All data from public. Just for acedmic propose

1. Wai Yan-Charlotte. Lee
Edhec
MSc Marketing 2013

2. Company Background & Brand Identity
Commercial and Economic Model
4 Strategy Analysis
Business Development in France
Conclusion
Agenda

3. 3. Four Strategy Analysis – Customer Flow Management
• Starbucks’ core issue is to increase
customer’s average basket by
encouraging him to consume more than
once.
• The management of customer flows,
during busy hours, was a major problem.
• queuing and checkout process more fluid,
especially between 12pm to 2pm?
• Should separate queues be introduced, or
the use of contactless payment systems or a
book-ahead option?
Strategy from Sophie

4. 3. Four Strategy Analysis – Customer Flow Management
Customer Portfolio at Starbucks
• After arrival shop in Peak period, Starbuck will face unstructured
queues since customers form a queue in unpredictable time and
varying on store locations.
• The waiting time of customer has probably the greatest risk of
impacting customer experience negatively.

5. 3. Four Strategy Analysis – Customer Flow Management
Customer Portfolio at Starbucks
client Type % of
people
Characteristic
1 Awkward
Blackberry
38% BlackBerry junkies feel “awkwardness or emptiness when they’re not
digitally connected,” says Wood. They send business e-mails when it
would be better to take a break and “do their deep breathing
2 Refiller 9% In addition to clutching empty cups, cheapskates seeking refills often bob
their heads and tap their feet. “That reminds me of, ‘Please sir, I want some
more” from Oliver Twist,” says Wood. “These people are charged up, and if
others don’t mirror their speed, they’ll be agitated
3 Primper 3% Some female line-waiters toss their hair and check their makeup. They also
tend to wear the highest heels. “They’re showing their wares and saying,
‘Appreciate the fact that I am a young, attractive female,’” says Wood. “It’s
a very feminine thing to do,” says Maestripieri

6. 3. Four Strategy Analysis – Customer Flow Management
Customer Portfolio at Starbucks
client Type % of
people
Characteristic
4 Muzak
Swayer
5% Some queue-huggers unconsciously rock to Starbucks’ adult contemporary
playlists featuring artists like Sarah McLachlan. “It goes back to how we
were swayed in the womb,” says Wood. -Maestripieri notes: “Some people
don’t get fat because they’re constantly moving.”
5 Sandwich
Cradler
8% Gently nestling plastic-wrapped sandwiches and cups of yogurt next to the
female bosom is a “gender-based comforting cue,” says Woods. According
to Reiman, the female line-waiter might be “feeling slightly nervous,
apprehensive, or insecure
6 Food case
fondler
7% Touching the snack case with your hands or body? It’s disgusting but
forgivable because physical contact with food is reassuring, suggests
Norman. The guy with his leg on the display like a dog on a hydrant? Not
O.K. He may be thinking, Wood says, “‘I’m the king
7 Food case
starer
14% Some people glance longingly at Double Fudge Mini-Donuts—but then get
only coffee. “There’s some fantasizing going on,” says Reiman. Norman has
a different scientific theory: “They simply blanked out.”

7. 3. Four Strategy Analysis – Customer Flow Management
Customer Portfolio at Starbucks
client Type % of
people
Characteristic
8 Klutzy
Wallet
Fumbler
6% Some men nervously mishandle their back pockets during wallet extraction.
“They feel like they’re exposing themselves,” says Wood. Reiman explains
that tactile pressure like rubbing can be a comforting gesture “that helps
you through the moment.”
9 Arm-
Toucher
5% These people come in pairs, apparently from the same office, and chat
while lightly touching each other’s arms. “It shows their connection and
says, ‘I reward you for being with me,’ ” Wood notes. Adds Reiman: “It’s a
way of saying, ‘I’m confident in our relationship.’ ”
10 Counter
Seducer
3% Certain customers chat up the staff beyond usual pleasantries. It slows the
initial interaction, says Wood, “but often ends up creating a better
experience.” Maestripieri notes: “Research shows that people who actually
enjoy engaging in social interactions do better in life and live longer.”

8. 3. Four Strategy Analysis – Customer Flow Management
Work Flow Management
Based on work flow below, the queue will be
formed in 3 critical points:
1. Waiting for available cashier,
2. Waiting for available Barista,
3. Waiting for coffee to be picked up
Challenge : Preparation time of Latter or Expresso
22s to 2 minutes

9. 3. Four Strategy Analysis – Customer Flow Management
Minimize the actual waiting time (Critical Point 1 & 2)
• POS system and book-ahead option (portable order machine) to reduce
cashier time.
• Touch-screen order/payment kiosks aside the restaurant or contactless
payment in cashier can reduce the payment transaction time rather
than using credit card

10. 3. Four Strategy Analysis – Customer Flow Management
Minimize the actual waiting time (Critical Point 1 & 2)
• Through integrated order system , computers help to concentrate and
arrange coffee order by category and time.
• It can transfer this information to the screen for Barista to group 2-3 same
coffees at the same time.
• It maximizes the coffee machinery use.
• Semi-skilled assistant can help to prepare the cup and insert coffee. Thus,
the Barista could pay more time in milk and cream insertion.

11. 3. Four Strategy Analysis – Customer Flow Management
Minimize the actual waiting time (Critical Point 3)
• “Beat the queue” IPhone application : Potential of placing your order on
mobile phones. This application start queuing virtually on the go already
exist.
• Reduce the queues during rush hour at lunch time, which is filled with
impatient business men.
Start queuing on your way to
Starbucks

12. 3. Four Strategy Analysis – Customer Flow Management
Minimize the perceived waiting time (Critical Point 3)
• If the customers have the opportunity to sit down relaxed and watch
relevant, entertaining and informative content while waiting, the wait
seems shorter than it actually is - we can offer magazine or online as
picture that mainly offer for clients have plenty of time.
• Virtual queuing – it mean customers don’t stand in a physical queue/line.
The pace in the queue is held by an identity (e.g. ticket number).

13. 3. Four Strategy Analysis – Customer Flow Management
Customer Coffee Buying Habit + Time Frame
Business Tourist + Casual Local + Student
Time Quick
Takeways
Plenty of time Plenty of time
Desire Manage queue
Service delivery
High quality product
Enjoyable experience
Chatting
Social

14. 3. Four Strategy Analysis – Customer Flow Management
Customer Coffee Buying Habit + Time Frame
• 38% in customer traffic
• Offering express service to shorten waiting and service
delivery
• book-ahead option also separate the clients flow especially
they just buy sandwiches and bottle of drink
• coffee refilled and urgent business group - small corner of
self-service e.g. “Starbuck Office Coffee Service Machinery”
at corner of shop

15. 3. Four Strategy Analysis – Customer Flow Management
Customer Coffee Buying Habit + Time Frame
• This group has plenty of time and long-term
• donate loyalty card or discounting to enough them to enjoy
lunch non-peak period.
• The clients at night mainly are for discussion and social
activities.
• It would attach some promotion program to attract this
group of people e.g. buy 2 get 1 free and widen variety of
food. This is a good way to attract more customer traffic
and increase the average basket.

16. 3. Four Strategy Analysis – Customer Flow Management
Customer Coffee Buying Habit + Time Frame
• Variable, Unpredictable, Not in big no, Plenty of time.
• Using POS and book-ahead option, those clients can
wait in our shop by checking internet or reading
magazine (concept of book cafe, tourist guides etc.).
• Limited period of new product tasting program in non-
peak period: it relieve the clients (especially for the
casual or local clients) over-concentrate and generate
viral discussion topic