Coffee and Starbucks
1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?
According to the case study, the three factors that accounted for the extraordinary success of Starbucks in the early 1990 are as follows:
a. The first factor was “the coffee itself “– Starbucks believed that they offered their consumers with the highest quality coffee which was sourced from Africa, Central and South America, and Asia-Pacific regions. Starbucks tactic was to corner the market by controlling as much of the supply chain as possible and also controlling the distribution of retail stores around the world. Starbucks worked with different regions to purchase its coffee.
b. The second factor was “service” – this was also known by the company as “customer intimacy”. Starbucks had many loyal and frequent customers which made it easy for the employees to learn how to make the perfect cup of coffee must the way they like it. This provided their customers with a good experience every time they walked into a coffee shop.
c. The third factor was atmosphere - Starbucks theory was to provide their customers with a cozy atmosphere inside their coffee shops. Their setup consisted of comfortable fashionable lounge areas which attracted all types of crowds.
Starbucks coffee shops were scattered throughout all of North America and quickly started to expand their products by offering their customers more than just whole-bean coffee such as pastries, sandwiches, juices and sodas. Their strategy was to attract customers at grocery stores, where they work, dine and shop. Their image was to get out there and be in the leading each of provide the best tasking whole-bean coffee while catering to their customers.
2. Why have Starbucks’ customers satisfaction scores declined? Has the company’s service declined, or is it simply a measuring satisfaction the
According to the case study, the three factors that accounted for the extraordinary success of Starbucks in the early 1990 are as follows:
a. The first factor was “the coffee itself “– Starbucks believed that they offered their consumers with the highest quality coffee which was sourced from Africa, Central and South America, and Asia-Pacific regions. Starbucks tactic was to corner the market by controlling as much of the supply chain as possible and also controlling the distribution of retail stores around the world. Starbucks worked with different regions to purchase its coffee.
b. The second factor was “service” – this was also known by the company as “customer intimacy”. Starbucks had many loyal and frequent customers which made it easy for the employees to learn how to make the perfect cup of coffee must the way they like it. This provided their customers with a good experience every time they walked into a coffee shop.
c. The third factor was atmosphere - Starbucks theory was to provide their customers with a cozy atmosphere inside their coffee shops. Their setup consisted of comfortable fashionable lounge areas which attracted all types of crowds.
Starbucks coffee shops were scattered throughout all of North America and quickly started to expand their products by offering their customers more than just whole-bean coffee such as pastries, sandwiches, juices and sodas. Their strategy was to attract customers at grocery stores, where they work, dine and shop. Their image was to get out there and be in the leading each of provide the best tasking whole-bean coffee while catering to their customers.
2. Why have Starbucks’ customers satisfaction scores declined? Has the company’s service declined, or is it simply a measuring satisfaction the