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  • Starbuck

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    Kumar Vikas
    129 visualizzazioni11 pagine
    Starbucks achieved early success in the 1990s through its high quality coffee, atmosphere promoting lingering in stores, and extensive distribution channels. However, customer satisfaction has declined as workloads increased for baristas due to growing customer numbers and more complex orders, changing the customer experience from 1992 when customers were more coffee connoisseurs. The ideal profitable Starbucks customer would visit 18 times per month, spending on average $79.56 each visit, generating over $7,000 in revenue for Starbucks over their lifetime as a customer.

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    case about starbuck's operation

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    Starbucks achieved early success in the 1990s through its high quality coffee, atmosphere promoting lingering in stores, and extensive distribution channels. However, customer satisfaction has declined as workloads increased for baristas due to growing customer numbers and more complex orders, changing the customer experience from 1992 when customers were more coffee connoisseurs. The ideal profitable Starbucks customer would visit 18 times per month, spending on average $79.56 each visit, generating over $7,000 in revenue for Starbucks over their lifetime as a customer.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    129 visualizzazioni11 pagine

    Starbuck

    Caricato da

    Kumar Vikas
    Starbucks achieved early success in the 1990s through its high quality coffee, atmosphere promoting lingering in stores, and extensive distribution channels. However, customer satisfaction has declined as workloads increased for baristas due to growing customer numbers and more complex orders, changing the customer experience from 1992 when customers were more coffee connoisseurs. The ideal profitable Starbucks customer would visit 18 times per month, spending on average $79.56 each visit, generating over $7,000 in revenue for Starbucks over their lifetime as a customer.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 11

    StarBuck Delivering Customer Services

    Dinesh Jain Kumar Vikas

    Q.1 What factors accounted for the extraordinary success of Starbucks in the early 1990's?

    Starbucks value proposition Channels of distribution Starbucks's Partner Delivering on service Monitoring performance of service

    Starbucks Value Proposition


    Created experience around consumption of coffee

    Coffee

    Highest quality coffee sourced across the globe Supply chain integration from working directly with growers to custom roasting process Controlling distribution

    Service (Customer intimacy)

    Created an uplifting experience during every walk through Most loyal customer visit more than 18 time / month

    Atmosphere
    Ambience that makes people to stay

    Seating area to encourage lounging


    Layouts supporting inviting environment for lingering

    Channels of distribution
    Strategy :- To reach customer where they work, travel, shop and dine

    Company operated stores at high visibility, high traffic location Specialty Operation Non Company operated stores for selling coffee;-

    hotels, airlines, etc

    Domestic retail stores at locations difficult to reach (airports)

    International licensed store Online and mail order Join venture_ with

    PepsiCo for Frappuccino Dreyers Grand Ice Cream for premium line of ice cream

    Starbuck partners

    All employees were called Partners

    Partner satisfaction leads customer satisfaction


    Starbucks partner satisfaction rate (80-90%) much above industry average (50-60%) Ranked 47th best place to work in fortune magazine Lowest employee turnover rate Ample promotion opportunities (70% store mangers are ex baristas)

    Delivering on service

    'Partners Training for delivering superior services

    Hard skills for handling diversity of menu

    Soft skill : Enthusiastically welcome, Eye to eye contacts, smile, remembering names, encourage for conversation

    Just say yes policy Simplifying production processes, finding and removing bottlenecks Introduction of automated machines Service performance evaluation (Service, Cleanliness, Proudct Quality and Speed (3 min standard)

    Q2.Why have Starbucks customer satisfaction scores declined?

    Service gaps due to increase in work load of baristas due to

    Because of the increase in customers the preparation of our made-to-order product

    How does the Starbucks of 2002 differ from that of 1992?


    1992 2002

    Customer considered a coffee connoisseur and well educated Customer is predominantly a professional female Customer enjoys the process of being served coffee by a professionally trained barista

    Customer enjoys conversing with staff and being recognized as a regular customer

    2002 PRESENT Customer type is changing and broadening Customer is becoming more concerned about price, convenience, and fast service Income and education level of customer is more varied Complexity of the product ordered and the menu is more time consuming to make for the customer

    4.Describe the ideal Starbucks customer from a profitability standpoint. How valuable is he/she to Starbucks? What would it take to keep such customers highly satisfied?
    Highly Satisfied Customer Number of Starbucks Visits/Month 7.2 Ideal Customer

    18

    Average Ticket Size/Visit


    Total Revenue/Month Total Revenue/Year Average Customer Life (Years) Total Revenue Over Customer Lifetime

    $4.42
    ($4.42x7.2) = $31.82 ($31.82x12) = $381.84 8.3 ($381.84x8.3) = $3,169.27

    $4.42
    ($4.42x18) = $79.56 ($79.56x12) = $954.72 8.3 ($954.72x8.3) = $7,924.18

    5. Should Starbucks make the $40 million investment in labor in the stores? Why/Why not?

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