By 2002, Starbucks had become a dominant specialty-coffee brand with 4574 stores in North America which can be credited to Howard Schultz’s extraordinary vision of Starbucks. There were three key elements Starbucks had built on as experiential branding strategy: great coffee, service philosophy, and physical atmosphere. When everyone was enjoying 11th sequent year of 5% comparable store sales growth, Christine Day, senior VP of administration was concerned about the decline of customer satisfaction degree and how to launch her plan to increase customer satisfaction. The purpose of this case analysis is to address the major factors of the current problem and to evaluate whether Day’s plan will work or not, and provide further improvement strategies.
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Lots of survey respondents agreed that Starbucks ’primary goal was making money and expanding stores. Although the company initially aimed to meet all standards set through value proposition. The image of the brand changed from customers’ perspective. In the beginning, the idea was to build a chain of coffee stores known as America’s “third place”, a place where you could relax, enjoy and be separate from home and work. The established customers were purchasing a cup of coffee for the uplifting service experience and upscale atmosphere, but now Starbucks was not much different. In the mind of the consumers, Starbucks became a place which was widely available, with good coffee and consistent …show more content…
Currently, the most effective way for Starbucks was complementing the positioning strategy. Tracing back to 1992, the success of the Starbucks was that it placed values first to customers and created unique brand image in their mind. However, the brand awareness was not as high as before. People might notice Starbucks in the street, and they might realize this coffeehouse was quite similar to other smaller coffee chains.
Free cups was a great method to reduce the perception that Starbucks was only obsessed with expansion and making money. Starbucks could also try to promote its stored-value card (SCV) more. The SVC not only tended to reduce transaction times, but it also encouraged the customer to visit Starbucks more often. In addition, Starbucks should continue launch new products on a regular basis in order to appeal more customers and leave a unique brand
Lots of survey respondents agreed that Starbucks ’primary goal was making money and expanding stores. Although the company initially aimed to meet all standards set through value proposition. The image of the brand changed from customers’ perspective. In the beginning, the idea was to build a chain of coffee stores known as America’s “third place”, a place where you could relax, enjoy and be separate from home and work. The established customers were purchasing a cup of coffee for the uplifting service experience and upscale atmosphere, but now Starbucks was not much different. In the mind of the consumers, Starbucks became a place which was widely available, with good coffee and consistent …show more content…
Currently, the most effective way for Starbucks was complementing the positioning strategy. Tracing back to 1992, the success of the Starbucks was that it placed values first to customers and created unique brand image in their mind. However, the brand awareness was not as high as before. People might notice Starbucks in the street, and they might realize this coffeehouse was quite similar to other smaller coffee chains.
Free cups was a great method to reduce the perception that Starbucks was only obsessed with expansion and making money. Starbucks could also try to promote its stored-value card (SCV) more. The SVC not only tended to reduce transaction times, but it also encouraged the customer to visit Starbucks more often. In addition, Starbucks should continue launch new products on a regular basis in order to appeal more customers and leave a unique brand