Our group has decided to do a research of Starbucks Corporation, an internationally renowned coffee house chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with over 17,009 stores in 50 countries. This includes over 11,000 stores across the United States, over 1,000 in Canada, and over 700 in the United Kingdom. Starbucks’ success can be attributed to the creation of a successful retailing model. This report will discuss its development and of how the store image has contributed to the success of the corporation. It will analyze the components of the store image from the perspective of atmosphere; total shopping experience and promotions. It will also evaluate how closely the store presents the image it purports to project. Finally, the report will make recommendations for the retailers to further improve its image.
Starbucks focused primarily on providing services and made sure that customers came, enjoyed and stayed. Starbucks had no particular target market and catered to almost everybody with a wide ranging product line (Moon and Quelch 2006). Starbucks adopted the philosophy that keeping their employees happy would eventually make the customers happier. It believed that this would increase the speed of service which in turn would help them achieve the goal of customer satisfaction and make them stay longer. Therefore Starbucks trained their employees to adopt a pleasant and welcoming nature and to greet customers. It thought that by exchanging a few words with customers, employees would be contributing towards customer retention. Therefore all what they wanted was to win an argument and loose the customer (Moon and Quelch, 2006). Employees were well educated and trained to be coffee culture experts, communicate and engage in a friendly conversation with customers. This enabled customers to enjoy the Starbucks coffee culture and all that Starbucks had to offer. Starbucks’ efforts to cultivate customer loyalty has been very successful, according to the Starbucks marcom manager. He suggested that Starbucks customers have constantly appeared over 18 times per month (Moon and Quelch, 2006). As a result, Starbucks made a market orientation and keep a good store image, then it successed to improve its scope.
Starbucks chose to operate a directly owned cafe model. This was because Starbucks believed thatthis was the only way to ensure the quality of products and service provided. According toSchultz (Moon and Quelch, 2006), the manner in which employees communicate in Starbucks is what they felt as one of the most decisive factors for the success of its brand. Therefore, Starbucks would rather spend more money on opening a new store, training their own people, and also ensuring that starbucks products and services were of unity and high quality rather than spending on advertising.
By deleivering highend customer service as mentioned above and treating customers in the way the employees are trained to do would help starbucks polish its store image and make customers 100% satisfied with the product and extinguished service starbucks has to offer.
According to Moon and Quelch (2006), Starbucks has not engaged in large advertising campaigns, compared to its competitors, who spend 3% to 6 % of its budget on advertising (MOON AND QUELCH,2006). Starbucks mainly focuses on point of sales and local store marketing. In-store promotions act as a favorable method of advertising for a globally recognized brand like Starbucks which is often located in high visible areas. These promotions include Special rate coupons, Discount coupons, Happy hour drinks etc. These methods acts as good in store promotional approaches for Starbucks and helps to boost the number of incoming store traffic (Mintz, 2008). For example- Starbucks had an in store promotion of free coffee give away to all customers on 13th of May 2010...