafted beverage—a buttery, toffee-nut flavored espresso concoction topped with whipped cream and toffee sprinkles—had become a regular afternoon indulgence for Day ever
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Services Marketing Starbucks : Delivering Customer Satisfaction Section B, Group 6 STARBUCKS: DELIVERING CUSTOMER SERVICE 2011048 Rahul Rajiv Sagrolikar 2011158 Lakshmi M 2011177 Umair Khalid Siddiqui 2011157 Kunjal Kiran Kapadia 2011238 Sumeet Raina Services Marketing Starbucks : Delivering Customer Satisfaction Section B, Group 6 What factors accounted for the extraordinary success of Starbuck's in the early 1990's? What was so compelling about the Starbucks value
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1. In the beginning, Starbucks is originally a company that sold high quality coffee. However, the factor that can make Starbucks become much popular as today is many services provided along with the products in order to “enhance the quality of everything the customer see, hear, touch, smell or taste”. Nowadays, Starbucks is known as a famous brand for providing beverage with high-quality service for customer. It could be considered as Service as experiences and the price would be charged for the
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STARBUCKS : Delivering Customer service 1. Introduction 2.1 Background to the issue In 2002, market research has shown that Starbucks has a gap in meeting its customer’s expectations in terms of customer satisfaction. On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service was the main reason for this decline in customer satisfaction. So she proposed to improve the service time such that each order is served within 3 minutes
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Starbucks: Delivering Customer Service I. Intro & Background Since 1971, Starbucks enjoyed great success based on its’ explicit core values of delivering high quality coffee, outstanding customer service, and a relaxed atmosphere. In the last 11 years, despite the post-9/11 recession, Starbucks experienced 5% or more store sales growth. The vision of the owner, Howard Schultz, was to create a chain of coffeehouses that would become America’s “third place”, a place for people to go and relax
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STARBUCKS: DELIVERING CUSTOMER SERVICE Brief Introduction • Founded in 1971 by three coffee fanatics- Gerald Baldwin, Gordon Bowker & Ziev Siegl • Schultz joined the marketing team in 1982 • Later, the founders sold the entire business to Schultz • By 2002, it served 20 million unique customers in 5000 stores across the globe • Sales had a CAGR of 40%, while Net Earnings had a CAGR of 50% Key people in the CASE: VP of Administration in North America: Christine Day CEO: Orin Smith (A Harvard MBA
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2014 Case 3: Starbucks: Delivering Customer Service 1. What factors accounted for the extraordinary success of Starbucks in the early 1990’s? a. What was so compelling about the Starbucks value proposition? b. What brand image did Starbucks develop during this period? Many factors accounted for the success of Starbucks. Some of these factors include the many locations around a given urban area, the variety of products, and how Schultz set out to create Starbucks as the “third
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STARBUCKS: DELIVERING CUSTOMER SERVICE In 1992 Starbucks vision was to become the “Third Place” (home, work and then Starbucks). The value proposition was based on high quality coffee, high service standards and customer intimacy all offered in a relaxed and comfortable atmosphere. The positioning was meant to appeal to a niche market of highly educated affluent customers predominantly female between the ages of 24-44 years. Starbucks did not have a dedicated marketing strategy, but the function
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Starbucks Student Name Course Instructor Date Starbucks The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee (Coffee.org, 2013, pg.1). Starbucks has a reputation of caring about the community, environment, and people. “We aim to foster
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Starbucks: Delivering Customer Service In late 2002, Christine Day, Starbucks’ senior vice president of administration in North America, discovered that the company was not meeting customer expectations and that there was a decline in customer satisfaction. Day attributed the decline in customer satisfaction to a service gap, particularly service speed. Day must decide whether she will proceed with her plan to invest an annual $40 million across its 4,500 company stores. The investment would allow
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