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Starbucks Marketing Case

Answer1.
 Vision: the most recognized and respected brand in the world
 Brand image - experiencing branding strategy:
o “Live coffees” mantra - to keeping the national coffee culture alive.
o Creating an “experience” around the consumption of coffee
 Three components to this experiencing branding strategy:
o First, coffee itself – offering the highest-quality coffee in the world, coffee standards by controlling the supply chain as possible and the distribution to retail stores
o Second, service – customer intimacy
o Third, atmosphere. To make customers want to stay. Based on human spirit, a sense of community, the need for people to come together.
 Channels - Broad distribution strategy
o Want to reach customers where they work, travel, shop, and dine
o Good Location: Company-operated stores located in high-traffic, high-visibility settings
o Product mixed tended to vary depending on a store’s size and location
o non-company-operated retail channels, food-service accounts, domestic retail store licenses
 Good Starbucks Partners
o All Starbucks employees were called “partners” -Most hourly-wage employees
o Generous policy of giving health insurance and stock options
o High partner satisfaction rate (80% to 90%), well above the industry norm.
o Lowest employee turnover rates in the industry (just 70%, compared with fast-food industry averages as high as 300%)
o Lower managers turnover rates & encouraged promotion from within its own ranks
 Delivering on Service and good measuring service performance
o Training: hard skills and soft skills
o Treated as a valuable customer (75%), friendly staff (73%) and highest quality coffee (67%).
o A variety of metrics, including monthly status reports and self-reported checklists.
o “Customer Snapshot” measurement tool
 Less competition
o A variety of small-scale specialty coffee chains (regionally concentrated).
o independent specialty coffee shops & Donut and bagel chains
...