Star bucks service marketing

18
A CASE STUDY Star Bucks

description

 

Transcript of Star bucks service marketing

Page 1: Star bucks service marketing

A CASE STUDY

Star Bucks

Page 2: Star bucks service marketing

• Channels of Distribution • Services marketing Mix• Target marketing position • Delivering of service / Service performance• Services Gap analysis • Service blue print •Conclusion

CONTENTS

Page 3: Star bucks service marketing

STARBUCKS - An Overview

•The Starbucks Coffee, Tea, and spices company was founded in Seattle in 1971• It is the largest Coffee house company in the world, with 20366 stores in 61 countries.

“To inspire and nurture the human spirit --- one person, one cup, and oneneighborhood at a time.” ---- Starbucks Mission statement

Page 4: Star bucks service marketing

Target Market and Positioning

•Positioned it self as an upscale brand - not just coffeeproducts but a “rich experience” – Selling point

• Social Classes

• Small towns, rural communities, ethnic neighborhood.

Page 5: Star bucks service marketing

THE HISTORY OF STARBUCKS

Page 6: Star bucks service marketing

SERVICES MARKETING MIX - 7P’s

PRODUCT

•30 varieties of whole bean coffee to ecofriendly cappuccino, pastries,Smoothies, wraps.• Live coffee Mantra •Sodas, juices, coffee-related accessories, equipment, music CDs, novelty Items.•Varied from store to store.•JV with Pepsi-Cola for Frappucino, Dreyer’s for premium iceCreams.

Page 7: Star bucks service marketing

SERVICES MARKETING MIX - 7P’s

PLACE

•Located in high traffic, high visibility settings – retail settings, officeBuildings, university campuses.•In-store at Barnes & Noble and Target.•Target - Individuals on the go.•Localization – “Stealth outlets”.

“we want to reach customers where they work, travel, shop, and dine.” -----Starbucks philosophy.

Page 8: Star bucks service marketing

SERVICES MARKETING MIX - 7P’s

PRICE

•Priced high – perceived upscale image.•Later introduced “value strategies”.•Breakfast pairings.•The average ticket price is $3.85.

Page 9: Star bucks service marketing

SERVICES MARKETING MIX - 7P’s

PROMOTION

•Starbucks card – referral system.•Corporate sales card.•Delivery to offices without restriction.•Appealing to diverse customer base – international products.•Philanthropy – contribution to non-profit organizations.

Page 10: Star bucks service marketing

People

Physical Evidenc

eProcess

SERVICES MARKETING MIX - 7P’s

People

•Core ingredient •“Happy customers” start with “happy staff”• “ we are not employees – we are partners”•Employee turnover rate of 70% compared to the fast food industry averages of 300%

Page 11: Star bucks service marketing

People

Physical Evidenc

eProcess

SERVICES MARKETING MIX - 7P’s

Physical Evidence

• Custom made cup of beverage.• Clean, friendly environment , cozy chairs, sofas.• Alluring pastries menu , “tasty” show cases, tempting coffee pictures.

Page 12: Star bucks service marketing

People

Physical Evidenc

eProcess

SERVICES MARKETING MIX - 7P’s

Process

• Legendary Service• Sequence service reducing queue. • Contact less payment – Barclay , I phone and Android app

Page 13: Star bucks service marketing

Channels Of Distribution

Company Owned Outlets

Franchise

Retail Store licenses

Grocery Stores and Warehouse

Clubs

B to B, Airlines

restaurants

Page 14: Star bucks service marketing

Service Blueprint

Stage in Production Process

Target time (minutes)Critical time

Participants

Visible evidence

Line of visibilityInvisible process

ObtainSeat

Take Order

MakeOrder

DeliverOrder

Pay for Order

15

15

38

38

13

Customer CustomerWaiter

Cook Customer Waiter

Customer Cashier

Furnishings Staff Appearence

Tea, Crockery, Manner of service

Cash Collection Procedures

Cleaning of room

Preparation of Ordering of supplies

Accounting Procedures

Page 15: Star bucks service marketing

Layout

Page 16: Star bucks service marketing

Expected Service

Perceived Service

Service Delivery

Customer driven service designs and standards

Company perception of consumer expectations

Page 17: Star bucks service marketing

Gap Analysis

• Customer satisfaction gap could primarily be attributed to a service gapBetween key attributes and customer expectations.• Speed of Delivery considered as critical

Bridging the Gap

•An additional 20 hours of labor, per week, per store

•Service time down to a strict 3 minute level.

Page 18: Star bucks service marketing

Conclusion :

“ We aren’t in the coffee business, serving people. We are in the people business Serving coffee” --- Howard Schultz (Serwer, 2004)

Starbucks claimed their leadership by focusing on a strategy of new products,

A stronger connection with customers, rapid expansion, and

uncompromised quality