Extended Essays 2021

Process

‘ Process ’ involves the system and process that deliver and provide a product to a customer. Recently,

Starbucks adapted new technological initiatives such as mobile ordering. However, these were not in place

during Starbucks failed expansion into Australia. This would have been a unique selling point for Starbucks

that may have led to an increase in profit.

As illustrated in Figure 4, Starbucks’ have strategically organised the layout of its stores, requiring the

customer to walk from one end of the store, past the merchandise and food and drink cabinets in order to leave

the store. This approach, while successful at getting customers to purchase more when in the store, will not

drive the loyalty of Australian consumers. Furthermore, on average it takes 3 minutes from the time a customer

gets in line to the product being delivered at Starbucks 19 . This model of having customers in and out of the

store within minutes does not suit the Australian coffee culture as Australians often wish to sit down or chat

to their barista whilst waiting for their coffee. This variation in Starbucks’ marketing strate gy from the

Australian consumers ’ desires was partially responsible for Starbucks’ failed expansion into Australia.

Figure 4 customer journey through Starbucks (All Answers Ltd, 2021)

19 The Wall Street Journal (2005). At Starbucks, every second counts . [online] chicagotribune.com. Available at: https://www.chicagotribune.com/news/ct-xpm-2005-04-13-0504130351-story.html [Accessed 17 Jul. 2021].

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