Star Bucks

CONTENTS

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

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 one
neighborhood at a time.
---- Starbucks Mission statement

Target Market and Positioning

Positioned it self as an upscale brand - not just coffee

products but a rich experience Selling point
Social Classes
Small towns, rural communities, ethnic neighborhood.

THE HISTORY OF STARBUCKS

SERVICES MARKETING MIX - 7Ps

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, Dreyers for premium ice
Creams.

SERVICES MARKETING MIX - 7Ps

PLACE
Located in high traffic, high visibility settings retail settings, office
Buildings, 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.

SERVICES MARKETING MIX - 7Ps

PRICE
Priced high perceived upscale image.
Later introduced value strategies.
Breakfast pairings.
The average ticket price is $3.85.

SERVICES MARKETING MIX - 7Ps

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.

SERVICES MARKETING MIX - 7Ps

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%

SERVICES MARKETING MIX - 7Ps

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

SERVICES MARKETING MIX - 7Ps

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

Service Blueprint

Stage in Production
Process
Target time (minutes)
Critical time

Obtain
Seat
1
5

Take
Order
1
5

Participants

Customer

Customer
Waiter

Visible evidence

Furnishings

Staff
Appearence

Line of visibility
Invisible process

Cleaning
of room

Make
Order

Deliver
Order

3
8

3
8

Cook

1
3

Customer
Waiter

Tea, Crockery, Manner

of service

Preparation of
Ordering of
supplies

Pay for
Order

Customer
Cashier
Cash Collection
Procedures

Accounting
Procedures

Layout

Expected Service
Perceived Service

Service Delivery
Customer driven service designs and standards

Company perception of consumer expectations

Gap Analysis

Customer satisfaction gap could primarily be attributed to a service gap

Between 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.

Conclusion :

We arent 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