Case study about Starbucks (marketing) Assignment

Case study about Starbucks (marketing) - Assignment Example This report will be solely based on the Starbucks case study and will focus on how the specialty coffee player can better survive and survive in the industry. In order to do this, this paper will look at the historical performance of the company, noting the company's strategies in response to its external market. The first portion will provide an account on how Starbucks has prospered and gained wide success in the early 1990s. Next, this report will look at the changes which have transpired in Starbucks market which significantly differentiates it from the 1990s. Through this analysis, this paper will evaluate why the customer satisfaction rating of the specialty coffee retailer declined. Lastly, Starbucks problems will be identified, stressing on how they can be reconciled and remedied. The success of Starbucks in early 1990s has been well documented. The main idea of its "founder" Schultz is to create a third place for the Americans to stay. It should be noted that during that time, Americans are confined to only two destinations-work and home. Schultz then wanted to create a place where the people can relax and enjoy themselves alone or with other people. This business concept has been instrumental in the success of the business organization in the early 1990s. Schultz did not just envision a retail shop which specializes in selling coffee but in creating the proper "ambiance" and strategies in order to convey the "Starbucks experience." Starbucks has operated in a three pronged strategy in order to capture its target market. First, the company concentrates in offering the best coffee in the US by sourcing its coffee beans from Africa, South America, and Asia Pacific. In order to ensure that it is distributing the highest quality coffee beans, Starbucks takes control as much of its supply chain as possible. This means working directly with the growers, supervising the roasting process, and controlling the distribution process worldwide. Secondly, Starbucks have focused on delivering excellent customer service to complement its products. It should be noted that the company's baristas are well trained in entertaining and dealing with the customers. The company believes that the Starbucks experience is not just a matter of delivering quality coffee products but excellent customer service. Thirdly, the specialty coffee retailer also invests in completing the experience by creating the appropriate ambiance. Starbucks has created an atmosphere which is inviting for its customers. In the words of Day, "People come for the coffee but the ambiance is what makes them want to stay." Consistent with what is emphasized in the course, it can be seen that the product offered by Starbucks is comprised of a tangible component, intangible component, and a symbol component. The tangible component, the substance, is addressed by Starbucks' quest in producing and delivering the highest quality coffee in its stores. As discussed above, it becomes an essential component of the value proposition and strategy of the company. The second component, which is service, is exemplified by the company's pursuit in offering