Starbucks Marketing Mix

Assignment No.1(Individual)

Capital University of Economics and Business

BTEC center

Unit Name: Quantitative Techniques for Business

Unit Code: 20746P

Unit level: H1

Unit Tutor: Lili Kang

Student Name: Lan Ma

Date of issue: Sep 3rd, 2007

Date of submission: Sep 25th, 2007

Content:

Abstract

u Literature review-----------------------------------------3

Introduction

u Company Name ЈÑ"Starbucks Coffee-------------------3

u Background ------------------------------------------------4

Data description

u Primary Data-----------------------------------------------5

u Secondary Data -------------------------------------------5

u Description ------------------------------------------------7

Result

----------------------------------------------------8

Reason for the investigation result

----------------------------------------------------8

Conclusion

--------------------------------------------------------10

Reference

------------------------------------------------------11

Questionnaire

------------------------------------------------------12

l Abstract

This paper aimed to investigate customerЎЇs reaction for Starbucks CoffeeЎЇs reform.

Recently, to be a company which has huge brand loyalty, Starbucks Coffee in China (SCC) held a large-scale reform to reduce the cost, rising the merchandise price. And itЎЇs object is to expand itЎЇs large scale cautiously. (http://www.businss.sohu.com)

Through an investigation which visit 120customers in the ÐŽ®ÐŽ®Starbucks Coffee of Top Electronics City ЎЇЎЇ during 3 hours. We found that this great reform didnЎЇt reduce its brand loyalty. In fact, it will get success of launching more stores in china.

² Literature review

We find the literature review from>.

ÐŽoCost control and better service can let customer gain more interests, increasing the satisfaction of customer, and the company can achieve more profit at last.ÐŽ±

l Introduction

² Company Name:

Starbucks Coffee

In 1971, Starbucks Coffee opened its first store in SeattleЎЇs Pike Place Public Market. (http://www.finance.sina.com.cn) To be a business which running coffeeЎЇs culture and feeling, now itЎЇs launching stores throughout the world. Customers in the Starbucks Coffee can enjoy wonderful coffee and exclusive signature blends.

Since then, Starbucks Coffee has been held six successful reforms. It became the coffeeЎЇs pronoun and achieved the highest state of brand (Yi Xing, 2007,ÐŽ±Expansion in China of StarbucksÐŽ±http://www.emarket.)

² Background

4.28 of this year, Starbucks Coffee in china (SCC) started a large-scale reform. Risen 15% merchandise price and changed most part of suppliers to reduce cost. (Shu ming Zhou, 2007, ÐŽoStarbucks CoffeeЎЇs reform on 4.28ÐŽ± http://www.globrand.com.cn) WhatЎЇs more, to be a business which treats its staff as the partner,( Terry Sincich,2006, ÐŽoAttract in the Starbucks CoffeeÐŽ± 96 page) SCC changed the form of calculate payment to be that the income of salesman would not link with the sales profit of store. And it would rise the scale of part-work system from 10% to 50%.

The company spokesman expressed rising merchandise price was just willing to readjust price become one accord in China. (Xi Wang, 2007, ÐŽoStarbucks Coffee reformЎЇs on 4.28.2007ÐŽ±newspaper of ÐŽoThe Economic ObserveÐŽ±) But some economists think large scale expansion is a reason for reducing the cost. ( Jian xing You, 1987,ÐŽoOutline of business administrationÐŽ± 195 page)

Starbucks Coffee symbolizes the identity. To be a company which sells temperament, this reform may lose SCCЎЇs well brand effect. ItЎЇs a disadvantage to SCCЎЇs development in China. So we start doing a investigation to prove our surmise.

l Data description

In our paper, two kinds of data appeared.

1. Primary Data

By visiting 120 customers in the ÐŽ®ÐŽ®Starbucks Coffee of Top Electronics City ЎЇЎЇ, we gain a primary data which from studentÐŽÑžperson returned overseasÐŽÑžforeignerÐŽÑžand white-collar .itЎЇs a cluster sampling, and without replacement. So there are many limitations or constraints in our data.

To research the satisfaction of customer in SCC after the reform, in this data, we asked customers to evaluate them satisfaction extent from 0 marks to 100 marks. The following is a rough explain, says how marks stands for the customerЎЇs satisfaction extent.

0-20 20-40 40-60 60-80 80-90 90-100

Extremely A little Satisfaction Extremely

dissatisfaction dissatisfaction satisfaction

2. Secondary Data

From the SCC, we get two orderly data. One is the investigationЎЇs result