Starbucks Case Study

STARBUCKS Case study

What are the underlying business issues?

1.MARKETING INFRASTRUCTURE

Ok so for such a successful company it’s hard to believe that you don’t have a marketing department in place. The fact that everyone seems to take on a marketing role within the company has lead to Starbucks losing sight of who your customers are, how your customers perceive the brand and a lack of focus and recognition on consumer and market trends. There is no one person looking at the ‘big picture’, making it impossible for Starbucks to give out a consistent message to customers about what Starbucks is and what Starbucks represents.

2. COMMUNICATING VALUES

Hence, there is also a problem with Starbucks communicating it’s values to it’s customers. Starbucks is supposed to represent a ‘third place’ to its customers, that’s just as integrated into their lives as is being at home and at work. Starbucks is also about speciality coffee at its finest quality and outstanding customer service...yet only 54% of consumers associate starbucks with specialty coffee? Furthermore, there are very different perceptions of starbucks from newer customers, who have visited in the last year, compared to established customers. Why do only 30% of new customers feel that Starbucks is a brand they can trust, compared to 50% of established customers? And how much has starbucks values been overshadowed by its aggressive expansion and growth, what kind of message does this give to consumers?

3. PARTNER SATISFACTION

Now I also think we have to take into account the role of baristas working on the ground level, so to speak. They will of course have the most impact upon customers as they interact with them and we need to honestly question whether the baristas can maintain the level of ‘customer intimacy’ that starbucks wants and declares within its value proposition when baristas’ job complexity has increased massively as starbucks has grown. I completely agree with the notion that partner...