Marketing Analysis of Starbucks

Economic Impact and Stability of Starbucks in USA

Starbucks, the dominant specialty-coffee brand in North America, must respond to recent market research indicating that the company is not meeting customer expectations in terms of service. To increase customer satisfaction, the company is debating a plan that would increase the amount of labor in its stores and theoretically increase speed of service. However, the impact of the plan (which would cost $40 million annually) on the company’s bottom line is unclear.

In mid-2002, Christine Day, Starbucks’ senior vice president of administration in North America reflected on the company’s recent performance. While other retailers were still reeling from the post-9/11 recession, Starbucks was enjoying its 11th consecutive year of 5%, or higher, comparable store sales growth, prompting its founder and chairman, Howard Schultz, to declare: “I think we’ve demonstrated that we are close to a recession-proof product.”

Day, however, was not feeling nearly as sanguine, in part because Starbucks’ most recent market research had revealed some unexpected findings. “We’ve always taken great pride in our retail service,” said Day, “but according to the data, we’re not always meeting our customers’ expectations in the area of customer satisfaction.

1.Explain Starbucks` economic contribution and economic stability in USA.

2.Critically evaluate the service Quality of the Starbucks in service marketing. 

3.Explain how effectively Starbucks planned marketing mix for service marketing.

4.As the Marketing Manager, you should analyze the current situation and provide a marketing plan to implement a new strategy to improve the business and the report should be submitted for consideration of the board of directors.

Note: Student needs to address followings:

a.New strategies and tactics with marketing mix 

b.Use necessary models and technologies

c.TRM 

d.Branding

e.Service Innovations

f.CSR Activities 

5.Explain how effectively Starbucks using the currently available e- services and areas to be improved as suggestions in USA.

6.Should Starbucks make the $40 million investment in labor in the stores? What’s the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?