Retail Customer Orientation

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RETAIL CUSTOMER
ORIENTATION
6/25/2019
Student name

RETAIL CUSTOMER ORIENTATION 1
Executive Summary
In New Zealand, it has been observed that the coffee intake has increased to a large enter and due
to which the coffee business has been extended. Starbucks has always been focused on the
quality of the coffee beans, which makes it a premium brands in coffee. Starbucks customer
segment are the key aspect for which the company has been developed and implemented various
strategies for the customer experience and to increase customer loyalty. The key target market of
the company includes higher income group and college going students with Regular intake of
caffeine. The key competitors of the company in New Zealand included Costa coffee and
McDonald’s.
Starbucks has considered putting the technology and the business heart that is growing the
technological innovation to the business and enhancing the customer experience. Some of the
key benefits for Starbucks will include Increase in revenue and Social Innovation. This social
change of the company has resulted in some challenges as well that includes the complexity of
the situation and Training to the employees. The key recommendation to Starbucks included
price differentiation – saving menu, sales promotion, and customer loyalty programs.

RETAIL CUSTOMER ORIENTATION 2
Contents
Executive Summary.........................................................................................................................1
1. Overview of industry and organisation........................................................................................3
2. Starbuck’s Retail Strategy...........................................................................................................3
2.1 Customer overview of Starbucks...........................................................................................3
2.2 Competitor overview of Starbucks........................................................................................4
2.3 Sustainable advantage of Starbucks.......................................................................................5
2.4 Retail format of Starbucks.....................................................................................................6
1. Store design.............................................................................................................................6
2. Location strategy.....................................................................................................................7
3. Consumer behaviour of the coffee industry.................................................................................7
3.1 Customer communication of Starbucks.................................................................................7
3.2 Customer relationship management (CRM)..........................................................................8
3.3 Technology-empowered customers.......................................................................................9
4. Conclusion.................................................................................................................................11
5. Recommendations......................................................................................................................11
References......................................................................................................................................13

RETAIL CUSTOMER ORIENTATION 3
1. Overview of industry and organisation
Coffee culture of all the countries across the globe is different and has been found to be
enhanced since years, which has not only provided the coffee manufacturers and retailers to
grow their business but has also increased the competition in the industry (theguardian, 2019).
The western culture has always been popular for having caffeine every day, which has been
extended across the globe. In New Zealand, it has been observed that the coffee intake has
increased to a large enter and due to which the coffee business has been extended. One of the
largest coffee chains introduced and grow across the globe is Starbucks, which would be
discussed in detail in the report further. Starbucks has always been focused on the quality of the
coffee beans, which makes it a premium brands in coffee. Starbucks customer segment are the
key aspect for which the company has been developed and implemented various strategies for
the customer experience and to increase customer loyalty (Pappas, 2016).
2. Starbuck’s Retail Strategy
2.1 Customer overview of Starbucks
Target market Demographic
profile
Needs/
characteristics
Buying trends
Higher income
group
Income group Higher
purchasing
power
Consider status
while visiting the
place
College going
students
Age group and
lifestyle
Interested in
entertainment
and fun time
with friends
Regular users
The key target market Starbucks considering
1. Demographic factors