STARBUCKS Coursework Example | Topics and Well Written Essays - 2500 words

STARBUCKS - Coursework Example 10 Evaluation of the Effectiveness of the Investment 10 Conclusion 12 References 13 Bibliography 15 Introduction In 1971, Jerry Baldwin, Gordon Bowker and Zev Siegal start up a coffee store in Washington in the heart of Seattle’s Pike marketplace. During 1987, Mr. Schultz purchased the store and started expansion of the business outside the Pacific Northwest and Chicago. In 1993 Starbucks registered under company rules and started selling share to expand its business world-wide (Starbucks Corporation, 2013; Lee, 2009). Starbucks wanted to establish itself as the premier seller of the most favourable coffees globally. The company was committed towards ensuring and incorporating exceptional business principles, ethics, corporate social responsibility as well as unique product and services. The mission as well as vision of the company duly focused upon the motto "inspire the human spirit." During the year, 2002, Starbucks conducted qualitative research wherein it was discovered t hat the brand image of the company was deteriorating. As a result, Starbucks has been extensively concerned about its eroding customer base and reducing level of customer satisfaction. The company was duly committed towards mitigating the problem of reducing customer base in order to return to the mainstream of growth and expansion in the global market (Moon & Quelch, 2006). A. The Case Highlights Customer Satisfaction Issues That Starbucks Is Facing. ... This ultimately led the company to place due consideration to resolve these issues in order to remain viable at the marketplace and to gain greater competitive advantage over its rivals. Few important issues considered by the company are revealed below. . Consumer Frequency as well as Loyalty Issue The scores of customer satisfaction obtained from the qualitative research was taken into due consideration by the organisation because this factor was directly related with the customer loyalty and its overall performance. To ascertain the degree of customer loyalty, the researchers were concerns about analysing the data of customers’ frequency of visit in the Starbucks coffee stores. According to the research, it was found that 21% of its total customer visits the company’s stores more than 8 times per month while 37% of customers visit 3 to 7 times per month. At the same time it was ascertained that 42 % of customers visits just 1 to 2 times per month at the Starbucks stor es. Source: (Moon & Quelch, 2006) This research data revealed the negative impact on the organisation in terms of customer loyalty as well as level of customer satisfaction (Moon & Quelch, 2006; Hurth, 2006). Starbucks Brand Image The organisation also concerns about few more important attributes which were associated with the Starbucks brand image. Firstly, the researchers were concerns regarding the customers’ awareness about the speciality of Starbucks gourmet coffee. Through this analytical study the researchers discovered that 54%of customers were fully agreed about the Starbucks speciality coffee and they were aware about this product. Secondly, in