Mktg 665 - Starbucks Corporation
Autor: dbansal • December 13, 2016 • Research Paper • 2,126 Words (9 Pages) • 740 Views
MKTG 665
Case project
Case study: Starbucks Coffee
Submitted to: Submitted by:
Prof. Mark Lee Diksha Bansal
E01485701
About the company:
Starbucks Corporation is an American coffeehouse chain. It was founded in 1971. The name and the mermaid logo were inspired by their love for the sea which signified its origin that is Seattle Washington in the heart of Pike Place Market. They started with a single shop specializing in high quality coffee and brewing products which now grew to the status of the biggest coffeehouse business, operating in about 23,768 locations all around the globe. They have differentiated themselves from other coffee serving shops by its taste, quality and customer experiences. In 2000s they initiated the handmade coffee based on light roast for quality minded coffee drinkers. However now they started using espresso machines for efficiency and safety reasons.
Their mission statement from the company profile is as follows:
“Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time.”
At present the main categories of their product lines are:
- Coffee
- Tea
- Pastries
- Frappuccino beverages
- Smoothies
- Merchandise (mugs, instant coffee, etc.)
They continue to innovate their menu and product mix to capture more and more market. Their current offering is an outcome of years of business innovation.
Executive summary:
Starbucks has always been known for its quality and premium brand. However lately, they have been distracted and losing focus from their customers. The main reason for this distraction was due to overexposing themselves in many directions. Like in 2007 the creation of their own recording company then moving towards various product lines and overdoing the menu. Because of which customers started getting confused in making decision or placing an order which lead to longer wait line and lower service. This was not the only issue Starbucks was facing. Other issues may include bad attitude from the employee when a customer asked for a customized coffee beside their menu, bad reaction from workers when consumers used a wrong term. All this led to lower consumer satisfactions, bad experiences and lower purchasing satisfaction. Additionally they also started experiencing lose in stock prices, customers and their status. Starbucks operates at the scale of some banks and oil companies. It’s a real challenge to grow big and maintain a connected feeling. However, they have to save their company from getting domed and live up to their name that they have built from so many years. Some of the suggested alternative which I think which can best address these problems were:
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