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Starbucks Case Study

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Starbucks: Delivering Customer Service
Definition of the key problems that needs to be addressed by the company
 The complexity of the barista’s job to prepare customized beverages has been increasing considerably which is affecting the service time. This might have led to reduction in customer satisfaction which could affect the company’s brand image and revenues as well. (p. 171, Chp. 11, Designing and Managing Services/Satisfying Customers Complaints) On average, 40 percentage of customers who suffer through a bad service experience stop doing business with the company. Companies that encourage disappointed customers to complain – and also empower employees to remedy the situation on the spot – have been shown to achieve higher revenues and greater profits than companies without a systematic approach for addressing service failures.
 The company did not have an individual department for Marketing Strategies. This kind of structure overburdened the senior executives as they had to assume marketing related responsibilities also. (p. 2, Chp. 1, Understanding Marketing Management/The Importance of Marketing) At greatest risk are firms that fail to carefully monitor their customers and competitors, continuously improve their value offering and marketing strategies, or satisfy their employees, stockholders, suppliers, and channel partners in the process.
 The company wanted to bring service time down to 3 minutes.
(p. 171, Chp. 11, Designing and Managing Services/Managing Service Quality)
 There was not much of a difference in the image or the products of the Starbucks compared to small coffee chains, according to the regular coffee drinkers. (p. 146, Chp. 10, Shaping the Market offerings/Product Differentiation)
Marketers face an abundance of differentiation possibilities, including form, features, customization, performance quality, conformance quality, durability, reliability, reparability, and style.
 The brand image of Starbucks was being affected...

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