Starbucks Delivering Customer Satisfaction

Starbucks: Delivering Customer Satisfaction

Starbucks: Delivering Customer Satisfaction

Abstract:

Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.

To: Christine Day, SVP of Administration N.A.

From; Brace Clement, MBA Student in MKT 705

Date: Thursday, December 13, 2012

CC: Amber Epp, Marketing Extraordinaire and Professor of MKT 705

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Subject: Starbucks- “Delivering Customer Satisfaction”

Recommendation:

After evaluating each alternative (Exhibit 2), it is my recommendation that Starbucks invest $40 million per year to increase labor hours by 20+ hours per store in order to solve the problem with the quality of service. Starbucks should also set up an internal strategic marketing team (IMT). This will allow Starbucks to have a proactive response to customer concerns and hence faster response time. I also feel that customers and—ultimately—sales would improve from an increased campaign on the sensory coffee experience. Sales of coffee beverages account for most of Starbucks total sales, and therefore, we recommend Starbucks expand its passion for coffee into new channels such as complimentary food items and whole-bean coffees and develop non-retail sale channels (which do not require as much special training as making coffee beverages).

Background:

Numerous factors have accounted...