1. STARBUCKS
NOT JUST GOOD COFFEE AND GREAT CUSTOMER
SERVICE BUT ALSO THE BEST CUSTOMER
EXPERIENCE
SAMAN SIDDIQUIE-BBA-IV (B)
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2. OBJECTIVE OF THIS PRESENTATION IS TO:

Dispense learning related to our course (Marketing
Management) with the help of a real life case
scenario and focus on:
What happened?
 How it happened? And,
 How it was resolved through research and marketing
efforts?
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Saman Siddiquie-BBA-IV (B)

3. BRIEF SUMMARY OF THE CASE
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In 2007, Starbucks’ sales and stock value plunged. Sales
slowed, and financial publications such as Wall Street
Journal, FT and BusinessWeek were quick to predict the
demise of the company.
Competition from lower priced fast food chains (McDonalds
and Dunkin’ Donuts) became a serious threat.
CEO Jim Donald was replaced by Chairman Howard Schultz.
According to an interview given to HBR Ideacast Howard
Schultz, CEO of Starbucks said of that time: “I've saved every
major story of what was said about us and about me…And so
it was a death march of Starbucks' days are numbered, it's
best days are behind them, it's no longer relevant. The
headlines on Wall Street were, McDonald's will definitely kill
Starbucks, how could the board bring Schultz back, he's
responsible for all of us”.
It was time for quick, carefully planned and futuristic ACTION!
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Saman Siddiquie-BBA-IV (B)

4. COURSE OF ACTION:
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Research involving multiple constituents was carried
out. Customer related research showed that customers
believe Starbucks:
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Does not care about its customers anymore.
Is only interested in making money.
Is not preserving its original coffee house experience.
Starbucks was losing its brand integrity and was “not true to
itself anymore”
Howard Schultz: “We were growing the company with
such speed and aggression that we lost sight of the
customer experience”.
“The most important one, of all this, was how do we
preserve, and hopefully enhance, the integrity of the
only asset we've ever had as a company, our
values, our culture, and guiding principles, and a
reservoir of trust with our people?”
Saman Siddiquie-BBA-IV (B)
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5. STRATEGY: PRESERVE & ENHANCE
It was time to involve the customer to keep the
brand and its feel alive and committed to its original
mission “to inspire and nurture the human spirit-one
person, one cup and one neighborhood at a time”.
 It was time to be cost effective yet uncompromising
in the experience.
 It was time to go beyond Customer Relationship
Management (CRM), it was time for Integrated
Marketing (IMC) and Customer Experience
Management (CEM).
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Saman Siddiquie-BBA-IV (B)

6. INTEGRATED MARKETING COMMUNICATIONS
& CEM
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Integrated Marketing Communications (IMC) is an
approach to brand communications where the different
modes work together to create a seamless experience
for the customer and are presented with a similar tone
and style that reinforces the brand’s core message. Its
goal is to make all aspects of marketing communication
such as advertising, sales promotion, public relations
direct marketing, online communications and social
media work together as a unified force, rather than
permitting each to work in isolation, which maximizes
their cost effectiveness.
Customer Experience Management (CEM): The goal
of customer experience management (CEM) is to move
customers from satisfied to loyal and then from loyal to
advocate.
Saman Siddiquie-BBA-IV (B)
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7. EXAMPLES OF SOME VALUABLE CUSTOMER
EXPERIENCE ADDITIONS
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In 2008 My Starbucks Idea is launched
(http://mystarbucksidea.force.com/ideaHome).
In 2008, the loyalty program is launched for the
registered card holders (rewards and perks).
Social Media Integration in Product, Experience and
Community Involvement Ideas.
Introducing and advertising customer safety features
and modifications to show “Starbucks cares” (E.g.:
splash stick)
Rewarding customers for their morning coffee. The Early
Bird Application on Apple iPhone
(http://www.youtube.com/watch?v=92h50lb5VTQ).
Service improvements: Trying to adopt the under 3 minute rule.
Saman Siddiquie-BBA-IV (B)
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8. THE LOYALTY PROGRAM
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Saman Siddiquie-BBA-IV (B)

9. REDEEMABLE BIRTHDAY POSTCARD
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Saman Siddiquie-BBA-IV (B)

10. SATISFYING CUSTOMERS THROUGH SOCIAL
MEDIA
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Saman Siddiquie-BBA-IV (B)

11. LISTENING TO AND LEARNING FROM
CUSTOMERS
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Saman Siddiquie-BBA-IV (B)

12. STARBUCKS CARES
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Starbucks introduced splash stick to prevent hot
coffee spills
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Saman Siddiquie-BBA-IV (B)

13. THANK YOU
ANY COMMENTS AND QUESTIONS?
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Saman Siddiquie-BBA-IV (B)

14. REFERENCES
Wikepedia
 Multiple sources and case studies related to
Starbucks Customer Experience (Marketing
Monster, Focus: Customer by Lior Arussy of
Stravity Group, The Content Strategist).
 Starbucks official website
 And
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Saman Siddiquie-BBA-IV (B)