Is Starbucks still a star?
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Marketing management case study @ Ostfalia university
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Is Starbucks still a star?
- 2. AGENDA: IS STARBUCKS STILL A STAR?
- 3. INTRODUCTION: PRODUCTS Coffee Handcrafted Beverages Merchandise Fresh Food Consumer Products (Coffee and Tea + „Ready-to-Drink“)
- 4. INTRODUCTION: HISTORY • 1971: Single store in Seattle • 2002: Open stores in Germany (5,886 retail stores) • 2015: 21,000 retail stores in 66 countries • Coffee from Latin America, Africa and Asia • Employees = Partners
- 6. INTRODUCTION: THE STARBUCKS EXP. 1. Predictability 2. Consistency 3. Ritual 4. Routine 5. Community 6. Service recovery
- 7. PRINCIPLE MAKE IT YOUR OWN • BE WELCOMING Be cordial when you meet and greet other people and know their names. • BE GENUINE Connect, discover and respond when interacting with others because you care.
- 8. PRINCIPLE MAKE IT YOUR OWN • BE CONSIDERATE. Consider the needs of other above your needs. • BE KNOWLEDGEABLE Add value to your effort. • BE INVOLVED Active participation in all aspects of the project and not just your tasks, thus going beyond expectations.
- 9. PRINCIPLE: EVERYTHING MATTER • THE PHYSICAL ENVIRONMENT • THE QUALITY OF PRODUCTION • EVERYONE MATTER
- 10. • THE PHYSICAL ENVIRONMENT PRINCIPLE: EVERYTHING MATTER WARM & FREINDLY MUSIC BIG STOP FELT SENS COLORS LIGHTNING CLEAN MINI VACATION SPEND TIME ADAPTIBILITYOPENNESS MENU THREAT OF RETAILING ESCAPE CONSCIOUS
- 11. • QUALITY OF THE PRODUCT PRINCIPLE: EVERYTHING MATTER QUALITY INNOVATION DETAIL STRATEGIC MICRO LEVEL FARMERS CONTROL ENVIRONMENT REPUTATION
- 12. • EVERYONE MATTER PRINCIPLE: EVERYTHING MATTER NOTHING TRIVIAL MANAGER MANAGEMENT WORK IN STARBUCKS DISCIPLINE CHECKLIST REFLEX REGULAR CUSTOMER STAFF COLLECT STORY TELLING RECOGNITION MOTIVATION FUN
- 16. Conclusion BUT …let us share with you our OPINION: According to internet survays, we found out that:
- 17. Conclusion • Has it‘s own audience. • Highly developed brand loyalty. • Expensive prices (people still willing to pay for that). • Ritual – Ideall place for business meetings. • Predictability – same friendly place, quality guaranteed every day. • Routine – to pleasure people everyday • Gaps regarding to interiour.
- 18. STARBUCKS IS A STAR! Based on our research…
- 19. Thank you for your attention! Tomas Blazek
Notas del editor
- AUTHOR Blazek Tomas SUBJECT Marketing Management: Ostfalia University, SS 2014/2015 LECTURER Dipl.-Wirtschaftsingenieur Frank Harmeling == LOGO SOURCES == Logo-Kid (2014): Starbucks Logo, http://www.wikihints.com/wp-content/uploads/2014/07/starbucks_coffee_green_logo-wide.jpg, May 28, 2012. Logo-Kid (2014): Starbucks Logo, http://russell.heistuman.com/wordpress/wp-content/uploads/2011/01/starbucks-ring.jpg, May 28, 2015.
- 1) Coffee: More than 30 blends and single-origin premium coffees. 2) Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso beverages, Frappuccino coffee and noncoffee blended beverages, Starbucks Refreshers, smoothies and teas. 3) Merchandise: Coffee and tea-brewing equipment, Verismo System by Starbucks, mugs and accessories, packaged goods, music, books and gifts. 4) Fresh Food: Baked pastries, sandwiches, salads, salad and grain bowls, oatmeal, yogurt parfaits and fruit cups. 5) Consumer Products Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle’s Best Coffee brands), Starbucks VIA Ready Brew, Starbucks K-Cup portion packs, Starbucks and Teavanna Verismo pods, Tazo tea filterbags, and tea latte concentrates. Ready-to-Drink (RTD): Starbucks bottled Frappuccino coffee drinks, Starbucks Discoveries chilled cup coffees, Starbucks Discoveries Iced Café Favorites, Starbucks Iced Coffee, Starbucks Doubleshot espresso drinks, Starbucks Doubleshot Energy+Coffee drinks; Starbucks Refreshers beverages, Evolution Fresh bottled juices, Tazo bottled iced and juiced teas. == SOURCES == Anon (2015): Ready-to-Drink Frappuccino, http://www.restaurantindia.in/news/images/1446-320x240.jpg, May 31, 2015. Arbini, Christina (no year): Fresh food in Starbucks, https://www.hornallanderson.com/resources/uploads/casestudies/starbucks_food/starbucks_food_carousel_3.jpg, May 31, 2015. Eleftheriou-Smith, Loulla Mae (2014): Starbucks coffee, http://www.independent.co.uk/incoming/article9178499.ece/binary/original/Starbucks-drive-thru.jpg, May 31, 2015. GDS (2014): Other staff in Starbucks, http://cdn4.greatdeals.com.sg/wp-content/uploads/2014/10/starbucks-merchandise-offer-october-2014-ft.jpg, May 31, 2015. Jennie (2014): Frappuccino, http://www.bargainblessings.com/wp-content/uploads/2014/05/frappucino.jpg, May 31, 2015. Starbucks (2015): Starbucks Company Profile, http://globalassets.starbucks.com/assets/4286be0614af48b6bf2e17ffcede5b7.pdf, May 31, 2015.
- Starbucks is named after the first mate in Herman Melville’s Moby Dick. The logo is also inspired by the sea – with a twin-tailed siren from Greek mythology. In 1971 was opened a roaster and retailer of whole bean and ground coffee, tea and spices in Seattle’s Pike Place Market. In 1998 were opened first stores in the Europe, 4 years later in 2002 Starbucks arrived to Germany. In these days has Starbucks millions of consumers in more than 21,000 retail stores in 66 countries. Last open stores in 2014 were in Brunei and Colombia. Since 2007 every year are open more than 1000 stores in the world. 12 main areas in Germany and according to the map has Berlin just in the center currently 14 Starbucks. One of the goals of Starbucks is to have the highest standards of quality and using ethical sourcing practices. The coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality beans. The employees (they‘re called partners) are according to the Starbucks at the heart of the Starbucks Experience. Starbucks believes in treating our partners with respect and dignity (e.g. they offer two landmark programs - comprehensive health coverage and equity in the company through Bean Stock). == SOURCES == GoogleMaps (2015): Starbucks in Berlin, https://www.google.com/maps/search/Starbucks,+berlin/@52.512985,13.364345,14z/data=!3m1!4b1, May 31, 2015. Hundreds, Bobby (2011): Original Starbucks from 1971, http://thehundreds.com/wp-content/uploads/2011/01/thehundreds42372.jpg, May 31, 2015. Mayank (2013): First 3 partners, http://www.thinkalytic.com/wp-content/uploads/2013/12/starbucks-1971.jpg, May 31, 2015. Starbucks (2014): Starbucks Company Timeline, http://globalassets.starbucks.com/assets/5deaa36b7f454011a8597d271f552106.pdf, May 31, 2015. Starbucks (2015): Starbucks Company Profile, http://globalassets.starbucks.com/assets/4286be0614af48b6bf2e17ffcede5ab7.pdf, May 31, 2015.
- == SOURCES == GoogleMaps (2015): Starbucks in Berlin, https://www.google.com/maps/search/Starbucks,+berlin/@52.512985,13.364345,14z/data=!3m1!4b1, May 31, 2015. GoogleMaps (2015): Coffee near Alexanderplatz in Berlin, https://www.google.com/maps/place/S%2BU+Alexanderplatz+(Berlin)+%5BU8%5D/@52.5205404,13.4095413,16z/data=!4m5!1m2!2m1!1scoffee+bl%C3%ADzko+Alexanderplatz,+Berl%C3%ADn,+N%C4%9Bmecko!3m1!1s0x47a84e1f6db845b1:0xe43039d6fbe8c6e0, May 31, 2015. Ostfalia University (2015): Anzahl der Coffeeshops von Starbucks und McCafé in Deutschland in den Jahren 2006 bis 2013, http://de.statista.com/statistik/daten/studie/37686/umfrage/filialentwicklung-von-coffeeshops-in-deutschland/, May 31, 2015. PinsToPin (2012): Starbucks Global Store Map for Pinterest, http://media.arstechnica.com/news.media/meraki_world_map.jpg, May 31, 2015.
- 5 principles according to the book: „The Starbucks Experience“ 1. Make It Your Own: They allow their employees to do whatever it takes to ensure a positive experience by the customer of the company. Each employee is encouraged to take action as if the company were his own. 2 Everything Matters: Everything matter, even the little things are important for Starbucks, everything and everyone matter. And it is thanks to this policy that Starbucks is an huge company nowadays. 3. Surprise and Delight: Starbucks wants to surprise customer and delight him/her. E.g. with a free book about the coffee, funny advertisement, free cup of coffee, advise... 4. Embrace Resistance: Dont mind criticism. If it is untrue, disregard it, if unfair, keep from irritation, if it is ignorant, smile, if it is justified, it is not criticism - learn from it. 5. Leave Your Mark: Every year, Starbucks increases its objectives to attract more suppliers, makes many financial donations for the elimination of illiteracy for example. 6 key to success Predictability (same friendly place and quality everywhere) Consistency (safety in the company and its services) Ritual (place for conversation and connection) Routine (to pleasure people in everyday routine) Community (support to each other) Service recovery (service has to delight the customers). == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA). Rizkalla, Emad (2014): Starbucks staff, http://i.huffpost.com/gen/1885248/images/o-STARBUCKS-WORKER-facebook.jpg, May 31, 2015.
- == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- THE PHYSICAL ENVIRONMENT Warm & friendly atmosphere The openness of its store space; Interesting menu boards; The shape of its counter; The cleanliness of the floorboards; … Starbucks it’s threat of retailing coffee went way beyond product (detail of the total experience mattered) Particular from : Napkins to coffee bags; Store front the window; Annual reports to mail order catalogs; Tabletops to thermal carafes Seems to reflects authentic & organic roots of Starbucks 2) Atmosphere (architects & designers) Designers are encouraged to test new store formats in big cities. The “Starbuck of the future” is a team project, and the goal is “not focus on today’s detail, try to anticipate the detailed needs of the future” Starbuck studies the success of its "future rival" on the market where he wants to become established and it takes the most important aspect (for example: the importance of the historic dimension for Paris) Starbucks is continuously searching for new way to improve all aspects of the store environment. Starting playing music to make a comfortable atmosphere it is very important, not just in background „people comes for a coffee but Starbucks can offer more than a coffee“ Starbucks is a „big stop“ in the customer’s day „Essence of a great business leadership: finding ways to deliver existing products & services in ways that make the brand more significant to the customer“. 3) Felt sense The result of a myriad of tiny details that lurk somewhere below our conscious awarness: Music Pleasant colors Confortable fourniture Right amount of Lightning Tables clean For customer Starbuck is like a „mini vacation“ You can spend all the time that you want, nobody will come and tells you to leave, you can work, „escape after a stressful day“… 4) Adaptibility Starbucks put a different touch in every stores, according to the district the region our the country.. Customer are not completely conscious of the details effect on themselves but it is remains important. == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- The quality of product: Quality policy The Starbucks policy is to do not neglect the quality of products. Starbucks researching and developing technologies to sell more and more good coffee. Senior vice president of manufacturing Richard Soderrberg said „we would have the freshest coffee in the market“. Focus on quality, innovation & the smallest aspects of business is an example of how an enduring brand emerges. Not only with the management at the macro level (strategic) but through management at the micro level (operational) Coffee quality begin with relationship between Starbucks & the coffee farmers. Choose the better one, compare with the other, Starbuck want to have everything under control. They want to know their future partner, they look at the health of the farm, how farmer treat environment, how they treat social conditions, It is in the way they buy their coffee which makes them a special company == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- EVERYONE MATTER Everyone in the company appreciates that nothing is trivial / customers notice everything 1) Management Manager put themselves in the shoes of their customer, this perspective has helped Starbucks to become the valued brand it is today. 2) Work in a Starbucks There is a real discipline which ensure the quality & the Starbuck’s experience. Each people have something to do and there is a checklist for the employees about things that they have to do all the day. And they understand the importance of these details, so they don’t have to look at the list it is a „reflex“. EXAMPLE: The bevered coffee would be good for 5h in the container in which it is made. But employees brew a new container every hour to ensure that it is very fresh and very hot. Employees says that is the freshest coffee you’ll get. Starbuck have a lot of regular customer & if a detail change, they notice it immediately 3) Staff The goal of the stores is also to collect the customer experience, it is like a story telling where customer can put their different experience in Starbuck. It is sometimes a form of recognition for the employees and it motivate them. An important detail where you are in a store is the feeling that you have with the staff, so for the Starbucks employees it’s very important to being happy and for that it is necessary to having fun in the store. „Everyone matter “. == SOURCES == Michelli, Joseph A. (2007): The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, The McGraff-Hill Companies, New York (USA).
- The main product of Starbucks is the coffee. It is proposed in 4 different ways: coffee plunger, pouring, iced pouring or coffee machine. Their range of coffee consists of 113 different products. They also offer espresso-based drinks , chocolate drinks, frappucino coffee and light coffee , and frappucino yogurt . Also teas complete the range and refresh drinks based fruit. Starbucks also offers pastries and small pastries (22) and 3 donuts. It also offers 2 hot sandwiches and 2 cold sandwiches. Yogurt and fruit salad. The main product of DD is their Donuts. They offer 7 different kinds of pastries : donuts , bagels , muffins, cookies , croissants .... They also have 22 kinds of sandwiches. For drinks, they are the cafes that are most present. Cafes, espresso, latte or cappuccino, you can choose among coffee-based beverages, chocolate, fruit or tea , whether hot, cold or iced . Or about 29 references. The main product of BC is drinks, hot and cold. They offer about 15 choices of hot drinks, whether in coffee, chocolate, espresso or cappuccino. For cold drinks, their range will also teas, cold drinks or ice made from fruit or milk. the total range of their drinks consists of about 30 products. For the product, Starbucks is the best with his large choice of coffee and other drinks, but DD is he best with his choice of pastries. Berlin Coffee is far … == SOURCES == DunkinDonuts (2015): Hot beverages, http://www.dunkindonuts.com/dunkindonuts/en/menu/beverages/hotbeverages.html, May 31, 2015. Starbucks (2015): Our coffees, http://www.starbucks.com/coffee/our-coffees, May 31, 2015.
- Starbucks: tall, grande or venti, the 3 sizes are possible glass. In most cases, customers take the Grande or 475 ml. 5,26€ for a cappuccino grande. All Starbucks beverages in Grande size, are at around € 5. Dunkin Donuts: 4 sizes for drinks. Medium : 3,79€ for cappuccino. Donuts : 0,89€ for each. Cheaper than Starbuck for the same quantity. The most expensive drink is cappuccino XL to 5.19 €. Berlin Coffee (BC): It proposes also 3 choices of size. Their service consists only of service in a cup at a table on their terrace. Their cappuccino is in the vicinity of 3,40€ , but the capacity is much smaller than the other 2 . For the price, Dunkin Donuts is the best and the cheaper for the same size of drinks. Berlin Coffee is again far … == SOURCES == DunkinDonuts (2015): Dunkin Donuts websites, http://www.dunkindonuts.com/, May 31, 2015. Starbucks (2015): Starbucks websites, http://www.starbucks.com/, May 31, 2015.
- In Berlin, Starbucks is in the city center, in the largest street. It is located in the square under the Fernsehturm, very touristic place. It has a very well chosen spot, seen by a lot of people, right next to the metro station downtown. Location very passenger. Inside the restaurant, the space is not very big but it has a very large terrace. Which is a good advantage for them. However, indoor, chairs are not comfortable and the toilets were not working the day we 're going there. Dunkin Donuts: inside space is really small and has no outside space, which is a shame. However, contact with the sellers is very nice. Berlin Coffee : it is the largest of the three restaurant in the house but also outside. More, its terrace gives immediately on the bus station downtown. A cafe waiting for the bus, it's perfect. Dunkin Donuts is in the lobby of the subway station to city center, very close to Starbucks. His place is less in sight of all as only for those who return to the station, and it is much smaller than Starbucks. Inside space is really small and has no outside space, which is a shame . However, contact with the sellers is very nice. Berlin Coffee is also in the same corner, in the street just behind Starbucks, opposite the train station. It is therefore between 2 about 200 meters from each other. Its location is also ideal. It is the largest of the three restaurant in the house but also outside. More, its terrace gives immediately on the bus station downtown. A cafe waiting for the bus, it's perfect. For the place, Berlin Coffee is the best in Berlin between these 3 restaurants.
- CONCLUSION == SOURCES == Social graphic comparison: DD vs. Starbucks: http://blog.truelens.com/socialgraphic-comparison-dunkin-donuts-vs-starbucks/
- AUTHORS Blazek, Tomas Bocahut, Axelle Gubiani, Sophie Chudacek, Stanislav Loaiza Ramirez, Alexia Alexandra SUBJECT Marketing Management: Ostfalia University, SS 2014/2015 LECTURER Dipl.-Wirtschaftsingenieur Frank Harmeling