Starbucks Marketing Strategy - ESL

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by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)
August 2009 - UC Irvine - Grade: A+
This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.


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  • The price of coffee continues to soar, but that hasn’t stopped Starbucks Corporation (SBUX – Analyst Report) from delivering excellent financial results

    The company recently reported solid fourth quarter results for fiscal year 2011 driven by strong same-store sales growth both domestically and abroad.

    The operating margin continues to expand too, as rising commodity costs are more than offset by the leveraging of its fixed expenses.

    Analysts raised their estimates for both 2012 and 2013 after better than expected Q4 results, sending the stock to a Zacks #2 Rank (Buy).

    Fourth Quarter Results

    Starbucks recently reported results for its fiscal 2011 fourth quarter. Earnings per share came in at 37 cents, beating the Zacks Consensus Estimate by a penny. It was a 16% increase over the same quarter in 2010.

    Total net revenues jumped 15% year-over-year to $3.032 billion, ahead of the Zacks Consensus Estimate of $2.938 billion. Same-store sales jumped a stellar 9%, driven by a 6% increase in traffic and a 3% rise in average ticket. In the U.S., same-store sales were up a remarkable 10%.

    Meanwhile, the operating margin expanded 60 basis points to 13.8% as higher commodity costs were more than offset by the leveraging of its fixed expenses.

    Outlook

    Analysts revised their estimates higher for both 2012 and 2013 following strong Q4 results, sending the stock to a Zacks #2 Rank (Buy). Based on current consensus estimates, analysts expect strong growth for Starbucks over the next few years

    ESL Day Trading System was showing a strong buy order for Starbucks which has certainly been moving very well since the indicator.
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  • I joined ESL after being referred by a colleague of mine who uses their trading systems. I have about 20 years trading on the global stock markets, but my previous trading software was really lacking in terms of its functionality, back testing and charting capabilities. With the ESL day trading program I have tried many programs but this is it. Probably its most powerful feature that easily destroys any other opponent out there is its backtesting environment. Until now I have not seen a better one that provides same reliability and speed and custom functionalities. But that's not all because it is a great all-rounder regardless of whether you are just a chartist, a developer and system tester or a trader or Picasso. ESL Day Trader is like LEGO .... built your own dreams and wishes step by step to something real. There are no borders if you are a pro and you know what to do. I'm pretty sure you will like what it offers. Well, I do and I have become addicted to it.
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  • Thanks for your post 'trevmarks'. However I've still not had my previous question answered, is this ESL (Esterline Technologies Limited) from the US? Alternatively I know ESL (Engineering Software ) is another software company. ESL's core business is acting as a value-added reseller (VAR) for software products, ESL also provides consultancy and integration services for commercial software products and custom software development. ESL also designs and develops a wide range of own-label and white-label products. It is now one of the largest technical software resellers. ESL is a private company hence no sales, or other financial figures are officially released. As of 2011, the main business focus of ESL is providing services and tools in the area that known in computer science as static code analysis and providing algorithmic trading software programing services. Again if this ESL trading software is linked to either of these companies then I am most definately sold!
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  • Is this the same company ESTERLINE SYSTEMS or ESL on the US Stock Exchange? They develop electronics products for aviation and global positioning markets? I've never known them as any other name, they are however world leaders in developing software for the aerospace and defence markets. I wouldn't be surprised if they had also cornered the financial markets. They trade under the symbol ESL and do have offices globally. If they do have software for trading on the stock market I would be very interested given their advanced technology.
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  • Hi There,

    I'm using the system fully automated, as i'm told i should, however there seem to be a lot more functions, i am told these are for manual charting if i wanted to attend a seminar to learn how each individual chart can be read, has any body else bothered?

    Joyce
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Starbucks Marketing Strategy - ESL

  1. 1. Kyle & Patricia<br />
  2. 2. Starbucks Coffee Company<br />
  3. 3. Starbucks Coffee Company - Profile<br /><ul><li> Founded in 1971, in Seattle - selling high-quality green coffee beans ;
  4. 4. Howard Schultz joins Starbucks in 1982 – starts to provide coffee to fine restaurants and espresso bars;
  5. 5. 1984 – 1st store coffee bar concept;
  6. 6. Today: almost 17,000 stores in 49 countries (11,000 in U.S.);
  7. 7. Revenues: 9% whole beans coffees + 12% equipment + 15% food + 64% beverage</li></li></ul><li>Starbucks Subsidiaries<br />
  8. 8. Starbucks Coffee Company - Subsidiaries<br /><ul><li> Subsidiaries: Starbucks Coffee Company, Tazo Tea Company, Seattle's Best Coffee, Torrefazione Italia, Hear Music and Ethos Water.</li></li></ul><li> Tazo Tea Company<br /><ul><li>founded in 1994
  9. 9. tea manufacturer and distributor
  10. 10. purchased by Starbucks in 1999</li></li></ul><li>Seattle's Best Coffee <br /><ul><li> began in 1968 as an ice cream parlor/coffeehouse
  11. 11. known as "Stewart Brothers Coffee“ till 1991.
  12. 12. purchased by Starbucks in 2003</li></li></ul><li>Torrefazione Italia<br /><ul><li> also founded in Seattle in 1986
  13. 13. espresso, coffee and baked goods
  14. 14. also purchased by Starbucks in 2003</li></li></ul><li>Ethos water <br /><ul><li> brand of bottled water with a social mission : “Helping children get clean water“
  15. 15. began in 2001.
  16. 16. purchased by Starbucks in 2005
  17. 17. approximately $0.05 to $0.10 of the retail price ($1.80) goes to charity</li></li></ul><li>Hear Music <br /><ul><li> retail music concept and record label
  18. 18. began as a catalog company in Massachusetts in 1990
  19. 19. purchased by Starbucks in 1999</li></ul>Current artists:Anjulie, Paul McCartney, Joni Mitchell, Sia, James Taylor, Hilary McRae, Carly Simon, John Mellencamp and Antigone Rising<br />
  20. 20. Competitors <br /><ul><li> Holds a dominant position in the </li></ul>specialty coffeehouse market <br /><ul><li> no single clear rival in the</li></ul> sector<br /><ul><li> closer competitors: other specialty coffee shops, doughnut shops, restaurants
  21. 21. More intense competitor: McDonald's - became a rival in 2006. Upgraded to coffee, has 14,000 stores in the U.S. and world wide expertise .</li></li></ul><li>The Coffee Market<br />
  22. 22. STARBUCKS EXPERIENCE - 4 P’s<br />
  23. 23. Product – What Starbucks can provide for me?<br />Tangible Product<br />Coffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products<br />Core Product: services provided in store<br /> Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection<br />Augmented Product: intangible service<br /> Interaction with customers<br />
  24. 24. Tangible Product <br />Tangible Product<br />Coffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products<br />
  25. 25. Core product <br />Core Product: services provided in store<br /> Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection <br />
  26. 26. Augmented Product <br />Augmented Product: intangible service<br /> Interaction with customers<br />
  27. 27. Placement<br /><ul><li> Coffee store
  28. 28. Supermarket, restaurants and bakeries
  29. 29. Online store</li></li></ul><li>Price<br />Price<br /><ul><li> High price and high quality
  30. 30. Price = cost + profit
  31. 31. 1 + 1 > 2
  32. 32. Perceived-value pricing strategy</li></li></ul><li>Promotion<br />
  33. 33. “We always figured that putting people before products just made good common sense.”<br />
  34. 34. “We always figured that putting people before products just made good common sense.”<br /><ul><li> Sales
  35. 35. Advertisement
  36. 36. Merchandising
  37. 37. Social media
  38. 38. Corporate Social Responsibility</li></li></ul><li>Sales<br /><ul><li> Changing prices
  39. 39. Free coffee in determinate period
  40. 40. Receipt as coupon
  41. 41. Online coupon
  42. 42. Cards
  43. 43. Special offer in website (buy 2 and get 1 free / special discounts)</li></li></ul><li>Merchandising<br />
  44. 44. Social Media<br />
  45. 45. Corporate Social Responsibility(CSR)<br /><ul><li>Green Stores: Building greener stores
  46. 46. Purchased renewable energy
  47. 47. Greener Cups: The quest for the 100% recyclable cup</li></li></ul><li>THANKYOU!<br />OBRIGADO!<br />謝謝!<br />

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