Starbucks Essay

Starbucks

2014/09/03

Starbucks’s success in the early 1990s contributed to several factors. First, the grasp of living habits of Americans. Generally, they only had two places to go-home and work. Starbucks decided to create a place where people could relax and enjoy. Second, channels of distribution. Almost all of Starbucks located in high-traffic, high-visibility settings such as retail centers with a number of product mixes. Starbucks also sold coffee products through varies kinds of channels to hotels, airlines, restaurants, and the like which made products were easily accepted by consumers. Third, Starbucks paid more attention to their employees called “partners.” Since the establishment of Starbucks, it had their own value proposition, including “live coffee” and Starbucks partners. Starbucks keep the national coffee culture alive by affording high-quality coffee, high “customer intimacy “and a relaxed, comfortable environment. In addition, Starbucks provided good treatment and formulated career development for employees. During the development, with insist of Starbucks value proposition, Starbucks developed a brand image with a high-quality service, products, environment and convenient channels.

According to the data, Starbucks were not meeting customers’ expectations in the area of customer satisfaction and the scores declined. In fact, Starbucks was focusing on the customer experience, quality of service and environment. The scores declined were not because of the service quality, but the changing of customers and customers’ behavior. The market research team found that Starbucks’ customer base had expanded to people of all ranks which it was difficult for Starbucks to cater to kinds of tastes. Furthermore, the changing of customer behavior. From exhibit 10, we can see that personal value was widely divergent. A number of customers thought it was important of clean store. However, some customers thought fast service was important.