Starbucks Case Study.p... X All tools Edit Convert Sign + Create Find text or tools Q | e ΑΙ 922-0003-1 To increase its operational efficiency and enhance customer service, Howard Schultz,then CEO of Starbucks, decided to adopt a technology-oriented strategy rather than focusing on changing the layout or ambience of the stores. In 2008, the company launched the Starbucks Rewards program, which offered a card to users enrolling in the loyalty program, which they could use to pay for their purchases at the stores. For every purchase, users earned stars, which could later be redeemed for a free drink. This was followed by Starbucks launching its mobile app in 2009, which allowed the consumers to pay for their purchases at Starbucks using their smartphones by scanning the matrix barcode, the QR (Quick Response) code. While the loyalty program made the customers feel engaged with the company, the mobile app offered them a convenient way to pay at their stores. In 2015, Starbucks launched the Mobile Order & Pay feature, which enabled consumers to pre-order and pay through their phones and pickup their items at Starbucks stores, thus saving on time. The mobile app collected huge amounts of data (with the consent of the consumers) which revealed their tastes and preferences. Using this data, the coffee giant aimed to enhance the user experience. Thus, in 2017, the company started its Digital Flywheel initiative comprising four components – rewards, mobile ordering, payment, and personalization. Commenting on the initiative, Starbucks CTO Gerri Martin-Flickinger said, Digital Flywheel would provide customers with “a user experience that's the same everywhere,” through a cloud-based “unified commerce platform. 6وو Taking its digital initiatives forward, in 2017, Starbucks in association with Microsoft, launched Deep Brew, an Artificial Intelligence (AI) engine that offered customizable menu boards to consumers across multiple channels such as digital menu boards and in-app ordering. The AI- driven platformmade recommendations based on the purchase history of consumers, time of day, weather, community preferences, popularity, store inventory, etc. The Deep Brew also automated time-consuming tasks such as inventory management. In addition to this, Starbucks utilized AI in its Mastrena espresso machines which had Internet of Things (IoT) sensors built into them. Deep Brew with its predictive analytics notified which espresso machines needed maintenance before they broke down. In April 2021, Starbucks was using Deep Brew to conduct predictive analysis to see the progress of Covid-19 vaccination across its key markets worldwide and when customers would return to its stores, according to Starbucks President and CEO Kevin Johnson (Johnson). Analysts appreciated Starbucks for implementing several digital initiatives as part of its company philosophy and said these initiatives had helped it improve sales and operational efficiency, enhance customer service, etc. Some critics pointed out that though the company's digital initiatives helped it survive the pandemic in its US stores and other global markets. Starbucks was facing declining sales in China BOO 1475 APR 18 άtv A W Д meters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). ht by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. or use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Canva T NEW Sign in √ ◉ 3 17 C 1:1 0 0 Q Starbucks Case Study.p... X + Create All tools Edit Convert Sign Sign in Find text or tools Q | Purchased for use on the Marketing for a Digital World, Taught by Fanny Saruchera, from 16-Apr-2024 to Usage permitted only within these parameters. This PDF may not be reproduced, e ΑΙ Ш запиагу 2020 "Everything we are doing in digital is about enhancing and strengthening those connections [with our customers] in only the way that digital can and only the way that Starbucks can. "3 - Adam Brotman, Chief Digital Officer of Starbucks, in August 2017 For the year ended October 3, 2021, American multinational coffee giant Starbucks Corporation (Starbucks) recorded revenues of US$29.06 billion, an increase of 24% compared to fiscal 2020.* Commenting on the results, Starbucks COO John Culver said that the US stores were experiencing normalization with peak hours returning to pre-Covid-19 levels. Much of the company's success was attributed to the digital investments Starbucks had made that gave it an edge over its competitors. Ever since Starbucks was founded in Seattle in 1971, the coffee giant had been known for its club- like atmosphere and premium coffee. Consumers flocked to its stores to relax over a cup of coffee. To reach out to more consumers, Starbucks grew rapidly during the early 2000s. While this expansion garnered revenues for the company, customer service took a backseat. And customers were quick to turn to its competitors who were offering better customer service at lower prices. The global economic slowdownª only added to the company's troubles, leading to Starbucks' operating income experiencing a decline to US$504 million in 2008 from US$1 billion in 2007.5 a The global economic crisis began in July 2007 due to a loss in the value of securitized mortgages in the US which resulted in a liquidity crisis. The reasons to which the downfall of the economy were attributed were collapse of the US mortgage market that led to the bursting of the housing bubble in the US, soaring commodity prices, and stock market volatility. In September 2008, the crisis deepened, as stock markets crashed worldwide, large financial institutions collapsed, and several mortgage lenders and insurance companies went bankrupt. BOO 1475 2 APR 18 C 1:1 Q

Starbucks Case Study.p... X All tools Edit Convert Sign + Create Find text or tools Q | e ΑΙ 922-0003-1 To increase its operational efficiency and enhance customer service, Howard Schultz,then CEO of Starbucks, decided to adopt a technology-oriented strategy rather than focusing on changing the layout or ambience of the stores. In 2008, the company launched the Starbucks Rewards program, which offered a card to users enrolling in the loyalty program, which they could use to pay for their purchases at the stores. For every purchase, users earned stars, which could later be redeemed for a free drink. This was followed by Starbucks launching its mobile app in 2009, which allowed the consumers to pay for their purchases at Starbucks using their smartphones by scanning the matrix barcode, the QR (Quick Response) code. While the loyalty program made the customers feel engaged with the company, the mobile app offered them a convenient way to pay at their stores. In 2015, Starbucks launched the Mobile Order & Pay feature, which enabled consumers to pre-order and pay through their phones and pickup their items at Starbucks stores, thus saving on time. The mobile app collected huge amounts of data (with the consent of the consumers) which revealed their tastes and preferences. Using this data, the coffee giant aimed to enhance the user experience. Thus, in 2017, the company started its Digital Flywheel initiative comprising four components – rewards, mobile ordering, payment, and personalization. Commenting on the initiative, Starbucks CTO Gerri Martin-Flickinger said, Digital Flywheel would provide customers with “a user experience that's the same everywhere,” through a cloud-based “unified commerce platform. 6وو Taking its digital initiatives forward, in 2017, Starbucks in association with Microsoft, launched Deep Brew, an Artificial Intelligence (AI) engine that offered customizable menu boards to consumers across multiple channels such as digital menu boards and in-app ordering. The AI- driven platformmade recommendations based on the purchase history of consumers, time of day, weather, community preferences, popularity, store inventory, etc. The Deep Brew also automated time-consuming tasks such as inventory management. In addition to this, Starbucks utilized AI in its Mastrena espresso machines which had Internet of Things (IoT) sensors built into them. Deep Brew with its predictive analytics notified which espresso machines needed maintenance before they broke down. In April 2021, Starbucks was using Deep Brew to conduct predictive analysis to see the progress of Covid-19 vaccination across its key markets worldwide and when customers would return to its stores, according to Starbucks President and CEO Kevin Johnson (Johnson). Analysts appreciated Starbucks for implementing several digital initiatives as part of its company philosophy and said these initiatives had helped it improve sales and operational efficiency, enhance customer service, etc. Some critics pointed out that though the company's digital initiatives helped it survive the pandemic in its US stores and other global markets. Starbucks was facing declining sales in China BOO 1475 APR 18 άtv A W Д meters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). ht by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. or use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Canva T NEW Sign in √ ◉ 3 17 C 1:1 0 0 Q Starbucks Case Study.p... X + Create All tools Edit Convert Sign Sign in Find text or tools Q | Purchased for use on the Marketing for a Digital World, Taught by Fanny Saruchera, from 16-Apr-2024 to Usage permitted only within these parameters. This PDF may not be reproduced, e ΑΙ Ш запиагу 2020 "Everything we are doing in digital is about enhancing and strengthening those connections [with our customers] in only the way that digital can and only the way that Starbucks can. "3 - Adam Brotman, Chief Digital Officer of Starbucks, in August 2017 For the year ended October 3, 2021, American multinational coffee giant Starbucks Corporation (Starbucks) recorded revenues of US$29.06 billion, an increase of 24% compared to fiscal 2020.* Commenting on the results, Starbucks COO John Culver said that the US stores were experiencing normalization with peak hours returning to pre-Covid-19 levels. Much of the company's success was attributed to the digital investments Starbucks had made that gave it an edge over its competitors. Ever since Starbucks was founded in Seattle in 1971, the coffee giant had been known for its club- like atmosphere and premium coffee. Consumers flocked to its stores to relax over a cup of coffee. To reach out to more consumers, Starbucks grew rapidly during the early 2000s. While this expansion garnered revenues for the company, customer service took a backseat. And customers were quick to turn to its competitors who were offering better customer service at lower prices. The global economic slowdownª only added to the company's troubles, leading to Starbucks' operating income experiencing a decline to US$504 million in 2008 from US$1 billion in 2007.5 a The global economic crisis began in July 2007 due to a loss in the value of securitized mortgages in the US which resulted in a liquidity crisis. The reasons to which the downfall of the economy were attributed were collapse of the US mortgage market that led to the bursting of the housing bubble in the US, soaring commodity prices, and stock market volatility. In September 2008, the crisis deepened, as stock markets crashed worldwide, large financial institutions collapsed, and several mortgage lenders and insurance companies went bankrupt. BOO 1475 2 APR 18 C 1:1 Q

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter2: Planning, Implementing, And Evaluating Marketing Strategies

Section2.1: Inside Tesla’s Strategy For Growth

Problem 1VC

See similar textbooks