Introduction of Starbucks

Introduction of Starbucks Starbucks as a global largest coffeehouse chain American company which operating in 72 countries and have 31,256 stores in worldwide (Starbucks stores: U.S. and international | Statista, 2020). Starbucks was established in 1971 by three businessmen which are history teacher named Zev Siegl, a English teacher named Jerry Baldwin, and a writer named Gordon Bowker because they all have a same passion which is love to have a fresh tea and coffee. After that in 1971, they borrowed some money and invested to open establish their first store which named as Starbucks in Seattle which is planning to serving excellent coffee beans and providing fresh roasted beans and mean to accomplish retail extension, item advancement, and offer support quality as long as possible. On the 1981, Howard Schultz joined Starbucks as the head of advertising and retail operations. Then, Starbucks starts giving their espresso to coffee bars and some fine restaurants and Howard raises the possibility of café culture in Seattle after he come back from Italy (Starbuck, n.d.). Soon, Starbucks started growing their business by expanding up to 4 stores in Seattle and compete with other competitors by providing high quality roasted beans. In 1995, Starbucks already had opened up to 667 stores in North America and proceeding to expand its store to Japan as the first location for different countries. In 1996, they started to expand their business to Singapore and Philippines. In 2000s, Starbucks already expand their business to most Asia countries and they are expanding to Europe, Latin America countries and today Starbucks has become world largest coffeehouse chain company. Service quality Service quality can also name as SERVQUAL is an evaluation of how well a service can be provided by a company in order to fulfill the customer's desires. In order to improve their business services, find out the problem, and to all more likely evaluate customer fulfillment, the business manager will frequently survey their business service that is providing to their customers or consumers. The customers can use to assess the service quality of a company based on 5 dimensions. These dimensions are commonly used for build-up levels of customer satisfaction and contrasting the service received by a company with their desires. The service quality is considered unacceptable when the services does not meet customer’s desires and when desires are met, it is considered acceptable (PDF) SERVICE QUALITY AND ITS DIMENSIONS, 2020). These five dimensions are utilized fundamentally in overviews to decide how a company is seen by its customers and gives an understanding of where the company will make acclimations to satisfy the desires of their customers (Definitions and Quality, 2020). The five dimensions are tangibles, reliability, responsiveness, assurance, and empathy. Tangibles Tangibles can be defined as the appearance of communication materials, physical activities, equipment, and technology. All these appearances will show customers the quality of service their company provided and this dimension will also increase the reputation of the company (PDF) SERVICE QUALITY AND ITS DIMENSIONS, 2020). As for Starbucks, their workers must always dress up nicely and tidily. When the services are intangibles, but their physical assets always give their customers a good impression of the service quality for their company. Besides that, Starbucks always design their stores uniquely because Starbucks hopes to become a third place away from work and home where people like to hang out. (Designing the Stores, 2020). Figure 1: Starbuck in Fuzhou, China Source link: https://whenonearth.net/15-unusual-starbucks-stores-around-world/ For example, Starbucks design this store based of the Fuzhou unique cultures and maintain its culture from cuisine to language (Dwyer and Dwyer, 2020). So, the tangible dimension is one of the most important aspect for Starbuck so they have done a lot investment on the physical assets. Reliability Reliability can define as the dimension of value where customers envision that what they expect, needs and asks will be given (Marketplace, 2020). This dimension also has the ability to play out the promised services both reliably and precisely. A customer's desires are to have reliable services which imply that the services are cultivated on schedule, and without making any mistakes. For instance, accepting mail at around a similar time every day is essential to the vast majority. In another means, reliability implies, the company guarantees about service arrangements, delivery issue goals, and pricing. As for Starbucks, they provided a wide variety of coffee and snacks which fulfill their customers needs and desires. Figure 2: Drinks that provided by Starbucks Sources: https://www.starbucks.com/menu Figure 3: Snacks and sweets provided by Starbucks Source: https://www.starbucks.com/menu/food/snacks-and-sweets Figure 4: Lunch that provided by Starbucks Source: https://www.starbucks.com/menu/food/lunch For example, Starbucks has provided a wide range of drinks that includes many types of hot, cold coffee, hot and cold tea. Moreover, they also provided all types of snacks such as shortbread cookies and madeleines. Besides that, they even provided hot breakfast and lunch. The reasons that they provided all type of foods and beverages is because most of the Starbuck in Malaysia are operating from 8am to 12am so that Starbuck can fulfill what their customers desires and needs which meet the dimension of reliability. Responsiveness Responsiveness can define as the dimension of willingness to help out their customers and to offer service or assistance when their customers need help. This dimension is mainly focused on the mentality and expeditiousness in managing customer complaints, demands, questions, and issues that they are facing. Besides that, this dimension also focuses on proficient responsibility, punctuality of the company's staff. It tends to be determined on the time allotment customers sit tight for help, answers to questions, and so on. The states of responsiveness can be improved by persistently see the attitude of the staff towards the customers and the cycle of service provided to customers (PDF) SERVICE QUALITY AND ITS DIMENSIONS, 2020). As for Starbucks, they offer free WIFI for their customers because as what they hope is Starbuck become place that customer would want to comes other than work and home so they provide free WIFI for customers which need to work or study. Besides that, most of the Starbucks Malaysia store has only serving for drive-thru, delivery and takeaways orders only due to COVID-19 in order to contain the corona virus. Starbucks Malaysia is introducing Buy 1 Free 1 promotion starting from 19 March to 1 April (Starbucks Malaysia Turns To A Delivery, Takeaway And Drive-Thru Spot With Buy 1 Free 1 Deal - KL Foodie, 2020). This shows Starbucks Malaysia is fulfilling the dimension of responsiveness because Starbucks Malaysia hope their customers stay safe while enjoying their coffee. Assurance Assurance can be defined as a dimension of courtesy, worker's knowledge, and the capacity of the company and its workers to trust in their customers. This dimension is significantly important in insurance service or banking service since customers will feel dubious about their capacity to assess results. In certain circumstances such as insurance companies attempt to assemble trust and devotion between key contact people like individual customers, or insurance agents. This dimension is mainly focused on skill, courtesy, job knowledge of employees by the company. As for Starbucks, their employees are always well versed with their products because their employees will go through all sorts of training and development practices in order to let their employees is skillful, well versed with their products and know how to handle all sorts of customers. All these training is an essential part for Starbuck to achieve their goal (Global Staffing Strategies and Starbucks Essay, 2020). Besides that, Starbucks has successful became a global strong which make many customer trusts in their brand because of their great product and services. This shows Starbucks is fulfilling the dimension of assurance. Empathy Empathy can define as the dimension of caring, monitoring, and delicate to the things that can influence your customers. This dimension is mainly focused on the assortment of services that fulfill the various requirements of customers, customized or individualized services, and so on. Besides that, this dimension attempts to pass on the significance through customized or individualized services that customers are extraordinary to the company. In this situation, the company must fully understand the requirement or preferences of its customers. As for Starbucks, they always know about the things that can help or damage their customers. For example, they will only be selling the products that will fulfill the requirement of their customers and also profitable. Moreover, the employees of Starbucks are always professional and polite towards their customers. They are always aware of their customers and treating them as their families to make their customers feels comfortable to hang out at here. This shows Starbucks is fulfilling the dimension of empathy. The physical environment is one of the extended 3 P's of the marketing mix. This is because that it is explicitly utilized for services (Bhasin, 2020). The physical environment can be defined as space by which the customers are encircled when customer devour the service. The physical environment is made up of its spatial usefulness and design; and signs, images, and surrounding conditions (Zeithaml 2000). The physical environment includes the layout and physical design of the stores. Layout and design are significantly important because it will make their customers go to other stores if they struggle to find what they want so it is important to let customers feel simple and clear when they come to store. For example like Nike, Nike wanted to let its customers feel comfortable and welcome when they shopping at their stores, so Nike will always have a straightforward design and layout in their stores. They do not put their Nike logo everywhere to make it too overpowering, nonetheless, they have barely enough to make it grab your attention when you glance around (The Extended Marketing Mix - Physical Evidence (Ambiance), 2020). The physical environment includes the components which are fused into the support to make it tangible. Simultaneously, it additionally helps in targeting their target audience and the position of the company (Bhasin, 2020). Under the physical environment of Starbucks, their tangible items include such as the building, ambiance, their iconic paper napkins, glass and cup are all printed with Starbucks logo and it matches the premium feels of the brand. Besides that, Starbucks will also provide data of its business partners, items and vocation openings on their official website. Source: https://www.designhill.com/design-blog/starbucks-logo-overview-of-design-historyand-evolution/ The popular Starbucks Logo which is green and features a siren has not changed since its origin which is 1971. As the partially nude mermaid is a sensitive topic, hence Starbucks adjusted their logo. Moreover, Starbucks always provide the best work in their product and services in order to give the best experience to their customers, so they will visit Starbucks frequently. Besides enjoying Starbuck drinks and relaxing, customers are able to experience a cozy area with a clean and friendly environment showcasing sofa, alluring pastries, and a tempting menu with an image of beverages. Other that that, the Starbucks staff always welcoming customers with a smiling face paired with a soft music background complements the friendly environment of Starbucks and makes their customers feel comfortable always. The process is one of the extended 3 P's of the marketing mix. The number of recognitions with respect to the philosophy of the process as part of the marketing mix. The process can define as the progression of activities or system that occur when there is in a connection between the company and customers. For instance, a simple process would be the point at which a customer chooses to take a subscription to a music services provider company such as Spotify or YouTube music, the means included would be first that the customers who settle on a specific help contingent upon the USPS and highlights. This will consider the first process. At that point, when the customer downloads the application which was considered as the second process then the customers will sign up for an account in the application, and this will be considered as another process. Besides that, an ideal cycle should have cheaper cost, and taking the minimal measure of time among all the accessible choices to the company will conveying an effective yield to the limit of its ability (Bhasin, 2020). There are a few kinds of processes which are technical processes, electronic processes, direct activities and indirect activities. In Starbucks, there is a various number of processes component, which included Starbucks reward card, telephone customer service, customer serving, and online shopping. Each Starbucks business will go through a process. For example, Starbucks' customer service process is regularly an exceptionally bustling spot, and employees need to serve their customers as proficiently as could be expected under the circumstances. The cooperation with the customers starts with a welcome by Starbucks employees. Customers will at that point place their drink or food order and make the payment. This is then trailed by the order being served and goodbye being given. All around planned processes are required as the services are conveyed to guarantee that the customers overcome with least whine and delay and that all components of the services are appropriately conveyed. The process is about the quality improvement of services that Starbucks gives to their customers. Besides that, Starbucks also gives loyalty cards to its employees which are updated every once in a while, and it helps in drawing in the customers to an ever-increasing extent. The supply chain from the obtainment of espresso beans to the conveyance of espresso and different items in any store of Starbucks is very much overseen and utilizations the most noteworthy innovation to keep up the premium standards. The people is one of the extended 3 P’s and which is also one of the marketing mix. People can define as the employees that work for particular business. This incorporates everyone who is associated with the services and products whether straightforwardly or by implication. All these people have their own way to provide the best service to customers such as taking a role in distribution, production, marketing because they are able to connect with customers (Acutt, 2020). In order to make the company successful, the employees play a huge role in the company because the employees represent the company (Marketing Mix of Starbucks | Starbucks of Marketing Mix, 2020). At the point when the employees provide a good experience and service to the customers. In return. if the customers are satisfied with the services, they will share out and market for the company. So is important to hire a right employee with good attitude and provide a professional training for them in order to improve their skills and performance. Starbucks is a company that always offers the best type of services and always make customers as their priorities in order to make wonderful memories for their customers which fit what Howard Schultz said: “We are not in the coffee business, serving people. We are in the people business, serving coffee” (Brand Study of Starbucks, 2020). Starbucks has more than 200,000 employees over the whole world and alluded them as "Starbucks Partners". Starbucks spend a lot of efforts and time to train and teach their employees, every employee is needed to go through long stretches of training in order to figure out how to make a nice espresso, tasting as their expected in order to help their customers when they are confusing with their choice and providing the best services for their customers. Moreover, they also need to understand the subtleties of the Starbucks brand and how to convey its guarantee of the Starbucks Experience. Starbucks employees always have a desire to show enthusiastic work, so they will rely upon to connect with their customers and to make an individual or passionate association with them, in order to bring them the best experiences in Starbucks stores and fulfill the satisfaction of customers. Besides that, Starbucks provide a lot of world class benefits for their employees no matter full or part time employees such as stock and savings, healthy coverage, parental leave, education and so on (Benefits and Perks: Starbucks Coffee Company, 2020) because Starbucks believed that “Happy customers start with a happy staff” as the root of Starbucks’s people ideology (Brand Study of Starbucks, 2020). Recommendation The way that Starbucks values customer service which is giving the "Starbucks experience" for its customers which implies that Starbucks is a customer-oriented company. Starbucks should remain its prevailing high-end price for its product and service because as long as Starbucks is able to maintain its quality and excellent services then the customers are very likely to increase their purchasing power in spending at Starbucks. Besides that, Starbucks has a competitive advantage with regard to quality and services compared to its competitors but there is one weakness of Starbucks which is their sitting area is not enough to accommodate everyone because, in Malaysia, most students or a businessman like to hang out at Starbucks to discuss their work so it makes everyone stays longer and the seat is not enough for the new walk-in customers. So, Starbucks should make a survey on the people of the particular area and provide more seats in their future stores. Conclusion In the nutshell, Starbucks is one of the best companies on the planet because Starbucks utilized a simple strategy which is interfacing joins between treating workers with nobility and creating great services and products which were the major reason that Starbucks can be so successful compare to other their competitors. The fate of Starbucks, which is in a quick development stage and is clearly to be successful but those keys to achievement may not be appropriate to the upcoming environment and in the worldwide market. In order to grow a competitive position among the competitors which requires well-planned strategies dependent on its exceptional, leading, and valuable capabilities and assets, instead of only focusing on the external and internal environment or products and services to fighting off their competitors. Currently, Starbucks doesn't have any strong competitors in the domestic or international market but they should not underestimate it and they should more focus on their strategic capabilities in order to improve their strength and decrease their weaknesses. If Starbucks can identify the current and future market, they can continually grow its company and remain one of the most successful companies in the world.