Starbucks

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Starbucks

  1. 1. MORE THAN COFFEE 1
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  5. 5. History • 1971 - Starbucks opens first store in Seattle’s Pike Place Market. • 1982 - Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars. • 1987 - Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation. - Total stores : 17 • 1990 - Starbucks expands headquarters in Seattle. - Total stores: 84 • 1991 - Becomes the first privately owned U.S. company to offer a stock option program that includes part-time employees. - Total stores: 116 5
  6. 6. • 1992 - Completes initial public offering (IPO), with common stock being traded on the NASDAQ National Market under the trading symbol SBUX. - Total stores: 165 • 1993 - Opens roasting plant in Kent, Wash. - Announces first two‐for‐one stock split. - Total stores: 272 • 1994 - Opens first drive‐thru location. - Total stores: 425 • 1995 - Begins serving Frappuccino® blended beverages. - Introduces Starbucks® super‐premium ice cream. - Announces second two‐for‐one stock split. - Opens roasting facility in York, Pa. - Total stores: 677 6
  7. 7. • 1996 - Begins selling bottled Frappuccino® coffee drink through North American Coffee - Partnership (Starbucks and Pepsi‐Cola North America). - Opens stores in: Japan (first store outside of North America) and Singapore. - Total stores: 1,015 • 1998 - Extends the Starbucks brand into grocery channels across the U.S. - Launches Starbucks.com. - Opens stores in: England, Malaysia, New Zealand, Taiwan and Thailand. - Total stores: 1,886 • 1999 - Acquires Tazo Tea. - Acquires Hear Music, a San Francisco–based music company. - Announces third two‐for‐one stock split. - Opens stores in: China, Kuwait, Lebanon and South Korea. - Total stores: 2,498 7
  8. 8. • • • 2000 - Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffee in U.S. and Canada. - Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and United Arab Emirates. - Total stores: 3,501 2001 - Introduces ethical coffee‐sourcing guidelines developed in partnership with Conservation International. - Introduces the Starbucks Card. - Opens stores in: Austria, Scotland, Switzerland and Wales. - Total stores: 4,709 2002 - Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland. - Opens stores in: Germany, Greece, Indonesia, Mexico, Oman, Puerto Rico and Spain. - Total stores: 5,886 8
  9. 9. • • • 2003 - Acquires Seattle Coffee Company, which includes Seattle’s Best Coffee and Torrefazione Italia coffee. - Opens roasting facilities in Carson Valley, Nev., and Amsterdam, Netherlands. - Opens stores in: Chile, Cyprus, Peru and Turkey. - Total stores: 7,225 2004 - Opens first Farmer Support Center in San Jose, Costa Rica. - Releases Ray Charles, Genius Loves Company CD with Concord Records. - Introduces Starbucks Coffee Master Program. - Opens stores in: France and Northern Ireland. - Total stores: 8,569 2005 - Acquires Ethos Water. - Announces fifth two‐for‐one stock split. - Opens stores in: Bahamas, Ireland and Jordan. - Total stores: 10,241 9
  10. 10. • • • 2006 - Launches the industry’s first paper beverage cup containing post‐consumer recycled fiber. - Opens stores in: Brazil and Egypt. - Total stores: 12,440 2007 - Eliminates all artificial trans-fat and makes 2 percent milk the new standard for espresso beverages. - Opens stores in: Denmark, the Netherlands, Romania and Russia. - Total stores: 15,011 2008 - Acquires Coffee Equipment Company and its Clover® brewing system. - Launches My Starbucks Idea, Starbucks first online community. - Launches Pike Place RoastTM, which quickly becomes Starbucks top‐selling coffee. - Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic and Portugal. - Total stores: 16,680 10
  11. 11. • • • 2009 - Launches Starbucks VIA™ Ready Brew Coffee. - Opens East Africa Farmer Support Center in Kigali, Rwanda. - Launches myStarbucks and Starbucks Card iPhone apps and Starbucks Card Mobile payment. - Opens stores in: Aruba and Poland. - Total stores: 16,635 2010 - Expands digital offerings for customers with free unlimited Wi‐Fi, Starbucks Digital Network. - Opens stores in: El Salvador, Hungary and Sweden. - Total stores: 16,858 2011 - Celebrates 40th anniversary with global community service. - Acquires Evolution Fresh. - Opens stores in: Guatemala. - Total stores: 17,003 11
  12. 12. • 2012 - Introduces Starbucks® Blonde Roast. - Announces Verismo® system by Starbucks premium single‐cup espresso machine. - Opens Farmer Support Center in Manizales, Colombia. - Acquires La Boulange® bakery brand to elevate core food offerings. - Launches Starbucks Refreshers™ beverage platform. - Opens stores in: Costa Rica, Curacao, Finland, Morocco and Norway. - Total stores: 17,651 • Present - Total stores : 20,891 stores (62 countries) 12
  13. 13. Mission Statements “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Coffee Partners Customers Stores Neighborhoods Shareholders 13
  14. 14. Brands Tazo Tea • Founded in 1994 • Offering finest botanicals and teas from all over the world. Seattle’s Best Coffee • Founded in 1970 • Offering great cup of coffee every day, no matter where they are (lower price compare to Starbucks) 14
  15. 15. Brands Evolution Fresh • Founded in 1992 • Offering retail stores offer juices and foods that are alive with fresh‐picked flavor and bursting with bright color and vibrant, pure taste La Boulange • Founded in 1999 • Offering skillfully crafted authentic French pastries and breads made from scratch using high-quality, fresh ingredients 15
  16. 16. Brands Teavana • Founded in 1997 • Offering new tea enthusiasts like it’s “Heaven of Tea” customers are introduced to the aromas, textures, and beneficial qualities of super-premium. 16
  17. 17. Corporate Social Responsibility 17
  18. 18. Corporate Social Responsibility 18
  19. 19. Corporate Social Responsibility 19
  20. 20. Corporate Social Responsibility 20
  21. 21. Corporate Social Responsibility 21
  22. 22. Corporate Social Responsibility 22
  23. 23. Corporate Social Responsibility 23
  24. 24. Corporate Social Responsibility 24
  25. 25. Market Structure Monopolistic Competition Differentiation Competitors 1. Dunkin’s Donuts 2. Costa Coffee 3. Coffee Bean 4. McCafe 5. Lavazza Target Customers Young generation who want to gather with friends. Office staff and students who need to catch up with task schedule. Coffee lovers who have passion on coffee. Adventurous person who willing to try new things 25
  26. 26. Marketing Strategies Societal Marketing Concept • • • • • Ethical sourcing Using paper cup Other green campaign Main Concept of Starbucks Create Value to the company Product Strategies • • • Introduction of various new products Product with flexible drink options such as extra cream, caramel syrup etc. Tea Tazo , Teavana and La Boulange Differentiation • • • Products Customer experience Brand value Pricing Strategies • • • Starbucks has offered a wide range of products that vary in price. Starbuck – Higher price Seattle's’ Best Coffee – Lower price Diversification • Brand diversification expand into a new segment of an industry to stimulate new market not only in premium coffee 26
  27. 27. Marketing Strategies Promotions Customer Experience Strategy • Active participation on Website, televisions advertisements, and email marketing • Daily Deal” sites such as Groupon and LivingSocial • Location Strategies • • • • Thousands of its stores worldwide to reach its target customers and eliminating its competitors High visibility, high traffic and convenient location Stores located on the driver side in USA or on corners, shopping malls, bar districts and populated business towers • The customer satisfaction is the key success of Starbucks From the starting point of ingredient to serving to customers hand Service minds and friendly environment Loyalty Programs • • Starbucks Loyalty Card The Starbucks Card or the Duetto Visa Card 27
  28. 28. Marketing Strategies Knowledge Based Management Strategy Horizontal Integration • • Publishing a booklet for coffee syntax • Partnership • • Using Seattle Best Coffee to provide products to new market segmentation through Burger King. Burger King and Seattle Best Coffee (as subsidiaries of Starbuck) Joining Google in order to provide free internet access service for customers inside the store The acquisition of Tazo Tea Company Seattle’s Best Coffee and Torreazione Italia Coffee The Company will open about 1300 stores world-wide in fiscal 2013 Vertical Ingration • • Own coffee bean roasting centers Recycle center 28
  29. 29. Key Success Product Quality Third Place To Go Customer Satisfaction Starbucks Community Social Responsibility Innovation Advertising 29
  30. 30. Rewards “No. 1 Best Coffee,” Fast Food and Quick Refreshment categories Zagat’s Survey of National Chain Restaurants – 2009‐2011 “No. 1 Most Popular Quick Refreshment Chain” Zagat’s Survey of National Chain Restaurants – 2009‐2011 One of “The 100 Best Companies to Work For” Fortune – 1998–2000, 2002–2012 One of the “Most Admired Companies in America” Fortune – 2003–2012 One of the “World’s 50 Most Innovative Companies” Fast Company – 2012 One of the “World’s Most Ethical Companies” Ethisphere – 2007‐2012 One of the “100 Best Corporate Citizens” Corporate Responsibility/Business Ethics – 2000‐2012 “Sustainability Design Award” Global Green USA – 2011 “Most Ethical Company, European Coffee Industry” Allegra Strategies – 2009‐2011 “Business Person of the Year,” Howard Schultz, Starbucks chairman, president and chief executive officer Fortune – 2011 30
  31. 31. Business Performance Total net revenues (increased) increased 14% to $13.3 billion in fiscal 2012 compared to $11.7 billion in fiscal 2011 Consolidated operating income (increased) was $2.0 billion in fiscal 2012 compared to $1.7 billion in fiscal 2011 and operating margin increased to 15.0% compared to 14.8% in fiscal 2011 • million in fiscal 2011 EPS (decreased) for fiscal 2012 was $1.79, compared to EPS of $1.62 reported in fiscal 2011 Cash flow from operations (increased) was $1.8 billion in fiscal 2012 compared to $1.6 billion in fiscal 2011 Capital expenditures (increased) were approximately $856 million in fiscal 2012 compared to $532 31
  32. 32. STARBUCKS’s Main Competitors Stores Countries Revenue Starbucks 20,890 62 13.3 billion US $ Dunkin' Donats 10,083 36 0.54 billion US $ Costa Coffee 1,700 28 1.4 billion US $ The Coffee Bean 900 23 0.45 billion US $ 1st Starbucks 2nd Dunkin’ Donuts 3rd Costa Coffee 4th The Coffee Bean • Starbucks celebrate their first ranks in global largest coffee chain brands with highest countries expansion, number of stores and Revenue. • Number of countries and number of store might related to the huge sale volume of Starbucks compare to Dunkin’ Donuts, Costa Coffee and The Coffee Bean. 32
  33. 33. STARBUCKS VS DUNKIN’ DONUTS • Comparing the largest global coffee chain as following rank 1st Starbucks 2nd Dunkin’ Donuts • Starbucks revenue, operating income and EPS much more than Dunkin Donuts and increasing by years passing. • The cause may from the expansion of the stores. 33
  34. 34. Future Plan Fiscal 2013 Targets: • We expect moderate revenue growth driven by mid-single-digit increased comparable store sales, new store openings and strong growth in the Channel Development business. Licensed stores will comprise more than half of new store openings. • We expect continued robust consolidated operating margin and EPS improvement compared to fiscal 2012,reflecting the strength of our global business and the pipeline of profitable growth initiatives. Full year earnings per share in the range of $2.22 to $2.23 • We expect increased capital expenditures in fiscal 2013 compared to fiscal 2012, reflecting additional investments in store renovations, new store growth and manufacturing capacity. Fiscal 2014 Targets: • Revenue growth of approximately 10% to 13% • Mid single digit comparable store sales growth • An additional 1,400 net new stores: ◦ Americas: approximately 600 ◦ EMEA (Europe, Middle East, and Africa): approximately 100 ◦ CAP (China / Asia Pacific): accelerating to 700 ▪ Earnings per share in the range of $2.55 to $2.65 representing growth of 18% to 22% 34
  35. 35. Future Plan • While expanding worldwide, they must pay very big attention on many factors as weather, location, traditions, religion, politics and etc. • Make more presentations about their quality of coffee beans and service, and let people free test of new products. • They can diversify their business in snacks and juices. • Expand more project on ethical sourcing 35
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