Customer Experience: Analysis of Starbucks Corporation

Customer Experience
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Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Starbucks Corporation:................................................................................................................3
Customers of Starbucks Corporation:..........................................................................................4
Attitudes of customers of Starbucks Corporation to the brand:..................................................6
Mission statement of Starbucks Corporation:..............................................................................6
Demonstration of audit of manifestation of customers:..............................................................7
Models and Theories of Customer experience:...........................................................................8
Recommendations for Starbucks to improve customer experience:............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Customer experience refers to the perception of the customer of their experience with any
brand, product or organisation. Customer experience is not just a one-time thing and every
interaction between the business and a customer has an impact on the customer experience.
Starbucks Corporation is one of the biggest coffee house in the whole world and delivers its
users a premium and rich coffee dirnking experience. This project report aims at understanding
the process of customer experience of Starbucks and analysis of theories of customer experience
with an organisational context of Starbucks (Tu and Chang, 2012). The report also aims to
understand the mission and the vision of the organisaiton with respect to improving customer
service. At last, the report aims to provide some suggestions and recommendations to the
manageement of the company on how can they improve the positive aspect of customer
experience for their customers.
TASK
Starbucks Corporation:
Starbucks is an American company which was founded in the year 1971 in Seattle, WA
and is one of the largest and most popular retailer and manufacturer of premium coffee drinks all
around the world. The company has more than 19,500 licensed stores in 62 countries all over the
world. The industry in which Starbucks operates is a rapidly growing industry and has witnessed
major growth in the recent past due to a changing customer preference towards a better lifestyle.
Starbucks is a dominating brand in the industry with a market share of 36.7% which is more than
any of its competitors such as Dunkin’ Donuts, McDonald’s etcetera. Starbucks and dunking
donuts together make up more than 60% of the industry which shows the dominance of these big
players in the market (Susanty and Kenny, 2015). The company has positioned itself as a very
premium brand in the market. The aim of the company is to deliver the best and premium coffee
experience to the customers and the company has strategically planned partnerships with big
corporations to sell Starbucks coffee at workplaces. One of the first company to provide in-store
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internet facility to the consumers is Starbucks which helped the company to build an image of
technologically advanced coffee house where users can have a rich and premium experience.
Starbucks is definitely the most popular and most recognized brand in the coffee industry and
comes at a rank of 91 in the top global brands. This shows the image and brand reputation of the
company associated with a premium and rich experience for the customers. One of the key factor
determining the reputation and goodwill of Starbucks in the industry is the unconventional
strategies for customer experience and all stakeholders’ experience (Sheng, 2012). Starbucks has
a very strong and positive relationship with the farming community which are the suppliers of
the company and the elimination of middlemen has made it possible for the company and the
farmers to be in a fair deal which improves the brand image of the company. Starbucks comes
out as a highly reputable and consumer-centric brand with high ethical and moral business
values.
Customers of Starbucks Corporation:
Starbucks is the leader in the coffee industry with a revenue approximately equal to 26.52
billion U.S. dollars in the year 2019. As per the company reports, around 75 million customers
visit the U.S. stores every month. These large scale operations makes it interesting to look at the
customer demographic of Starbucks and analyse the highest contributing customers. Here is a
graph which shows the customer trends of Starbucks
(Source: Internal Research June 2010)
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