1.

What factors determined the success of Starbucks in the early 1990s, and

What aspects were so persuasive about your value proposition? What brand image

Did Starbucks develop during this period?

Within these factors, we can highlight

Value Proposition
Distribution Channels
High Employee Satisfaction

The value proposition of Starbucks was a complete fusion of its 3 key components,
referring to the coffee itself, customer service, and the physical space of its locations.

In this way, he began to develop a brand image that sought to be recognized by

to offer the highest quality coffee in the world. With the idea of achieving a connection with the
client through a personalized service, and, lastly and most importantly, create an atmosphere
pleasant so that the customer chose Starbucks as the third place to be
after the house and the office.

Clearly, the company wanted to break away from the old concept of a traditional café to provide
I proceed to the development of a brand image focused on establishing itself as the place
preferred where the customer could enjoy a cup of excellent quality coffee.

Advantages

Their employees were recognized as partners and had health insurance.

Their premises were located in high foot traffic areas.
By that year, it already had 84 established locations.

Disadvantages

They could not fully capture their value proposition.

Their market was aimed at an adult target audience.

2 Why did Starbucks' customer satisfaction scores decline? Did it

has the company's service deteriorated or is it simply measuring satisfaction of
the wrong way?

According to the document, starting in 2002, Starbucks was more focused on expansion and
globalization of business and not on the improvement of the elements that affect satisfaction
of the client.
 There is a strong conflict between product quality and focusing on customer service.
Consumer, thanks to their behavior, almost half of the customers consumed.
custom-made drinks, taking into account the needs and desires of the
clients are changing just like the increasing complexity in operations and in work
the employees were noticeable as there is a varied offer of drinks, some of which
of which require up to 10 steps in their preparation, consequently lesser
speed of delivery of the product that prevented a more personalized service, which was what
what the company was looking to achieve, therefore it is not at any time
measuring customer satisfaction incorrectly when it is highly visible by
part of them in which areas are they failing for paying attention to third parties who only
they add value to the product they offer.

Advantages
Notes

Disadvantages
The quality of the product begins to decline, while the quality of
attention.
The delivery time for the product was becoming slower.
The rationale behind Starbucks' value proposition is lost.

3 - How has Starbucks changed since its beginnings?

In 1990, Starbucks already had 84 locations; in 1992, 165, and that same year Schultz decided to go public.
stock exchange. The first exchange established outside of North America was one in Tokyo.
in 1996. And the company took the big step on the international stage in 1998, when it acquired the
English chain Seatle Coffee Company, Queen.

By 2002, the customer is not as warm and social as they used to be. This may be due to the target.
from Starbucks. Starbucks' clientele is younger, less educated, with a lower income level.
inferior to Starbucks' more established customers, visit the locations less frequently and
I have very different perceptions of the brand, compared to Starbucks' current policy.

The management is very clear that the customer is their main asset and therefore they do not hesitate to
create loyalty plans for customer satisfaction and profitability. Currently that profile
it has expanded, there is now a mix of different targets with different attributes and with
different needs. With all of the above mentioned, we can identify the development and the
evolution that the company and the brand have undergone, becoming more accessible to consumers
due to the growth and large number of sales centers throughout the country, it has become a product
innovative and informal because it evolved from a cup of coffee served with great attention and service to
clients to be sold in vending machines and also bottled promoted by agreements
of association and distribution with other companies.

Advantages

It is an accessible, innovative, informal, and friendly brand.

Currently, their products can be obtained from vending machines.
They constantly implement loyalty plans for customer satisfaction and profitability.

Disadvantages

By 1992, the customer was a coffee expert; today they only request homemade beverages.
Half of Starbucks customers consumed made-to-order drinks, which
it generated a tension between product quality and customer focus.
The clientele of Starbucks was that affluent and educated woman between 22 and 44 years old who
they had Starbucks as their third place after home and work.

4. Describe the ideal customers of Starbucks from a profitability standpoint. What

What would be needed to ensure that this client is very satisfied? How valuable is a
very satisfied customer for Starbucks?

From our point of view, it is clear that the ideal customers for Starbucks are those who
they visit your stores more than eight times a month.

For Starbucks, the ideal customer is one who visits their locations more than twice, regardless of their
social class, age or nationality what it seeks is loyalty in the consumption of its products, that
they can generate the necessary profitability of the product.

According to the market study, Starbucks has to change the focus of its market to a
younger, more fun, social market that encourages spending time in its venues, particularly
attractive to young consumers so that 42% of the customers who visit for the first time
second time, they can have an unforgettable experience that turns them into returning customers
Starbucks more than twice a month.

For Starbucks, the complete satisfaction of its customers is of great importance as it is part of their strategy.
is focused on ensuring that its consumers experience an inspiring moment, for which the
the company is achieving the objectives for which it was created, which has had an effect on its
target market in such a way that it has positioned itself as one of the best brands.

The importance of achieving customer satisfaction lies in the fact that a satisfied customer, for the
In general, he/she repurchases. Therefore, the Company obtains as a benefit his/her loyalty and consequently, the
possibility of selling him the same or other additional products in the future, besides it may be that the
A satisfied customer communicates their positive experiences with a product or service to others.
Therefore, the company benefits from free publicity that the satisfied customer generates.
to their family, friends, and acquaintances, thus making the satisfied client put aside the
competition. Therefore, the company gains a certain place in the market as a benefit.

In summary, any company that achieves customer satisfaction will obtain the following benefits: The
customer loyalty that translates into future sales, free publicity that translates into new
clients and a certain market share.

Advantages

They do not see in their clients their social status, age or nationality; what they seek is loyalty in the
consumption of your products.
Thanks to the changes being made, the rationale for the proposal is being recovered.
of brand value.
It is a brand that is largely recommended by many people to friends.
close, thanks to the fact that nowadays the consumption of their products is a popular topic
between different social strata.

Disadvantages

By offering poor service, the acquisition of benefits would not take place.
provide customer satisfaction.
The market approach that the brand is targeting is no longer a market.
promising.
their strategy is focused on ensuring that their consumers have an experience
inspiring, but by paying attention to other things, they often forget about quality
of the product.

Should Starbucks invest $40 million in labor for the stores? What is the objective?
of this investment? Is it possible for a mega-brand to offer customer intimacy?

Starbucks should make the decision to carry out the investment since the main focus of
the company is the complete satisfaction of the customer through personalized service and to contribute to
long-term relationships with customers.

Considering that in the market study conducted, they found that there is low
customer satisfaction index. The objective of this labor investment during peak hours is
to achieve a reduction in delivery times for the different products, improve the
preparation processes, in addition to improving customer service and occasionally it is the
area where more complaints are received.

But this must be complemented with other measures to be taken in all Starbucks locations.
task of achieving optimization of operations, simplifying processes with the aim of reducing the
time that employees need to serve the products and therefore can
interact more with customers and make the brand's idea of creating that intimacy a reality
with the client, not neglecting the investment in specialized equipment for the preparation of the
Different products would help reduce the preparation times of the products more.
conventional.

We believe that it is possible for a mega-brand to offer customer intimacy, as long as

Starbucks, dedicate time and invest resources to understand what the preferences and tastes are.
your clients.

It is very important to establish an intimate relationship with a mega brand like this.
Starbucks must constantly implement tools that allow it to be gathering
constantly information from their clients, in order to satisfy their needs.

Advantages

By making this investment, it is possible that it will be carried out significantly.

effective training of staff in the company towards good treatment of customers.

The investment in specialized equipment for the production of different products

it would contribute to reducing the preparation times of the more conventional products.

It will keep the brand informed about everything related to customer satisfaction.

Disadvantages

Unable to achieve global customer satisfaction service in all locations.

worldwide.

Decrease in the percentage of loyal customers to the brand due to not finding any type of
difference, after the updates have been made due to that investment.

They face a great task in wanting to achieve, as a mega-brand, the intimacy of their
clients, as they must provide solutions to all the problems and complaints that have arisen
giving for years.