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  • 1. StarbucksDatabase Marketing Plan Prasad Venkittathodi | Vaibhavi Prajapati
  • 2. P age |1HistoryThe first Starbucks was opened in Seattle, Washington, United States of America on March 30,1971 by three partners Jerry Baldwin (English teacher), Zev Siegl (History teacher) and GordonBowker(Writer). Entrepreneur Alfred Peet inspired all of them to sell high quality coffee beansand equipment. The name is taken from Moby Dick, after Pequod was rejected by one of theco-founders, the company was name after the first mate on the Pequod, Starbuck.The first Starbucks Coffee store in Seattle`s Pike Place MarketCanada Timeline1987Starbucks opens its first international location in Vancouver, British Columbia at the SeabusSkytrain Station.1995Starbucks forms an alliance with Chapters Bookstores in Canada, creating what will eventuallybecome the ultimate Canadian book and coffee lover’s experience.1996 December 1, 2011In January, Starbucks opens for business in Toronto, Ontario, with five stores opening theirdoors on the same day.1999In April, Starbucks opens its first location in Saskatchewan, Canada. Starbucks Canada || Database Marketing Assignment ||
  • 3. P age |22000In July, Starbucks signs the Eastern Canada Master Licensing Agreement with Café VisionInternational to open stores in Quebec and Atlantic Canada.2001Starbucks Coffee Canada incorporates as an independent, 100% wholly owned subsidiary ofStarbucks Coffee Company.2002Starbucks opens its Canadian Regional Support Center in North York, Ontario, establishing aCanadian management team.2004Starbucks begins offering whole bean and ground coffee in Canadian supermarkets.2005Starbucks Coffee Canada celebrates the openings of its 400th Company-operated and 100thlicensed locations.In February, the Starbucks Duetto Visa card is launched in Canada, in partnership with RBCRoyal Bank.2006Starbucks Coffee Canada celebrates the opening of its 500th Company-operated location.Report on Business ranks Starbucks Coffee Canada #1 in the foodservice category in its AnnualCSR Ranking report.In January, the second annual Lattes for Literacy Day is held in Canadian stores, raising more December 1, 2011than $300,000 for Canadian literacy charities Frontier College and ABC CANADA LiteracyFoundation.In April, Starbucks Coffee celebrates their first Tumbler Day in Canada by providingcomplimentary brewed coffee when customers use a travel mug to help reduce paper cupwaste in celebration of Earth Month. Starbucks Canada || Database Marketing Assignment ||
  • 4. P age |32007In March, Starbucks celebrates its 20th anniversary in Canada.2008In July, Starbucks forms a partnership with the Vancouver Community Foundation, the largestand oldest community foundation in Canada, to help administer Shared Planet Youth Actiongrants and develop relationships with social entrepreneurship organizations.In August, Starbucks and the Vancouver Community Foundation administer $25M to SchoolsWithout Borders.In August, Starbucks Coffee Canada regains full ownership of the Coffee Vision International’sStarbucks Licensed stores in Quebec and Atlantic markets.2009In January, Starbucks and the Vancouver Community Foundation administer an additional$100M in Youth Action Grants across five organizations including Jane Goodall’s Roots andShoots, Ashoka Youth Venture, Green Street Youth Action Centre, Canada World Youth andKatimavik.In February, Starbucks Coffee Latin America and Starbucks Coffee Canada join together asStarbucks Coffee Americas, under the leadership of President Colin Moore.In June, Starbucks Corporation is named as one of Jantzi-Macleans 50 Most SociallyResponsible Corporations, and as one of The Best 50 Corporate Citizens in Canada by CorporateKnights.2010In January, Starbucks Coffee Company is named one of the Global 100 Most SustainableCorporations in the World by Corporate Knights. December 1, 2011In February, Starbucks Coffee Canada is named one of Canada’s 10 Most Admired CorporateCultures by Waterstone Human Capital.In May, Starbucks Canada opens its first-ever LEED-registered store as part of Starbucks’worldwide LEED pilot project. Located at Bathurst and St. Clair in Toronto. Starbucks Canada || Database Marketing Assignment ||
  • 5. P age |4In June, Starbucks Coffee Canada is recognized as one of Canadas Top Employers for YoungPeople (2010) by the Globe and Mail, and as one of The Top Foreign Corporate Citizens inCanada by Corporate Knights.In July, Starbucks launches a national partnership with Evergreen with the Pledge to do someGreen Facebook initiative.Also in July, Starbucks Canada begins offering free, unlimited Wi-Fi to customers in all company-operated stores.In October, Starbucks Canada introduces the Clover® brewing system in the Britnell BooksStarbucks location at Yonge and Bloor in Toronto, and at the Robson Street store in Vancouver.2011Toronto and Vancouver are selected as two of seven global locations for marquee events tohelp mark Starbucks’ Global Month of Service. Canada hosts an additional 85 local communityservice projects across the country in April 2011.In the same month, Starbucks Coffee Canada helps to pave the way for all coffee houses inVancouver to offer cup recycling across BC by collaborating with waste management companiesto make cups a recyclable item. December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 6. P age |5 OUR STARBUCKS MISSION To inspire and nurture the human spirit— one person, one cup, and one neighbourhood at a time. Here are the principles of how we live that every day: Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging,our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life—sometimes slow and savoured, sometimes faster. Always full of humanity. Our Neighbourhood Every store is part of a community, and we take our responsibility to be good neighbours seriously. We want to be invited in wherever we do business. We can be a force for positive action— bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility—and our potential for good—is even larger. December 1, 2011 The world is looking to Starbucks to set the new standard, yet again. We will lead. Our Shareholders We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks—and everyone it touches—can endure and thrive. Onward. Starbucks Canada || Database Marketing Assignment ||
  • 7. P age |6  Objectives Starbucks is an American brand following the same traditions all over the world including Canada,They serve different type of Coffee products, food and drink including serve free Wi-Fi to satisfy growingcustomer needs. They have even launched their brand of coffee beans so that the customers can enjoythe same Starbucks taste at the comfort of their home. Their main objective however will be to providemost unique coffee experience to their customers Some of their other Objectives are a. Starbucks offers new design and concept which makes them the No # 1 choice of their loyal customers b. Starbucks have established some unique and innovative strategies to acquire new customers c. To maintain their brand image through amazing service and great quality products  Market Plan (Target Market)  Geographic o Region : Canada o Area : All o Density : Mostly urban o Climate : All Season  Demographics o Age : 15 years of age and above o Gender : All o Income : All walks of life o Occupation : Any o Education : Any o Race :Not Applicable o Home Owner : Not Applicable  Psychographic o Personality : Who loves great coffee o Lifestyle : Healthy and lead an active lifestyle  Behavioural December 1, 2011 o Usage Rates : Regular Basis o User Status : Regular o Benefits : Great taste, Great service o Loyalty : Looking for amazing service and great coffee Starbucks Canada || Database Marketing Assignment ||
  • 8. P age |7 Situation Analysis  Company and Product Starbucks is constantly striving hard to provide customer one stop for unique coffee experience. The Store are always in immaculate condition and often is place where people get together for studying or even meet friends. Starbucks is sometimes location landmark at certain places. Starbucks being an international company has close to 55,000 stores around the world and more than 4000 stores in Canada. The company is growing tremendously and is now again becoming a market leader with increasing sales. In past few years Canadian coffee market is growing close to 157 % and new entrants have limited space to grow, Since Starbucks is an established company in Canada it has opportunity to increase competition by taking customers from its competitors. Starbucks is a premium coffee shop with prices sometimes beyond the reach of certain group of people and now machines are available to make good coffee at home. Economic conditions have also created lot of issues like increase in oil prices, transportation prices have increased, as best coffee beans comes from places around the world such as Africa and South America . Starbucks is still working hard to provide best consumer experience and great coffee at the best price possible.  Competitive Analysis Tim Horton’s is one of the biggest competitors in Canada for Starbucks, with Second cup catching up. Tim Horton is offering low priced coffee in price sensitive market, and customers who are less knowledgeable about coffee are attracted to Tim Horton’s. Some new local coffee stores are also threating Starbucks as they would prefer local shop than driving all the way to some Starbucks coffee shop. Marketing Strategy  Positioning strategy Starbucks is expanding in a big way, opening coffee shops in new locations and near densely populated areas. Starbucks have coffee shops close to malls, retail shops or even urban business areas so that customers does not have to travel far to get their favourite coffee. Starbucks logo is one of the most recognizable logo in the world, and having a Starbucks coffee cup in their hands is a sense of pride for loyal customers who do not want to be seen with competitor’s products. Starbucks coffee shops are huge, December 1, 2011 with great design and proper spacing and always with the smell of freshly brewed coffee. This helps customers to relax and enjoy their time with friends and family or even business associates and keep ordering coffee again and again. Starbucks Canada || Database Marketing Assignment ||
  • 9. P age |8 Product strategy Starbuck have always been innovative with their Products, offering new holiday packages apart from their regular coffee products, Starbucks have always been associated with coffee, but now they have also included other products such as Starbucks coffee beans, coffee maker, frappe, chocolate drinks, sandwiches etc… In order to maintain high quality and great customer service all the Starbucks are operated and service by Starbucks partners i.e. Starbucks employees making them one the largest self-operating coffee shops in Canada and around the world, Since Starbucks have long term contracts with their partners, prices are always in control. Starbucks is very lucky for one critical fact – coffee is addictive so sales and customers will always remain, all Starbucks needs to do is provide customers with customer service experience and great new products and innovation. Starbucks coffee range includes espresso and drip brewed coffee including whole bean coffee and beverages including hot and cold drinks, sandwiches, Panini, pastries and salads. Starbucks also offers Starbucks card. December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 10. P age |9o Some of Starbucks Innovating Product and Offers Advertisement December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 11. P a g e | 10 SWOT December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 12. P a g e | 11 December 1, 2011Starbucks: Being a Responsible Company  Starbucks is a member of the World Cocoa Foundation  Starbucks World AIDS day, December 1 Starbucks Canada || Database Marketing Assignment ||
  • 13. P a g e | 12 Compliance of privacy laws and ethical business practices (all information from http://assets.starbucks.com/assets/sobc-fy09-eng.pdf) About the Standards of Business Conduct Starbucks empowers all partners to make decisions that impact our reputation. Individual actions at work shape how the world views Starbucks, which is why it’s so important that we each take How We Treat One Another At Starbucks we treat each other with respect and dignity. This means that all partners are entitled to work in an environment that is free of harassment, bullying and discrimination. How We Treat Our Customers Legendary customer service is a top priority at Starbucks. We strive to make every customer’s experience pleasant and fulfilling, and we treat our customers as we treat one another, with respect and dignity. This means, for example, that we never harass or discriminate against our customers. Diversity Starbucks actively creates and promotes an environment that is inclusive of all people and their unique abilities, strengths and differences, and promotes diversity as a strategic and competitive business advantage for the company. Workplace Health, Safety and Security Partners are expected to follow all safety rules and practices; cooperate with officials who enforce these rules and practices; take necessary steps to protect themselves and other partners; attend required safety training; and report immediately all accidents, injuries and unsafe practices or conditions. Starbucks Quality and Customer Protection Starbucks commitment to quality means that we take steps to protect our customers’ health and safety. You can play your part by following all proper December 1, 2011 procedures relating to the storage, handling, preparation and service of Starbucks® coffee and other products; by working to ensure clean, sanitary and safe conditions in all of our facilities; and by continually exploring ways to maintain and improve Starbucks quality standards and practices. Starbucks Canada || Database Marketing Assignment ||
  • 14. P a g e | 13Substance Abuse and WeaponsStarbucks has strict standards regarding substance abuse and weapons.Partners are not permitted to use or possess alcoholic beverages on companyproperty, except where alcohol is specifically permitted at a Starbucks-sponsoredsocial event. An exception applies if your job involves the sale of alcohol, but inthat case, you may not consume the alcohol and must participate in any specialtraining required for that businessWage and Hour RulesStarbucks is committed to following all applicable wage and hour laws andregulations. To help ensure that all work performed for Starbucks is compensatedcorrectly, partners compensated on the basis of hours worked must report andrecord time accurately in accordance with established local procedure.Compliance with Laws and RegulationsStarbucks is committed to full compliance with the laws, rules and regulations ofthe countries in which it operates. You must comply with all applicable laws, rulesand regulations when performing your duties.Interaction with the GovernmentStarbucks is committed to complying with local laws, regulations and codesand to working fairly and honestly with government officials and others in ourcommunities. In doing so, our actions must meet high ethical and legal standards.It is against Starbucks policy (and may be a breach of law) to offer or make apayment or gift of any kind in order to facilitate a local process or to influence alocal government official.Sales Practices and AdvertisingStarbucks competes on the merits of our products and services in all sales andadvertising. Our communications with our customers or potential customers mustbe truthful and accurate. When we say something about our products and services,we must be able to substantiate it. We sell the quality of what we do; we do notdisparage our competitors. December 1, 2011Fair CompetitionFair competition laws are intended to promote vigorous competition in a freemarket. It is in Starbucks best interest to promote free and open competition.Starbucks must make its own business decisions, free from understandings oragreements with competitors or suppliers that restrict competition. We considercompliance with these laws of vital importance. Starbucks Canada || Database Marketing Assignment ||
  • 15. P a g e | 14 Conflicts of Interest We all must avoid conflicts of interest. A conflict of interest exists when a personal interest or activity interferes or appears to interfere with the duties that you perform at, or owe to, Starbucks. A conflict of interest may unconsciously influence even the most ethical person and the mere appearance of a conflict may cause a partner’s acts or integrity to be questioned Gifts and Entertainment A gift or favour should not be accepted or given if it might create a sense of obligation, compromise your professional judgment or create the appearance of doing so. In deciding whether a gift is appropriate, you should consider its value and whether public disclosure of the gift would embarrass you or Starbucks. Securities As a partner, you may become aware of significant and confidential information about Starbucks business, often called “material non-public information.” Partners may not buy or sell stock (including by cashless exercise of stock options) or any other security on the basis of this information. In order to avoid any potential problems, you should interpret the term “material non-public information” broadly. Other Intellectual Property As a partner, the things you create for Starbucks belong to the company. This includes inventions, discoveries, ideas, improvements, software programs, artwork and works of authorship. This work product is Starbucks property if it is created or developed, in whole or in part, on company time, as part of your duties or through the use of company resources or information. Analysis of Consumers Starbucks store is targeted to consumers from all walks of life, i.e. from 15 years of age and above, anyone who likes good coffee is welcomed at the store. Everyone is given equal treatment whether its male or female. Starbucks have also tied with various organisations such December 1, 2011 as being associated with World Aids day which creates good faith among buyers. Starbucks have been foremost in community service and youth program, They have also started Starbucks Foundation and Ethos Water funds Starbucks Canada || Database Marketing Assignment ||
  • 16. P a g e | 15 Creative elements Starbucks logo is one of the most recognized logo in US and Canada. Almost everyone in US and Canada has heard about Starbucks and once in their lifetime may have passed by the store or at least been in one. Starbucks have been forefront in creating new products for the benefits of their customers, and they have some signature themes, like the smell of fresh coffee at each and every Starbucks the same, logo placements, seating arrangement are all the same. This enables the customer to recall the brands distinctive image. Database Requirements Starbucks has its own loyalty card which gives them inside view of their most loyal customers, and they can always come up with new programs which increases loyalty also allow referrals which in turn increases customers base with Starbucks LTV and Referral Program The Lifetime Value or the LTV of Starbucks customers is shown explained below with an excel chart Case: Starbucks does a referral program December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 17. P a g e | 16 December 1, 2011Starbucks Canada || Database Marketing Assignment ||
  • 18. P a g e | 17 Conclusion Starbucks Card is one of the best options the company has to increase customer retention and referral, as seen in above charts and spreadsheets. Acquisition in terms of LTV has a slow growth; The Loyalty program will give motivation to Loyal customers. As seen in five years the LTV will increase from $30 to $489. A new customer acquisition is approx. $40 and referral is be approximately $20 and it is seen that in five years spending some amount on existing will keep them happy and they in turn will bring in more business Starbucks can use his referral program to its advantage and increase market share in Canada and also around the world. December 1, 2011 Starbucks Canada || Database Marketing Assignment ||
  • 19. P a g e | 18 Appendices About us Starbucks http://www.starbucks.ca/about-us/company-information retrived on DEC 15, 2011 "Starbucks VIA ready brew hits grocery aisles around the world" http://news.starbucks.com/article_display.cfm? article_id=436 Sept 07, 2010 retrieved on DEC 15, 2011 Zincresearch "Starbucks & Instant Coffee: Good Business Strategy?" http://zincresearch.wordpress.com/2009/10/06/starbucks- instant-coffee-good-business-strategy/ October 6, 2009 retrieved on Dec 15, 2011 Ethical practice http://assets.starbucks.com/assets/sobc-fy09-eng.pdf http://blog.kissmetrics.com/wp-content/uploads/2011/08/calculating-ltv.pdf About us http://www.timhortons.com/ca/en/about/index.html December 1, 2011 Starbucks Canada || Database Marketing Assignment ||