All Starbucks employees are carefully trained when recruiting toensure they provide all customers with the most perfect service; Work withrespect for customers and try to best meet their
Trang 1UNIVERSITY OF ECONOMICS – DANANG
UNIVERSITY
THE TEAM REPORT: CUSTOMER PARTICIPATION IN
STARBUCKS TEAM DUCKYIntrucstor: Mr Nguyen Ky Vien
Subject : Service Supply Chain Management
Class : 48K23.1
Team members:
1 Nguyen Thanh Danh – 221121723103
2 Pham Quang Khang – 221121723110
3 Nguyen Thi Khanh Ly – 221121723114
4 Le Ha Mai Phuong – 221121723128
5 Bui Thuy Trang – 221121723135
Trang 2I Histoy development of Starbucks 4
1 In general 5
2 Starbucks in Vietnam 5
II Target market and Service portfolio 6
1 Target market 6
2 Service Portfolio 6
III The firm’s positioning 7
IV Some features of Starbucks 7
1 Reliability 7
2 Assurance 8
3 Tangibility 9
4 Empathy 10
5 Responsiveness 11
V Service Process in Starbucks 11
1 Steps of service process 11
2 The steps the customers take and how they particpate in 13
VI Participating skills and Attitude of customers 15
1 Participating skills 15
2 Attitude of customers 16
VII The firm and contact staff support customers’ participation 18
1 About the firm – Starbucks 18
2 About the contact staff of Starbucks 20
VIII Suggestion for improvement 21
1 Frustration with wait times 21
2 Order errors 21
3 Dissatisfaction with service 22
Trang 3Starbucks, a well-known international coffeehouse chain, has also made its mark in
Da Nang, Vietnam Located in the bustling city center, Starbucks in Da Nangoffers a cozy and modern ambiance for coffee lovers to enjoy their favoritebeverages.With a wide range of coffee selections, from classic espresso drinks toseasonal specialties, Starbucks in Da Nang provides a familiar taste for both localsand tourists Starbucks isn't just a place to grab a quick caffeine fix; it's a globalphenomenon known for its loyal customer base But what makes customers notonly buy from Starbucks but actively participate in the brand experience? Thisintroduction delves into the key strategies Starbucks utilizes to foster customerparticipation, transforming them from patrons into engaged members
Trang 4I Histoy development of Starbucks
1 In general
Starbucks is known as a famous American coffee company and coffeehousechain It was founded in 1971 in Seattle, Washington by 3 partners: JerryBaldwin, Zev Siegl and Gordon Bowker It started as a single store sellinghigh-quality coffee beans and equipment However, it was not until HowardSchultz joined Starbucks in 1982 that the company began its expansion andtransformation into the global coffee giant today.The first international store
of Starbuck is located in Tokyo, Japan in 1996, marking the beginning of itsglobal expansion
Until now, Starbucks has a presence in over 80 countries with thousands ofstore around the world, including locations in Europe, Asia and the MiddleEast
2 Starbucks in Vietnam
In Vietnam, Starbucks entered the market in February 2013 by opening itsfirst store in HCM City Following its entry, Starbucks quickly expanded itspresence in Vietnam It opened several stores in major cities like Ho ChiMinh City, Hanoi, and Da Nang Starbucks aimed to tap into Vietnam'sgrowing urban population and increasing demand for specialty coffee
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Trang 5In entering the Vietnamese market, Starbucks took into account the localcoffee culture and preferences While maintaining its signature offerings,Starbucks also introduced localized menu items and incorporatedVietnamese coffee traditions into its stores Definitely, Starbucks continued
to expand its presence in Vietnam, opening new stores in strategic locations Overall, Starbucks' development both worldwide and in Vietnam reflects itsability to adapt to diverse markets while maintaining its core values andofferings In Vietnam, Starbucks has become a prominent player in thecoffee industry, contributing to the country's evolving coffee culture
II Target market and Service portfolio
1 Target market
Starbucks' target markets focus on middle to high-income office employeeslooking for premium quality products Since Starbucks has chainsinternationally, the company makes local delights showing culturalcharacteristics among customers Besides locals trying out local treats offered
by Starbucks, tourists traveling to countries and visiting a Starbucks chaincan try the country's local food through the products that they have
2 Service Portfolio
Trang 6III The firm’s positioning
The Starbucks company has positioned itself in a way that it can distinguishproducts from competitors, which gives it an advantage
The following figure shows the competitive positioning of Starbucks againstits competitors in the market The positioning map shows the position based
on cost and perceived quality factors It has been analyzed that Starbucks has
a higher cost and higher perceived quality than other competitors Highlandcoffee comes in this category but its cost and quality are lower thanStarbucks McCafé has almost the same price as Highland coffee but at alower perceived quality Trung Nguyen Coffee Shop is a low-cost cafe, so itcannot provide satisfactory service to its customers The company has notimplemented any changes to improve service quality
IV Some features of Starbucks
1 Reliability (ability to perform promised service reliably and
accurately):
- Starbucks commits to customers that everything they choose is of the bestquality:
Trang 7+ Product: Inspired by Espresso coffee - Italy with excellent quality whenpurchasing the best Arabica coffee and unique coffee roasting methodcombined with milk steam; Manually brewed, giving customers a style ofcoffee that is not only for "drinking" but also for "enjoying" Cakes andsandwiches are made with simple, high-quality ingredients, with all the greatflavors, always giving customers peace of mind about quality.
+ Service: A special feature of this brand is positioning itself in the "third"position in the customer's lifestyle - that is when the customer is too familiarwith the house or too tired at the office Starbucks will be the third place tohelp them comfortably enjoy life with premium coffee and experience closeservice All Starbucks employees are carefully trained when recruiting toensure they provide all customers with the most perfect service; Work withrespect for customers and try to best meet their needs
+ Location: True to the spirit of being a "third place" to help customers relaxand comfortably meet friends Starbucks places its stores in/near most largeapartment buildings, shopping malls, office buildings, high-end hotels,airports with prime locations, many passersby and customers Most havehigh living conditions
In addition, Starbucks is also committed to the environment with flexibleinitiatives, buying selling and using environmentally friendly products, which
is first shown in store construction materials: raw material sources and hirelocal craftsmen while incorporating reused and recycled components wherepossible
2 Assurance (The understanding and courtesy of employees and their
ability to convey trust and confidence):
- Friendly, professional staff, with full professional knowledge, and a greatlove for coffee and its development history, as well as the ability to use manyforeign languages such as English, France,…
- Using foreign languages well helps Starbucks employees be able toexchange information directly with foreign customers, meet customers'wishes and needs during the process of using the service, and explain to themabout different types of coffee Coffee and how to use coffee to suit each
Trang 8person's taste At the same time, it helps customers feel closer and morefamiliar.
3 Tangibility (Appearance of physical equipment, personnel and communication materials):
Because services are intangible, tangible things must give customers animpression of the brand's service quality
Positioning itself as the "third" in customers' lives, Starbucks stores areequipped with comfortable seating, provision of electrical outlets forelectronic devices, and a comprehensive no-smoking policy ensuring that Allcustomers feel comfortable Every detail, from lighting to furniture, iscarefully considered to ensure customers feel at home Round tables, forexample, are specifically chosen to help single people feel less lonely, butalso provide opportunities to socialize with larger groups, useful foreverything from individual study sessions to work meetings
The bar is open so customers can watch the staff making their drinks
When customers step into the cafe, they can feel the warmth through thedark wood furniture and decoration Welcoming them is a team of staff withneat, polite uniforms in brand colors, neat and friendly
Trang 9Many Starbucks stores have been equipped with Clover coffee makers - aproduct considered extremely high-tech by Computer World Clover canconnect to the CloverNet cloud platform to report machine operating data aswell as monitor customer preferences, allowing Starbucks to easily adjustrecipes accurately for each type of coffee at all times stores globally Inaddition, the store is also equipped with smart refrigerators, smarttemperature gauges, smart door locks,
4 Empathy (Providing care and concern for customers):
The baristas at Starbucks not only make great cups of coffee, they are willing
to chat with customers and families about how to enjoy coffee properly andthe stories of premium coffees They are also trained to remember customers'names, their tastes and stories with their families, thereby creating a strongemotional connection between customers and the brand
When customers linger, they are more likely to buy another cup of coffee orsnack, access wi-fi internet, burn CDs, etc., so Starbucks always has a variety
of dishes and drinks; Prepare a music playlist to help them relax whileenjoying coffee; The aroma of roasted coffee creates a pleasant smell in theshop space; free wifi,…
The "named" cups have become a familiar friend to customers using services
at Starbucks When ordering a drink, customers will see the restaurant's staffalways calling them by name - according to the name the staff has written oneach cup This makes them feel more appreciated
Trang 10Realizing that queuing to buy coffee is too time-consuming for customers,especially during peak hours, Starbucks provides the fastest and most suitablepayment methods (cash, membership card, code, etc.) e-wallet, debit card(MasterCard, Paypal, )
=> All of these services are aimed at bringing a memorable experience tocustomers, so that they feel thoughtful and familiar
5 Responsiveness (Willingness to help customers and provide prompt
V Service Process in Starbucks
1 Steps of service process
Starbucks prides itself on delivering exceptional customer service, and this isachieved through a well-defined service process Here's a breakdown of thegeneral flow
Trang 11Step 1: Guiding customer to parking in parking lot
This step will be performed by the parking attendant This employee willrecord the number card and direct customers to park in the correct place
Step 2: Welcome and greeting customers
When customers enter the store, the staff will warmly greet them with asmile, nod and friendly greeting And if customer’s information is available(regular customers of store, VIP,…), the staff will personalize the interaction
by calling customers by their name to create a sense of connection
Step 3: Recommendation and order placement
With regular customers or who have fixed favourite drinks, the staff willwait for customers to order the drinks they want
With customers who arrive Starbucks in first time or customers whosepreferences are always changing, based on the information provided bythem, the staff will recommend the drinks that suit the customer’spreferences and needs The staff also clearly explain ingredients, flavorsand characteristics of drinks for customers, so the customers willunderstand about the drinks obviously
Step 4: Confirm the customers’ order and complete the payment
The staff confirms the order with the customers again to ensure that there is
no mistake in their order
Then, make the payment In starbuck, the customers can make the payment
by many ways: cash, credit card, transfering,
Step 5: Drinks preparation and service
The baristas prepare drinks according to customers’ orders and must alwaysfollow standard of Starbucks to ensure consistent quality Then, call thecustomer’s name when the order is ready and serve it with a smile
Step 6: Customers enjoy the drinks
Step 7: Gratitude and farewell
Trang 12After customers finish using the store’s services, the staff expressappreciation for the customer’s visit and enjoying the drinks They encouragerepeat visits and reccomendations to friends At last, a final farewell isdelivered with a smile and a goodbye.
In conclusion, thanks to a methodical and professional customer serviceprocess, Starbucks has built the trust and love of customers around the world.Starbucks is a testament to how excellent customer service plays an importantrole in building a brand and driving business success
2 The steps the customers take and how they particpate in
- Pre-purchase (Customers participate passively, not directly):
+ Researching Products and Services: Customers can explore new products,promotions, menu items, or other relevant information before visiting thestore or ordering via the Starbucks mobile app This helps them gain anoverview of the services provided by Starbucks
+ Creating and Managing Accounts: Customers can also create and manageaccounts on the Starbucks mobile app They can manage gift cards, storepayment information, or participate in customer rewards programs
+ Customizing Orders in Advance: Consumers can pre-order and customizetheir orders before arriving at the store through the Starbucks mobile app Tosave time when visiting the store, they can select milk types, syrup flavors, ortoppings in advance
Trang 13- Purchase:
+ Parking: Upon arrival at the parking lot, customers receive a parking cardfrom the security guard (if on a motorcycle) and then search for a suitableparking spot Customers will park themselves when space is available andproceed to the store
+ Ordering: Consumers choose a product from the menu and specify theirpreferences for their order, such as milk type, syrup flavor, or toppingquantity Customers directly interact with Starbucks' order-taking staff, shareinformation, and make requests to make informed decisions
+ Payment: Customers choose a payment method such as cash, credit/debitcard, or using the Starbucks mobile app After selecting the payment method,customers complete the payment by providing necessary information (e.g.,swiping the credit card or mobile payment) or handing cash to the staff Thestaff will confirm that the payment transaction is completed and provide areceipt or payment information to the customer