Case Study: Starbucks
Case One:
Starbucks
Even with the “No. 1 Best Coffee” Award from Zagat’s Survey of National Chain Restaurants as well as numerous other awards and recognition under their belt, Starbucks remains vulnerable to the ever-changing, ever-demanding needs of their customers (Starbucks Company Recognition). In order to succeed in the service industry, companies must provide impeccable customer service in addition to rewarding their customers through programs and promotional strategies. Currently, Starbucks has reward programs and promotional strategies in place, but they have failed to construct them in a way that fairly and appropriately benefits their customers. In addition, Starbucks’ reward programs are generally unknown by most people and are not advertised enough so that people actually know they can receive those rewards and benefits. As a whole, Starbucks needs to cater to its loyal, and more importantly, profitable customers in a more suitable way. Therefore, Starbucks should implement more advertisements of their reward programs, minimize the requirements for receiving benefits, and maximize the incentives and promotional offerings. By doing so, they will surely please their customers, create more loyal or repeat customers, and ultimately increase profit. Starbucks did not earn the “No. 1 Best Coffee” Award overnight. It took decades for them to get there. In 1971, Starbucks opened its first store in Seattle’s historic Pike Place Market (Our Heritage). The name, which was inspired by the first mate in Herman Melville’s Moby Dick, hinted to the romance of the high seas and the seafaring tradition of the early coffee traders. The logo is also inspired by the sea—featuring a twin-tailed siren from Greek mythology (Starbucks Company Profile). From just a small store in Pike Place Market, Starbucks attracted Howard Shultz with their offerings of some of the world’s finest fresh-roasted whole bean coffees. Shultz would soon become chairman, president,
Starbucks
Even with the “No. 1 Best Coffee” Award from Zagat’s Survey of National Chain Restaurants as well as numerous other awards and recognition under their belt, Starbucks remains vulnerable to the ever-changing, ever-demanding needs of their customers (Starbucks Company Recognition). In order to succeed in the service industry, companies must provide impeccable customer service in addition to rewarding their customers through programs and promotional strategies. Currently, Starbucks has reward programs and promotional strategies in place, but they have failed to construct them in a way that fairly and appropriately benefits their customers. In addition, Starbucks’ reward programs are generally unknown by most people and are not advertised enough so that people actually know they can receive those rewards and benefits. As a whole, Starbucks needs to cater to its loyal, and more importantly, profitable customers in a more suitable way. Therefore, Starbucks should implement more advertisements of their reward programs, minimize the requirements for receiving benefits, and maximize the incentives and promotional offerings. By doing so, they will surely please their customers, create more loyal or repeat customers, and ultimately increase profit. Starbucks did not earn the “No. 1 Best Coffee” Award overnight. It took decades for them to get there. In 1971, Starbucks opened its first store in Seattle’s historic Pike Place Market (Our Heritage). The name, which was inspired by the first mate in Herman Melville’s Moby Dick, hinted to the romance of the high seas and the seafaring tradition of the early coffee traders. The logo is also inspired by the sea—featuring a twin-tailed siren from Greek mythology (Starbucks Company Profile). From just a small store in Pike Place Market, Starbucks attracted Howard Shultz with their offerings of some of the world’s finest fresh-roasted whole bean coffees. Shultz would soon become chairman, president,
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