An International Marketing Presentation based on how Starbucks could best enter the Swedish market.

1. Starbucks Coffee
Entering Sweden

2. Alan Diamond 1632135

3. Starbucks’ Mission Statement
“Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles while we grow.”
-2008
"To inspire and nurture the human spirit - One
person, One cup, and One Neighborhood at a time.“
- 2012

4. Introduction
Research was conducted into Starbucks to find out if a new
store in Sweden would be feasible.
There were three main objectives:
1) The external environment will be explored
2) The internal environment will be investigated
3) Based on the findings in objectives (1) &
(2), recommendations were made.

5. Countries that have Starbucks stores are shown above in green.

6. Methodology

7. The Focus Group Findings
Attendees Drink Coffee in a Café Already has Espresso House
Swedish Culture to drink in Café Pre-made and packaged goods no
“home made” products
See Starbucks as “fast” & “quick” Change menu to suit Swedish
coffee culture
Disagree with mission statement – Would purchase Starbucks from
not a “third place” Ireland
Believe that they will be American – Very pop culture
successful
Target Students/Tourists Fair Trade – No impact in Sweden

8. The Survey Findings
56% Female, 44% Male Little Loyalty to a Coffee Brand
All participants were Swedish Swedish People Will Buy from
Starbucks
Majority Aged between 16-24 Gevelia is considered the most
popular brand of coffee
Most drink at least one cup of Majority think Starbucks entering
Coffee a day Sweden is a good idea.
Most Drink Their Beverage At Participants believe Starbucks will
Home be most successful in Stockholm

9. The PESTEL Analysis

10. PESTEL Analysis
Political Factors Economic Factors Social Factors
1. Swedish Banks are 1. High Average life
1. Increase of extremely stable expectancy
business
participation 2. Unemployment rate 2. English is widely
2. Strong Existing of 7.6% in Jan 2012 spoken
Relationships 3. Sweden is an 3. Aging
3. Subject to EU export-dependant population, decli
Regulations country ning birthrate

11. PESTEL Analysis
Legal Factors
Technology Factors Environmental Factors
1. Strong 1. Foreign investments
1. Leading position in are strongly
R& D international
environmental encouraged
2. High level of image 2. No stated minimum
innovators 2. Taxes on waste wage
3. New management 3. Trade unions are
developments in 3. Anti-litter laws, & extremely strong in
technologies other EU legislation Sweden

12. Buyer Power:
Supplier Power:
Buyer power within the Swedish
hot drinks market is moderate Supplier power is moderate, however
depends on the size of the company
PORTER’S Substitutes:
FIVE FORCES Threat of substitutes is very low in
Sweden
New Entrance: Rivalry:
The overall rivalry due to the cultural
The Threat of new entrants is
aspect in Sweden is strong
moderate

13. The Marketing Mix

14. Product
Offers a variety of beverages – not just coffee!
Known for its coffee variety, includes more than 30 blends of
coffee.
Offers seasonal & holiday beverages e.g. “Pumpkin Spice Latte”
Offers food like pastries, sandwiches & salads.

15. Price
Raised prices by about 1% due to the
increasing price of coffee beans, dairy
produce and other raw material.
Wishes to maintain or lower the price of
some of its most popular beverages.
Unlike the coffee, tea prices aren’t based
on the size, instead it’s based on the number
of tea bags, since water is pretty cheap in
non-bottle form.

16. Place
Seen as a gathering place in the neighbourhood.
Distributed directly to the customer in the Starbucks Cafes as
well as over 3rd parties such as supermarkets.
Starbucks cafes are found (as well as in the city centre
locations) in major industrial parks with a large labour
appearance.

17. Promotion
Starbucks started a community website, My Starbucks Idea,
designed to collect suggestions and feedback from customers.
Starbucks stresses quality above price and other features it
could emphasize.
Has gone to great lengths to create a “community atmosphere”
among premium coffee lovers.
The Starbucks Card.

18. People
Starbucks customers are service orientated.
Starbucks is committed to the principle of equal employment
opportunity
The staff at Starbucks are friendly, helpful and polite.
All employment decisions at Starbucks are based on business
needs, job requirements and individual qualifications.

19. Process
Starbucks offers an experience like no other coffee house.
The process is: entering the store, queuing to pay, and
then waiting for your order at another counter. The
customers can choose to drink in or take out.
The process that Starbucks have in place is not always the
best.

20. The Starbucks Process
(1) Queue To Order Your Drink (2) Order & Pay For Your Drink
(3) Wait For Drink To Be Made (4) Enjoy Your Starbucks

21. Physical Evidence
Starbucks staff wear black trousers, a black polo shirt and a
green Starbucks apron.
Coffee-master = black apron.
The Merchandise all have the Starbucks logo.
Loyalty Card.

22. SWOT Analysis

23. Strengths Weaknesses
Organisational culture is very strong. Increased number of competitors.
Excellent value network. Refuses to guarantee that products are
free of genetically modified ingredients.
Strong recognised global branding.
Increases in pricing are not in line with
Good corporate social responsibility. global economic crises.
Incentives to progress through company. Management structure is hierarchical
and decision making is very slow.
Good reputation around the world.
No cultural differences considered.
World’s Most Ethical Company in 2012

24. Opportunities Threats
Advertising environmentally friendly Global Economic Crisis.
policies.
Increased waste produced.
Advertising local charity drives. Small businesses being pushed out of the
market
Close working relationships with trade
Huge resistance in international
unions.
countries.
Job Creation. People are becoming more health
conscious.
Niche Market – “Coffee-on-the-go”
Huge coffee culture exists - a great
number of competitors.

25. Entry Modes

26. Entry Mode Options
Licensing
Location
Wholly Owned Subsidiary
Strategic Partnership
Joint Venture

27. Recommendations

28. Conclusion
To conclude, the Swedish market has
shown to be extremely welcoming for
Starbucks to enter and would experience
considerable growth if they were to
proceed with this venture.

29. Thank You For Listening
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