6. Table of Contents
• Introduction: Then and Now
• Mission Statement
• Product line
• Advertisement
• Promotional activities
• Packaging
• Competitors
• Success factors
• Positioning
• Downfall
• Scope
• Action Plan & Recommendations
• Conclusion
7. Then…
• First Starbucks opened in Seattle Washington
• March 30, 1971
• Jerry Baldwin-English Teacher
• Gordon Bowker-Writer
• Zev Siegh – History Teacher
8. Then…
• Entrepreneur Howard Schultz joined the company
in 1982
• Director of Retail Operations and Marketing
• Idea of selling beverages
9. Then…
• April, 1984 first store to sell beverages was opened
• Served 400 customers – over the 250 customer
average at their best store
• II Giornale Acquires Starbucks
• Howard Schultz – Starbuck’s President and CEO
10. Now…
• World's premier roaster and retailer of specialty
coffee
• 14,432 company-owned stores
• 9,336 licensed stores in more than 50 countries
11. Now…
• Annual sales of about $10 billion as of April 2010
• Sell : beverages, pastries, whole bean coffee,
ground coffee, and coffee-related products
12. Mission Statement
1990 – October 2008
• Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles as we grow.
16. • More than 30 blends and single-origin premium
coffees
• Whole Been & ground
• Starbucks reserves coffee
• Verismo pods
• Starbucks K-cup pods
• Starbucks VIA Instant coffee
17. • entered the tea business in 1999
• acquired the Tazo brand
In late 2012, Starbucks paid US$620 million to
buy Teavana
• 2015, Starbucks began to roll out Teavana teas
into Starbucks stores
18. Fresh Food items
• Muffins
• Salad
• Sandwich
• Cake
• Fruit cups
• Oatmeal
• Cookies (etc)
19. • Coffee & tea Equipment
• Mugs
• Packed goods
• Music
• Books
• Gift items
21. Starbucks Advertising
Starbucks company chooses to focus on the
customers in-store experience
In-store experience will be more effective than
having advertisements and commercials for
Starbucks via mass media
Stores as another home to the consumer
This is done by providing a comfortable chairs for
the customers to relax in, relaxing music, and
laptops area
21
22. Starbucks Advertising
Starbucks depends on word-of-mouth advertising through
this “third home” which had proved greater success
than actual commercials
Providing quality products and services
Starbucks has a slogan “Uniquely Starbucks”
The uniqueness of customers experience at Starbucks results
in the word-of-mouth advertising with their customers
22
23. Starbucks Advertisements
Starbucks creates advertisements with a unique
content
With large and bold headlines promoting the brands
qualities
The ad’s which Starbucks had placed in newspapers
explain how Starbucks chooses only the best 3 percent
of beans for their coffee
The ad’s also emphasize how they roast the beans
until they pop twice to ensure quality taste
23
24. Starbucks Advertising
The few commercials which Starbucks had created
were quite successful
One commercial featured a character drinking a double
shot drink in the morning before going to work
The band “Survivor” is in the background singing
“Eye of the Tiger” while character is drinking
Another commercial has a character named “Stacey”
who takes a break at work to drink a Frappuccino
beverage
24
25. Starbucks Advertisements
On May 3rd, 2009 Starbucks had launched a long term, multi
channel campaign. It’s goal was to emphasize the unique
experience, exceptional coffee, and the brand’s quality value
25
26. Starbucks created a joint venture with Pepsi-Cola
which had driven up company sales
Starbucks had partnered with the CW in 2010 for an
online contest. This online contest was to show
ingredients for the Frappuccino beverage, and transitions
and music into one commercial
26
Starbucks Advertising
27. Starbucks Social Media
Starbucks has a social media marketing strategy, as well
Their social media has created an online community with the Starbucks
brand
Starbucks is part of many social media sites, such as Facebook, Twitter
Consumers are able to express their opinions about the company through
online blogs
The company is able to join consumers during blog conversations
Discussions via blogs are another word for “new media”
27
28. Starbucks Mobile Advertising Campaign
In 2011, Starbucks had run a Mobile ad
campaign to increase downloads of its mobile
applications. The ad’s were run by Flixster
iphone Applications. When consumers tap on
the banner, “Pay Faster, Sip Slower”
mobile payments
Starbucks generates mobile ad’s to maintain
the mobile aspect of their advertising strategy.
28
29. Starbucks Mobile Advertising Campaign
Mobile campaign which allows consumers to chose their
ideal summer beverage
Starbucks had run mobile banners ads through music site,
Pandora IPhone application
29
30. When consumers tap on the ad, they are directed to swipe this screen:
Consumers can choose a summer drink once they swipe the icy screen.
Such drinks include iced coffee with milk or Tazo shaken iced passion tea
lemonade.
30
32. Promotional Activities
• In this world of IT the company believes on one to one
promotion rather than electronic media advertisement.
•Spends little budget on its promotion.
• Seasonal induction of items are considered main source of
customer attraction.
• Beside that cards are issued that promotes its popularity.
• Certain gift cards are given on beverages that increase sales
considerably.
• Coffees are transported to offices free of additional cost and
irrespective of cup size, making officials permanent
32
33. Promotional Tactics
On college campus’ have a free
specialty coffee day 8am-Noon in the
top 20 DMA’s.
This will draw college students into
Starbuck’s for their free drink in return
drawing them to make more purchases
in store.
Sponsoring one concert featuring the
stars of the television show The Voice
held in Los Angeles.
Starbucks will hand out free drinks
during the concert.
33
43. Success Factors
There ability to design strategic approach to growth
that is quick
Sustainable supply chain of high quality coffee
Strategic alliances
The unique, innovative, upscale atmosphere that will
differentiate Starbucks.
Starbucks
10/31/2011
44. Success factors
The establishment of as a community hub for
socialization and entertainment.
Highly motivated employees
Treated as partners
Low employee turnover rate 70%
44
47. • Downfall of Starbucks began after 2005
and problems continued till 2010
2007 global crisis affects Starbucks as well
660 stores closed in 2008 due to lack of profit
ability.
300 more in 2009
2008, Howard D. Schultz returned as CEO of
Starbucks
He takes revolutionary steps to get back
Starbucks image
48.
49. • Next 5 years
• Starbucks will grow to nearly $30 billion in annual
revenue
• more than 30,000 stores globally.
“We have an opportunity to make history. I’ve never
been more optimistic, more enthused about the
things that we are going to do.” Howard
Schultz,CEO”
50. Starbucks seven strategies for growth
1. Be the Employer of Choice
2. Lead in Coffee
3. Grow the Store Portfolio
4. Create New Occasions to Visit Stores
5. CPG Brand Growth
6. Build Teavana
7. Extend Digital Engagement
51. • The emerging markets of starbucks
• Brazil, India, China, South Africa & Pakistan
• Offer significant opportunities
• Starbucks has already made significant inroads into
the Chinese market but there still is a lot of
untapped potential
52. Suggestion &
Recommendations
• international strategy
• opportunities in Tea and Fresh Juice
• U.S. market should focus on getting additional
penetration
• Enhance atmosphere
– Entertainment to attract more customers
• Increase marketing
• Advertise
• Sales promotions
• Promote healthy products
53. Conclusion
• Starbucks changes the behaviors and viewpoints of
global consumers of coffee, and this successful
example has caught global attention.
• Nowadays it is not only one of the fastest growing
corporation but also an outstanding business model
with low employee turnover rate & high profit
performance.
• The motivation and the teamwork is the key factor
of a company policy, opposite to the principles of
classical management which is only concerned
about production and ignores worker’s idea.
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