Starbucks marketing

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introduction of starbucks, its marketing strategy, and in Korea

introduction of starbucks, its marketing strategy, and in Korea

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  • 1. STARBUCKS CHARLES BONGRAIN - CAMILLE LESAGE FREDERIC MONTOIR – XXX XXXIT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  • 2. CONTENTI. HISTORY OF STARBUCKSI I . STARBUCKS CUSTOMERSI I I . STARBUCKS IN THE W ORLDI V . SW OT ANALYSISV . MARKETING MIXV I . STARBUCKS IN KOREAV I I . CONCLUSION
  • 3. MOBY DICKSTARBUCKS NAME
  • 4. BALDWIN – BOWKER – SIEGL SEATTLE, 1971 - FIRST STARBUCKS
  • 5.  58 years old  Grew up poor  His father had a hard life  Excelled at sports and won an athletics scholarship  Graduated in Business & Marketing  Joined Starbucks Company in 1982 as Diector of MarketingHOWARD SCHULTZ – CEO OF STARBUCKS
  • 6.  1983 he went on a trip in Milan:  Coffee bars existed on every street  200.000 in the country  Served as meeting places His idea: bring the Italian coffeehouse tradition back to the United States The pilot coffee concept was successful but the owners refused to develop the concept HOWARD SCHULTZ – VISION OF A CEO
  • 7.  1985: Started his own coffeehouse: Il Giornale Coffee 1987: purchased Starbucks Coffee (6 stores) Renamed Il Giornale Coffee with the Starbucks name Expended aggressively first across the United States and then around the world HOWARD SCHULTZ – VISION OF A CEO
  • 8. HOWARD SCHULTZ – HIS PHILOSOPHY
  • 9.  2008: regained his status as a CEO of Starbucks Co-authored: “Pour Your Heart Into It” “Starbucks may become another soulless big chain” HOWARD SCHULTZ – HIS FEAR
  • 10.  2009:  616 US Starbucks Coffee closed  1/3 of the headquarters employees were fired  2000 jobs lost TOO MANY STORES…TOO EXPENSIVE
  • 11. 2011 - STARBUCKS NEW LOGO
  • 12. HOWARD SCHULTZ – THE NEW LOGO
  • 13. 1st ROASTER AND RETAILER 50 COUNTRIES15.000+ STORES STARBUCKS TODAY
  • 14.  18-45 year olds Youngsters who want to gather with their friends Office workers and students who need to catch up with their work Those who feel that drinking coffee is "cool" People who are adventurous, willing to try new things TARGET
  • 15.  Egypt  South Africa2 / 52 - (4%) STARBUCKS IN AFRICA
  • 16. EAST ASIA NORTHEN ASIA • China • Russia • Hong Kong • Macau WESTERN ASIA • Japan • Armenia • South Korea • Barhain • Taiwan • Cyprus • Jordan SOUTH EAST ASIA • Lebanon • Indonesia • Kuwait • Malaysia • Oman • Philippines • Quatar • Singapore • Saudi Arabia • Thailand • Turkey23 / 44 - (52%) • United Arab Emirates STARBUCKS IN ASIA
  • 17. NORTH AMERICA (100%) • Canada • USA • Mexico • Puerto Rico CENTRAL AMERICA (3/52 - 14%) • Aruba • Bahamas • El Salvador • SOUTH AMERICA (4/10 - 40%) • Argentina • Brazil • Chile • PeruSTARBUCKS IN THE AMERICAS
  • 18. • Austria • Ireland • Belgium • Netherlands • Bulgaria • Poland • Czech Republic • Portugal • Denmark • Romania • France • Spain • Germany • Sweden18 / 37 – (49%) • Greece • Switzerland • Hungary • UK STARBUCKS IN THE EUROPE
  • 19.  Australia  New Zealand2 / 9 – (22%) STARBUCKS IN OCEANIA
  • 20. Names are translated into local languages• South Korea: 스타벅스 (transliteration: seutabeokseu)• Arabic-speaking countries: (transliteration: stārbaks)• Bulgaria: Старбъкс (transliteration: Starbâks) AN ADAPTATION STRATEGY
  • 21. Adapting their products•Different muffin flavours, different cheesecakes AN ADAPTATION STRATEGY
  • 22. Adapting to their markets• Products launched in limited internationalmarkets.• Sold in supermarkets and convenience stores AN ADAPTATION STRATEGY
  • 23.  2003: Starbucks closed all six of its locations in Israel due to difficult business environment 2007: closed its store in Beijings Forbidden City 2008: closed 61 of its 84 stores in Australia: Starbucks failed to truly understand Australia’s cafe culture. STARBUCKS FAILURES
  • 24. “The Forbidden City is a symbol of China’s culturalheritage. Starbucks is a symbol of lower middle classculture in the West. We need to embrace the world butwe also need to preserve our cultural identity.There is afine line between globalization and contamination. Butplease don’t interprete this as an act of nationalism. It isjust about us Chinese people respecting ourselves. Iactually like drinking Starbucks coffee. I am just againsthaving one in the Forbidden City”. STARBUCKS FAILURES – ONLINE PETITIONS
  • 25.  Product diversification Established logo, developed brand, copyrights, trademarks, website and patents Company operated retail stores International presence Valued and motivated employees, good working environment STRENGHTS (1/2)
  • 26.  Good relationships with suppliers  Industry market leader  Customer loyalty  Wide spread and consistent  Knowledge based  Strong Board  Trendy brand image  Strong financial foundationSTRENGHTS (2/2)
  • 27.  Lack of internal focus (too much focused on expansion) Cross functional management Product pricing is high WEAKNESSES
  • 28.  Competition (restaurants, street carts, supermarkets, other coffee shops, other caffeine based products) Market saturation Coffee price volatility in developing countries Negative publicity from poorly treated farmers in supplying countries THREATS (1/2)
  • 29.  Consumer trends toward more healthy ways and away from sweet coffee beverages and cakes Cultural and Political issues in foreign countries THREATS (2/2)
  • 30.  Expansion into retail operations  Technological advances  New distribution channels (delivery)  New products  Distribution agreements  Brand extension  Emerging international markets  Continued domestic expansion/domination of segmentOPPORTUNITIES
  • 31. Width • Espresso beverages  Caffe latte, Caffe Mocha, Caramel machiato…  Iced caffe Latte, Iced vanilla Latte… • Frapuccino  Coffee base, cream base and tea base DepthLenght • Coffee and tea  Hot chocolate, soya milk, tea • Food  Cookies, muffins, salads, sandwiches, coffee bags… • Equipment: mugs, coffee machines… STARBUCK’S PRODUCT RANGE
  • 32. COMPARATIVE VALUES OF STARBUCKS’ CAFFE LATTE Price of a tall caffe Price of lunch in theTowns & countries Latte (€ and won) neighbourhood 3,70€ 14€ Paris, France 5880 KRW 22240 KRW 2,85€ 5,70€ Dubai, UAE 4530 KRW 9050 KRW Seoul, South 2,40€ 3,15€ Korea 3800 KRW 5000 KRW PRICE
  • 33.  Warmth, Comfort, Diversity A place of quiet contemplation Some kind of neighbourhood office A gathering place for neighbours and friends PLACE: A PLACE FOR AMBIENCE & EXPERIENCE
  • 34. Friendly baristas Customized beverages PLACE: A PLACE FOR AMBIENCE & EXPERIENCE
  • 35. STARBUCKS DOUBLE SHOT ESPRESSO PROMOTION: ADVERTISING
  • 36. STARBUCKS FRAPUCCIONO COFFEE DRINK Staring Michael Bublé PROMOTION: ADVERTISING
  • 37. STARBUCKS IN MOVIES The devil wears PradaPROMOTION: PRODUCT PLACEMENT
  • 38. STARBUCKS IN MOVIES Meet The Fockers 4PROMOTION: PRODUCT PLACEMENT
  • 39. STARBUCKS IN MOVIES Fight ClubPROMOTION: PRODUCT PLACEMENT
  • 40. PROMOTION: DIRECT MARKETING
  • 41. SNS
  • 42. SNS
  • 43. Environmental impact  Creating “Grounds for your Garden”  Using recycled materials: ranked 15 on the U.S. Environmental Protection Agency’s list of Top 25 Green Power PartnersPROMOTION: COMMITMENT TO THE WORLD
  • 44. Fair trade Largest buyer of Certified Fair Trade coffee in North America (10% of the global market) Starbucks has given the FTC label greater visibility, helping to raise consumer awareness in the process. Payes above market prices for all of its coffee Opens farmer support centers in Africa PROMOTION: COMMITMENT TO THE WORLD
  • 45. PROMOTION: COMMITMENT TO THE WORLD
  • 46. Ethos water  Ethos bottles feature prominent labeling stating "helping children get clean water”  $.05 from each $1.80 bottle sold is used to fund clean water projects in under-developed areas.  Sales have raised over $6,200,000PROMOTION: COMMITMENT TO THE WORLD
  • 47. Product (red) Raise awareness and funds to help eliminate AIDS in Africa. Starbucks’ Red products and Red card: PROMOTION: COMMITMENT TO THE WORLD
  • 48. Helping countries after natural disasters PROMOTION: COMMITMENT TO THE WORLD
  • 49. Starbucks entered the Korean market in 1999 STARBUCKS IN KOREA
  • 50. AMERICAN COMPANY DUNKIN DONUTS
  • 51. AMERICAN COMPANY THE COFFEE BEAN AND TEA LEAF
  • 52. ITALIAN COMPANY CAFFEE PASCUCCI
  • 53. KOREAN COMPANY CAFFE BENE
  • 54. KOREAN COMPANY ANGEL-IN-US COFFEE
  • 55. KOREAN COMPANY SEVEN MONKEYS COFFEE
  • 56. KOREAN COMPANY EDIYA COFFEE
  • 57. KOREAN COMPANY HOLLYS COFFEE
  • 58. KOREAN COMPANY TOM N TOM COFFEE
  • 59. 600500400300200100 0 Caffebene Ediya Angel-in-us Starbucks NUMBER OF STORES IN KOREA
  • 60. Caffe Mocha or Size(ml) Americano Caffe Latte mocha latte Short(237) 2800 3300 3800 Starbucks Tall(335) 3300 3800 4300 Grande(473) 3800 4300 4800 Small(335) 4000 4500 5000 Coffee bean Regular(473) 4500 5000 5500 Small(335) 3300 3800 4500 Angel-in-us Regular(473) 3800 4300 5000 Caffebene 4000 4500 5000 Pascucci Short(260) 3800 4000 4500Seven monkeys Regular 3500 4000 4500 Ediya Regular 2500 2800 3000 Small(335) 3200 3700 4200 Hollys Regular(473) 3700 4200 4700Dunkin donuts Small(300) 2000 2500 2500 Tall(335) 3300 3800 4100 Tom n toms Large(473) 3700 4100 4600 PRICE COMPARAISONS
  • 61. Prices per 100ml (won) Americano Caffe latte Caffe mocha Pascucci 1461.54 1538.46 1730.77 Coffee bean 951.37 1057.08 1162.79 Starbucks 803.38 909.09 1014.80 Angel-in-us 803.38 909.09 1057.08 Tom n Toms 782.24 866.81 972.52 Hollys 782.24 887.95 993.66Dunkin Donuts 666.67 833.33 833.33 PRICE COMPARAISONS
  • 62. Number of stores 529 339 Sales 102,256 242,133 (million won) Net profit 11,225(14.8%) 16,853(9.3%) (million wons) Management 100% Direct mgmt Mostly franchise Menu Focus on beverage Focus on dessert CAFFE BENE AND STARBUCKS’S STRATEGIES
  • 63. Global companyHoward Schultz: Geocentric Orientation Adaptation Strategy Globally Successful Future Oriented IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  • 64. STARBUCKS TODAY