Starbucks Coffee Company

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Company Profile

1971: Starbucks started as coffee bean retailer in Seattle
Over 7,225 in 32 countries
2002/2003: annual turnover of $1.1 billion

Starbucks’s Success

World-class Service Provider
Consistency of Service and Product
Starbucks Experience

Starbucks Service Offer
Starbucks Message: “…drinking a cup of coffee is more than that, it is something that offers hints of mystery and romance to elicit an emotional response”

Key characteristics of services
Intangibility
Inseparability
Variability
Perishability
Cannot be owned
The Starbucks Core Service
The Core Service: Consistency of Service and Product
Employee Training: Learning to be a Barista
Ensuring Product Quality
Service Standards
Star Skills

The Starbucks Secondary Services
The Secondary Services:
People (Customer service oriented to deliver the best service; world-class service provider) Process (Customers willing to enjoy Starbucks experience; they have to take some actions such as going to the shop, queuing to order and pay and then waiting to get their drink) Service Delivery (Consumers can have their drink in the shop or take it away, mail order and delivery) Physical evidence (Staff uniform and behaviour, magazines, brochures, website)

The Starbucks Secondary Services

Branding (World-class Service, High Price for a Premium Product/Experience, PR ) Styling (Sophisticated atmosphere typical of the Italian Coffee houses, music, interior design, artwork) Features (Outlets positioned in high street locations; stores also located within other businesses) Quality (Service processes must transmit a consistent level of quality to deliver a positive service to the customer)

Consumer’s Evaluation of Service Attributes
Security (Did I feel secure?)
Consistency (Is the service predictable?)
Attitude (How did I feel?)
Completeness (Was the service comprehensive?)
Condition (Was the environment pleasent?)
Availability (Did everything come at the right time?)...
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