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Introduction
In the previous days, promotion was limited only to the goods made. But now the scenario has been completely changed. The process of marketing has gained an equal position in promoting both products and services. It is the service sector that offers new job opportunities. The service sector yield is increasing rapidly, paying partly or extra than the country’s GDP.
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Case Summary
Starbucks is North America’s largest coffee production company, which has 20 million customers worldwide, and it opens three new stores a day on average. “The brand strategy of Starbucks was best summarized by its” live coffee “slogan, a term that embodied the value the firm attached to keeping the national coffee culture alive” (Moon and Quelch 3). As it was operating around the world, it had a supply chain all across the globe. The company gave more priority to three components. That was coffee, service and finally the atmosphere within the organization. The organization termed the concept of function as ‘customer intimacy.’ The goal of the company is “to create an uplifting experience every time you walk through our door” (Moon and Quelch 3). In the earlier days, it was easy for the company to sell its products, but as the scenario changed, the marketing process became more involved. Baristas were responsible for producing and selling the products. But the problem arose when the taste and preferences of the customers changed. The only way to solve this problem was to hire more baristas and train them well, but due to the current economic condition, the company is not in a situation to carry out this function. The company was facing serious issues related to customer satisfaction, a centralized marketing system, managing human resources, and failure in meeting customer expectations.
