AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY UTTAR PRADESH NOIDA

TITLE OF THE PROJECT

(Company Name)

Name of the Student: ___________________

Enrollment Number: ___________________

Class Roll Number: _____________________

Program:

Bachelors of Business Administration + Masters Of Business Administration

(B.B.A+M.B.A Dual Degree)

Batch: 2012-2016

Course: NTCC Dissertation

Faculty Supervisor: Dr. ________________________

i|Page
 DECLARATION BY STUDENT

This is to certify that I, _________________, a student of BBA + MBA (Dual Degree) of 2012 -
2016 Batch, Amity School of Business, Amity University Uttar Pradesh, Noida have worked
under the guidance and supervision of Dr.___________________ for NTCC Dissertation.
This report has the requisite standard for the partial fulfillment of the Post Graduate Degree in
Business Administration (BBA+ MBA Dual Degree). To the best of my knowledge no part of
this report has been reproduced from any other report and the contents are based on original
research.
I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the
report.

Signature (Student)
Name of the student – ______________
Enrollment No. – __________________
Batch: 2012 - 2016

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 DECLARATION BY FACULTY SUPERVISOR

This is to certify that Mr./Ms., ____________________, Enrollment No. ______________, a

student of BBA + MBA (Dual Degree) in, 2012 -2016 Batch, Amity School of Business, Amity
University Uttar Pradesh, Noida has worked under my guidance and supervision for the duration
of NTCC Dissertation.
The report being submitted incorporates original work and research and is being submitted as a
partial fulfillment for the Post Graduate Degree in Business Administration (BBA+ MBA Dual
Degree).

Signature
Name of Faculty Supervisor: Dr. ______________

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 ACKNOWLEDGEMENT

The Text for the report and Chapter Headings should be in Times New Roman font size 12.
The chapter headings should be Bold and in Capital Letters only. The Subtopics should be
Bold and numbered according to section as shown in Table of Contents. The Report should
have spacing of 1.5 and Justified Alignment.

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 EXECUTIVE SUMMARY

The project work has been carried out on Starbucks, which is a well known coffee chain
based in USA. The aim of study is to understand the CRM strategy of the company and also
its importance for other business house. In order to carry out this study, a sur vey has been
conducted on 90 people who were found roaming around the Starbucks outlet.

The people were asked questions about their satisfaction level and also the further
improvement requirement for same. This assignment consist 6 chapters which includes,
Introduction, Literature Review, Industry Review, Research Methodology, Data Analysis
and Conclusion.

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 TABLE OF CONTENTS

S.No. Topic Page No.

Declaration by Student II
Declaration by Faculty III
Acknowledgment IV
Executive Summary V

1. Chapter 1: Introduction 1-2

1.1 Introduction of Topic
1.2 Introduction of Starbucks
1.2 Introduction of CRM

2 Chapter 2: Literature Review 3-4

2.1 Review
2.2 Customer Loyalty
2.3 CRM & Starbucks

3 Chapter 3: Industry Review 5-6

3.1 Industry Information
3.2 Internationalization of Coffee Chain

4 Chapter 4: Research Methodology 7-8

4.1 Research Objectives
4.2 Research Questions
4.3 Research Model
4.4 Methodology
4.5 Sample Design
4.6 Tools and Techniques of Data Analysis

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5 Chapter 5: Analysis 9 – 19
5.1 Data Analysis
5.2 SWOT Analysis

6. Chapter 6: Conclusions, Recommendations and Limitations 20 - 22

6.1 Findings
6.2 Limitations & Recommendations
6.3 Conclusions

7. References

8. Appendices

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 CHAPTER-1
INTRODUCTION

1.1 Introduction of Topic

Now a days, business organizations are using Customer relationship factors in order to satisfy the
need of customers and also lure them to be retained with organization till long. Because, it has
been considered that getting a new customer is quite expensive and also the existing customer
actually benefits the organizations for long. After globalized slowdown hit various nations at
large then these giant business organization also understood the importance of CRM because of
which these business organizations are actually installing specialized CRM software in order to
manage the customers at large.

Same is the case with Coffee house business too. These coffee houses are also using various
tricks in order to retain their customer and make them loyal towards their brands itself. There are
various benefits which are being shown by CRM software which the coffee houses are using
currently in order to retain their regular customers such as segmentation of the customers on
basis of their number of visit in particular time duration, secondly promotions made by business
organizations and its effect on getting new customers, thirdly increase in purchases of customers
and lastly how many customers the organization could retain for longer duration.

1.2 Introduction of Starbucks

In this report, the explanation about the CRM strategy of Starbucks have been explained which is
a premium coffee house chain based in USA. The company was firstly established in 1971 by
three local businessmen in order to sell the high quality coffee beans but later on in 1981, one of
the partner decided to expand the business and planned to form a high quality coffee house chain
under the signature name of Starbucks. Once Starbucks was established, the aim of the company
was to provide the high quality coffee along with strong customer satisfaction and innovative
product range and high range quality of services for long.

The first coffee house of Starbucks was opened at Seattle, Washington. In 1990, the company
also developed a roasting plant too at same in headquarter location. By this year, Starbucks was
also able to open 60 new coffee houses in various other locations. Within a decade, the company

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was able to create 3500 of coffee houses in different countries and continents. Starbucks has
become an inevitable part of life and approximately 50% of the USA population are drinking
coffee every day. In fact, coffee business was at its peak during 1990s and at the same time,
Starbucks also able to earn the benefit of time and situation and end up being one of the premium
coffee chain.

1.3 Introduction of CRM

Customer is the king which is being taught in management since long back and now a days
another level of strategies are being carried out to retain and acquire the new customers. The
business organizations are actually introducing various method in order to build the strong
relationship with customers as strong customer base actually could prove to be much beneficial
during the economic slowdown. In fact, the customer expectations have also been increased
because of which the company’s duty is not only limited to just to provide product and services
to them but also to meet their expectations.

Customer Relationship Management is an upright concept or strategy to solidify relations with

customers and at the same time reducing cost and enhancing productivity and profitability in
business.

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 CHAPTER-2
LITERATURE REVIEW

2.1 Review
The customer lifetime value method (further LTV) is the projected revenue that a customer will
generate during their lifetime (Kissmetrics, 2014). According to the Starbucks case study, if we
calculate the average spending of a Starbucks customer multiplied by the number of visits per
week, we obtain that this customer will bring Starbucks a $14,099 profit in their lifetime.
Respecting this prediction, Starbucks should not spend more than this amount in advertising and
customer retention techniques, and this budget limit allows them to maintain high profits without
excessively spending on advertising. Having a set budget, Starbucks can send promotional
messages to their customer and offer them reduction coupons on their favourite products;
benefits are mutual, customers purchase at lower prices and Starbucks has a constant cash flow
in their stores.

2.2 Customer Loyalty

Customer loyalty was highly discussed in the 70s with theories by Jacoby (1971) or Jacoby and
Chestnut (1978) when the distinction between behavioural loyalty and cognitive loyalty was
made. In general, the authors agreed that customer loyalty is the act of a non-random repurchase
(behavioural loyalty), after following a process of evaluation (cognitive loyalty). At Starbucks,
behavioural loyalty is created through the quality of products and good customer service;
however, if customer service begins to decrease, there will be a variation in budget necessary to
maintain this behavioural loyalty.

On the other hand, cognitive loyalty is more difficult to embrace, and Starbucks generally
strengthens it with the loyalty cards that customers use to accumulate points which they later
exchange for free beverages or goods found in the e-shop. One can also become a gold member
and have higher benefits. As Rust et al. (2010) explains that the loyalty card brings more benefits
to the company than to the customer; it helps Starbucks track what products the customer is
buying and which stores he or she visits. This information is later used for product proposition:
customers will get special custom offers with their favourite products and give them the feeling
they are saving money by buying bigger quantities at lower price.

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2.3 CRM & Starbucks
Customer Relationship Management, as defined by Rigby and Ledingham (2004), is put in place
to track and strengthen customer relationships. At Starbucks the membership card plays a role in
tracking the number of sales per customer and helps determine whether it is worth investing in
keeping this customer or not. Murphy (2011) explains that Starbucks' store managers are
equipped with personal laptops that help them share their experience with other store managers
via the company cloud, and they can exchange opinions to improve customer satisfaction. One of
the most successful CRM launches was the Starbucks mobile app through which customers
could pay at Starbucks – within a year Starbucks handled 20 million transactions in total.

Starbucks has been criticised for the way they handle their customers, as Dooley (2013) shows a
golden customer must earn 30 stars per year, and if this is not met, the number of points are set
back to zero and the customer goes back to a green level card (basic). Many customers rebelled
against this policy claiming they were not warned of this action and switched to competitors.
Crookes (2012) shows customers must spend more today compared to 2011 to gain the same
rewards. For managing these activities more efficiently, Starbucks needs to have a solid CRM in
place.

Social media combined with the loyalty card facilitates observing the churn rate, Starbucks must
pay attention to this indicator since it shows how many loyal customers are lost and are alerted,
thanks to special software, when the customer is starting to lose interest for the brand (e.g. less
sales and store visits). As Traynor (2014) underlines, churn rate must be one of the most
monitored pieces of information so that the company has time to react to a declining loyal
customer in order to bring him back and minimise the costs to do so. According to Fournier et al.
(1998), a company must not "overkill" its customer with information and mail them every day
since this leads to customer dissatisfaction and loss of customer loyalty, and so this is not a
solution Starbucks should be using to regain their customers.

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 CHAPTER-3
INDUSTRY REVIEW

3.1 Industry Information

Coffee is something which is being consumed globally and same also plays an important role in
deciding the economic scenario of various countries which are into production of coffee beans.
Though, the picture of regulations and deregulation along with strong corporate strategy and
increasing pattern of coffee consumption has brought change into coffee chain business since last
20 years. The coffee producing countries have established various liberal rules in order to
promote its product and same has been the case with roasting and trading companies too. Now
after a long fight, the coffee consumption pattern has been taken a change where there is fair
trade and organized market system along with sustainable production process.

Since last two decades, various coffee chain houses have been emerged which are more into
production and providing of final consumption services at its personalized outlets. These coffee
chain allows its customers to choose their kind of taste from the offered product in terms of
origination and brewing of coffee along with different coffee grinding method. In fact, these
coffee retain chains are also adding different flavors and along with in differentiated packaging.
The customers can enjoy their kind of coffee taste in please ambience of these coffee chains.

3.2 Internationalization of Coffee Chain

In last one decade, the coffee producing countries have also reduced the product of raw coffee
beans and this kind of growth in production of raw material has actually provided the ample
opportunity to these coffee house chain to earn handsome profit in just small span of time and at
certain place, the availability of these raw material is actually record breaking. As per ICO
(2005), the coffee producing countries collectively produced approximately 120 million bags in
financial year 2002-03 but the consumption was just 110 million bags at that time, which means
the production was actually higher than consumption.

The farming of coffee for small farmers is almost impossible because they could not produce the
coffee which could meet their financial requirement. In simple terms, the coffee farming proved
to be unsustainable for small coffee manufacturers. After 2005, the small farmers are actually

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losing interest in production coffee and now a days, the global community is facing the problem
coffee crises. There are various nations which use to produce coffee earlier are also under threat
of economic issue because as per them, their farmers are leaving coffee production which was
once one of the basic livelihood for the country and it was also important for the environmental
sustainability of the country.

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 CHAPTER-4
RESEARCH METHODOLOGY

4.1 Research Objective

The objective of research have been explained below:
 To identify the factors which are actually responsible to act as CRM basis.
 To relate the frequency of visit of customers and customer loyalty.
 To understand the relationship between easy outlet access and customer satisfaction.

4.2 Research Questions

The research questions are mentioned below:
1. Do you visit Starbucks?
2. Do you think, the CRM strategy of Starbucks is satisfactory?
3. Do you think, gender and age group plays any significant role in deciding about the CRM
factor in Starbucks?
4. How often you visit Starbucks?
5. Which other coffee house brand you like other than Starbucks?
6. What are the major CRM aspect of Starbucks, which attracts you there?
7. Do you think, easy availability of store of Starbucks would make you more loyal to this
coffee house brand?
8. What are the recent trend of CRM going in coffee house brand?
9. Do you think, that the change in price of products offered by Starbucks may also affect
you loyalty towards the same?
10. What is your suggestion to improve the CRM activity at Starbucks?

4.3 Research Model

The research model has been explained below:
 The research will be carried out in qualitative and quantitative format whereas the data
will be gathered with help of survey questionnaire. The data will be collected in text and
numeric format, so that easy data analysis can be done.
 While conducting research, I have to rely on information provided by the respondents and
I will make sure that there should not be any repeat survey.

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  The information will also be collected via research journals and papers, books related to
CRM along with web information too.
 The questionnaire will contain 10 questions and each question should be close ended
whereas one question will be open ended.

4.4 Methodology
The research methodology will be in two steps:
1. First study will be done with help of exploratory research methodology, where the
information will be collected from journals along with open ended interview with
industry experts who can share their CRM experience.
2. Second phase study will done with help of descriptive research work, where the data will
be based on fresh research and there will be combination of historical and current
information.

4.5 Sample Design

The sample of the study have been shown below:
 Here, information will be collected from the people roaming around Starbucks café or
either the people coming out from the same.
 Total people selected for study will be 90.
 The survey questionnaires are taken as print out and contacted them and asked the
respondents to fill in person.

4.6 Tools & Techniques of Data Analysis

The tools and techniques of the data are as below:
 The study will be done with Primary data at large where the information will be
collected at first hand.
 The study will also use Secondary data where the information will be collected from
secondary sources such as from journals, research papers etc.
 The data collected from questionnaire will be stored in MS-Excel sheet.
 The data will be analysed with help of MS-Excel, where the data will be formed into
charts and tables.

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 CHAPTER-5
ANALYSIS

5.1 Data Analysis

A questionnaire has been formed on services of Starbucks and the customers visiting Starbucks
have been requested to fill the questionnaire, which has helped us to decide about the CRM
activity of Starbucks. The analysis of survey questionnaire are as below:

1. Do you visit Starbucks?

Particulars Responses

Yes 84

No 1

Sometimes 5

Sometimes
No
1% 6%

Yes
No
Sometimes

Yes
93%

The graph and table indicates that, while surveying 90 people, it was noticed that 93% of
the respondents use to visit Starbucks, whereas 6% of the respondents visits Starbucks

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 sometimes and lastly only 1% of the respondents stated that they do not visit Starbucks at
all.

2. Do you think, the CRM strategy of Starbucks is satisfactory?

Particulars Responses

Yes, its excellent 68

No, Very Poor 4

Satisfactory 18

20%

Yes, its excellent

4%
No, Very Poor
Satisfactory

76%

CRM is one of the important factor which are being highly considered by MNCs and
giant business organizations which are specifically into dealing with direct customers. In
the same way, Starbucks is also following CRM path as an effective customer retention
activity and implementing various methods in order to satisfy the customers. 76% of the
respondents states that they are highly satisfied with CRM activity of Starbucks whereas
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 20% of the respondents states that they feel that the CRM activity of Starbucks is
satisfactory and lastly 4% of the respondents were quite dissatisfied with the CRM
activity of Starbucks.

3. Do you think, gender and age group plays any significant role in deciding about the
CRM factor in Starbucks?
Particulars Responses

Of course, it’s very important 80

No, it’s not true 9

May be 1

10% 1%

Of course, it’s very important

No, it’s not true
May be

89%

While talking about India, the population moreover belongs to thrifty group where people
are less likely to spent money at coffee houses or to hang around. In the same way,

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 Starbucks is also the kind of coffee house which is known for its premium pricing.
Thrifty behavior is actually followed by those people who are into certain age group. For
example, the young generation is more likely to follow the policy of earn and spent
would comfortable with these expensive bills of coffee houses. 89% of the respondents
states that, age and gender factor plays very important role, 10% people states that it’s not
true while 1% of the respondents stated that may be its true.

4. How often you visit Starbucks?

Particulars Responses

Very frequently 75

Never, I don’t like to go to Starbucks 1

Sometimes, I am not great follower of Starbucks 14

16%

1% Very frequently

Never, I don’t like to go to

Starbucks
Sometimes, I am not great
follower of Starbucks

83%

Number of visits of customers actually shows the loyalty of customers towards particular
organization and at the same time it also shows the ability of CRM activity of the
organization. The result indicates that 83% of the respondents states that they use to visit
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 Starbucks very frequently whereas 1% of the respondents states that they do not like
Starbucks at all and lastly 16% of the respondents states that they do go to Starbucks
sometimes but they are not a great follower of same.

5. Which other coffee house brand you like other than Starbucks?
Particulars Responses

Only Starbucks, no other Brand 66

Café Coffee Day 19

Barista 2

Costa Coffee 2

Any Other 1

1%
2%2%

21% Only Starbucks, no other Brand

Café Coffee Day
Barista
Costa Coffee
Any Other
74%

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 It is generally happens that customer may like another brand parallel to the favourite
brand because of certain reason and in such circumstances, there is high probability that
the customer may shift. The chart shows that 74% of the respondents are very much loyal
to Starbucks whereas 21% of the respondents also like Café coffee day, 2% respondents
like Barista and Cost Coffee respectively and lastly 1% of the respondents like any other
brand.

6. What are the major CRM aspect of Starbucks, which attracts you there?
Particulars Responses

Hospitality 67

Easy Location Search 2

Nice Internal Environment 17

Any Other 4

5%

19%
Hospitality
Easy Location Search
2%
Nice Internal Environment
Any Other

74%

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 Customer visits any particular place, when he or she finds that the particular place is
worth to visit repetitively and for the same situation also exits with Starbucks too. There
are various CRM aspects which attracts the customers most and as per the chart, 74% of
the respondents states that they love hospitality of Starbucks, 19% respondents states that
they like nice internal environment whereas 2% of the respondents states about easy store
location and finally 4% agreed for any other reasons.

7. Do you think, easy availability of outlets of Starbucks would make you more loyal to
this coffee house brand?
Particulars Responses

Yes 54

No 35

May be 1

1%

39% Yes
No
May be
60%

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 Easy access of outlets are also one of the factor which can satisfy the customer and plays
an important role in terms of deciding CRM factor. Just imagine, one person is loyal to
particular toothpaste brand but he could not get that brand easily in his locality or any
nearby place because of which he has to buy any other toothpaste in urgency then how
come, the person would prove loyalty to the same. Though in this survey, 60% of the
respondents states that easy access of outlet is an important part of CRM whereas 39% of
the respondents were not agreed with the same and lastly 1% of the respondents are
confused and not sure for this statement.

8. What are the recent trend of CRM going in Coffee house brand?
Particulars Responses

Loyalty Cards 77

Gift Vouchers 12

Any Other 1

1%
13%

Loyalty Cards
Gift Vouchers
Any Other

86%

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 Business organizations dealing directly with customers are usually implementing various
CRM matters in order to retain them for longer duration and lure them with various
benefits too. For example, any customer make repeated purchases from same brand then
particular organization also provide certain benefit to the same. 86% of the respondents
states that loyalty cards are one of the majorly used CRM activity whereas 13% of the
respondents talks about Gift cards and lastly 1% respondent’s states that there are also the
trend of gifts, movie tickets and may other option.

9. Do you think, that the change in price of products offered by Starbucks may also
affect your loyalty towards the same?
Particulars Responses

Of course not, I will be loyal to Starbucks as it is 58

Yes, I will shift to any other brand 4

I can’t say anything now 28

31% Of course not, I will be loyal to

Starbucks as it is
Yes, I will shift to any other brand

I can’t say anything now

5% 64%

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 Well, it is also true that, sometimes increase in price of any particular product can also
affect the loyalty of customer towards particular brand. It happens because after increase
in price of product, it may happen that particular product happens to be out of reach of
the customer’s pocket. But, this may not be the situation with Starbucks because here
people go to its outlet because of passion not because of money as the services and
products of Starbucks is already quite high and expensive. The result of survey indicates
that 64% of the respondents will remain loyal towards same even in case Starbucks
increases the price of product, 5% of the respondents’ states that they will shift to any
other brand and lastly 31% of the respondents’ states that they cannot say anything right
now about their loyalty towards Starbucks.

10. What are you suggestions to improve the CRM activity at Starbucks?
While talking about suggestions, the customers have given so many but those are either
already has been implemented by Starbucks or that could not be implemented. Actually,
the coffee taste of Starbucks is quite strong which is not liked by some of the customers,
so they are asking to light up the taste of same coffee. But such things cannot be possible
as Starbucks is known for its exclusive taste of coffee.

5.2 SWOT Analysis of Starbucks

Swot analysis consist of Strength, Weakness, Opportunities and Threat of the company.

Strength
 The company is among top 100 employers globally
 Ethical business
 Premium quality coffee production
 Friendly and warm interior
 Coffee houses in premium locations
 Constant demand of product
 Provide free Wi-Fi too.

Weakness

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  Starbucks is expensive coffee retailer which may not be in the reach of various people.
 Company has to face negative publicity because of tax evasion case.
 Long waiting in its coffee stores.

Opportunities
 Still, there is horizon to expand. The opportunity exists in many more countries.
 Specialised stores are required for special category people.
 Need of Tea houses too.
 Coffee farms
 Enhancement of in – store experience
 Production of coffee capsules for home coffee makers.

Threats
 Various branded competitors exists in market with lower price.
 Company do not have its specialized coffee farms
 Consumer’s buying power is decreasing because of global economic slowdown.
 Decreasing production of coffee.
 Saturated market
 People are more inclined towards coffee machines.

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 CHAPTER-6
CONCLUSIONS

6.1 Findings
The findings of the study have been explained below:
 93% of the respondents use to visit Starbucks, whereas 6% of the respondents visits
Starbucks sometimes and lastly only 1% of the respondents stated that they do not visit
Starbucks at all.
 76% of the respondents states that they are highly satisfied with CRM activity of
Starbucks whereas 20% of the respondents states that they feel that the CRM activity of
Starbucks is satisfactory and lastly 4% of the respondents were quite dissatisfied with the
CRM activity of Starbucks
 89% of the respondents states that, age and gender factor plays very important role, 10%
people states that it’s not true while 1% of the respondents stated that may be its true.
 83% of the respondents states that they use to visit Starbucks very frequently whereas 1%
of the respondents states that they do not like Starbucks at all and lastly 16% of the
respondents states that they do go to Starbucks sometimes but they are not a great
follower of same
 74% of the respondents are very much loyal to Starbucks whereas 21% of the
respondents also like Café coffee day, 2% respondents like Barista and Cost Coffee
respectively and lastly 1% of the respondents like any other brand.
 74% of the respondents states that they love hospitality of Starbucks, 19% respondents
states that they like nice internal environment whereas 2% of the respondents states about
easy store location and finally 4% agreed for any other reasons.
 60% of the respondents states that easy access of outlet is an important part of CRM
whereas 39% of the respondents were not agreed with the same and lastly 1% of the
respondents are confused and not sure for this statement
 86% of the respondents states that loyalty cards are one of the majorly used CRM activity
whereas 13% of the respondents talks about Gift cards and lastly 1% respondent’s states
that there are also the trend of gifts, movie tickets and may other option.
 64% of the respondents will remain loyal towards same even in case Starbucks increases
the price of product, 5% of the respondents’ states that they will shift to any other brand

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 and lastly 31% of the respondents’ states that they cannot say anything right now about
their loyalty towards Starbucks.

6.2 Limitations & Recommendations

The limitations and recommendations against CRM policies of Starbucks have been explained
below:
 In countries like India and China, where there is lot of population and it becomes difficult
for any person to easily get seat in any restaurant. Same is the case with Starbucks too as
it is already having very limited number of outlets in India and also they are almost fully
occupied every time. In such situation, Starbucks must release any mobile application
which can help the customers to book his seat online and can also know the status of his
booking via same mobile app too.

 Recently, India went through demonetization phase which was actually very much
traumatic for people as the people were not left with any cash with them. So, in such
situation, various outlets actually provided facility of payment through mobile application
but same was not the case with Starbucks. So, Starbucks must also start mobile
application payment system.

 In India, there are very few outlet of Starbucks because of which people cannot enjoy its
coffee and services at ease. So, first Starbucks must open more outlets in India and also
release any application which can help people to locate their nearby outlet.

6.3 Conclusions
As because of global economic slowdown, Starbucks has to made cut into its prices because of
which, it has to lose its image of premium brand coffee chain and this issue has been majorly
faced in India and China. Though, company is constantly making effort to satisfy their
customers, so that they can actually act as brand ambassador for its product and quality served.

As the company is investing more and more into its marketing activity which is attracting the
customers again and thankfully, the customers are also coming back to its outlets again. Though,

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now Starbucks is expanding itself in India but the company has to take care that in order to
expand itself with no leaps and bounds must not forget its major liability towards customer
satisfaction otherwise the company may lose its premium customers and also destruct its brand
image. Starbucks is not using traditional channel of advertisement over online such as YouTube,
Facebook, Twitter etc. in order to maintain its image as premium and actually has launched the
online campaign named as My Starbucks Idea. Basically, Starbucks is using a very premium
method of advertising in order to attract and retain its customer base. Though, while the
company opens up its outlet in any particular area then it must focus that to make a local
advertisement campaign so that, it can create hype in the local market at short duration.

Till now, Starbucks is known for its premium pricing but now it must also target low and mid-
income group segment because, In countries like India and China, there are more than half
population belongs to low and mid income group segment and these people can prove to be
much better customer and profitable for the company.

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http://www.csmonitor.com/Business/2013/1023/Starbucks-buys-Teavana.-First-
coffeedominance-now-tea (Accessed: 3 Feb 2017)
 The Guardian (2014) 'Starbucks to expand evening beer and wine service', The Guardian,
20 March [Online]. Available at:
http://www.theguardian.com/business/2014/mar/20/starbucks-expand-beer-and-wine-
service / (Accessed: 3 Feb 2017)
 Rafii, L. (2013) 'The Starbucks or McCafé Crowd: Who Counts More Politically?',
Huffington Post, 11 December [Online]. http://www.huffingtonpost.com/ladan-rafii/the-
starbucks-or-mccafe-c_b_4262104.html (Accessed: 3 Feb 2017)

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 LOGO OF THE INSTITUTION
NEW DELHI
Hello, I am the student of NAME OF INSTITUTION. I am conducting a research to know about
the critical information regarding “CRM IN STARBUCKS”. It is therefore requested you to
please fill this questionnaire with your respective attention.

QUESTIONNAIRE FOR STARBUCKS CUSTOMERS

 Name of the Respondent -
 Age of the Respondent –
 Gender of Respondent –

1. Do you visit Starbucks?

 Yes
 No
 Sometimes

2. Do you think, the CRM strategy of Starbucks is satisfactory?

 Yes, its excellent
 No, very poor
 Satisfactory

3. Do you think, gender and age group plays any significant role in deciding about the CRM
factor in Starbucks?
 Of course, it’s very important
 No, it’s not true.
 May be!

4. How often you visit Starbucks?

 Very frequently
 Never, I don’t like to go to Starbucks
 Sometimes, I am not a great follower of Starbucks
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 5. Which other coffee house brand you like other than Starbucks?
 Only Starbucks, no other brand
 Café Coffee Day
 Barista
 Costa Coffee
 Any other

6. What are the major CRM aspect of Starbucks, which attracts you there?
 Hospitality
 Easy location search
 Nice environment
 Any other
7. Do you think, easy availability of store of Starbucks would make you more loyal to this
coffee house brand?
 Yes
 No
 May be

8. What are the recent trend of CRM going in coffee house brand?
 Loyalty cards
 Gift vouchers
 Any other

9. Do you think, that the change in price of products offered by Starbucks may also affect
you loyalty towards the same?
 Of course not, I will be loyal to this coffee house as it is
 Yes, I will shift to another brand
 I can’t say anything now

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 10. What is your suggestion to improve the CRM activity at Starbucks
________________________________________________________________________
__________________________________________________________________

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