Starbucks: Delivering

Customer Service

MARKETING MANAGEMENT GROUP

SYEDA AREEBA TARIQ

OVERVIEW…o Starbucks corporation is an international coffee house

chain based in Seattle- United Stateso Starbucks is the largest coffee house company in the worldo Operates 16,635 stores in 50 countries, including 11,068 in

the United States, while the licenses and frenchises operate more than 7,800 units worldwide( primarily in shopping centre and airports)

o Product line

- Beverages ( coffee, tazo tea, soda, juices)

- Pastries

- Whole coffee beans

- Merchandise (cups, mugs)

o Through the Starbucks Entertainment division and hear music band, the company also market the books, music and film.

o Many of the company’s products are seasonal or specific to the locality of the store in various countries.

o From a small store that opened in 1971 to its status as a 21st-century Gourmet coffee giant Starbucks has led a coffee revolution in the united states and beyond.

STARBUCKS –national culture to global vision….

Starbucks –

“Establish Starbucks as the most recognized and respected brand in the world.”

TAKE HOME AN EXPERIENCE…Mission Statement- “to inspire and nurture the

human spirit- one person, one cup and one neighborhood at a time.”

The Starbucks VALUE PROPOSITIONo To create an “experience” around the

consumption of coffee, an experience that people would weave into their lives

o To create an uplifting experience in “Customer intimacy”

o To create an “ambience” based on human spirit, sense of community, and the need for people to come together ‘ everything matters’

CUSTOMER DRIVEN MARKETING STRATEGY….

SEGMENTATION:• Initially Starbucks concentrated on social class

particularly the business class people those who are working at the office and wanted to have a cup of coffee with a good atmosphere and facilities.

• Starbucks also had segmented his market by geographic and demographically by selecting the store location where they can find the educated and coffee lovers .

TARGETING:

o Office workers- middle to high incomeo The parents with young kidso Teenagers

DIFFERENTIATION:

o Trained chefs and food scientistso Introduction of its Creme Frappuccino lineo The infusion of Tazo tea drinkso The Starbucks Card, a sort of “fancy gift

certificate”o The rollout of Starbucks DoubleShot espresso

drinkso High-speed Internet access

Ques#1: How has Starbucks position itself?

POSITIONING:o Starbucks has positioned themselves in the

market as a highly reputed brand.o Starbucks has positioned themselves as a

premium product in the coffee industry

by creating a high standard, introducing

innovative products and providing excellent

service.o Starbucks offers distinguish products.

Ques#2: Apply the concept of holistic marketing?

Definition:Holistic marketing concept is based on the

development, design, and implementation

of marketing programs, processes, and

activities that recognizes their breadth

and inter-dependencies.

SUB-ORIENTATION:

1)  Internal marketing orientation:All star bucks employees are called

partners and the waiters at Starbucks are

called baristas to make them feel

exceptional and proud about their

workplace, not to feel just simple service

workers.

CONT….

2)  Relationship marketing orientationSatisfying the customers has always been the first

priority of star bucks. The chairman of Starbucks

Howard Schultz explains, that a person gets more

than just coffee when he/she visits Starbucks –he

gets great people, first-rate music and a

comfortable and upbeat meeting place.

CONT….

3)  Integrated marketing orientation:integrated marketing includes the 4 Ps of

marketing mix which are product, price,

promotion and place.o Product: coffeeo Price: stableo Place: hotels, airlines, university campuses,

office buildingso Promotion: environmental friendly

CONT…

 4) Performance marketing:•  Starbucks announces its  corporate

social responsibility• They started to use cups from recycled paper

or biodegradable plastic. • Social responsibility is also emphasized in their

coffee-bars’ design, posters and various promotional campaigns. 

Ques#3: Apply the concept of value chain?

• The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

AIM:

• Profit margin due to Value > Cost• Value Created and Captured less Cost of Creating

that Value = Margin

•Technological Development

•Human Resource Management

•Firm Infrastructure

•Procurement

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Value Chain of Firm ActivitiesValue Chain of Firm Activities Value Chain of Firm ActivitiesValue Chain of Firm ActivitiesPrimary Value Chain Activities and Support Activities

Marketing MixProduct: Whole bean coffees, cappuccino, coffee

makers, and other Starbuck paraphernalia. Also pastries, oatmeal, smoothies, seasonal offerings and wraps. Plus books, music and films.

Price: Premium prices due to high quality and variety of beverages offered.

Place: Own retail stores in high traffic and highly visible areas. Grocery stores, convenience stores and around the globe.

Promotion: Minimal advertising, Use of philanthropy and Starbucks Card.

Ques#4: How starbucks creates, delivers and communicates value?o Starbucks creates value for its valued

customers by:

- Providing them with their best quality claimed coffees

- Providing them personalized and customized coffees

-Providing them with a wide variety of coffee

- Training their staff on both hard and soft skills

- Understanding the human need of socialization and creating a third ideal place for their customers

CONT…..o Starbucks communicates value for its

customers by:

-Easily accessible and visible stores

-Local marketing and good locations

- Word of mouth

-No advertising

CONT…..o Starbucks delivers value to its customers

by:- Friendly staff

-Customized offerings and a wide range of products

-Good alliances

-Product innovation

SWOT…STRENGTH

•Established logo, developed brand, trademarks, patents and websites.•High visible locations to attract customers •Motivated employees•Globalized•Good relations with suppliers •Strong financial foundation

WEAKNESS•Size •Too much focus on expansion•Self cannibalization•Product pricing(expensive)

OPPORTUNITY•Technological advancement•New distribution channels(delivery)•New products•Brand extension

THREAT•Competition•Cultural and political issues in foreign countries•Consumer trends towards more healthy ways and away from caffeine

COMPETITORS…

o 7- eleven o Caribou Coffeeo Dunkin Donuts o Second Cupo Mcdonalds o Krafto Green Mountain Coffee Roasters o Procter & Gambleo Coffee Beans And Tea Leaf o Nestleo Costa Coffee

CONCLUSION…“First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans

into reality. The beginning, as you will observe, is in your imagination.” – Nepoleon Hill..

QUESTIONS??

THANKYOU…...