Starbucks : Delivering

Customer Service

GROUP: V
Prabesh Paudel (12524)
Prashant Shrestha (12531)
Rajesh Tuladhar (12534)
Richa Joshi (125120
Samir Shrestha(12532)

Value Proposition
Coffee Quality-To create an experience around the

consumption of coffee, an experience that people

would weave into their lives
Service(Customer intimacy )- To create an uplifting
experience
Atmosphere - To create an ambience based on
human spirit, sense of community, and the need for
people to come together
Partner Satisfaction-Starbucks partners- its 60,000
employees

Customer Service and Market Composition

Market leader: most popular coffee brand
Serving in 62 countries
Concept of Italian traditional coffee house
Serving with different types of drinks (coffee,

beverages, tea, etc.) and food (bakery, sandwich, etc. )

Major Competitors
Primary competitors for coffee beverage sales are quick service

restaurants and speciality coffee shops

Strong Competitors
Dunkin Donuts : Doughnuts and coffee Expanded coffee offerings to
include flavored coffees, lattes, dunkaccino, vanilla Chai ,flavored hot
chocolate and teas.
McDonalds: Broad target market thus comparatively larger volume of traffic
Panera Bread: effective pricing strategy
Peets Coffee & Tea, Inc. : Speciality coffee roaster and marketer of roasted
coffee and tea
Channel Development Segment competes against speciality tea

and coffee available in markets

SWOT Analysis
Strengths

Weaknesses

Strong brand image

Financial strength
Supplier relations
Employee Management
Acquisition of (Teavana)
Rapid product development capability
Reputed tea brand Tazo

High dependency on US market and

resulting market risk

Opportunities

Threats

High growth prospects in emerging

markets
Fragmented coffee and tea market
Acute possibility of related product
Increasing dominance of Western lifestyle
in Asian market
Increasing tea loving Asian population in
US

Slow sales growth in Europe

Increasing competition
Increasing health consciousness
Difference in consumer habit and taste
in international markets
Price fluctuations of coffee

Saturation and self-cannibalization in

US

SWOT Analysis

Future Footprint in the Context of Changing World

Maintain focus on the core competencies
Diversification in terms of consumer preference
Local taste to be considered in international markets
Expanding community experience sharing
Acquired juice , bakery and tea company to increase

product variety
Expansion overseas: especially in China and India

MARKET PENETRATION
further penetration of existing product of company into

existing market segment with approach of intensification

and re-launching.
expand its service in existing region with expansion of its
retail stores and chains to serve newer focused segment of
market.
The strategy of launching it in different geographic location
of existing market segment shall support the further growth
of company.
On the other hand, Starbuck can modify its branding
approaches to brand it excessively into its existing market
segment to maintain focus and intensify its value
proposition

MARKET DEVELOPMENT
Market development strategy consists of strategy to

internationalization
provide new market segment with existing product of
company.
enter into new segment of customers
new distribution channels with new possibilities for
utilization of resources.
Starbuck has expanded itself from North American
market into the market of Asia, Europe, the Middle East,
Africa, and Latin America including country specific
expansion into United Kingdom, Australia, Thailand and
other market.
Yet, there is huge untapped area in Asian market.

MARKET DEVELOPMENT
Starbuck can have a huge market opportunity in

emerging economic giants as China, Brazil, Russia,

and India including other sub continental regions in
south Asian region and well developed nations in
African market.
These markets carry huge opportunity for Starbuck

in terms of purchasing ability of customers within

different geographic location and utilization of new
available resources.

PRODUCT DEVELOPMENT
This strategy includes the development of new product for

the existing market segment with distinct research and

development program, development of new product line,
and new services to its existing market segment.
Starbuck developed new products such as Ready Brew
instant coffee, courtesy product to provide coffee in
premium hotel rooms, and coffee and tazo tea for Green
Mountain Coffees Keurig single-cup machines.
Adding other customer oriented products including
bakery items, beers and wines into the store can add value
with expanding horizon of its focused market segment.

Thank You!!!