written case summry
abdull_otb
starbucks_case_study.pptxStarbucks Case Study
Presented By: (Abdullah-Christian-Mohammad)
1. Hello and welcome to the presentation on the Starbucks case study. In this presentation, we will endeavor to provide responses to the following questions:
a) Q3. Do you frequent Starbucks? If so, what is your opinion of it?
b) Q4. If you do not frequent Starbucks, what might induce you to try?
c) Q7. Several recent surveys have found that Starbucks coffee in blind taste tests is not rated any higher by consumers than McDonald’s Dunkin’ Donuts and some local coffee houses. Yet, Starbucks continues to demand a price premium. Discuss.
d) Q9. “[With Frappucinos] That’s when we discovered we were bringing people into the stores that hadn’t had coffee before.” These words of Starbucks’ executive Michelle Gass have interesting implications. Evaluate them on several dimensions.
‹#›
‹#›
I do not frequent Starbucks because their coffee generally commands a premium price. However, when I go to this immensely popular place, I purchase the occasional Tazo Awake Tea largely because of its good taste compared to its competition such as the Tim Horton tea and the standard coffee.
Q3 Do you frequent Starbucks? If so, what is your opinion of it?
1. Apparently, I have a daily latte habit that I would want to maintain. However, since I love saving money, Starbucks is the last place I would want to frequent if I am to save money because it is my daily latte habit.
‹#›
Apparently, Starbucks can get quite expensive more especially when you start ordering specialty drinks, which one can always make by themselves if they want. However, if one wants a nice treat or the convenience or the experience of picking those orders once in a while, it can be rewarding to make those purchases.
Though the prices are high, I believe that one can always benefit from Starbucks because of its loyalty program dubbed Starbucks rewards.
My opinion of Starbucks
1. To benefit from the Starbucks rewards, the customer should have a gift card to sign up to the reward program. It is through the gift card that the customer should make purchases which in turn earns them stars irrespective of how high or low the purchase is.
‹#›
One thing that might make me want to try frequenting Starbucks is the Starbucks rewards.
Apparently, the Starbucks rewards will depend on the level the customer has reached, which is determined by the number of stars already earned. The higher the number of stars, the higher the level of rewards.
Q4. If you do not frequent Starbucks, what might induce you to try?
When one accumulates the Starbuck stars less than five of them, they can enjoy the welcome reward that may consist of :
A free birthday treat
A birthday coupon to enjoy 15% less of purchases
Getting firsthand information on promotional offers through email subcriptions.
‹#›
To maximize these rewards, I would want to make cheap purchases whenever I feel like just for the stars, which in turn I would redeem appropriately.
The more stars you earn gives you increased levels of rewards.
How to maximize the Starbucks rewards
1. The more stars you earn gives you increased levels of rewards. So, to enjoy higher level rewards, one should endeavor to earn as much stars as possible.
‹#›
Apparently, another thing that might induce me to try Starbucks is its cheap office space.
.
1. Whenever you make a purchase order for your favorite coffee, you can always use their provided space to drink your coffee at your convenience while at the same time doing your office work. It is that cheap!
‹#›
.
Q7 Several recent surveys have found that Starbucks coffee in blind taste tests is not rated any higher by consumers than McDonald’s Dunkin’ Donuts and some local coffee houses. Yet, Starbucks continues to demand a price premium. Discuss.
Apparently, Starbucks’ coffee is common coffee only that the consumers have been sold and believed the idea that Starbucks coffee presents a sense of romance, sophistication, style, knowledge, and community.
It is for this reason that Starbucks coffee continues to demand premium prices.
.
1. Apparently, Schultz mantra was that “we would take something old, and tired and common, which is coffee, and weave a sense of romance and community around it. We would enchant customers with an atmosphere of style, sophistication and knowledge.” Perhaps this mantra has had its intended effect on the consumers.
‹#›
.
Q9. “[With Frappucinos] That’s when we discovered we were bringing people into the stores that hadn’t had coffee before.” These words of Starbucks’ executive Michelle Gass have interesting implications. Evaluate them on several dimensions.
Apparently, with the Frappucinos, it appears that Starbucks had finally managed to sell to the customers the idea that Starbucks coffee brought the customer the atmosphere of romance, style, sophistication, and knowledge that the customers can identify with or achieve when they drink Frappucinos.
.
Also, from Gass’ statement, it appears that Starbucks had discovered in Frappucinos, the charm and mystique that swirled around coffee all along. So, when they introduced it, it clicked in the back of the minds of many and word spread that Frappucinos is the drink they had been missing all along.
It may also imply that Starbucks used this new discovery to market the company during its various market campaigns.
.
This statement may also imply that it is during the introduction of the Frappucinos that Starbucks started recording huge sales volumes of the Frappucinos.
Also, it may imply that it is at this time that Starbucks saw an opportunity to expand its services to quench the increasing demand for the Frappucinos.
.
In conclusion, therefore, this statement by Starbucks executive, Michelle Gass, may as well confirm that Starbucks Frappucinos is the real secret that appealed to those who hadn’t had coffee before to start doing Starbuck coffee the moment they tested it.
.
Michelli, J. A. (2007). The Starbucks experience: 5 principles for turning ordinary into extraordinary. New York: McGraw-Hill.
Brown, K. (2012). Inside the Cup: Translating Starbucks into a Drinkable Language. Cork: BookBaby.
References
‹#›
Gill, M. (2007). How Starbucks saved my life: The riches-to-rags story of a man who had it all, then lost it all, and found it again.
.
