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.
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 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).
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 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 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.
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 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).
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 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 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 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 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).
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 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
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 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).
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 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).
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).
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).
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.
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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).
The following given table reflect the frequency of the respondent in various age group as specified in questionnaire
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Table 1.2 Age group |
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|
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 |
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.
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 ? |
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|
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 |
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.
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Table 1.4. Profession |
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|
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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Table 1.5 Factors which are likely to affect the customer’s loyalty to Starbucks? |
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|
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 |
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.
The followingtable reflects that whether Starbucks has strong customer loyalty in market by customizing its products and services.
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Table 1.7 Does Starbucks has strong customer loyalty in market |
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|
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.
The below-given table reflects the respondent’s view about how often they visit Starbucks stores to buy coffee and other products
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Table 1.8 How often clients visit Starbucks stores to buy coffee and other products? |
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|
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.
The below-mentioned table reflects Starbucks needs to increase its customer’s loyalty to market
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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 needs to increase its customer’s loyalty in market. 16% of respondent have maintained the neutral opinion on the particular subject matter.
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.
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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 |
||
|
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.
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 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).
It could be summarised that with the rising modernisation, commercialization and globalization, Starbucks needs to adopt strong customer loyalty program. It could include 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).
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.
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 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 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.
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