STARBUCKS Case Analysis, Thesis of Marketing Research

Download STARBUCKS Case Analysis and more Thesis Marketing Research in PDF only on Docsity! STARBUCKS CORPORATION A Case Study Analysis Presented to the Faculty of College of BSCS-2nd year of PSU RIZAL In Partial Fulfillment of the Requirements for the Final grades in Entrepreneurial mindset by: DEXERLYN JOY D. JUNIO STARBUCKS CASE ANALYSIS Over the years, competition around the world became more intense due to rapid globalization especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be essential for companies to motivate, reward and train their employees to be the best quality personnel. One of the most famous chain of retail coffee shops in the world, Starbucks Corporation, mainly benefits from roasting and selling special coffee beans, and other various kinds of coffee or tea drinks. It owns about 4000 branches in the whole world. Moreover, it has been one of the most rapid growing corporations in America as well. The reasons why Starbucks is popular worldwide is not only the quality of coffee, but also its customer service and cozy environment. It establishes comfortable surroundings for people to socialize with a fair price, which attracts all ages of consumers to come into the stores. It is also noted for its employee satisfaction. Compared to many other companies, Starbucks has a relatively high turnover rate of 65% for full-time employees and the rate of managers was 25% a year. But in comparison to other quick-serve restaurants, the rates are 150% to 400% and 50% respectively. Compared with them, the turnover rate of Starbucks is much lower than other industries on average. As a result, Starbucks is one of the optimal business models for strategies of employee motivation, customer satisfaction and cooperation of teamwork. The chief executive officer of Starbucks corporation, Howard Schultz, considers that the reason for success in Starbucks is not coffee but employees. He firmly believes that the spirit of Starbucks is its employees and feels honored about their value. THE HISTORY OF STARBUCKS Starbucks began by three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew each other at the University of Seattle, in 1971. A sales representative, Howard Schultz, decided to be a part of Starbucks, as director of marketing and retail sales, after he realized the atmosphere and environment of the company. In 1985 Howard Schultz chose to establish a new coffee shop, named Il Giornale, in Seattle. After the next two years, due to the successful strategy of Schultz, the original three owners of Starbucks decided to sell their corporation to Schultz. Then Schultz gathered other investors and changed the name of Il Giornale to Starbucks. He sought to pursue his dream to make everyone taste his coffee, so he focused on the rate of expanding. At that time, he thought that the most efficient way to grow the amount of branches was to set up new stores in other places. In 1987, Starbucks had the first overseas store in Japan. Until the end of 2002, Starbucks has developed from 17 stores to 5,688 spreading over 30; it has grown over 300 times in these ten years! In Fortune magazine, Starbucks was ranked the 11th best company to work for in 2005 in the USA and then rose up in 2006 to 29th. In 2007, it was ranked as the 16th best. In the same year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times. Alternative course of action number 2 is pursued. It gives the solution to the problems that customers and baristas have no relationship and loss of warm feeling in the store. Customer experience is everyone’s job. This alternative course of action will make people feelthat they are welcome in the store. It will give good feedback to the baristas as well as to the Starbucks company. We all know that Starbucks is already given that it has a good ambiance and instagrammable place. So, people will visit it if they want to. But, if the customer service is notso good, customers will leave. To build loyalty and retain customers, Starbucks needs to deliver agreat experience of customer service every time they interact with the customers. So, Starbucks should have trained well their employees. It will give a lot of improvement to the employees although it will need an additional fund and workload. But eventually, it will also benefit them. Experience is the best teacher. This training will serve them as an additional experience andknowledge on how to handle different customers. Everyone needs to be trained especially theemployees in the front line. They are the ones who will give an amazing customer experience. All their efforts are nothing if they are not consistent in what they are doing. Consistency setsexpectations and creates predictability. And that leads to trust. When a brand earns a customer’strust, the relationship is solid. ACTION PLAN -Starbucks need Additional fund for annual training about customer-service. Time frame New employees - 4 weeks Old employees - 2 weeks Training program To have a good customer service qualities. Example: -Delivering Respect to Your Customer. -Have Your Agents Practice Active Listening Skills. -Empathy: The Key to Customer Success. -Ability to Communicate Clearly With the Customer. -A Positive Attitude. Be Patient. ... Customer Service Agents Determined to Serve