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3. 3
Branding Strategies
HEAD QUARTER: SEATTLE,
WASHINGTON, USA
REVENUE: $19,162.7 MILLION (FY2015)
EMPLOYEE: 238,000 (FY2015)
KEY FACTS
INTERNATIONAL RECOGNIZED
Highest quality coffee in the world, sourcing from
Africa, Central, south America and Asia pacific
region.
BEST ATMOSPHERE
Customers come for the coffee as well the
ambience - designed to provide an upscale yet
inviting environment.
OFFERING BEST SERVICES
POSSIBLE
Partners undergo two types of training. First
type is “hard skills” and second type is “soft
skills”. And “say yes policy” even beyond
company’s rules.STANDARD OF COFFEE
Starbucks work directly with growers in various
countries, oversee roasting process and
controlling distribution to retail stores around the
world.
4. 4
SWOT Analysis
S
W
T
O
Strengths
Weaknesses
Opportunities
Threats
1) Building strong customer connect through value-added services
2) Leveraging technology to build a robust distribution channel
strategy
3) Strong financial position
1) Product recalls
2) Involvement in legal proceedings
1) Positive outlook for health and wellness foods in the US
2) Growing presence in key Asian markets
3) The growing coffee marketplace
1) Intense competition
2) Compliance costs associated with government regulations
3) Increase in raw materials costs
5. 5
Delivery on Services
SOFT SKILLS
• Teaches them how to
connect with customers.
• Eye contact, smile and try to
remember names and
orders.
• Create conversation with
customer.
HARD SKILLS
• Learn to use cash register.
• Learn to mix drinks.
• Most starbucks drink are
handcrafted to ensure
product quality associated
with each drinks.
6. 6
Measuring Service Performance
SERVICE
Did the register partner verbally
greet the customer? Did the
barista and
register partner make eye
contact with the customer? Say
thank you
CLEANINESS
Was the store, counters,
tables, restrooms clean?
PRODUCT
QUALITY
Was the order filled
accurately? Was the
temperature of the drink
within range? Was the
beverage properly presented?
SPEED OF SERVICE
How long did the customer have to
wait. Starbucks’s goal is to serve
within 3 minutes, from back-of-the-
line, to
drink-in-hand
Starbucks Awesome Customer Services
Starbucks offers free, instant and unlimited Wi-Fi connectivity at all its company-owned stores across the
world. The customers, who come for a drink or a snack, are
encouraged to spend more time inside the store through free access to internet.
7. 7
• Caribou Coffee more than 200
stores in nine states.
• Peet’s Coffee and tea operated
about 70 stores in five states.
Small-scale specialty coffee
chains
• Offered wide range of food and
beverages and entertainments.
Independent specialty coffee
shops
• Dunkin Donuts operated over
3700 stores in 38 states.
• They offer wide range of coffee
beverages.
Donut and bagel chains
Competition
8. 8
Caffeinating the World
Objective
To establish Starbucks as the “most
recognized and respected brand in the
world.
RETAIL EXPANSION
Starbucks’ goal is to have
operate 15,000 international
stores. And improving financial
performances help in expansion
activities.
PRODUCT
INNOVATION
Starbucks has been registering
increasing instance of product
recalls. New product
development process on a 12-18
month cycle.
SERVICE
INNOVATION
Starbucks launched SVC in
November 2001. Through this
services, the Starbucks members
can make fast, seamless and
convenient purchases.
9. 9
Market Research (Marketing Department)
03
01
02
Market research group (gather and
analyse market data)
Category group (develop new
products and managed menu and
margins)
Marketing group (develop quarterly
promotional plans)
10. 10
1. Everywhere – the trend
2. Good quality of coffee on the run
3. Place to meet and move on
4. Convenience oriented
5. Accessible and consistent
Starbucks Coffee Chains
1. Social and inclusive
2. Diverse and intellectual
3. Artsy and funky
4. Liberal and free-spirited
5. Lingering encouraged
6. Particularly appealing to younger customers
7. Somewhat intimidating to older, more
mainstream coffeehouse customers
Other Coffee Chains
Branding Meaning
11. 11
Customer Behavior
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of Total Starbucks
Customer Base
% of All Starbucks
Transactions
42%
11%
37%
27%
21%
62%
Customer Visit Frequency
Customer visits 8+ times/ month
Customer visits 3-7 times/ month
Customer visits 1-2 times/ month
With respect to customer behavior, the
market research team discovered that,
regardless of the market
12. 12
Rediscovering Starbucks Customer
$21 Billion $21.5 Billion $22 Billion
2000 2002 2005
Starbucks Share of
Specialty Coffee Market
38%
Starbucks Share of
Specialty Coffee Market
42% (Estimated)
Starbucks Share of
Specialty Coffee Market
50% (Estimated)
Traditional
Coffee 73%
Specialty
Coffee…
Traditional
Coffee 69%
Specialty
Coffee…
Traditional
Coffee 59%
Specialty
Coffee…
13. 13
END OF PRESENTATION
Presented by:
1. Lai Si Qi (Leader)
2. Delcine Ng
3. Nageswary
4. Melvin Teo
5. Yang Ming
- Starbucks Delivering Customer Services
