1. What factors accounted for the extraordinary success of Starbucks in the early 1990s?

What was so compelling about the Starbucks value proposition? What brand image
did Starbucks develop during this period?
The strategy of making the company as public in appropriate time, the idea of
trying to become a “third place”, the high-quality of a coffee and locating near
swarming places such as university campuses, office buildings, retail centers are the
key elements to account for extraordinary success of Starbucks in the early 1990s.
Also making partnerships with renowned companies brings Starbucks to be promoted
and attracted by new customers. In addition, applying efficiently two important
components such as “Customer Focus” and “Competitive Advantage” made Starbucks
The high quality of a coffee , “customer intimacy” which also refers to service and
the coffee shop’s atmosphere are the components of branding strategy which sums up
as a “live coffee” mantra. To achieve these components, Starbucks checked most of
the supply chain of coffee, offered high coffee variety and designed its stores with
fancy furniture because Starbucks tried to reflect the notion of “not only selling the
coffee but also selling my brands as a sign of a hip modern and fashionable attribute”
to its customers. As a result, compelling value positions consisted of combined these
Trendy, widely available and to be satisfied with production and services was the
brand image of Starbucks at first. But after some market researches, it was seen that
the image shifted from caring customer values to company growth.

2. Why have Starbucks' customer satisfaction scores declined? Has the company's
service declined?
Although there was no considerable declining score in service area according to
Customer Snapshot scores, customer satisfaction scores declined. Changing in
customer base from well-educated and wealthy middle-aged customers to less welleducated and middle-class youth customers, overmuch customization opportunity in
coffee selection which leads to discrepancy in customer focus and product quality and
directly affected service speed are the main reasons to explain this situation.

have an 8. Describe the ideal customer from Starbucks' standpoint. the company’s image was reaching expeditiously high-quality coffee where one can easily hang out in 1992 but unfortunately reaching just good coffee where one meets people and move on took the place in 2002. 4. 5. How does the Starbucks of 2002 differ from the Starbucks of 1992? The norm of Starbucks was changed from “Customers go to the Starbucks” to “Starbucks goes to customers”. paying special attention to cleanliness.3 years customer life averagely. Nejdet Ayberk Erdogan 23241 . Also.3. spends $4. As a result rapidly growing generated increase in customer unsatisfaction ultimately. Improving efficiency and speed of services. But Starbucks should examine how much to spend for reaching customer intimacy and how much to want for impacting their bottom line . Creating delighted customers who are less price sensitive. talk about the company and products to others and reducing customer defects whose 5% decrease level leads company to improve profits about 25-80% are highly valuable to Starbucks.42 per visit. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks? The ideal customer of Starbucks is who visits the store 18 visits per month. Should Starbucks make the $40 million investment in labor in the stores? For what purpose? Partner’s satisfaction will lead to production and servicing of better coffee and it also will lead to customer satisfaction and increase in turnover and profit. focusing on friendlier and more attentive staff ensure customer to be highly satisfied.