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Submitted by dhumkhetu on September 9, 2007
Category: Business
Words: 1220 | Pages: 5
Views: 473
Popularity Rank: 17,639
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Starbucks is enjoying its 11th consecutive year of 5% or higher comparable store sales growth.
According to market research, Starbucks is not always meeting its customers expectations in the area of customer satisfaction.
Need to improve speed of service and thereby increase customer satisfaction by spending $40 million annually by allowing each store to have an additional 20 hours of labor weekly.
What will be the impact on sales and profitability after meeting the market research on customer satisfaction?
Starbucks were selling whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well educated, white-collar patrons (skewed female) between the ages of 25 and 44.
In 1992 Starbucks had 140 stores in the Northwest and Chicago. It becomes public limited company in the same year.
By 2002 Starbucks had become the dominant specialty-coffee brand in North America. Sales had climbed at a compound Annual Growth Rate (CAGR) of 40% from 1992 to 2002. Net earnings had risen at a CARG of 50%.
In 2002 Starbucks had well over 5000 stores globally and were serving 20 million unique customers. It was opening average three stores daily.
Starbucks had spent almost nothing on advertising.
Starbucks first branding strategy focused on its product by maintaining its coffee standards.
Starbucks seconds branding strategy was customer service.
Starbucks third branding strategy is store environment. Starbucks had seating environment encourage lounging and layouts were designed to provide an upscale yet inviting environment for those who wants to linger.
Store location was important for Starbucks. It selects store location where it will have high traffic and high visibility.
Starbucks were also selling mix products (music CDs,...
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