Starbucks - Selling Experience*

Details

Case Code : CLCB052
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Starbucks Coffee International, Italian Expresso Bar, Servant Leadership, Peter Maslen, Landor Associates, Branding Strategy, Howard Schultz, Customer Relations, Repeat purchase and Customer loyalty

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

Starbucks' service strategy encompassed providing a good product accompanied by customer friendly service and attractive ambience. The caselet speaks about the kind of customer relations Starbucks followed, which was one of the reasons that so many consumers of Starbucks went in for repeat purchases. The caselet also indicates how Starbucks developed goodwill among the public by bonding with the local community.

Issues: » The reasons that make consumers loyal to an organization » The ways in which an organization tries to enhance value for the customer during the purchase process » Why organizations take care of a good purchase experience rather than just focusing on the purchase product/service Starbucks is known around the world for the unique blends of coffee it serves its customers through its coffee service outlets in 35 countries (Refer Exhibit for coffee varieties sold at Starbucks). Along with coffee, the company also sold a line of premium tea, cookies, snacks, espresso machines, and coffee brewers.

The company, founded in 1971 at Seattle, US, opened it first international outlet in 1996 at Tokyo, Japan. The company had consolidated net revenue of US$ 5.3 billion in fiscal 2004. More than coffee, it was the Starbucks experience that made customers come back to the store...

Questions for Discussion:

1. "More than coffee, it was the Starbucks experience that made customers come back to the store." Assess the service strategies followed by Starbucks.

2. Why did the buying pattern at Starbucks depict loyalty on the part of customers toward the store?