Essay Title: 

Product and Price

April 3, 2016 | Author: | Posted in marketing, mathematics and economics

Product and Price

2007

Like most people around the world , Starbucks coffee is an important part to getting the day started , with each person ‘s choice in coffee a decision as unique as their own personality . For most people , you can not remember the first time you entered into one of their locations however for many people is seems only second nature to drink their coffee . With more than 8 ,500 coffee shops spanning 30 different countries , Starbucks Corporation , headquartered in Seattle , Washington is the largest specialty coffee retailer in the [banner_entry_middle]

world (Murray 2005

Everything Starbucks does is designed to enhance the quality and ambience of the great smell and taste of their coffee . From the farms to the brewing of the coffee , and every process in between , set standards and values that have been put in place by top management to ensure quality and consistence (Thompson et al . 2006

Starbucks has always taken pride in their quality of their products Quality starts right at the potential farming locations where Starbucks purchases their beans . Scheduled visits are maintained to insure that the highest quality of bean is sent to their roasting facilities (Thompson et al . 2006 . Staff in the roasting plants are highly trained and able to identify quality by the colour and sound of the roasted beans . Automated roasting systems , and high-tech testing equipment ensures that the beans meet the highest standard , with entire batches of product thrown out which do no pass quality testing (Thompson et al 2006

The company consistently looks for ways to improve quality of their product and service . For example , Starbucks innovated a prepaid card which customers can load with 5 to 500 (Cardline 2004 . The card can be automatically refilled on a monthly basis from the customer ‘s debit or charge card . In October 2004 , there was 1 billion on 35 million customer cards (Cardline 2004 . Starbucks also began offering a gift card in 2004 , which can also be reloaded automatically with a minimum of 20 per month (Cardline 2004

Perhaps the most remarkable thing about Starbucks is the loyalty of its employees . Analysts report the average annual turnover rate for quick-service restaurants is 200 percent at Starbucks , the turnover rate for employees is 80 percent and for managers , 20 percent (Weber 2005 . Schultz belief is philosophy strong , More than half of our retail sales force is part-time workers . That tells me that the majority of our customers are coming into contact with part-timers . How we treat our people is directly related to how we treat our customers and to the quality of our product . It ‘s inarguable that our part-timers are key to the company ‘s success (Rothman 1993

What seems to make people loyal to this brand is a simple formula which CEO Schultz understands the experience which people relate to Starbucks is the people that service the product . A customer can get coffee anywhere , however many people chose Starbucks on a daily basis . Had the care in customer service not… [banner_entry_footer]

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