Just another reason to love …

GROUP MEMBERS
PRESENTATION OUTLINE
 SEQUENCE OF EVENTS
Sometime Prior to Jeremy Dorosin bought himself an Espresso maker (Vapore) for
April, 1995 $299.00.

April, 1995 He found it defective, returned it and received a loaner for

$189.00. He got his new replacement and gave the loaner back,
but asked if Starbucks planned to sell the loaners because he really
like it

End of April, 1995 Dorosin bought a new Estro 410 model (like the loaner) as a
wedding gift for a friend.

A Few Days Later Dorosin came back into the store to pick up the gift .The store
employee found the machine in a different (and damaged) box. He
also did not get the 1/2 lb. of free coffee that was supposed to
come with each machine purchase and, there was no instruction
manual.The store manager apologized and said to come in for the
manual, the 1/2 lb. of coffee and a free cup of coffee.
At Some His friend for whom he purchased the Espresso machine found rust in the
Point machine, and certain parts missing. On calling the store the manager offered a
Shortly refund, which Dorosin refused.
Thereafter He was then sent to the San Francisco (District) office where he told his story a
second time. He finally ended up speaking by telephone to Bill Stein,
Customer Service Supervisor, in Seattle, to whom he told the whole story
again for a third time.

May 1, Starbucks District Manager (San Francisco) called Corporate Customer Service
1995 Supervisor, Bill Stein (Seattle), and explained the situation the retail store had
with Dorosin. Dorosin demanded that a $2495.00 Starbucks' top-of-the-line
machine be sent to his friend to compensate for the defective $189.00 gift, or
he would place an ad in the Wall Street Journal.

May 2, Stein called back with a counter proposal:

1995 Send Dorosin a $269 machine (although he paid $299) to replace his
twice-broken machine.
Send his friend a $269 machine for her original one which was priced at
$189.
Dorosin said that he was not happy with the company's proposal.Stein
expressed concern, but could not meet Dorosin's demands.
Immediately Dorosin decided to run a local ad ($800) in the Wall Street Journal, Dorosin
Thereafter received a "ton of calls." Some were from stockholders of Starbucks who
were angry. He said he had received thousands of calls, from customers,
competitors and employees who felt Starbucks misrepresented themselves
to the public.

May 5, 1995 Dorosin ran his first Wall Street Journal ad. Betsy Reese, Corporate
Customer Relations Manager, talked to Dorosin
once again offered to work toward a reasonable solution. Reese explained
the steps that Starbucks was taking (sending machines, coffee and letters).
However, Dorosin instead demanded that Starbucks place a full page ad of
apology admitting that the company knowingly sold used equipment,
signed by the company Chairman.
Starbucks offered replacement machines for him and his friend, steaming
pitchers, and free coffee.
Dorosin suggested that Starbucks take out a double full page ad in the Wall
Street Journal apologizing. Reese suggested that instead of taking out an
ad, the company take the amount that an ad would cost and donate it to
charity. Dorosin agreed.
May Starbucks sent an apology letter to Dorosin's gift recipient, Ms. Cohen, explaining
10, that a replacement machine was on its way as an apology gift to her. Additionally
1995 Starbucks sent a full refund via certified mail.
Dorosin ran a second ad in the Wall Street Journal.

May Dorosin ran the third Wall Street Journal ad.

18,
1995

May Dorosin ran the fourth ad in the Wall Street Journal.

25,
1995

June Dorosin stated he was going to open a runaway shelter and run it himself. He
16, wanted Starbucks to underwrite or sponsor it.
1995 Betsy Reese once again expressed that the company did not see this as a
reasonable solution nor did they see a correlation between the shelter and his
original complaints.
 
QUESTION 1
AT ONE OF THE STAGES IN THE CASE STUDY WE CAN SAY THAT Mr. DOROSIN WAS A
VOICER.VOICERS ARE THE CUSTOMERS WHO EXCLUSIVELY COMPLAIN TO THE
COMPANY.HIS ACTIONS IN THE CASE STUDY WHICH SUBSTANTIATE THIS STATEMENT ARE AS
FOLLOWS-:

1. WHEN HE BOUGHT AN ESPRESO MAKER (Vapore) FOR $299.00 IT WAS FOUND

DEFECTIVE.HE THEN COMPLAINED TO THE MANAGEMENT ABOUT IT AND GOT A LOANER
WHICH WAS LATER REPLACED BY A NEW PLACEMENT.

2. WHEN DOROSIN BOUGHT A NEW ESTRO 410 MODEL (LIKE THE LOANER) AS A WEDDING
GIFT FOR FOR A FRIEND, HE COMPLAINED ABOUT NOT GETTING THE MANNUAL AND THE
FREE COFFEE ALONG WITH IT TO WHICH THE MANAGEMENT APOLIGISED.

3. DOROSIN’S FRIEND FOUND CERTAIN PARTS MISSING IN THE COFFEE MACHINE.TO THIS
DOROSIN DEMENDED AN APOLOGY TO HIS FRIEND AND A NEW REPLACEMENT WITH THE
NEXT BEST MACHINE WORTH $ 495 MODEL.
AT A LATER STAGE WE CAN SAY THAT Mr. DOROSIN BECAME AN ACTIVIST. ACTIVISTS
ARE THE PEOPLE WHO COMPLAIN TO THE COMPANY, TO FRIENDS, RELATIVES AND THE
THIRD PARTY. THESE ARE THE PEOPLE WHO ARE THE MOST INVOLVED.
EVENTS LEADING TO THIS ARE WHEN HE WAS NOT SATISFIED WITH THE COMPANIES
OFFERS AND HE STARTED RUNNING ADS IN THE JOURNAL .
HE RAN FOUR ADS IN THE WALL STREET JOURNAL.
HE REFUSED THE COMPANY’S PROPOSAL AND ALSO THE CHEQUE SENT BY THE
MANAGEMENT TO HIS FRIEND.

ALL THESE EVENTS FINALLY LED HIM TO BE THE TERRORIST.

HIS FINAL DEMAND WAS A COLABORATIION ON A JUVINILE RUNAWAY SHELTER.

QUESTION 3
The Starbucks Story
The story began in 1971. Back then they were a roaster and
retailer of whole bean and ground coffee, tea and spices
with a single store in Seattle’s Pike Place Market.
Today, they are privileged to welcome millions of customers
through their doors every day, in more than 16,000
locations in over 50 countries.
Folklore
Starbucks is named after the first mate in Herman Melville’s
Moby Dick. Their logo is also inspired by the sea – featuring
a twin-tailed siren from Greek mythology.

Starbucks Mission
"Our mission is to inspire and nurture the human spirit –
one person, one cup, and one neighborhood at a time.”
 Stores
• Our stores are a welcoming third place for meeting friends and family,
enjoying a quiet moment alone with
• a book or simply finding a familiar place in a new city.
• Total stores 16,706 (as of Dec. 27, 2009)
• 8,850 Company-operated stores.
• 7,856 Licensed stores.
Operating in more than 50 countries
• Argentina, Aruba , Australia, Austria, Bahamas, Bahrain, Belgium, Brazil,
Bulgaria, Canada, Chile, China,
• Cyprus, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong
Kong, Indonesia, Ireland,
• Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Mexico, New Zealand,
Netherlands, Northern Ireland,
• Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi
Arabia, Scotland, Singapore,
• Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates,
United States and Wales.
PRODUCTS

Coffee-: More than 30 blends and single-origin premium arabica coffees.

Handcrafted Beverages-: Fresh-brewed coffee, hot and iced espresso
beverages, coffee and non-coffee blended beverages,Vivanno smoothies
and Tazo teas.
Merchandise-: Home espresso machines, coffee brewers and grinders,
coffee mugs and accessories, packaged goods,music, books and gift items.
Fresh Food-: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits
and fruit cups.
Consumer Products-: VIA Ready Brew coffee, bottled Starbucks Frappuccino
beverages, Starbucks Discoveries chilled cup coffee (in Japan, Taiwan and
Korea), Starbucks DoubleShot espresso drinks, Starbucks Iced Coffee,
whole bean coffee and Tazo teas at grocery and a line of super-premium ice
creams.

BRAND PORTFOLIO
Tazo tea, Ethos water, Seattle’s Best Coffee and Torrefazione Italia Coffee.
QUESTION 5
 NO, DOROSIN’S DEMAND WERENT JUSTIFIED AT ANY STAGE.
Dorsin’s demands-: Company’s profile-:

1. Replace the vapore. 1. Send Dorosin a $ 269 machine to replace

2. Send an apology letter to his friend and his twice broken machine.
also the next best machine worth $ 495 2. Send his friend a machine worth $ 269 in
model. place of the original one which costed
$189.
On meeting Bill Stein-:
1. Asked for the top – of – the – line machine
costing $ 2495 to be sent to his friend or
else

Dorosin not convinced and then ran his first ad Company further negotiated with dorosin-:
on the wall street journal. 1. Replace both the machines.
2. Offered steaming pitchers and free coffee
which dorosin refused.

Company decided to satisfy his friend-:

1. Sent him an apology letter, explaining that a
replacement machine is on its way.
2. Sent a full refund via certified mail.
Dorosin not satisfied, ran a second ad in Company further tried to convince and
the wall street journal. sent verfiication of its previous proposal.

Dorosin ran the third and the fourth wall company refused the demand saying that
street journal and refused the proposal and there is no correlation in the demand and
the check send to his friend. the complains made by him.

New demand by Dorosin was collaboration

on a juvenile runaway sheter.
RECOMMEDATIONS
1. Starbucks can launch a newspaper ad refuting the
claim. Also, advertisments can include letters from
satisfied customers.

2. If possible, engage professional help in planning and

implementing media communication. PR professionals
how the media operate, what they want, how they like
information presented.Professional help can assist in
minimising conflict and drama and developing angles
that are relevant for the media and audiences.
 3. Celebrity Endorsements

Starbucks can use celebrity endorsements

to recover from the dammage caused to
their reputation from this case.
For instance-: Coca Cola on being blamed
for the presence of pesticeides in the drink
launched advertisements starring Amir
Khan to ensure credibility of the drink.
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