So far, Starbucks has spent very little money on advertising, preferring instead to build the brand cup by cup with customers and depend on word-of-mouth and the appeal of its storefronts. The company was, however, engaged in a growing effort to extend the Starbucks brand and penetrate new markets. In addition to expanding internationally, venturing into ice cream with Dreyer's and into Frappuccino with Pepsi, partnering with licensees, and developing specialty and mail-order sales.
“To inspire and nurture the human spirit— one person, one cup, and one neighbourhood at a time.”
EXPERIENCE is about these 3 P’s:
1. People- the baristas and their connection with customers.
2. Place - the physical stores, their design and aroma
3. Product – the beverages, food, and merchandise
4. Price -
5. Promotion -
6. Physical Evidence -
7. Process -
• (People & Product) Customer connection and a fresh, hand-made beverage. The newer automatic machines that replaced the La Marzoccos are faster, but blocked the visual sight line the customer previously had to watch the drink being made, and for the intimate experience with the barista.” It seems that the personal connection between the baristas and the customers is the core of their experience.
• (Place) The Aroma. “...The loss of our people scooping fresh coffee from the bins and grinding it fresh in front of the customer, …” Some say the sale of hot food has detracted from the coffee aroma that customers attach to Starbucks stores.
• (Place) Store Design. Design of their stores has taken on a more streamlined feel to gain efficiencies. But that resulted in the stores losing their charm and uniqueness. Starbucks has “stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store. Some people even call the stores sterile, cookie cutter, no longer reflecting the passion their partners feel about... [continues]
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