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StarbucksFirm Analysis
Compiled By:Shelly LiaBraaten, Laura Keller, Stephanie Latimer,
Steven Austed, Nate Tuenge, Aaron Lum
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Outline
About Starbucks Overview
Timeline
Mission Statements
Corporate SocialResponsibility
Four Ps Analysis Product
Price
Place (Location)
Promotion
S.W.O.T Analysis Strengths
Weaknesses
Opportunities
Threats
Current Events Ichiro Card
Ethos Water
Giving Voices
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About Starbucks
Overview
Timeline
Mission Statements
Corporate SocialResponsibility
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About StarbucksOverview
Specialty Eatery in the Quick-Service Restaurant sector
Established in 1971 in Seattle, Washington
Named after the first mate in Moby Dick
Known for its quality coffee and stylish atmosphere
Over 9,000 locations in 35 countries
New CEO: Jim Donald (2005)
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About StarbucksTimeline
1971First Starbuckscoffee shop opens in Seattles Pike Place Market coffee bean roastingcompany
1985 Howard Schultz becomes CEO and founds Il Giornale Coffee Company espressobeverages using Starbucks coffee beans
1987 Changes name to Starbucks Corporation
1992IPO under the trading symbol SBUX
1995Starbucks Coffee International opens in Japan
1996 Begins selling bottled Frappuccino drinks
1999 Acquires Tazo Tea company and Hear Music company
2003 Acquires Seattles Best Coffee
2005 Introduces Starbucks Coffee Liqueur; Acquires Ethos Water
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About Starbucks
Mission Statements
Company Mission Statement:
Establish Starbucks as thepremier purveyor of the finestcoffee in the world whilemaintaining our uncompromisingprinciples while we grow.
Environmental Mission Statement:
Starbucks is committed to a role
of environmental leadership in allfacets of our business.
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About Starbucks
Corporate Social
Responsibility
Starbucks focuses its efforts on improving social and economicconditions for coffee farmers; minimizing our environmental impact;making a positive contribution in the communities where we dobusiness; and providing a great work environment for our partners(employees).
Make Your Mark matches cash contributions for volunteer work todesignated nonprofits
2004 EnviroStars Recognized Leader Award for environmentalleadership in the Seattle community
C.A.F.E Coffee and Farmer Equity environmentally, socially, andeconomically guidelines for buying coffee from farmers promotesmutually beneficial relationship
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About Starbucks
Target Market
Starbucks says that they do nottarget a specific market
Products are consumed bypeople who want to take abreak from the daily workroutine and those who want acaffeine stimulant
Distinguished from traditional coffee shop because of thetaste of the coffee and the hip or fashionable store
environment
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Four Ps
Analysis
Product
Price
Place (Location)
Promotion
Panini
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Four Ps AnalysisProducts (in store)
Starbucks sells brewed coffees,espresso beverages, cold blendedbeverages, food items, teas,branded coffee drinks, a line ofice creams, and a line of compactdiscs through its retail stores
Also offers pastries, sodas, juices, games, seasonal noveltyitems, and coffee-related accessories and equipment
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Four Ps Analysis
Products
Starbucks also engages inpurchasing, roasting, andselling whole bean coffeesworldwide to grocery stores andlarge hotels
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Four Ps Analysis
Price
Prices range from $1.00-$4.20 for drinks
Surprisingly, this is lower than its rivals, althoughnot by much
Starbucks regular coffee was 4% less expensiveand its iced blended drinks were as much as 30% less
expensive when compared with specialty competition
When compared to quick-service restaurants, however,Starbucks was more expensive. Dunkin Donuts 16-ounce latteis an average of 17% cheaper
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Four Ps Analysis
Prices on the Rise
Starbucks is planning toraise prices this yearbecause of an increase inmilk and green coffee beanprices
This could also be due to thefact that specialtycompetition has beencharging more
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Four Ps Analysis
Locations
Operates in all 50 statesplus the District of Columbiaand Puerto Rico.
They also operates in 34countries outside the United
States such as Australia,Canada, China, Germany,Singapore, Thailand, andthe United Kingdom toname a few.
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Four Ps Analysis
More on Locations
Starbucks retail stores are typically located in high-traffic, high-visibility locations.
Because the Company can vary the size and format, its storesare located in or near a variety of settings, including downtownand suburban retail centers, office buildings and university
campuses.
The Company can also locate retail stores in select rural and off-highway locations to serve a broader array of customers outsidemajor metropolitan markets and further expand brand awareness.
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Four Ps Analysis
More on Locations
While the Company selectively locates stores in shopping malls,it focuses on locations that provide convenient access for
pedestrians and drivers.
To provide a greater degree of access and convenience for non-pedestrian customers, the Company has increased focus on
drive-thru retail stores.
At the end of fiscal 2004, theCompany had approximately 700Company-operated drive-thru
locations
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Four Ps Analysis
Promotions
Starbucks has been able to use a standardized advertisementtheme around the world in order to incorporate different
cultures.
Currently they are promoting their new Tazo green teaFrappuccino Blended crme. (Inspired by Japanese tradition)
http://www.starbucks.com/retail/summerphase3.asp7/27/2019 Starbucks Compiled
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S.W.O.T
Analysis
Strengths
Weaknesses
Opportunities
Threats
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S.W.O.T Analysis
Strengths
Starbucks Corporation is a very profitable organization,earning $600 million and generating revenue of $5 billion in2004.
Ad Week Magazine recognized the Company as one of theMost Trusted Brands in 2003. The Starbucks logo is
recognized by most, which also helps to retain customers thattravel internationally, allowing them to get the same Starbuckscoffee in the same Starbucks cup that they enjoy back home.
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S.W.O.T AnalysisStrengths (continued)
It is a global coffee brand built upon a reputation for fineproducts and services. It has about 8500 stores in over 30countries.
Starbucks was one of the Fortune Top 100 Companies toWork For in 2005. The company is a respected employer that
values its workforce.
They have strong ethical values and an ethical missionstatement as follows, Starbucks is committed to a role of
environmental leadership in all facets of our business.
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S.W.O.T Analysis
Weaknesses
Starbucks has a reputation for new product development andcreativity. However, they are dependant on a main competitive
advantage, the retail of coffee.
Overcrowding the Market: If Starbucks has two stores close toeach other, they potentially take business away from each other.
They have a strong presence in the United States with morethan three quarters of their cafes located in the home market.Many have said that they need to look for a portfolio ofcountries, in order to spread business risk.
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S.W.O.T AnalysisWeaknesses (continued)
They have been facing certain difficulties in some of itsinternational operations. In 2003 Starbucks ended its joint
venture in Shalom in Israel and closed six stores in Tel Aviv.
There was the infamous situation after September 11, when theStarbucks in Manhattan charged firefighters outrageous prices
for water, $130 for three cases.
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S.W.O.T AnalysisThreats
Suppliers
Weather?
Fuel costs?
Re-adjustmentsto licensingcontracts?
0.0
50.0100.0150.0200.0250.0300.0
2000
2001
2002
2003
2005
2010
2015
YearPrice(Cents/KG.)
Coffe (othermills)
Coffee(robusta)
Tea,auctions (3)avg.
Distribution Marketing
Advertising
Promotions
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S.W.O.T AnalysisThreats (continued)
Gov. Regulation
Minimum Wage?
New Entrants
Krispy Kreme?
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S.W.O.T AnalysisOpportunities
Joint Venture
Krispy Kreme?
Innovation RTDs & Ice-Cream
Breakfast Snack Bar?
http://www.boardsmag.com/screeningroom/commercials/1755/http://www.krispykreme.com/investorrelations.html7/27/2019 Starbucks Compiled
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S.W.O.T AnalysisOpportunities (continued)
Market Expansion
China & Europe
Menu Expansion?
Full Service Breakfast &Lunch Eatery?
Current Locations 2003
Suria KLCC- Mall at the base of the
Petronas Twin Towers; KL, Malaysia
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Current
Events
Starbuck hear music
Starbucks card
Wireless Internet
Brewing equipment
Ichiro Card
Ethos Water
Giving Voices
http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016https://www.starbucks.com/card/default.asphttp://www.starbucks.com/retail/wireless.asphttp://www.starbucks.com/retail/brewing.asphttp://www.mp3.com/albums/516018/summary.htmlhttp://www.starbucks.com/retail/brewing.asphttp://www.starbucks.com/retail/wireless.asphttps://www.starbucks.com/card/default.asphttp://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=7950167/27/2019 Starbucks Compiled
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Current Events
Ichiro Card
Starlight StarbrightChildren's Foundation
https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/ichirosweeps.asphttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichiro7/27/2019 Starbucks Compiled
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Current Events
Ethos Water
Five cents from the sale of each bottle ofEthos(TM) Water will support Starbucks
goal of donating $10 million over the nextfive years to non-profit organizations thatare helping to alleviate the world watercrisis.
http://biz.yahoo.com/bw/050803/35233.html?.v=1http://biz.yahoo.com/bw/050803/35233.html?.v=17/27/2019 Starbucks Compiled
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Current Events
Giving Voices
The grant program -- called "Giving Voice" -- will primarilyfund educational initiatives for youth, aged between six and18 years old, in the arts, literacy, and environmentaleducation.
The grants will range from $5,000 to $20,000 and will be
awarded twice a year.
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Sources
Brewing Equipment; http://www.starbucks.com/retail/brewing.asp Card; https://www.starbucks.com/card/default.asp Datamonitor - Starbucks Corporation;
http://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdf
Ethos Water;http://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoo
Giving Voice; http://biz.yahoo.com/bw/050802/25224.html?.v=1 Hear MusicNorah Jones;
http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016 Ichiro Card;
https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichiro
Jim Donald brings new energy to Starbucks CEO post; 31 March 2005;http://seattlepi.nwsource.com/business/218261_starbucks31.html.
http://www.starbucks.com/retail/brewing.asphttps://www.starbucks.com/card/default.asphttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://biz.yahoo.com/bw/050802/25224.html?.v=1http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttp://seattlepi.nwsource.com/business/218261_starbucks31.htmlhttp://seattlepi.nwsource.com/business/218261_starbucks31.htmlhttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttp://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://biz.yahoo.com/bw/050802/25224.html?.v=1http://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttps://www.starbucks.com/card/default.asphttp://www.starbucks.com/retail/brewing.asp7/27/2019 Starbucks Compiled
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Sources(continued)
Marketing Teacher; http://www.marketingteacher.com/ SBUX: Profile for STARBUCKS CP - Yahoo! Finance Shareowner: Starbucks corporation Starbucks Apologizes for Water Flap;
http://www.foxnews.com/story/0,2933,35198,00.html Starbucks Company Fact Sheet; August 2005;
http://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdf. Starbucks Company Profile; August 2005;
http://www.starbucks.com/aboutus/CompanyProfileFeb05.pdf. Starbucks Company Timeline; August 2005;
http://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdf. Starbucks Corporation; http://www.starbucks.com/default.asp Starbucks Everywhere; http://www.starbuckseverywhere.net The Insider: Starbucks' prices won't be cheaper for much longer Wireless Internet; http://www.starbucks.com/retail/wireless.asp Yahoo! Finance; http://finance.yahoo.com
http://www.marketingteacher.com/http://finance.yahoo.com/q/pr?s=SBUXhttp://www.findarticles.com/p/articles/mi_qa4037/is_200203/ai_n9048368http://www.foxnews.com/story/0,2933,35198,00.htmlhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.starbucks.com/aboutus/CompanyProfileFeb05.pdfhttp://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdfhttp://www.starbucks.com/default.asphttp://www.starbuckseverywhere.net/http://seattlepi.nwsource.com/business/184428_theinsider02.htmlhttp://www.starbucks.com/retail/wireless.asphttp://finance.yahoo.com/http://finance.yahoo.com/http://www.starbucks.com/retail/wireless.asphttp://seattlepi.nwsource.com/business/184428_theinsider02.htmlhttp://www.starbuckseverywhere.net/http://www.starbucks.com/default.asphttp://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdfhttp://www.starbucks.com/aboutus/CompanyProfileFeb05.pdfhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.foxnews.com/story/0,2933,35198,00.htmlhttp://www.findarticles.com/p/articles/mi_qa4037/is_200203/ai_n9048368http://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://www.marketingteacher.com/