Good Example Of Starbucks: Delivering Customer Service Case Study

Q1
The Starbucks case surrounds a market research that was conducted in 2002. The main issues under study include customer satisfaction, marketing strategies, target market, customer perceptions and customer behavior among many others. The aim is to identify the level of efficiency and effectiveness of the company with respect to these issues.
Starbucks used various marketing strategies during the time to improve its performance. For instance, the company made use of the branding strategy. Through the branding strategy, the company focused on offering quality coffee product to various parts of the world namely Africa, Central and South America. In addition, through the same strategy the company focused on providing quality customer service. Finally, the company also provided a conducive environment for the coffee lovers.
In addition, the company also made use of market segmentation strategy. Through this strategy, the company segmented its customers with respect to their geographical regions. It identified three regions namely Africa, Central and Southern America. The company also used channel distribution strategy whose focus was to bring coffee to people. To ensure this, the company located its stores in high traffic and high visible regions where its customers would get products with ease. The company needs to resolve the issues related to customer satisfaction and service delivery to its customers.
Q2
The level of customer satisfaction at Starbucks in2002 is better than that of 1992. This is because of its focus on quality brands and enhanced customer service. However, the satisfaction level is still wanting following the company’s failure to conduct market research regularly to identify the changing customer needs and preferences.
Q3
Starbucks segmented its market with respect to geographical region. It identified three regions namely Africa, Central and Southern America. In addition, it also segmented its customers with respect to social classes. Through this, Starbucks had classified its customers as high income earning and low-income earning customers. Its target customers were where the educated and white collar female of the ages between 24 and 44. However, with time the company also brought into bracket the younger, less educated and lower income class of people. Ideally, this is to mean that its customers have changed with time. This is because the company got newer customers who were young, less well-educated and lower income bracket.
Q4
The consumption patterns have changed over the time. For instance, Starbucks revenues show an increasing trend since 1998 to 2002. Ideally, this implies that the company is consumption rates are also on the rise. In addition, there is a change in consumption pattern following the attraction of less well-educated and lower income customers. Many customers purchase Starbucks coffee because it is of high quality as compared to that offered by its key competitors. In addition, customers also purchase Starbucks coffee due to its excellent customer service. Many customers perceive the company as having a quality customer service. Finally, the customer perceive the company as a having quality brand hence many are liking the company’s brand with time.
Q5
The value proposition of Starbucks had a focus on offering quality coffee products to its customers. In addition, it focused on offering quality service to its customers at all the time. Finally, it focused on providing a conducive environment for its customers to enhance their satisfaction levels. These value propositions of Starbucks plays an important role in ensuring customers get quality products through quality service delivery and to the level of their satisfaction. However, the study shows that the company did not satisfy all its customers due to its failure to respond to their changing needs and preferences.
Q6
It is recommendable for Starbucks to focus on carrying out a market research regularly in order to understand its customers changing needs and preferences. In addition, it is recommendable for the company to develop other target market strategies in order to help the company enter other markets in the world. Finally, the company needs also to train its employees on the need for enhancing customer service in order to increase its customer satisfaction.