An Analysis Of Starbucks

Starbucks center business is to brew the best coffee, handcrafted drinks, food, consumer products and keeping a great marriage with the customer.

Provide services that happen to be beyond customer objectives such as personalizing customer need according to their preferences.

How does indeed Starbucks provide service differentiation??

Starbucks give a great work environment and treated the other person with respect.

Putting forearms around people and demonstrating the several from one another in the manner they certainly their business.

Supply the best standards of superiority in purchasing, roasting and fresh delivery of these coffee.

Evaluate Starbucks atmosphere/physical surroundings.

Starbucks Atmosphere

Comfortable Atmosphere

Cosy and Intimate

Providing people who have their own private space to use

Peaceful and silent place away from home or office.

Chatting with relatives and buddies with the long couch which feels as though their own house.

Jazzy and soothing music

Physical Surroundings

Sofas, armchairs, caffeine tables and recliners, bars and stools, reaching room's furniture could be within most outlet stores where it could accommodate big and small sets of people.

Comfortable armchair get visitors to relax and linger around and get away from into a book, magazine or newspapers.

Unique light fixtures

Wireless connection in all Starbucks shops.

What are the advantages and weaknesses of this atmosphere? What you can do to increase the atmosphere at Starbucks?

Strengths of this Atmosphere

Weaknesses of this atmosphere

Nice place for chit chat session with friends and family. Therefore, they might come in one big group.

People will think of Starbucks when they want their own private space.

Homely feeling that could not be found in other caf.

People will tend to purchase one glass of beverage and spent their day seated in Starbucks. (Low Turnover)

If the stores gets too congested it would defeat the Starbucks theory cosy and close and wrap up disappointing customer.

Starbucks could improve their stores by putting more outdoor shelters as currently almost all of their stores have outdoor sittings but without any shelters during times when it's sunlit and rainy.

Having different kind of music with distinct notion within the stores would cater to different group of folks such as youngster, adult, businessman and etc.

Part B (5 things): Determine what spaces in the 5 Difference Style of Service Quality (Appendix A in your textbook) that Starbucks is currently facing. Next, provide recommendations for improvement for each and every gap that you think Starbucks happens to be facing.

Currently, Starbucks is facing a Space 4 Service delivery versus exterior communications & Gap 5 expected service versus recognized service quality.

Starbucks which were only available in the entire year of 1971 have a brief history of 41 years till time frame. Altogether, Starbucks have a complete of 17, 651 stores (as of July 2012) where management would play a very big part.

Gap 4 which including don't overpromising guest, maintaining standards even when the stores is located in deserted area where there's hardly any customer could be observed around.

Such situation would put Starbucks in great threat as they need to maintain their quality of food and refreshments even when they are facing turmoil. Such situation would cause Starbucks to have significantly more wastage and losing of manpower which would raise the operational cost as the store require worker to provide and machinery cannot be pull the plug on.

Gap 5 which inclusive different expected quality and perceived quality Starbucks with various shops would require great management team to lead the store so as not to compromise the product quality.

Customers who head into Starbucks know very well what they are expecting from the company such as quality caffeine, beverages and cake. If guest get less than he expected, the guest is dissatisfied consequently reputation of the company would be affected.

Suggestion to Starbucks

Gap 4 improvement recommendations to Starbucks would require them to analyze the location and human masses before they create stores. If indeed they have high turnover stores would require topping up of fresh goods as such quality would be well maintain and there won't be high wastages.

Gap 5 would require Starbucks to obtain great management in their system where employees could follow their standard procedure procedure in order not to bargain their quality of service.

After reading this article I am made known that Starbucks conduct training for employees, supervisor and they are require to clock certain time of trained in order to officially start working for Starbucks.

Starbucks have step up their benefits such as spending $1000 per staff on training, providing health and oral benefits and a free pound of caffeine weekly. Such benefits would not be sufficient as employees would prefer to have more recovery day in order that they could spend quality time using their family members. I'd also suggest to Starbucks to look out for potential employees who could draw out Starbucks brand well and providing them with opportunities to franchise Starbucks as such Starbucks brand would be well market as they could open up more branches all over the world.

Part C (16 tips): Expanding Marketing Strategies for Starbucks

Conduct a SWOT analysis of Starbucks. This should include 2 items for every single element of the SWOT (2 strengths, 2 weaknesses, 2 opportunities and 2 risks).

SWOT Analysis

2 Strengths

Well established emblem, brand, copyrights, trademarks, websites and patents

Starbucks branding have be produced well known all over the world and they have secured their product well by giving it copyrights, trademarks and patents.

Customer Base Devotion (Starbucks Card)

Providing regular customer with Starbucks card would reward them with complimentary or discount beverages whenever they have accumulated a certain amount. Doing so would maintain devoted customer.

2 Weaknesses

Expensive food and drink pricing

Profit and income focus

2 Opportunities

Great buying power

Rapid growing brand

2 Threats

Competition (Coffeeshop which offers coffee at cheaper price, supermarkets, others such as beans, Mc Caf, Pacific Caffeine and etc)

Rising cost for caffeine & dairy product

What tactical initiatives could Starbucks undertake for each and every element of the merchandise Development Grid (see Slide 12, Section 3 records). Please list 2 initiatives for each aspect in the grid (2 for product development, 2 for market development, etc).

Product Development

Starbucks could start coming out with set foods so that customer could spend more time enjoying their day in Starbucks. Perhaps they have to expand their business rendering it a western dishes caf and restaurant.

Modify the merchandise cost without reducing the quality in order to make it affordable to various customers rather than the usual price which ended customer from considering if indeed they should purchase Starbucks or other competition which cost less.

Market Development

Promote brand with community when you are responsible to the environment.

It not only uses clear plastic cups they uses green technology which will save you electricity and cutting down on water consumption.

Use the assistance of social advertising such as Facebook, iPhone Apps and other way to obtain press which helps them to promote their brand and upgrading customer with the existing campaign. Put people before product by customizing their products according to their features.


Setting up event and getting themselves entail in community service in order to build up better reputation to general public.

Get linked with various hotels and airlines in order that they could advertise and offer service to the hotels and air planes on board.

Market Penetration

Creating a Starbucks experience which makes people crave for their coffee. Quality should never be compromise so that customer wouldn't normally be disappointed.

Building imagine split from the small caffeine chains. Customer could have an idea that they are purchasing premium coffee instead of the most common coffee which could be found easily.

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