Starbucks was one of the first to create a product with such distinction and the product was sold both in the cafes as well as grocery chains. Another factor was the excellent customer service that they provided and finally, the atmosphere. People came to the café to buy coffee however; they were also drawn in by the atmosphere. Starbucks success rest on the facts that they: Started with a good business concept, thought big, thought outside of the box and partnered smart The most compelling thing about Starbucks value proposition was that Starbucks wanted to create an experience for customers that they could “weave into the fabric of their everyday lives”. This was important for top managers at Starbucks because instead of just having customers come in and out for a cup of coffee they can also think of Starbucks as a place to relax and meet with friends.
Second was their “customer intimacy, which translated into a large variety of coffee selection as well as customization by the drinker. Lastly, was their customer service, To create the “uplifting experience” they strive for they strongly encouraged their baristas to remember
Our success depends on the satisfaction of our customers and we are committed to giving them the ultimate shopping experience. SWOT Analysis Strengths: 1. Stores are clean and well designed. Aisles are open and clutter-free which makes it comfortable for customers to shop. The lighting is fantastic, making it easy to see products clearly.
William Torres Comm 352 10937081 Just Us! Strategic Issues Just Us! Coffee Roasters Co-operative has enjoyed growth over their start up phase and is wishing to expand further. Just Us! Coffee Roasters operates in the niche market of Fair Trade Coffees.
Customer value proposition is leveraged around serving the coffee experience into everyday lives. Quality Coffee, great service and atmosphere combine for a completing value proposition. Working directly with growers to purchase green coffee beans, overseeing the custom-roasting process, and controlled distribution ensure a quality product. While extensive training confirms excellent customer service, clean and well-maintained worldwide stores that reflect the personalities of each community, thus building a high degree of customer loyalty. (Starbukcs Corporation, 2012) In 2010 Starbucks declared a dividend for the first time and key
Organizational Culture of Starbucks Angela Browning BCOM/230 November 19, 2012 Jamie Barmach Organizational Culture of Starbucks The organizational culture of Starbucks begins with their mission statement. It continues with external communication via interaction with vendors, community involvement, and encouraging customer feedback on service and ideas for improvement. The Starbucks mission statement says that they are “passionate about ethically sourcing their coffee beans … and improving the lives of the people who grow them” (Starbucks Coffee Company, 2012, Our Starbucks Mission Statement, para. 1). They meet this mission by buying these environmentally friendly products.
Starbucks is a star performer in executing a broad differentiation strategy. The competitive approach that Starbucks employs is a broad differentiation strategy. Starbucks successfully offers unique product/experience attributes which a wide range of buyers find appealing and are willing to pay for. The key market characteristic for the strategy of differentiation to work is that buyers’ needs and preferences are very diverse and cannot be satisfied with a standardized product offering. Because Starbucks is successful in executing its differentiation strategy, it is able to command a premium price for its products; increase unit revenues; and capture, maintain, and grow consumer brand loyalty.
Over the years Starbucks has grown to understand the importance of working together and taking care of one’s investments. One way of ensuring that Starbucks always gets the best products (materials) is through ethical sourcing programs. Starbucks is committed to always buying and making available the best high quality, responsibly grown, and ethically traded coffee that will help create a better future for farmers. Examine the importance of demographics and physical infrastructure. Analyze the influence of
A place where they could go to relax and enjoy others, or just be by themselves. - The coffee itself: Starbucks worked directly with growers in various countries of origin to purchase green coffee beans, oversaw the custom-roasting process for the company’s various blends and single-origin coffees, and it controlled distribution to retail stores around the world. - The service: Starbucks created an uplifting experience every time you walk through our door - The atmosphere: Starbucks created the atmosphere with seating ares to encourage lounging and layouts that were designed to provide an upscale yet inviting environment for those who wanted to linger - Channels of distribution: Starbucks stores located in high-traffic, high-visibility settings. Starbucks provided variety of pastries, sodas, and juices, along with coffee-related accessories and equipment, music CDs, games, and seasonal novelty items. It also sold coffee products through non-company-operated retail channels.
It is a win-win relationship for both parties. 2. What are the risks and benefits to SBX in pursuing these environmental objectives with CI? Risks: • Climate Change, water scarcity and community issues Benefits: • Starbucks mission/goals is to help farmers who grow coffee by helping to sustain coffee farmers and strengthen their communities, in term ensures healthy supply of high-quality coffee for consumer. • Gained better control on global markets.