Problem
Starbucks is struggling to maintain customer satisfaction of its current customer base. This could be potentially devastating as Starbucks is currently in the midst of rapid expansion per company growth plans (Exhibit 3).
Recommendation
Starbucks should develop a strategic marketing department to analyze gathered data that is currently underutilized. Starbucks should hire a chief marketing officer to monitor and evaluate the evolving linkages among customer satisfaction, loyalty and profitability. In addition, Starbucks should implement Day’s plan to hire additional employees to satisfy growing customer needs.
Rationale
Developing a strategic marketing department will give Starbucks’ a better understanding of their customers’ values through research and data analysis. It will also ensure that Starbucks is making accurate assumptions about their evolving customer base (Exhibit 7) as its target market widens as a result of expansion (Exhibit 5). Currently Starbucks collects an abundant amount of market research regarding the ties between customer satisfaction and loyalty but does not analyze this data. Hiring a chief marketing officer to manage a single marketing group will ensure that Starbucks remains focused on the “big picture.” Developing a strategic marketing department will generate frontloaded costs that will quickly be offset by improved efficiency downstream.
Starbucks’ expansion prospects could prove to be disastrous if core customer needs are not satisfied. It is imperative that Starbucks increase customer satisfaction. Hiring an additional employee per store will reduce the averag ...