21-JAN-09
BM Seniors SMK
Narasimhan Rajkumar

Case on Starbucks

Dear all,

Please analyse the case based on

  1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so complelling about its value proposition and what was the Brand Culture and Brand Image that Starbucks developed during this period?
  2. Why have Starbuck`s CSI scores declined? Has it really declined or is it simply measuring the CSI the wrong way?
  3. Describe the ideal Starbucks Csutomer from a profitability standpoint. What would ensure  that this customer is highly satisfied. How valuable is a highly satisfied customer to Starbucks.
  4. Should Starbucks make the $40 million investment in laor in the stores? Is it possible for a Mega Brand  to deliver customer intimacy?

Raj