PROBLEM STATEMENT Starbucks has discovered that they are not always meeting their customers’ expectations in the area of customer satisfaction. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability.

SITUATION ANALYSIS
Company
Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience. Customers However, data from the market research team has shown that there is a shift on Starbucks’ brand recognition in customers’ perception, as …show more content…

Based on Exhibit 6, current average store volume is $15,400 per week with average ticket per visit to be $3.85 from 570 average daily customer counts per store. Exhibit 3 displays that even an ‘unsatisfied customer’ spends $3.88 per visit on the average. Therefore, it is safe to use this number for conservative calculation and assume it remains constant. In order to achieve $20,000 per week with constant amount of spending per visit, the average daily customer count must increase from 570 to 742 per store, or in other words, a 30% increase in the number of visits. From Exhibit 3, if Starbucks successfully brings ‘satisfied customer’ to ‘highly satisfied customer’, there are going to be