DESIGNING BETTER CUSTOMER EXPERIENCE

FINAL EXAM
MM5001
MARKETING MANAGEMENT

S Y N D I C AT E 8
DIAS N. DWI S. ERIK P. FIRLIANI S.
29322493 29322461 29322449 29322432
01. Summary

02. Background

03. Market Research

04. Customer Journey

05. Marketing Strategy

 SUMMARY

• Indonesia is one of the 10 countries with the most Starbucks outlets. However, Starbucks
has a lot of competitors in Indonesia, e.g., Janji Jiwa, Kulo and Kopi Kenangan.
CU R R ENT
• To be the best coffee shop chain in Indonesia, Starbucks wants to be ahead of its
CO NDI TI ONS competitors, one of the strategies is improving satisfaction level in terms of customers’
experience.

• There are several consumer key triggers and barrier

• Key triggers for the consumer to choose Starbucks are pleasant atmosphere/ambiance,
accessibility, standardized but customized menu, and friendly staff.
M A R KET • Key barriers for the consumer to not choose Starbucks are face value price, taste, less
R ES EARCH authenticity, and long queue.
RESU LTS • By occasion, Starbucks consumers are divided into two: hang-out consumers and grab-and-
go consumer
• Hang out consumers important: comfortable and clean store, friendly staff, and price
• Grab-and-go important: access, price, taste
 SUMMARY

• Sources of awareness of Starbucks consumers are friends or colleagues, outlets, and

electronic direct message
• Starbucks consumers consider to choose Starbucks due to its image of prestige, social media
CU STO M ER reviews, and menu comparison
JO UR NEY • On purchase, Starbucks is divided into two: hang-out consumers and grab-and-go
consumers. Consumers prefer to buy Starbucks in outlets.
• Starbucks consumers will spread good word of mouth if they have a special moment at
Starbucks, high promo, and next-level experience (i.e. good view)

• To have multiple approaches that will support each other and lead to one goal: wider
customer segment = more sales opportunities
• Improve the image of a professional working place by serving fully equipped private / VIP
WAY
room
FO RWAR D FO R • Improve product by serving premium products and artisan coffee
STA R B UCKS • Reach a wider range of consumers by opening a pop-up store
• Shorten the waiting time for the grab-and-go consumer by launching a new feature on
Starbucks App: Pre-Order
 BACKGROUND
S TA R B U C K S I N I N D O N E S I A

1971, USA 2002, ID

Selected countries with the largest number of

Starbucks stores worldwide as of October 2022
 BACKGROUND
S TA R B U C K S M A R K E T S H A R E I N I N D O N E S I A

Number of coffee shop outlets in Indonesia Share of market value of largest coffee chains in
between August 2019 to April 2020, by brand Indonesia in 2019

Source : https://www.statista.com/statistics/1034500/indonesia-coffee-shop- Source :https://www.statista.com/statistics/1034500/indonesia-coffee-

outlets-number-by-brand/ shop-outlets-number-by-brand/
 BACKGROUND

• Non-Coffee Products
Cha Time
C • Affordable Price
Ban Ban • Non-Coffee Products
O • Price
Kopi Kenangan • Place
M • Indonesian Menu
• Place
S E RV I C E P Janji Jiwa
• Application

E • Place

M A N P OW E R VS T
Famili Mart

Harlan Holden
•
•
Price
Application

Tanamera • Authenticity - ”so” coffee

P L AC E & V I B E I • Place
Pison
T •
•
Heavy Meals
Heavy Meals
TO P O F M I N D O Djournal • Place
• Membership

R Coffee Bean • Place

Excelso • Place
 MARKET RESEARCH
RESEARCH OBJECTIVE

Understand consumer’s
Identify Starbucks
Identify Starbucks perception, expectation,
consumer needs and gap
consumer group usage, and attitude
through brand experience
towards Starbucks

Method : Focus Group Discussion

MARKET RESEARCH
RESPONDENT CRITERIA

DEMOGRAPHY
MALE-FEMALE
AGE 25-45
SEC UPPER
EMPLOYEE

USERSHIP CRITERIA
• USERSHIP SEGMENT, DIVIDED INTO 2 CATEGORIES
o LOYAL CONSUMER (BUMO) OF STARBUCKS IN THE PAST 1 MONTH, GOLD
MEMBER OF STARBUCKS
o REGULAR CONSUMER (TOP 3 BRAND) OF STARBUCKS IN THE PAST 1
MONTH
• ALL MUST BE AWARE OF STARBUCKS
• ALL MUST BE A REGULAR COFFEE/PLEASURE BEVERAGE DRINKER

LO C AT I O N
JABODETABEK
 MARKET RESEARCH
S TA R B U C K S C U S T O M E R S AT I S FA C T I O N D R I V E R

Starbucks outlets and its services are the main reason why consumer choose Starbucks for their beverage
needs .
STARBUCKS CUSTOMER
HI Pleasant Atmosphere / Ambience
•Most of the loyal user claimed the habit of coming to Starbucks were from their needs of a cozy
place

Accessibility
•The outlets are available at most of the place where the loyal user spent time (i.e. office, mall)

Standardized but customized menu

•Loyal user can depend on Starbucks consistent taste
•Loyal user also like how they can customize the beverage (e.g. level of sugar, type of syrup, milk
variation)

Friendly Staff
•The barista friendly attitude makes consumer feels special and wants to come back
LOW •The staff is also knowledgeable without being condescending, making consumer feels welcome
 MARKET RESEARCH
S TA R B U C K S C U S T O M E R S AT I S FA C T I O N B A R R I E R

Besides price, product quality become the biggest reason why consumers is not choosing Starbucks as the
brand for their coffee needs.
STARBUCKS CUSTOMER
HI Face Value Price
•Starbucks price (before promotion) is becoming one of the biggest reason why consumers not
choosing Starbucks
•Consumer thinks they can find better product with similar price

Taste
•Their products taste is not the best compared to other brands, especially the coffee
•There are no “characters” to their product (i.e. their coffee don’t have signature smell / notes /
taste)

Less Authentic
•Starbucks is being seen as “the fast food of coffee”
•Very few outlets with signature layout / architecture, thus no special feelings when visiting

Long Queue
•In peak hours, the queue is quite long
LOW •Other brands have a feature to order first, pick up later via their app, which Starbucks doesn’t have
 MARKET RESEARCH
S TA R B U C K S C U S T O M E R T Y P E - H A B I T

There are two types of consumer for Starbucks : ‘hang-out’ consumer and ‘grab-and-go’ consumer.
A person can change their type depend on the occasion despite their loyalty status. Quality of outlets
become the important thing for hang-out consumer, whilst access is the driver for grab-and-go consumer.

Hang-out consumer Grab-and-go consumer

Using Starbucks as a place to hang A place for consumer to get coffee as

Definition
out for work, school, or social activities soon as possible
Food and beverage Product consumed Beverage
Starbucks at mall
Starbucks at the office
Starbucks with great view Place
Starbucks drive through
Starbucks with big outlets
In the evening In the morning / afternoon
Time
Weekend Weekday
Comfortable and clean store Top 3 trigger to Access
Friendly staff choose a coffee Taste
Price brand Price
 CUSTOMER JOURNEY
CUSTOMER JOURNEY MAP

PERSONA
SCENARIO
● Tasya is very busy with her work
• Tasya, 30 y.o (single), upper class
especially in the morning. However, she
• Private sector employee, she love to
want to buy a cup of coffee which have
drink coffee and hang out with her
good flavour and fast service before start
friend.
her work, otherwise she can’t focus.
• Social media : Instagram
● On the weekend, Tasya love to hang out
with her friends. She needs to decide the
place that they can visit, with can offer
various menu and also convenient to stay
for couple of hours.
 CUSTOMER JOURNEY
CUSTOMER JOURNEY MAP

Awareness Consideration Purchase Onboarding Advocacy

Select payment Take away the • Invite friends to
• •
User Action

Looking around the area Compare the menu, price, Select menu
option order Starbucks. • Complaint to
• Search nearest coffee shop in promo, distance location, vibes
Google maps or facility of the store and • Persuade to store manager
Choose area to Select service Consume & sign up for • Give bad
• Search “best coffee shop” services. option : dine-in
• Review official social media sit or stay hangout in the store loyalty member review on
on social media and Google or takeaway
• Ask friends and coworker account and website of each • Review in social media
brand Socmed & Blog

• •
Touchpoints

Barista Payment • Socmed official account

• Social Media • Brochure
• Outlet store • POSM at cashier getaway • Email
• Website • Outlet store
• Social media desk machine • Barista/manager
• Food apps • Merchandise
• Search engine • Order confirmation • Shelf product
• Blog shelf
• Banner, brochure • Starbucks loyalty • Chalkboard,
• Digital ads card screen display

• Lack description of the menu, • Payment machine error or limited

taste and ingredients. • No response or late response for
option
Points

• customer’s complaint
Pain

No promo available. • Starbucks loyalty app error,

• Store too far loyalty card undetected
• Long queueing, no empty seat. • No empty seats available
• Taste less tasty. • Wrong menu input

• Provide most used payment method. • Ensure to follow up directly on each

Solutions

• Always maintain and update the loyalty

Possible

complaint both offline and online.

system. • Build communication with consumer
• Rearrange the setting seat and enlarge the (always present when there is good or
space. bad review, always share apology and
• Reconfirm to consumer on each order appreciation).
before payment happen.
M A R K E T I N G S T R AT E G Y

The STEPS
1 . D e f i n i n g Ta r g e t M a r ke t
2. Develop a Unique Preposition
3. The Strategy
 M A R K E T I N G S T R AT E G Y
D E F I N I N G TA R G E T M A R K E T

Who : Young Professi onal s |

THE SOCIAL People that utilize Starbucks as
High-end School Students |
PEOPLE a common meeting point(s)
Social Gathering Women

People that have more Who : Coffee Enthusiasts |

THE COFFEE knowledge and an advance Coffee Influencer | Young
LOVER coffee taste palette Professi onal s

THE BUSY People that drink coffee as their Who : Commuter | Daily Coffee
SOCIETY daily routines Drinker | Young Professi onals

THE Who : “Die Hard” Starbucks

Gold Tier Starbucks Member
L O YA L I S T customers
 M A R K E T I N G S T R AT E G Y
DEVELOP A UNIQUE PREPOSITION

THE SOCIAL THE BUSY

PEOPLE SOCIETY
From “Common Meeting Point ” Grab & Go Pop Up Store
 “Comprehensive Hang Out Place”

THE THE COFFEE

L O YA L I S T LOVER
Pre-Order Features in Starbucks App From “Good regular coffee” 
“Artisan Coffee”
 M A R K E T I N G S T R AT E G Y
T H E S T R AT E G Y

THE SOCIAL From “Common Meeting Point ”

PEOPLE  “Comprehensive Hang Out Place”

Adding private room can give additional features to some selected

OBJECTI VES
outlets  Improve word of mouth

PRODUCT DEVELOPMENT
Additional fully equipped Private/ VIP room
PROPOSAL

KEY PERFORMANCE INDICATOR P&L from the specific room

Social Media | Media Release | Store Signage | Front Line/Barista

AWARENESS PROPOSALS
Offering SOP | Pop Up Store

SALES PROMO Room & FNB package | Free room on minimum spending

COLLABORATI ON Live TV/ Radio broadcasts inside the room

 M A R K E T I N G S T R AT E G Y
T H E S T R AT E G Y

THE COFFEE From “Good regular coffee”

LOVER  “Artisan Coffee”

As an options for coffee enthusiasts to escalate their coffee

OBJECTI VES
experiences

• Premium product w/ curated beans, thorough processing &

PRODUCT DEVELOPMENT
Higher serving standard
PROPOSAL
• Improve current product to a more “local” taste demand

KEY PERFORMANCE INDICATOR Sales Growth % -age & engagement numbers

Social Media | Media Release | Store Signage | Front Line/Barista

AWARENESS PROPOSALS Offering SOP | Pop Up Store | Events for coffee enthusiasts | Free
tasting cup

SALES PROMO Free Upsize | Exclusive Bank Promo

COLLABORATI ON Exclusive collaboratio n menu with respected barista/ celebrities

 M A R K E T I N G S T R AT E G Y
T H E S T R AT E G Y

THE BUSY
Grab & Go Pop Up Store
SOCIETY

• To reach wider range & new customers

OBJECTI VES • As an advertisement /tasting spot to attract customers try the
real experience at the official stores

KEY PERFORMANCE INDICATOR Amount Sales | # of repeat order customers ( Starbucks card)

• Create a pop -up store in public transportati on station (MRT) with

PRODUCT DEVELOPMENT
mid-high office building area
PROPOSAL
• Sell fast serving and selected menu only

Social Media | Store Signage | The Store itself | Geo-tagging SMS

AWARENESS PROPOSALS
blast

Exclusive Mini/Value serving size product | Gift Voucher to be

SALES PROMO
exchanged in official stores for new premium products/ VIP Room
 M A R K E T I N G S T R AT E G Y
T H E S T R AT E G Y

THE Pre-Order Features in Starbucks App

L O YA L I S T

• Encourage more member to utilize more their app

OBJECTI VES • To improve Gold member customer ’s satisfaction level by solving
some paint point issues

KEY PERFORMANCE INDICATOR Growth contribution % -age from Starbucks card order

• Additional Pre-Order Features on Starbucks App to reduce

PRODUCT DEVELOPMENT
queuing /waitin g time at selected outlets
PROPOSAL

AWARENESS PROPOSALS Social Media | Press Release| Starbucks App| Promotion E -mail
 M A R K E T I N G S T R AT E G Y
THE CONCLUSION

THE SOCIAL THE BUSY

PEOPLE SOCIETY

THE THE COFFEE

L O YA L I S T LOVER

• These proposals have multiple approaches from loyal customers to new

customers, from regular coffee drinkers to advanced ones.
• Those multiple approaches will support each other and create an input-
output cycle that leads to one GOAL : WIDER customer SEGMENTS= MORE
SALES opportunities
THANK YOU
 MARKET RESEARCH
S TA R B U C K S U S A G E H A B I T
When to Buy
M I N . O N C E A DAY, E V E RY DAY
• Mostly, consumer buy Starbucks in the
morning and afternoon (after breakfast to
after lunch).
• However, some is also buying Starbucks in
the evening to stay fresh during work
hours.
Purchase Habit
WHERE
• Office: in the lobby of consumer office
• Malls
• Brick and mortar : a stand alone outlet,
more favorable for outlets with great view
to the outside / have big windows
FUN FACTS!
• Consumer is buying Tumbler and Starbucks card,
treating it as collectibles.
• In the morning, consumer has higher tendency to buy
food as well.
• Some of the consumer say “Buy 1 Get 1” to define
Starbucks, as their BOGOF promo is available almost
everyday.
• Almost all of Starbucks consumer are planning to buy
(not impulse buying)
H OW M A N Y
• For consumer who is buying beverage with
high concentration of coffee (e.g. Americano,
Cold Brew) they buy it one
• For consumer who is buying “sweeter”
beverage (e.g. chocolate, tea, frappuccino),
they may purchase 1-2 times a day.
 MARKET RESEARCH
S TA R B U C K S K E Y I N F LU E N C E R

Promotion and outlets availability are very good to raise awareness and improve consideration. However,
Starbucks image as “a place for executive” are the most convincing one.

LOW HI

ACCESSIBILITY TO OUTLETS PROMOTION PRESTIGE IMAGE

• As the advertisement of Starbucks is • Promotion become key trigger for • As a place where lots of professional /
spread, having the outlets easily found consumer to buy Starbucks students do their work, Starbucks are
everywhere will enhance the possibility • Loyal user is chasing promotion via being seen as “a place for executive”,
for consumer to buy Starbucks regular buying (loyalty program) to get expensive, and exclusive. This
free products, whilst regular user finds intrigued consumer to try.
BOGOF or discount more attractive • The high price and high-variation of
product customization also making
Starbucks looks very sophisticated to
others.
“It’s usually placed in strategic location - “There are times where the price is not as
near lobby or inside a department store, expensive as other brands, that’s when I
so it’s a nice place to have appointment want try for the first time.”
with friends.”
Loyal consumer Regular consumer
 CUSTOMER JOURNEY
AWARENESS PHASE

What is the customer problem?
• Want small effort to get the coffee
• Need a quality coffee
• Need place to hangout where also sell beverages and foods
• Search for competitive price of coffee yet good in quality
How the customer solve their problems?
• Ask for friend’s recommendation
• Browsing in Google with certain keywords such as “nearest coffee
shop”, “best coffee shop”, “best coffee”, “coffee promo” etc
• Looking around the area to see the available store
• Getting information from ads

What brand that being the customer’s top of

How the customer aware with our brand?
mind for coffee shop? • Through Google search SEO first page, Google maps location
• Through website (www.starbucks.co.id) and social media official
• Starbucks account (Instagram : @starbucksindonesia. Twitter :
• Kopi Kenangan @SbuxIndonesia. Facebook : Starbucks Indonesia. Tiktok :
• Janji Jiwa @starbucksindonesia).
• Kulo • Promotion channel : Paid ads, brochure, banner
• Excelso • Outlet store
• The Coffee Bean
 CUSTOMER JOURNEY
C O N S I D E R AT I O N P H A S E

What barrier might turn down the

What USP might attract customer?
• Authentic coffee taste
• High variation of menu
• Customized order
• Competitive price
• Fast and good service
• Available promo
• Various payment option
• Good atmosphere and facility
• Location easy to reach
• Collectible merchandise
• Loyalty member benefit
• Easy order via apps
customer?
• High price
• Limited menu option
• Basic taste of coffee (unauthentic)
• Limited seat available
• Bad atmosphere (noisy, dirty)
• No promo available
• Long queueing

What promo appealing for What is the competitor’s USP?

customer? • Kopi Kenangan : less price, authentic coffee taste, easy
order through apps
• Janji Jiwa, Family Mart : less price, easy to find (many store
• BOGOF (Buy One Get One Free)
near office)
• Cut price promo (% off price)
• Harlan Holden : good atmosphere, authentic coffee taste
• Loyalty point rewards
• Piston : good atmosphere, high variation of menu (food
and beverages)
 CUSTOMER JOURNEY
PURCHASE PHASE
What USP attract customer?
• High variation of menu (esp.
beverages)
• Good service (friendly,
cheerful, well knowledge)
• Various service option (dine-
in and takeaway)
• Spacious room, good
atmosphere
• Loyalty card special edition
• Easy payment with loyalty
card
• Various payment option
(digital and cash)
• Promo
What barrier turn down the customer?
• Limited menu option (esp. food)
• Limited seat available
• Bad atmosphere (noisy, dirty)
• Long queueing
• Trouble during payment (error on loyalty apps or
payment gateway)
• Wrong order input
 CUSTOMER JOURNEY
ADVOCACY PHASE
Why customer review is important?
• To know what customers like and don’t like about the products
or services and what the brand can improve
• Build brand expertise → validate the brand’s expertise and show
potential customers that Starbucks worth for them.
• Customer feedback creates that ‘social-proof’ trust that
encourages other visitors to buy.
How to respond on good review?
• Appreciate customer review and say thank you with
personalized message.
• Listen to what made their experience 'good' and find a way
to make it 'great.'
• Follow up the customer by share new or relevant
information, but don’t make it too sales-focused.
• Share appreciation gift to make them feel valued.
How to get customer review?
• Ask customer to give review → provide multichannel
review options, follow up on recent interactions or
purchases by asking for a review, offer incentives for each
review
• Earn organic review from customer → Actively engage with
customers, listen to their needs and use the feedback to
create a better experience.
How to respond on bad review?
• Publicly acknowledge and thank the customer—quickly
(usually happen for social media review)
• Offer to have a private conversation
• Sharing the proof that brand have solve the issue and
create better experience for customer.