STARBUCKS
VALUE BASED PRICING
ABOUT STARBUCKS
Starbucks Mission
Our mission is to inspire and nurture the human spirit – one person, one cup, and one
neighborhood at a time
Started in 1971 as a retailer of whole bean & ground coffee, tea and spices
Today, has more than 16000 locations in over 50 countries
Starbucks offers the finest coffees in the world, grown, prepared and served by the
finest people, their employees, whom are called partners and are at the heart of the
Starbucks Experience
The stores partners are committed to coffee knowledge, product expertise and customer
service
VALUE BASED PRICING
Value based pricing is a Business Strategy
The goal of value-based pricing is to align price with
value delivered
Dependent upon an understanding of how customers
measure value, through careful evaluation of customer
operations
STARBUCKS’ VALUE BASED PRICING
Never once has Starbucks compromised on its price
The company primarily focuses on people versus the
products and offers the highest quality coffees
Revenues for the company in 2007, 2008, 2009 were
$9,774.6, $10,383.0, and $9,411.5 (in millions),
respectively.
CRM
Starbucks has stayed true to its name, still focused on the people versus
the products and offering the highest quality coffee. In addition, the
company implemented a rewards program in which customers
accumulate points to receive a free coffee. The company has also
created a blog site in which customer inputs can be seen and heard, and
the company maintains close relations with all their customers through
this website by responding to the individual requests. If the individual
shares an idea, the company will note it, discuss why its probable or not
and provide feedback. Starbucks is truly taking innovative measures in
order to assure customers that the higher prices are supported
Improvements
CRM measures Why Starbucks did it? How Starbucks are doing it? Happened/What Starbucks
are seeking?
In order for Starbucks to Increase in sales and profit of
Utilization of good customer
retaining and keep the right Rapid branch/store expansion business especially there is
service
customers positive customer growth
Adopting such ideal CRM Through Research and Starbucks has become one of
To maintain loyal customers
principle through offering Development process – the leaders in coffee industry
coming and patronize their
quality products and services Embracing Innovative ideas upon business seeking more useful
services, to establish lasting
Starbucks customers’ really understanding customer ways to provide good service to
relationship with customers
wants experiences customers with smile
By means of friendly greetings –
such as recognizing and Starbucks established strong base
To achieve maximum customer
remembering customer names in customer service probably one
Giving individualized customer satisfaction – that Starbucks
can be by knowing his of best customer service
value and importance customers will feel warm
preferences, ideally saying "Hi " customers do get in a coffee
welcome
when Starbucks staff interacts shop
with him assuming his name's .
Starbucks likes to keep their
employees happy, The
Inviolable First Rule For Happy Visible customer service
The great secret of Starbucks is
Customers, putting employees development and growth in
that the company puts more
Appropriate and justifiable through hours and hours of communication skills as
time and effort into its
execution of staff training tasting training and offering reflected in work performance
customer service than it gets
"stock options, health benefits by the staff due to training
credit for
for part-time employees and received
an annual review which could
result in a raise
Improvements Happened/What
CRM measures Why Starbucks did it? How Starbucks are doing it?
Starbucks are seeking?
Starbucks experienced extensive
Deploying Onyx Enterprise CRM growth in Foodservice group,
within their Foodservice team as which lead to the development of
the project was completed on time several non-integrated customer
and under budget rolling out to databases and through Onyx,
Onyx Software is looking forward
possibly 200 Starbucks Starbucks Foodservice has been
to help Starbucks deliver their
Selection of the Onyx Software Foodservice representatives thus, able to consolidate many of
mission by providing technology
selected to Power Starbucks CRM also to manage corporate sales databases into single system
tools the representatives need to
Initiative activities including efficient enabling effective execution of key
ensure positive customer
delivery and management of leads, business process and rules
experience
effective pipeline management, established to facilitate
faster activation of new accounts, communication between sales and
and immediate resolution of auxiliary groups to streamline
customer issues within the business process of setting-up innovative
customers accounts
