Recommendations:
1. Starbucks should invest $40 million annually in the company's 4574 stores to increase labor hour per week by another 20 hours. This investment will help eliminate the problems of service time and customer satisfaction by reducing the bottleneck of labor time and increase customer satisfaction at all levels which will in turn generate a stream of additional revenues for the lifetime value of each customers with respect to him/her shifting from unsatisfied to satisfied and satisfied to highly satisfied.
2. Starbucks should set up an internal strategic marketing team. This will allow Starbucks to have a proactive feedback of customer satisfaction and hence faster improvement.
3. Starbucks should conduct a survey on about 50,000 Starbuck drinkers to determine the product non-Starbucks customers in order to understand why they don't choose Starbucks. This will allow Starbucks to deploy a suitable strategy (if at all) to capture new customers in existing and new markets.
4. Starbucks' products have not only attracted well-educated and affluent customers, but have also attracted customers who are younger and less well educated with lower income range. Therefore, Starbucks should see this as a marketing opportunity and deploy a strategy to capture this new customer base to be their 2nd permanent loyal segment via means of advertisements and promotional campaigns that emphasize on Starbucks' premium coffee and ?in trend' brand image. Using the ?In trend' emphasis will not only increase awareness of Starbuck superior service and quality to all its customers but also capture the ?new customers' segment appropriately as this is the ?key' reason they chose Starbucks.
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