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Rogers Raiju Starbucks Discussion
Rogers Raiju Starbucks Discussion
Guy Minton Jasveen Samra Mukund Narasimhan Noppawun Sopee Raiju Neelamkavil Wei Zou
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Redefine their marketing strategies starting with a proper research and evaluation of what the customer wants. Starbucks has lost track of the customer when their determination of what is served to the customer is determined by what makes the barista happy. Analyze the customers, and potential customers through their specialty sales to see the impact upon current or potential retail sales in stores. Out of store sales is obviously helping drive Starbucks retail sales. 40% of the new customers have tried Starbucks products prior to coming into the store the first time. How do we increase these sales? Is it because of the coffee purchased at the grocery stores? Did they find what they expected when they tried the Starbucks retail store? Research customers who do not frequent Starbucks, or who have never been inside a Starbucks store to determine why. What is their perception of Starbucks? Do they drink coffee or specialty coffee? What would get them to try it for the first time? Create a centralized marketing department which can attempt to coordinate all marketing efforts. There appears to be a lack of harmony between collecting data and the proper evaluation of the data. The snapshot methodology they used may not reflect a universal measure of customer satisfaction.
Analyze the innovative sales to determine the effect on labor costs to determine if the sales support the costs and the potential decrease in the time available to quickly serve the customer. Case research indicates that innovative products are not as important to the customer as quick and pleasant sales. Are these sales actually impeding the object of quick and pleasant sales without providing important income? Their marketing product mix may be inappropriate. Concentrate new store openings in areas that would not cannibalize existing sales. There are many areas that Starbucks is not in. Why cannibalize? Advertise more to establish the branding of Starbucks. Why is Starbucks different? While Starbucks may think they know what distinguishes Starbucks from others, they should do more research and develop a real strategy prior to initiating any major advertising campaign. They have developed over time, and their customers are different than before. Quick term fix to add more employee hours to reduce wait time, although this should be allocated according to an established need per store. The quick, convenient, and friendly service are obviously important based on customer satisfaction surveys. For the short term this obviously should be addressed and fixed. At some point, the product mix should be addressed to help reduced wait time.
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