Starbucks in Indonesia: Consumer Preferences

This assignment examines Starbucks' operations and success in the Indonesian market. It delves into consumer preferences for Starbucks products and services, analyzing insights gleaned from social media interactions. The study investigates how Starbucks utilizes its marketing communications to connect with Indonesian consumers and ultimately assess customer satisfaction levels.

RUNNING HEAD: Research project on Starbucks product quality
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Name of the student-
Topic- : Research project on Starbucks product quality
University name

Research project on Starbucks product quality
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Acknowledgment:
I would like to express my gratitude to my guide, senior and supervisor for their
assistance and support in the accomplishment of my research. It is their support and helping
nature that helped me in completing research study in an effective manner. Without their
support and help, it would be hard to complete this research report in-depth manner. Along
with my supervisors, I would also like to thanks my teachers and my parents who have
helped throughout the time for my better understanding. The significant amount of
participation was also very good to help for me in gaining relevant information on the
research topic.

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Executive summary
With the ramified economic changes and complex business structure, each and every
organization is using advanced technologies and offering quality services to gain over the
market. This research report has reflected the key understanding of the business functioning
of Star bucks and how a company has implemented its strategies to increase to establish
effective customer's loyalty in a market. The main purpose of this research report is to
identify all the internal and external factors which influence the products quality and
Starbucks loyalty towards its customers. This research report has divulged that customer
loyalty is very important for the sustainable future of an organization. Starbucks has used
loyalty member card and high quality of its coffee products to establish effective customer's
loyalty.

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Table of Contents
Executive summary...............................................................................................................................3
Introduction...........................................................................................................................................4
Literature review...................................................................................................................................6
Research methodology........................................................................................................................13
Research Limitation.........................................................................................................................16
Summary.........................................................................................................................................17
Data analysis/ Results..........................................................................................................................18
Discussion/ Results..........................................................................................................................37
Summary.........................................................................................................................................38
Recommendation................................................................................................................................41
Conclusion...........................................................................................................................................42
Appendix.............................................................................................................................................45
References...........................................................................................................................................49

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Introduction
With the ramified changes and complex internal and external business factors,
Starbucks Company has gained momentum in a market by following its effective strategic
planning. In this research report, the main focus has been made on the quality of the products
and services offered by the Starbucks. However, Star bucks have maintained a strong brand
image in the market. This research study has focused on the strategies and advances
technologies implemented by the management persons of Starbucks in its business
functioning. However, the main focus has been made on the loyalty of company towards its
clients and brand image set up by it in a market. The customer analysis of Starbucks
Company has shown that company has created the core competency in the market by
following two main strategies such as cost leadership and product differentiation strategy.
Present description of company
This Starbucks Coffee Company was founded in 1971. It has total 37 countries
around the globe, having headquartered in Seattle, USA. Starbucks Coffee Company has
evolved from being a $ .50 million business to business having worth $ 6.4 billion. This
company has increased business efficiency and expanded its stores around the globe. It is an
American coffee company, having operations around 23,768 locations worldwide. Starbucks
Coffee Company offers coffee beverages, tea, baked goods and sandwiches and other
beverage products to clients. Company has the strongest brand image in food and beverage
industry and established as second largest coffee serving venue around the globe. However,
there are several big rivals who give tough competition to Starbucks Coffee Company in a
market such as Dunkin' Donuts, McDonald's and “The retail coffee Game”. These companies
have increased their turnover by very drastic amount. Nonetheless, Dunkin’ Donuts has
increased its overall turnover by average 22.3% since last five years. Presently, Starbucks

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Company has total sales of 22.39 billion in 2017 which is 28% higher as compared to last
past five year data. The main problem in this research is related to determine whether
Starbucks Coffee Company has provided customers satisfaction through its offered products
and services in a market (Kim and Davis, 2016). Throughout this report, the main focus
would be made on the marketing technique and strategic planning uses by Starbucks Coffee
Company to create competitive advantage in market. Firstly, current marketing strategy will
be analyzed to identify how Starbucks Coffee Company offers brings value to its customers.
After that, ethical engagement, strategic alliance and advance technologies used by Starbucks
Coffee Company offers have also be evaluated to analyze the market position of a company
and its loyalty towards its clients. Another part of this, research report discusses the research
methodologies and recommendation which could be used to make this research report
effective for the reader (Lee and Vachon, 2016).

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Literature review
With the ramified changes of the client’s needs and demand in the market, Starbucks
Coffee Company has been re-engineering its value chain activities with a view to satisfy their
needs in determined approach. As per the perception of Ko, and Chiu, 2006, it t is reflected
that Starbucks Coffee Company has focused on developing core competency by following
two strategic program named cost leadership and product differentiation. Starbucks Coffee
Company has focused on developing and implementing its strategies and plans based on the
companies which are the closest rival under its group mapping. The main rivals are Dunkin’
Donuts, McDonald’s and “The retail coffee Game” that influence the strategic planning of
Starbucks Coffee Company most. However, with the GDP growth of the Australia and
increasing purchasing power of clients, the turnover of company has increased with the
drastic rate. After analysing the annual report of company, it is found that company has
increase of average 20% sales since last five years. As stated by Yu and Fang, 2009 it is
revealed that it has shown that coffee business has high growth potential which may also
attract more businessmen to diversify their business in this field. Customer loyalty is very
broad term which could not be justified by using some words. It could be defined in terms of
values, brand image and quality of the products offered by company to its customers. The
main vision of Starbucks Coffee Company is to satisfy clients need and demand in market by
offering best quality of services and products. Nonetheless, with the increasing changes in
client’s value, perceptions and assumptions, Starbucks Coffee Company has been re-
engineering its value chain activities. As per the views of Kim, et al. (2017) it is reflected that
these strategic plans allow it to adapt with the advanced technologies and install newly
designed system in its stores. Starbucks Coffee Company has adopted cyber computing
enterprises resources planning to provide optimum level of satisfaction to its clients. This

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assists clients to buy all of its products and services through offline and online mode in easy
and determined approach. Moreover, customer loyalty is not limited to selling best quality of
food and beverage products to its customers but also include employees’ behaviour towards
clients in market. Starbucks Coffee Company has established strong brand image in people’s
mind on international level which is surely a positive point for increasing growth of the
organization. In addition to this, there are other rivals such as Dunkin’ Donuts, McDonald’s
and “The retail coffee Game” who are using advanced technologies such as loyalty card,
membership numbers and best offers to attract clients to attract clients in market.
Nonetheless, customer’s loyalty of particular company is highly based on the quality of
services and products offered by company and the extent of client’s satisfaction. In this
research, primary and secondary data have been collected to determine whether Starbucks
Coffee Company has maintained client’s loyalty through its existing offering in market. The
primary data collected through meeting, seminars and observation has reflected that the main
core competency of Starbucks Coffee Company in market is related to providing best quality
of food and beverage products in market. This company never compromise with the quality
of products offered in market. Nonetheless, adoption of advanced technologies has helped
company to increase its client’s satisfaction in effective manner. As stated by Wu and Wu,
2017 it is reflected that the main competitive advantage of Starbucks Coffee Company is
related to implementing effective value chain activities. It is observed that company has used
cyber computing enterprises resources planning in its business. This has established
automation in its several business steps which establish nexus between all the activities. This
cyber computing enterprises resources planning in its business also helps management
department to connect with all of its domestic and international functioning. Starbucks Coffee
Company has been credited with revolutionizing the coffee industry. As per the views of
Leduc, (2017) it is revealed that the main focus of management department of company

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would be establishing customer loyalty in market. Company has been loyal to its clients with
the customers experience and revolutionary reward program. This functioning has help in
improving the quality of its products and services offered in market and make them more
customized to increase client’s satisfaction level.
As per the perception of Robinson, (2016), it is revealed that the Starbucks Coffee Company
with the help of its cyber computing enterprises resources planning in its business has
established loyalty card mechanism. This loyalty card mechanism has been used to offer
rewards and other benefits to clients with a view to increasing their loyalty towards the
company. In addition to this, this loyalty card also helps in collecting required information of
clients which eventually used by management department to formulate strategic planning in
long run. Moreover, people in Australia are more inclined towards availing best quality of
food and beverage product. The Starbucks Coffee Company has offered the best quality of
goods and services to its clients and astonishing $2.65 billion clients in a market
(MacDonald, 2007). However, The Starbucks Coffee Company has kept its products sales
price high as compared to other rivals. Each store of Starbucks has been focusing on client’s
satisfaction by providing the high quality of food and beverage to its clients. In addition to
this, customers comment card is one of the successful strategies of a company which focus on
customizing its products as per the clients changing diverse nature, based on attitudes,
personal needs, social value, assumption and perceptions. Customers' requirements are kept
at a high position when designing the quality, reliability, and experience at Starbucks.
Company’s initiative towards customizing its products and services
As per the perception of Thompson, (2017), it is evaluated that in order to re-engineering
business process and change in its offered products and services, a company needs to
implement monthly training and development program. The main business strategic planning

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of company is related to hiring expert’s employees who are good in communication and
clients handling at their front desk. These employees would work at the front desk of all the
stores of Starbucks to represent its products and services in market. This process will help in
setting strong brand image in the market and create effective client bonding in a domestic and
international market. Nonetheless, use of cyber computing enterprises resources planning will
also strengthen the online products selling of company and establish automation in the
business process of a company. There are high economic growth and market opportunity
which could be grasped by the Starbucks to make effective changes in its business
functioning. The consistently training program implemented by the company helps
employees to increase the effectiveness of their working for the better satisfaction of the
clients. The newly developed program implemented by company converted value chain
activities to customize all the goods and services as per the attitudes, personal needs, social
value, assumption, and perceptions of clients (Rajasekaran, 2015).
Analysing the customer loyalty of Starbucks Coffee Company
As stated by Chatterjee, Kar, and Gupta, (2017) it is explained that Customer loyalty is the
result of consistently positive emotional experience, perceived value based on the physical
attributes of the organizations which cover all the products and services offered by the
company. The customer loyalty of Starbucks is based on the quality of products and services,
reward options and clients experience they had for the company. It is observed that
management of the company is more inclined towards selling best quality of coffee in the
market. The customer loyalty of company is highly based on the coffee products offered by
the company in the market. Customer loyalty of Starbucks Company is said to occur if clients
chose to use a particular company rather than using other shops. After collecting data from
the various sources, it is considered that more than 25 million clients of Starbucks are

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frequent clients who visit its stores for the coffee and other products. As per the views of
Agogo and Hess, (2018) it is reflected that The main customer’s loyalty program of
Starbucks Coffee Company is implementing loyalty membership cards or creating their user
account on its developed dashboard. As stated by Li, (2017) it is reflected that these programs
have been introduced by a company to promote or motivate its clients to frequently visit its
stores around the globe. It includes reward system, dip points or redeemable bonus points
which could be used by them to reduce the amount of bill at Starbucks Coffee stores. It also
helps in retaining the customers in less expensive than acquiring the new one. This customer
loyalty program of Starbucks of a company is based on the cost-effective way to drive client's
satisfaction, customer's loyalty and retentions. In terms of customer loyalty, customer
experience management of Starbuck Company has proved itself as the sustainable
competitive advantage.
Cost effectiveness of customers loyalty program
After evaluating all the data and benefits of customer loyalty program, it could be inferred
that Starbuck Company has proved itself as the sustainable competitive advantage in the
market by focusing on the high products quality. As stated by Mathias and Smith, (2016) it is
revealed that customer loyalty program will help a company to retain its existing clients and
influence others to take reap of these new offers in the market. In addition to this, Starbucks
can also use this information to customize its products and services in the market which could
strengthen its brand position in market. As per the views of Grimes, et al. (2017)The brand
position of Starbucks of a company is based on the quality of coffee products offered by the
company on the domestic and international market. This has helped a company to establish
effective functioning in a market and customizing its all of its products and services as per the
clients need in the market. Nonetheless, setting customized business process in this ramified

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business environment requires re-engineering of value chain activities of business each and
every time. Therefore, customizing products and services each and every time may be the
costly process which could reduce the effectiveness of the business.
The Starbucks experience (Performance improvement strategy to keep the quality of the
products high)
As stated by Agogo and Hess, (2018) it is revealed that the Starbucks have created a core
competency in selling customized coffee around the globe and kept its business process
ahead of all the rivals such as Dunkin' Donuts, McDonald's and "The retail coffee Game".
Moreover, Starbucks has also installed an advanced cyber system in its business which
increases the overall quality of its products. This helps the company to make sophisticated
changes in its business and make clients experience better. There are several improvements
which Starbucks Company has made such as entering into strategic alliance with other
organization for the standards raw material, installing cyber computing enterprises resources
planning in its value chain activities and customizing its business process. The marketing
strategy of a company is also unique which is based on promoting and advertising its
business at the same time. The environmental footprint analysis has shown that in order to
promote its brand, a company has donated high funding to charity funds and implemented
knowledge awareness seminars for the student. These CSR activities are the unique working
program used by management of the company to discharge its corporate social
responsibilities and branding its business on the domestic and international level.
Establishment of effective customer services
As per the views of Chang, (2014) it is revealed that each and every Starbucks store has
customer cards available at the condiment stations. This comment card helps management to
keep in touch with what customers want from its offered coffee products in market. Starbucks

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consistently uses these cards to make changes in its products and services to increase the
clients experience and satisfaction. It is evaluated that the strength of company's functioning
is determined by using the conventional symbolism of the quality functioning deployment
process of company. In addition to this, the employee's turnover of the Starbucks in a market
is less than 124% less as compared industry average for the retail coffee shops. As stated by
Martínez-Torres, Rodriguez-Piñero, and Toral, (2015) it is reflected that Starbucks Company
is accompanied by the high experience staff members which increases its overall quality of
the business.
Role of loyalty cards and membership offer for the effective customer’s loyalty
As per the views of Best and Kahn, (2016) it is divulged that customer's loyalty is based on
the quality of the products offered by a company and how it treats its clients throughout the
time However, loyalty cards and membership offer could be used for the effective customer’s
loyalty. It is based on the company’s incentive mechanism which includes either introducing
loyalty membership number, dip points and offering rewards points to frequent customers. In
order to increase the effectiveness of the customer loyalty, Starbuck Coffee Company should
focus on customization of its products and services and offer different membership promoting
programs. The main focus of Starbucks Coffee Company should also customize its products
and services for the better satisfaction of the clients. These collected data have shown that
Starbucks needs to upgrade its value chain activities by introducing advanced technologies.
Nonetheless, Starbucks needs to strengthen its marketing strategies to connect with its clients
and motivating to frequently visit its stores. Currently, Starbucks is having loyalty card
named Nectar card which allows its customers to earn 2 nectar points on their every
transaction. T1his promotional nectar loyalty card is implemented by the organization to
increase its client loyalty and promoting clients to consistently visit Starbucks stores. This

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Nectar loyalty card approach is implemented based on four A's program named acceptability,
affordable availability, awareness. These are the key pillars to promote the products and
services offered by Starbucks in a market.
Ethical consideration
The research data shown in this research report is not copy paste from anywhere. Research
ethics is one of the most important aspects of this whole research work which influence the
validity, authenticity, and reliability of the research work. This research ethics focus on the
values, norms, and guidelines which plays a significant role in whole research. The researcher
has complied with all the applicable rules and regulations while completing this research. In
addition to this, plagiarism factors have been taken into consideration in high manner while
preparing this research work. In addition to this, in literature review section, proper
recognition to the authors have been provided whose published information has been using to
enhance the authenticity of this research work (Best and Kahn, 2016).
Research methodology
This research is based on the real data collected from the secondary sources such as annual
report, article, web news, and newspaper. The phenomenology in this research is prepared on
the multiple research subjects that are evaluated from the various individual and independent
experience (Bryman, 2015).
Research design
This research is used to evaluate the possible problems and issues which Starbucks Coffee
Company has faced while setting client loyalty in domestic and international Market. This
research has two unfolding research phases. The first is related to positivism which refers
defence with the phenomenology. This part of the research put emphasis upon empirical

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scenes, not the human-based experience and organizational functioning. This will elaborate
the possible problems and issues which Starbucks Coffee Company would have in setting
effective clients loyalty in market. On the other hand, positivism research should not focus on
the current research and data collected under the empirical view will reflect the real research
problems (Taylor Bogdan and DeVault, 2015).
Sampling approach
This approach is best suitable for collecting huge data in easy and determined approach.
Sampling strategy is used to collect the data from the ample amount of information. There are
two types of sampling have been used named probability and non-probability sampling
strategy. Probability sampling provides equal opportunity to every element of research in a
simple manner. On the other hand, non-probability sampling involves biases of researcher
while selecting the simple for the research study (Akai, Kodama and Nishino, 2016). The
sample of the research is accompanied by the 400 participants that consist of Australian
clients who purchase products and services in food and beverage industry. They belong to
age group of 18-35 years, upper- middle class and professional. These respondents were
asked to give their opinion, views, and responses through the filling of online questionnaires
(Newman, 2016).
Research instruments
The main research instruments are the questionnaire, sample survey, interview, observation
and other journal articles. These instruments will help in identifying the possible problems
and issues which are faced by Starbucks Coffee Company in setting effective customers
loyalty in a domestic and international market.
Research Philosophy

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This research philosophy reflects the paradigm of the research study which helps in
collecting imperative information for this research. Thus, research philosophy presents the
nature of inquiry which guides the researcher while conducting research study by showing
the belief, practices and views of a researcher. This research philosophy is accompanied by
Epistemological and Ontological. However, in this research, Epistemological research
philosophy has been used to make establish the direct link with the respondents and collected
data (Berger and Blake, 2016).
Data analysis
In this research, a deductive approach has been used to collect the data or information
through the existing theories. It will help in meeting the research objectives and evaluate the
real-time information. This deductive approach helps in a bifurcation of the collected
information to analyze whether Starbucks Coffee Company could establish effective client’s
loyalty in a domestic and international market. This deductive approach has helped a
researcher to understand the existing theory and develop the new theory on his own.
Nonetheless, hypothesis test implemented in this research has also assisted in the measure the
genuinely of the collected information and help a researcher to trust the collected data in
effective manner (Chowdhury, 2016).
Research method
It is analyzed that quantitative research method will be used to deal with the statistic
and logical data of the company such as market share, revenue and growth of the company
since last five years. It will help in evaluating whether the company is offering clients
oriented products and services in market. On the other hand, qualitative research focuses on
the experience, paradigm of research context and demonstration of the collected data. This
quantitative data will be presented in the pie chart, graph, charts and table in this research. It

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will simplify all the complex data in an effective manner and will make easy for the readers
to understand the critical data (Yee, et al. 2014).
Research strategy
This research report has been prepared by using several research strategies. The
online data available and journal articles used in this research will help in collecting valuable
data on how Starbucks Coffee Company could establish effective client’s loyalty in the
domestic and international market. The main research strategy is related to collect the data by
using questionnaire. These questionnaires will be offered to the respondent to present their
views and idea on the particular questions. Sampling methods will also be used to evaluate a
large amount of data in simple and determined approach. Research would also use annual
report, web information and other Google to complete this research (Armenter and Koren,
2014).
Data analysis
It is observed that descriptive research method will help in evaluating the current
research problems and issues. Observation and questionnaire survey will help in identifying
the particular object of the research. This descriptive research method will be used to evaluate
all the problems and current situation of research. However, variable will be set as per the
subjects and data collected from the respondent in determined approach (Bryman and Bell,
2015).
Research Limitation
This research concocted in the area of analyzing the Starbucks Company's functioning in
setting client's loyalty in market. However, due to the changing diverse nature of clients
based on attitudes, personal needs, social value, assumption and perceptions, this research has

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been limited to the existing collected data (Schmidt and Hunter, 2014).However, cluster and
stratified sample survey used in this research reflect the quantified data relevant to the
particular clients. In this research, only one specific group have been taken into consideration
i.e. urban youth of Australia. In addition to this, along with gathering data from the
respondents, it is realized that they have lack of faith in providing their personal data. The
researcher has also faced problems in gaining authentic information form the people due to
applicability of laws and regulation such as data privacy act and copy right act (Creswell and
Creswell., 2017).
Summary
This research methodology is important for this research report which highlights all the
essential elements of the research. It guides the researcher in conducting the research study in
the best effective manner. It helped in addressing the research questions and aims at studying
the Starbucks Coffee company strategy to establish effective customer's loyalty in market. In
this research, positivist research philosophy, deductive approach, application of qualitative
and quantitative methods have been taken into consideration. After evaluating the
information divulged in this research, it is analyzed that secondary methods and questionnaire
have been used to gain the pertinent information for the literature section. Survey methods
have been used among 50 Australian consumers who are regular clients of the Starbucks
Coffee Company. The results of it further analyzed by using excel and SPSS software which
provide imperative information on the customer loyalty of Starbucks Company. Thus, it
could be stated that, research methodology plays an important role in this whole research
(Bryman, and Bell, 2007).

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Company's ramified business functioning has shown an effective role in the
establishment of client's loyalty in market. Company has mainly focused on developing the
core competency in product differentiation strategy by keeping its products and services
quality high (Zablah, Bellenger and Johnston, 2004).
Data analysis/ Results
This data analysis presents a comprehensive and systematic procedure followed for
the analysis which starts with the collection of the data that is raw in nature and needs to be
analysed further to provide meaning to them. In this research, primary and secondary data
collection methods have been used to evaluate whether Starbucks Company. The
questionnaire survey, sampling methods and journal articles have been used to gather data for
this research. In this research, deductive approach has been used to collect the data or
information through the existing theories. It will help in meeting the research objectives and
evaluate the real-time information. This deductive approach helps in bifurcation of the
collected information to analyze whether Starbucks Coffee Company could establish
effective client's loyalty in domestic and international market. This deductive approach has
helped researcher to understand the existing theory and develop new theory on his own.
Nonetheless, hypothesis test implemented in this research has also assisted in measure the
genuinely of the collected information and help researcher to trust the collected data in
effective manner.
1. The following table displays the details of younger customers in Australia.
Table 1.1 Gender

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Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Male 45 45 45 100
Female 55 55 55 100
Total 100 100.0 100.0
It is visible from the bar chart that majority of the respondents are the female who is
chosen for carrying the survey to determine whether Starbucks has established effective
customers loyalty (Atwal and Williams, 2009).
.

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Figure 1.1

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2. The following given table reflect the frequency of the respondent in various age group
as specified in questionnaire
Table 1.2 Age group
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
19-23 41 41 41 41
24-30 45 45 45 100
31-50 14 14 14 100
Total 100 100.0 100.0

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It can be easily identified that young people are more inclined towards buying coffee
products from Starbucks. In addition to this, people during age 24 years to 30 years have
more than 45 frequencies which reflect the target market of company.
Figure 1.2

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3. The below mentioned table reflects the number of respondents belonging to various
parts of the society on their financial conditions
Table 1.3. Which income group you fall under ?
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Upper middle class 35 35 35 35
Middle class 38 35 38 73
Lower than Middle
class
7 7 7 100
Affluent class 20 20 20 100
Total 100 100.0 100.0

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After evaluating the pie chart, it is examined that most of the respondents are from the
middle-class group and number is followed by respondent from the upper middle-class
section. Only 20% of the respondents, who are part of the sample study, belong to the
affluent class of the society.
Figure 1.3

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4. The outcome of this table reflects the profession of respondents who have
participated in this group.
Table 1.4. Profession
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
College students 45 45 45 45
Business professional 43 43 43 89
Other 11 11 11 100
Total 100 100.0 100.0
The following bar graph shows that greater number of respondents that is 45 who are
college going students. Nonetheless, a very few group of people work in other group who
have only 11 frequency.

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Figure 1.4

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6. The following given table reflects the various factors which are likely to affect the
customer's loyalty of Starbucks
Table 1.5 Factors which are likely to affect the customer’s loyalty to
Starbucks?
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Personal Value 15 15 15 15
Social
Recognition
15 15 15 30
Pocket Money 13 13 13 43
Income value 20 20 20 63
All above given 37 37 37 100
Total 100 100 100 100

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This below pie chart reflects that more than 37% of respondents have recognized the
social value, pocket money, income level personal value, social recognition, pocket money
and income level to showcase the customer’s loyalty of company.
Figure 1.6

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7. The following table reflects that whether Starbucks has strong customer loyalty in
market by customizing its products and services.
Table 1.7 Does Starbucks has strong customer loyalty in market
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Yes 67 67 67 67
No 33 33 33 100
Total 100 100 100 100
It is evident from the below-displayed pie chart that 67% of respondents have
responded in favor of the statement of the questionnaire that they indulge in shopping for
luxury brands for a specific reason. On the other hand, 33% of respondents have responded
negatively in this context. This perception of the respondent has shown that Starbucks has
established effective brand image of company.

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Figure 1.7

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8. The below-given table reflects the respondent's view about how often they visit
Starbucks stores to buy coffee and other products
Table 1.8 How often clients visit Starbucks stores to buy coffee and other
products?
Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Twice a month 53 53 53 53
Thrice a month 32 32 32 85
More than 3
month
15 15 15 100
Total 100 100 100 100
It is evident by evaluating the above-given table and pie chart that 53% respondent in
the favor of the statement of questionnaire that they visit Starbucks Stores twice a month. On
the other hand, 32% of respondents have respondents that visit Starbucks Stores thrice a
month.

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Figure 1.8

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9. The below-mentioned table reflects Starbucks needs to increase its customer's loyalty
to market
Table 1.9 Do you think whether Starbucks needs to increase its customer's
loyalty to market
Particular Frequency % Valid % of
respondent
Cumulative
respondent
Valid
Strongly Agree 27 27 27 27
Agree 45 45 45 72.0
Neutral 16 16 16 88
Disagree 10 10 10 98
Strongly Agree 2 2 2 100
Total 100 100 100 100
These pie charts reveal that cumulative 72% of respondents have agreed to that
Starbucks needs to increase its customer’s loyalty in market. In addition to this, 27% strongly
agree with the same statement cumulative 12% are against with the statement that Starbucks

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needs to increase its customer’s loyalty in market. 16% of respondent have maintained the
neutral opinion on the particular subject matter.
Figure 1.9
10. The below-given table reflects the knowledge about views of respondents regarding
the independent factors that have potential to control the buying behavior of clients in
Australia.
Table 1.10 Which among the following independent factors that have potential
to control the buying behavior of clients in Australia?
Frequency % Valid % of
respondent
Cumulative
respondent

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Valid
Social factors 32 32 32 32
Demographics
factors
41 41 41 73
Cultural factors 22 22.0 22.0 95.0
None of the above 5 5 5 100
Total 100 100 100 100
It is evident from the following pie chart that the majority of respondents that is 41%
have replied in favor of demographics factors which affect the client's choices. This measure
is followed by 32% of respondents who have agreed to social factors influencing the
purchasing behavior of Australian clients.

Research project on Starbucks product quality
37
Discussion/ Results
The resulting chapter provides a brief overview of the data analysis. It presents major
finding of research study that significantly helps in reaching the conclusion of the research
study. In order to examine all the collected data form the 100 respondents that consisted of
the loyal clients of Starbucks, graphs, pie charts and other methods have been used in this
research. The responses of the respondents were examined and evaluated further to draw
meaningful conclusion. After evaluating the collected data, it is considered that coffee
business has high growth potential which may also attract more businessmen to diversify
their business in this field. However, Starbucks Coffee Company needs to increase its brand
image in market by installing advanced technologies and system. Starbucks Coffee Company
needs to install cyber computing enterprises resources planning to provide optimum level of
satisfaction to its clients (Chang, 2014). This advances mechanism will assist clients to buy
all of its products and services through offline and online mode in easy and determined
approach. Moreover, customer loyalty is not limited to selling best quality of food and
beverage products to its customers but also include employees’ behavior towards clients in
market (Hota and Newlands, 2017).
The responses of the respondents have been examined through excel and SPSS to draw
further conclusion. Based on the survey, it is found that majority of the respondents have
admitted that Starbucks company needs to make changes in its existing business functioning
to establish strong brand image in the market. In addition to this, clients are more inclined
towards buying customized coffee which is high in quality (Ronald and Amelia, 2017).
Based on the finding, it could be stated that young clients prefer to buy coffee
products from the Starbucks. However, customization of the products is based on the
perception, values, belief and assumption of the clients in market. It is observed that clients

Research project on Starbucks product quality
38
are inclined towards buying coffee and other products from the Starbucks due to specific
reasons. It is analyzed that participants strongly agreed with the statement that products
quality and services plays significant role in terms of satisfying the needs of customers.
Along with this, respondents have asked in relation to nexus between personal and social
recognition for visiting the Starbucks coffee stores. These personal, social and demographics
are the most prominent factors which influence the choices of the clients for buying coffee
products from Starbucks (Nosler, et al. 2014). The main focus of Starbucks should be on
increasing its products quality and online marketing which could attract more clients to visit
its stores. The customer loyalty of Starbucks is based on the products offered in the market
and technologies used in its value chain activities. It is easy to identify that customers are
more inclined towards the organizations which uses advanced technologies in its business
(McMillan and Schumacher, 2014).
Starbucks Coffee Company needs to re-engineer its value chain activities with a view to
satisfy their needs in determined approach by undertaking clients changing diverse nature,
based on attitudes, personal needs, social value, assumption and perceptions . Starbucks
Coffee Company needs to focus on developing core competency by following two strategic
program named cost leadership and product differentiation. These strategies should be
undertaken by identifying current offering of company and what clients want to have from
company. Starbucks has strong position in market and by using effective marketing strategy it
could easily increase its overall market share in determined approach (Voigt, Buliga and
Michl, 2017).
Summary
It could be summarised that with the rising modernisation, commercialization and
globalization, Starbucks needs to adopt strong customer loyalty program. It could include

Research project on Starbucks product quality
39
either introducing loyalty membership number, dip points and offering rewards points to
frequent customers. In addition to this, the main focus of Starbucks Coffee Company should
also customize its products and services for the better satisfaction of the clients. These
collected data have shown that Starbucks needs to upgrade its value chain activities by
introducing advanced technologies. This could easily increase the overall outcomes in
effective manner (Maloni and Brown, 2006). If Starbucks wants to establish positive brand
image in domestic and international market then it will have to evaluate clients changing
diverse nature, based on attitudes, personal needs, social value, assumption and perceptions to
establish customized business chain. In addition to this, the main target customer of company
should be young people who are more inclined towards drinking coffee in coffee stores. The
competency of Starbucks Coffee Company in market is related to offering best quality of
services and product in domestic and international level. This core competency could also be
used by company to establish strong customer loyalty in market. Nonetheless, company could
also use online cards, conducting seminars for its frequent clients and creating their
membership for the best offers (Das, Eisner and Korn, 2015).

Research project on Starbucks product quality
40
Recommendation
After evaluating the details and gathered data, it is observed that some retailers such as
Dunkin’ Donuts, McDonald’s and “The retail coffee Game” have faced decline in their
overall turnover due to the sluggish market. However, Starbucks due to its strong loyalty
program has increased its overall turnover by average 22% since last five years. However, the
main focus of company is to increase the quality of the products and keeping its coffee
products more customized. The main strength of Starbucks is related to its advanced
technologies and customers oriented organizational culture (Taecharungroj, 2017).
There are several recommendations which could be undertaken by Starbucks Coffee
Company to make changes in setting effective customers loyalty.
 Starbucks Coffee Company needs to implement performance improvement strategy in
its business to increase the client’s satisfaction from its offered coffee products in
market.
 Corporate social responsibilities such as promoting paper free advertisement, going
green and charity could also put positive impact on its brand image in clients mind.
 Company should adopt advanced technologies system in its value chain activities to
establish customer loyalty online program.
 This customer loyalty online program will help in saving client’s data on its cloud
system which could be further used by management to formulate effective strategic
program (Thompson, 2017).
 The evolving social and digital media platforms should also be used by Starbucks
Company to assess the consumer behavior and creating effective disruptive
opportunities for business.

Research project on Starbucks product quality
41
 This customer loyalty online program could be promoted while deducting payment
from the clients for their bills at the front payment desk of each and every store.
 This personal information gathered from the loyalty card could also be used by
Starbucks Company in its other diversified business (Robinson, 2016).
 The customer loyalty is the biggest challenge, if it goes wrong then it would destruct
the turnover of company and brand image as well.
 Starbucks Coffee Company needs to implement personalized approach to add instant
value to each visitor to its stores. However, with the help of customer loyalty
program, company could easily extent the entire journey of clients and help in
building long-standing experience that encourages them to frequently visit its stores
(Leih Linden and Teece, 2014).
Conclusion
In this research report, it is found that how Starbucks Coffee Company could increase
the effectiveness of its client loyalty. There are several benefits if it strengthens client loyalty
by increasing its quality of products and adopts advance technologies in its value chain
activities such as increased turnover, motivation to employees, client's attraction towards
company, setting up of strong brand image in market and creation of synergy in its business.
The competency of Starbucks Coffee Company in market is related to offering best quality
of services and product in domestic and international level. This company never compromise
with the quality of products offered in market (Mahobia and Jain, 2015).
After evaluating all the data and collected information it is considered that Starbucks needs to
adopt new advance technologies which would help company to increase its client’s

Research project on Starbucks product quality
42
satisfaction in effective manner. However, the main competitive advantage of Starbucks
Coffee Company is related to offer customized high-quality coffee in market and strong
brand positioning. This cyber computing enterprises resources planning also helps
management of Starbucks to establish automaton and strengthen its marketing functioning in
determined approach. Starbucks Coffee Company has been credited with revolutionizing the
coffee industry. It focuses on increasing the client's experience and implementing
revolutionary reward program. Nonetheless, there are some deficiency in the policies and
regulations of company which needs to be improved for the betterment of the client’s
experience and satisfaction. Starbucks needs to make positive change in its business such as
hiring experts sales persons, establish proper nexus between employee's development and
company's welfare. It is further observed that Starbucks Coffee Company has strong brand
positioning which could also be used by management department to penetrate the market
with its high-quality coffee. However, customer loyalty of Starbucks Coffee Company could
be strengthened by offering different offers such as loyalty membership, dip points and
rewards offers to clients. This will motivate clients to frequently visit Starbucks Coffee stores
in determined approach. The collected data have shown that people in Australia are more
inclined towards the strong coffee. Therefore, Starbucks needs to make changes in its all of
its coffee products with a view to increase its overall turnover. Nonetheless, it needs to hire
more experts’ employees in its sales personnel team. These employees represent company in
front its employees. In addition to this, proper training and development program is also
required to make these employees more employable. Customer loyalty is highly based on the
efficiency of employees either preparing coffee products or communicating with clients. The
customer loyalty could be strengthening through the loyalty program implemented by
company in the market. Nonetheless, with the ramified economic changes, the loyalty
program of company should be accompanied by the advanced cyber computing system which

Research project on Starbucks product quality
43
could enable company to keep all the collected data on its big clouds. Another point to notice
is related to marketing technique and strategic planning used by Starbucks Coffee Company.
Company needs to create competitive advantage in market by offering best quality of coffee
products in market. The loyalty cards or creation of online membership numbers is the best
methods to make improvement in its coffee products. Each and every Starbucks store has
customer cards available at the condiment stations. This comment card assists management to
keep in touch with what customers want from its offered coffee products in market. Starbucks
consistently uses these cards to make changes in its products and services to increase the
client's experience and satisfaction. Now in the end, it could be inferred that Starbuck
Company has established strong customer loyalty in its domestic and international market
share which would help it to penetrate the market with its existing and newly products in an
effective manner. Nonetheless, customer loyalty also increases the sustainability of the
company in determined approach.

Research project on Starbucks product quality
44
Appendix
Survey Questionnaire
General questions from the respondents
1. What is your Gender?
a. Male
b. Female
2. What is your age?
a. 18-23
b. 24-29
c. 30-35
3. Which income group do you belong?
a. Upper-middle class
b. Middle-class income group
c. Below middle-class income group
d. Affluent group
4. What is your professional?
a. College Student
b. Business Professionals
c. Other
Specific organization related questions

Research project on Starbucks product quality
45
5. Do you like to drink Coffee products in stores?
a. Yes
b. No
6. On what factors your coffee purchase depends?
a. Social recognition
b. Personal values
c. Money
d. Purchasing power
e. All of them
7. Do you purchase products and services from Starbucks due to particular reason?
a. Yes
b. No
8. How often do you visit Starbucks Company?
a. Twice a month
b. Thrice a month
c. More than three times
9. Do you think Starbucks has strong customer loyalty in market?
a. Agree
b. Strongly agree
c. Disagree
d. Neutral

Research project on Starbucks product quality
46
e. Strongly disagree
10. Do you feel that whether Starbucks needs to increase its customer’s loyalty in market?
f. Agree
g. Strongly agree
h. Disagree
i. Neutral
j. Strongly disagree
11. What are the factors that affect the customer’s loyalty of Starbucks in market?
a. Social recognition
b. Satisfactory quality
c. New money
d. Style Preference
e. None of the above
12. Which among the following factors affect the buying behaviour of Australian clients?
a. Social factors
b. Demographic factors
c. Cultural factors
d. None of the above
13. Do you agree that whether Starbucks needs to make its coffee products more customized
in market?
k. Agree
l. Strongly agree

Research project on Starbucks product quality
47
m. Disagree
n. Neutral
o. Strongly disagree
14. Do you find quality of coffee products offered by Starbucks low?
a. Yes
b. No

Research project on Starbucks product quality
48
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