Anisa VrenoziEva DodaJoxhina RakipajVasil Dajko

STARBUCKS

Creation of Starbucks:From little beans big things grew 1971- OriginsHoward Schultz

• Company Profile• Location and stores• Products• SBU• Employees

STARBUCKS

Company Profile16,000 locations in over 50 countries.Total stores 16,7068,850 Company-operated stores.7,856 Licensed stores.Operating in more than 50 countriesStarbucks Mission:“Establish Starbucks as the

premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow .”

Coffee

Company Profile• Products

Coffee, Handcrafted Beverages, Merchandise, Fresh Food, Consumer Products, Brand Portfolio

• Strategic Business Units STARS : COFFEE PRODUCTS, SOLD AS RETAIL CASH COWS: COFFEEHOUSES STARBUCKS DOGS: OTHER MERCHANDISE QUESTION MARKS: HOME PRODUCTS/BISTROS AND

RESTAURANTS

• Employee are Starbucks’ best partners

STARBUCKS

Mission Statement “Establish Starbucks as the premier

purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow .”

STARBUCKS• Provide a great work environment and treat

each other with respect and dignity.• Embrace diversity as an essential component

in the way we do business.• Apply the highest standards of excellence to

the purchasing, roasting and fresh delivery of our coffee.

STARBUCKS• Develop enthusiastically satisfied customers all

of the time.• Contribute positively to our communities and

our environment.• Recognize that profitability is essential to our

future success.Starbucks is committed to a role of environmental leadership in all facets of our business.

STARBUCKSMarketing Environment• Microenvironment–Suppliers–Distributors/Intermediaries–Competitors–Customers/Consumers

STARBUCKS

Suppliers Farms in Latin America, Africa and Asia to select

the highest quality Arabica beans

Distributors/Intermediaries Distributed by Kraft Sold in Marriot, airlines, website and even bookshops

like Waterstones

STARBUCKS

STARBUCKSMain Competitors– Caribou Coffee– Costa Coffee – Coffee Republic– Nestle

Customers/Consumers- First the Generation X- Actually, Starbucks' Target Market: Starbucks'

target market is any person and any age

STARBUCKS•Macroenvironment

(Only factors required by the study case)

• Globalization movements• Population trends-Ageing Population• Health Concerns

STARBUCKS’ BCG MATRIX

Starbucks SWOT Analysis Strengths

Weaknesses

Profitable organization with an amazing annual profit of $600 million. Global coffee brand name with reputation for excellent products and services. The company is a respected employer that values its workforce. (Mission)Strong ethical principles reflected in the mission statement as well.

The main competitive advantage of Starbucks is its coffee. Lose the focus while spreading worldwide.Inability to adapt with the rapid changes in the market environment Innovation may weaken with the passing of time.

Opportunities Threats

Opportunity to spread out its international operations. New products and services can be designed and sold in their own coffeehouses.Co-branding with other companies o such as PepsiCo and Kraft, with which it collaborated in the past.

Market entry of many competitors and “copy cat” brands that create possible threats of diminishing Starbucks’ market share. The possibility that another brand of drink or free time activity will substitute coffee in the prospect.

STARBUCKSGrowth Strategies:-More Store Growth-New Retail Channels-New Products & Store Concepts-International Growth

More Store GrowthOpening new Stores at a rapid paceNot concerned about Store SaturationExpanding Store’s Food Offering

STARBUCKS

STARBUCKSNew Retail ChannelsNew Distributors and Intermediaries

Selling in supermarket aislesMarriot, Sheraton and airlinesWaterstones bookshop storesConsumers CataloguesWebsite selling: Starbucks.com

STARBUCKSNew Products & Store ConceptsNew Products

Extend the brand in new categoriesPepsiCo & Breyer’s

New Store ConceptsCafé Starbucks/Circadia

STARBUCKSInternational Growth1996 11 coffeehouses outside

North America2003 24 international markets, 1000

in Asia and 600 in Europe2005 Latin and South America,

plan to build 900 stores

Starbucks’ 4PS

Product Place Price Promotion

VarietyQualityDesignBrand NamePackagingServices

AdvertisingPromotionPublicity

List PriceDiscounts

ChannelsCoverageLocationsTransport

STARBUCKS vs. McDonalds

Differences in :

Market segments Growth and Expanding Strategies

Recommendations

• Should be concerned about:– Immense and high pace growth – Price confronted with Quality

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