A study on Starbucks: 5 ways of creating an evidence of the quality of service in the outlets and 5 reasons of success

By: Anamitra Roy

Starbucks Corporation is one of the largest chains of coffee outlets in North America. It was founded in Seattle, Washington in 1971. The 5 ways of creating an evidence of service quality in their outlets are:

1) Creation of an Appropriate Environment:

Starbucks designed the ambience of the retail outlets in such a way so that most customers would like to spend some time there. There would be lounges and living areas where customers would just not have coffee, but get a coffee experience. This was one of the greatest assets of Starbucks that helped her to create an evidence of its services.

2) Location:

Most Starbucks outlets would be located near high visibility areas where there would be retail centre, office buildings and university campuses.

3) Trained Employees:

Starbucks employees are given two types of training. One is called “hand skills” and the other is called “soft skills”. The employees are always told to connect to the customers by enthusiastically interacting with them, maintaining eye to eye contacts with them and greeting them.

4) Administration Policies:

One of the administration policies of Starbucks is to ensure a clean environment, product quality and maintain a speed of the service.

5) Innovation:

The policy of bringing innovation was largely successful in creating physical evidence for its services. Starbucks had the policy of introducing at least one drink every holiday season. This meant that there was always something new at Starbucks.

The 5 reasons for the success of Starbucks:

1) Creation of Ambience:

Starbucks as a coffee chain outlet did not aim at selling coffee. It believed in selling a coffee experience. The ambience in Starbucks is such that the customer can do a lot of things over a cup of coffee … lounge, live and enjoy it.

2) HR and Administrative Policies:

Maintenance of a clean environment, speedy service, ensuring customer satisfaction through enthusiastic interactions and greeting them are some of the attributes of the administrative policies of Starbucks that was largely responsible for the success of this organization.

The people working in Starbucks were given respect. They were called “partners.” There were policies for their promotions (the company encouraged promotion from within itself) and other benefits (like health insurance). Starbucks believed that “partner satisfaction” will lead to customer satisfaction.

3) Location:

Starbucks always opened her retail outlets near busy streets by the side of university campuses, offices and retail outlets. This ensured a very high visibility of the outlets. More importantly, Starbucks outlets are opened in places where customers are available who have the mentality of spending time on a cup of coffee. For example, one of the favorite locations of Starbucks is to open coffee outlets near university campuses where students are available who are expected to visit the coffee outlets in groups and spend time on a cup of coffee in between classes.

4) Innovations and Product Quality:

Constant innovations (for eg. Introduction of at least one drink per holiday season) were also responsible for the success of Starbucks.

Starbucks prided herself on serving the customers the highest quality coffee in the world, from Africa, Central and South America, and Asia-Pacific regions.

5) Handling Competition:

Starbucks believed that it was far from reaching saturation in many existing markets.

There were a lot of competitors of this organization which depended on one strength (like Caribou Coffee emphasized on environment, Peet’s Coffee & Tea depended on quality of the coffee). Starbucks’ success in handling the competitors was that it had all the strengths in it to compete with others.

About the Author:

Mr Anamitra Roy is B.Com. Hons. (C.U., India), Certified Financial Accountant (CMC, India), DFA(CMC, India), PGDBF (HSIS India, India), Certified Financial Accountant(GLOBSYN Skills, India), GPBL (TASMAC, India & University of Wales, United Kingdom).

 

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