Download - Star bucks service marketing
A CASE STUDY
Star Bucks
• Channels of Distribution • Services marketing Mix• Target marketing position • Delivering of service / Service performance• Services Gap analysis • Service blue print •Conclusion
CONTENTS
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 oneneighborhood at a time.” ---- Starbucks Mission statement
Target Market and Positioning
•Positioned it self as an upscale brand - not just coffeeproducts but a “rich experience” – Selling point
• Social Classes
• Small towns, rural communities, ethnic neighborhood.
THE HISTORY OF STARBUCKS
SERVICES MARKETING MIX - 7P’s
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, Dreyer’s for premium iceCreams.
SERVICES MARKETING MIX - 7P’s
PLACE
•Located in high traffic, high visibility settings – retail settings, officeBuildings, 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 - 7P’s
PRICE
•Priced high – perceived upscale image.•Later introduced “value strategies”.•Breakfast pairings.•The average ticket price is $3.85.
SERVICES MARKETING MIX - 7P’s
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.
People
Physical Evidenc
eProcess
SERVICES MARKETING MIX - 7P’s
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%
People
Physical Evidenc
eProcess
SERVICES MARKETING MIX - 7P’s
Physical Evidence
• Custom made cup of beverage.• Clean, friendly environment , cozy chairs, sofas.• Alluring pastries menu , “tasty” show cases, tempting coffee pictures.
People
Physical Evidenc
eProcess
SERVICES MARKETING MIX - 7P’s
Process
• Legendary Service• Sequence service reducing queue. • Contact less payment – Barclay , I phone and Android app
Channels Of Distribution
Company Owned Outlets
Franchise
Retail Store licenses
Grocery Stores and Warehouse
Clubs
B to B, Airlines
restaurants
Service Blueprint
Stage in Production Process
Target time (minutes)Critical time
Participants
Visible evidence
Line of visibilityInvisible process
ObtainSeat
Take Order
MakeOrder
DeliverOrder
Pay for Order
15
15
38
38
13
Customer CustomerWaiter
Cook Customer Waiter
Customer Cashier
Furnishings Staff Appearence
Tea, Crockery, Manner of service
Cash Collection Procedures
Cleaning of room
Preparation of Ordering of supplies
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 gapBetween 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 aren’t 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