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The Evaluation Of Starbucks Marketing Essay

They provide when you are a liable company. They also ensure a quality product by milling coffee beans whenever a new container is brewed. This will not only provide customers with fresh quality coffee but also load the café with the aroma of fresh espresso all day long to entice other people to come in and drink caffeine.

Evaluate Starbucks atmosphere/physical area.

Starbucks is certainly going through the revamp in Singapore from what I see from the new outlet stores. They have improved to long desks which are best for bigger groups. They also have bar seats facing the pavements (probably to lure the folks outside to come in). Several seats have also been changed to padded seats rather than the wooden ones but those still continue to be for the normal dining tables. This makes the whole area a nicer location to sit down and relax with a booklet in hand and coffee up for grabs.

What will be the strengths and weaknesses of this atmosphere? What can be done to improve the atmosphere at Starbucks?

Strengths

Weaknesses

Good place for folks to sit back and relax, read a reserve, research or people watch.

Because it is a good place to be in, people spend a lot of time there but this will not necessarily translate to increased sales. In fact, potential customers may not come in because there are no chairs left.

The aroma of espresso and pastries being heated up up can bring customers in as well as cause customers who are already in the shop to invest more.

If the wall plug is not active, the aroma which is one of the primary draws may well not be there.

When the outlet is very active, furniture may be remaining with crumbs and grubby cups and plates which is rather unsightly for customers.

Starbucks could consider offering unlimited refills for their drinks during non-peak time for a higher price (however they have to enforce a no showing rule that could be hard). They curently have signs in placed to remind customers not to analyze there during peak hours but I really do not know if the service personnel enforces it firmly.

A container of fresh caffeine could be brewed every 30 minutes during non-peak hours to produce the aroma of fresh coffee to entice visitors to come in and make a purchase (similar to what Famous Amos does - free smells)

Staff appointed to specifically keep carefully the outlet clean rather than getting cashiers or baristas to double up especially during peak time will help keep the café clean. Starbucks could teach the customers to be liable and help to keep their overheads low by clearing their own mugs and plates (comparable to Ikea) and in turn the savings would be passed on to the consumers.

Part B (5 things): Determine what gaps in the 5 Difference Style of Service Quality (Appendix A in your textbook) that Starbucks is currently facing. Next, provide ideas for improvement for every single gap that you believe Starbucks happens to be facing.

Quality technical specs versus service delivery

Although Starbucks spend a whole lot of their barista training, I do not know if just as much training is given to those who work in their licensed stores overseas considering that there are part-timers working as baristas. I personally have had drinks there were not made to the standard that I've come to anticipate from them and the style of the drink does indeed vary from wall socket to outlet.

Starbucks already has something in place whereby a person can change their drink if they're unhappy but I think proper training like in the company-owned stores should get throughout all outlet stores to ensure steadiness in the beverages. This will likely ensure that customers do not have an undesirable experience to begin with.

Expected service versus identified service

Based on past experiences, whether it be in Singapore or overseas at different Starbucks stores as well as the amount we are paying for a coffee, we have a high expectation of the lifestyle that we have obtained into. When the gap between your quality specs versus service delivery raises or if other tangible aspect such as the cleanliness of the wall plug is bad (dirty tables and surfaces or destroyed furniture) will lead to an increase in expected service versus recognized service distance.

To ensure that the tangible facet of their business can be enhanced, broken furniture should be mended or replaced. This may ensure that the looks of the electric outlet is maintained which no customer would be put in harm's way due to faulty furniture. The outlet should be stored clean all the time as well, right now during peak time, empty mugs and soiled plates are remaining on the table. Even though customers were inspired to dispose their own cups (currently most do not clear their cups), the desks may be wet or dirty thus the staff need to experience their part as well. Maybe management can consider hiring people specifically to keep carefully the outlet in balance instead of counting on the staff to serve customers and keep carefully the wall socket clean as well.

Part C (16 things): Producing Marketing Approaches for Starbucks

Conduct a SWOT evaluation of Starbucks. This will include 2 items for every single component of the SWOT (2 talents, 2 weaknesses, 2 opportunities and 2 dangers).

Strengths:

Very strong brand identification and equity

A large numbers of stalls spanning over 50 countries

Weaknesses:

50% of the stores are in USA (which might be over penetrated), and they have not been able break right into large emerging marketplaces like India and Vietnam

Their product is priced on an increased range and may turn off potential customers

Opportunities:

They recently signed a joint venture contract with Tata Global Drinks Limited to operate Starbucks in India with the first store place to open up in Mumbai in Oct 2012

They bought a drink company Development Fresh in past due 2011 to try and diversify the key business. This may cause additional earnings for the company

Threats:

Entrance of high quality simple to use home espresso machines such as Nespresso that could encourage consumers to make their own instead of buying a cup from Starbucks on the way to institution or work

Rising cost of coffees and other goods may price out more people from a cup of Starbucks coffee

What strategic initiatives could Starbucks undertake for each and every element of the Product Enlargement Grid (see Slide 12, Section 3 records). Please list 2 initiatives for each component in the grid (2 for product development, 2 for market development, etc).

Market penetration

Opening more stores in growing markets such as China and Mexico in their second and third tier metropolitan areas. Currently they is about 1 store for each 25, 000 people in america and 1 store for every 65, 000 people in Singapore. But there is merely 1 store for each and every 2. 04 million people in China and 1 store for each 317, 000 people in Mexico.

The Starbucks credit card could be associated worldwide to receive points or even to accumulate beverages (similar to the Hilton HHonors card) rather than just being from the individual countries like it currently is.

Market development

They will get partners (similar to what they have in India) in other growing marketplaces such as Vietnam and South Africa to touch on their market potential before their competitors.

They should start focusing on smaller places/states in the countries they have already broken into such as China, Russia, Australia and the Middle East.

Product development

They can come up with new drinks to renew their menu every once in awhile including the seasonal Christmas drinks or the recently unveiled salted caramel mocha.

Since they bought over Development Fresh, they can begin offering fresh juices and smoothies as well instead of only bottled juices. They do a similar thing when those bought over Ethos normal water and started advertising it at all their stores.

Diversification

They can look into creating a similar machine to Nespresso to test the stronghold of Nescafe.

They can consider growing their own coffee beans to battle the rising cost of goods insurance agencies economies of size. They will also be able to ensure a quality bean is cultivated.

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