Starbucks marketing intelligence presentation final

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Starbucks marketing intelligence presentation final

  1. 1.
  2. 2. The Six Principles<br /><ul><li>Provide a great work environment and treat each other with respect and dignity.
  3. 3. Embrace diversity as an essential component in the way we do business.
  4. 4. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.
  5. 5. Develop enthusiastically satisfied customers all of the time.
  6. 6. Contribute positively to our communities and our environment.
  7. 7. Recognize that profitability is essential to our future success.</li></li></ul><li>ImmediateEnvironment<br />Profile<br /><ul><li>Year founded: 1985
  8. 8. Corporate headquarters: Seattle, WA
  9. 9. Executive Officers:
  10. 10. CEO: Howard D. Schultz
  11. 11. CFO: Troy Alstead
  12. 12. CIO: Stephen Gillett
  13. 13. CMO: Annie Young-Scivner
  14. 14. Four digit Standard Industry Classification Code: </li></ul>5812<br /><ul><li>Number of Employees: 137,000</li></ul>“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.”-(Starbucks.com)<br />
  15. 15. ImmediateEnvironment<br />Marketing Mix 4P’s<br />Product: <br /><ul><li>Starbucks product-mix grew from 30 varieties of whole bean coffees to: eco-friendly coffee makers, and pastries and coffee to oatmeal, smoothies, and wraps, and other Starbucks products.
  16. 16. The company has also been introducing new products, such as Via,”"Full Leaf Tazo Tea Lattes," and "Tazo Tea Infusions". </li></ul>Price: <br /><ul><li>Priced higher due to perceived upscale image attached to its brand.
  17. 17. Has begun to offer $1 bottomless 8 oz. cup of coffee, with unlimited refills that cost approx. 50 cents less than any other Starbucks products.
  18. 18. “Value strategies" emphasize more on cheaper coffee products rather being perceived as unaffordable to price-skittish consumers.
  19. 19. $3.95 "breakfast pairings," including popular breakfast items paired with a coffee. </li></li></ul><li>ImmediateEnvironment<br />Marketing Mix 4 P’s<br />Place:<br /><ul><li>can be found in high traffic areas
  20. 20. Located in-store of various large chains
  21. 21. Locations convenient for individuals on-the-go
  22. 22. Starbucks has also been recently testing "stealth outlets",
  23. 23. Store is named after the street it is located on.
  24. 24. Attempt to "localize" Starbucks stores </li></ul>Promotion<br /><ul><li>Starbucks Card
  25. 25. Coffee services delivered to offices without size restrictions.
  26. 26. Appealing to a diverse customer base by offering international teas and coffees.
  27. 27. Using philanthropy as a means for promotion. </li></li></ul><li>
  28. 28. Macroenvironment<br /> Demographics<br /><ul><li>Older, Educated Target Audience
  29. 29. Life-style generation
  30. 30. Trend-setters,
  31. 31. Love custom blended beverages
  32. 32. Are price-indifferent,
  33. 33. They prefer social experience or ambiance, and new food products.
  34. 34. They are excited by oral sensations, have no over-consumption hang-ups.
  35. 35. Doesn't try to appeal to "teenage boy demographic."</li></li></ul><li>Macroenvironment<br />Social:<br />Starbucks is known for its "hip" atmosphere/ambience and the "faux-alternative". Starbucks stores are trend setters in the coffee/tea industry. Starbucks is well known to contribute to socially responsible causes. <br /><ul><li>Community Service Programs
  36. 36. Youth Action- Youth Action Grants
  37. 37. (Starbucks) RED- AIDS in Africa Crisis
  38. 38. Starbucks Foundation- Teaches literacy to people in China participates in the Gulf Oil Cleanup, Hosts Leadership-Transition programs, and supports small Coffee, Tea, and Cocoa communities.
  39. 39. Ethos® Water Fund- An effort made to provide clean water to underdeveloped countries.</li></li></ul><li>Macroenvironment<br />Technology<br /><ul><li>Has partnered with Apple and iTunes to create the "Hear Music" experience.
  40. 40. "Akeelah and the Bee" was the first film created by Starbucks Entertainment, which released and sold the DVD at Starbucks stores.
  41. 41. Frequently uses QR codes and smartphone applications.
  42. 42. The iPhone application allows you to order food and drinks, explore career options, watch promotional videos, check your Starbucks card, purchase gifts, check rewards card status, and locate nearby stores.</li></li></ul><li>Macroenvironment<br />Economic<br />Profits are on the rise for Starbucks!<br />Revenue vs. Cash Flow<br />Revenue Vs Net Income<br />
  43. 43. S.W.O.T.<br /> [INTERNAL]<br />Strengths: <br />Leaders in field: First purveyor of coffee for discerning customers <br />Strong brand image, established logo<br />Coffee is a socially acceptable addiction <br />High customer loyalty<br />Large market share <br />Weaknesses: <br />Market saturation- cutbacks <br />Focus was on expanding; could have been on operational growth<br />Perceived perception<br />Israeli conflict <br />
  44. 44. S.W.O.T.<br /> [EXTERNAL]<br />Opportunities: <br />Co-branding could present new product expansion.<br />Pacific Rim markets/ Indian markets. <br />Keep brand reputation ethical; people expect this of Starbucks. <br />Branch out in products; wine market. <br />Threats: <br />1. Susceptible to rises in dairy prices and coffee bean prices. <br />Recession; no $ for luxury items. <br />Competition’s pricing continues to drop as their item selection rises. <br />
  45. 45. Macroenvironment<br />Political/Legal<br />Starbucks is often accused of monopolization, by purchasing smaller business and making mergers with other large companies like Barnes & Noble. This “saturates the market.”<br />Problems in the Middle East<br /><ul><li>Protesters and critics claiming Starbucks donates money to the Israeli Military.
  46. 46. Starbucks claimed to have closed stores in Israel due to “problems experienced in the Israeli market,” not political reasons.
  47. 47. Has caused violent protests in Canada and the United Kingdom.*Starbucks claims that it is a nonpolitical organization which does not support political causes.</li></li></ul><li>Macroenvironment<br />Culture<br /><ul><li>Draws from the “coffee culture movement” but is venturing into modern entertainment.
  48. 48. Music (Hear Music), Movies, Books, Gift Cards, partnerships with Apple, Barnes & Noble, and MSNBC.
  49. 49. Encourages customers to relax and spend time in their stores, creating a “slow-moving atmosphere” inside of its stores.
  50. 50. “Loyalty cards” allow extra benefits, such as no charges on soy milk or flavored syrup upgrades.
  51. 51. Has recently changed their logo, to eliminate the words “Starbucks Coffee.” </li></li></ul><li>
  52. 52. Finances<br />
  53. 53. Finances<br />Stock Prices<br />Price<br />Date<br />
  54. 54. Competitors<br />Who: <br />Top three competitors <br />1.Nestle2.Mcdonald's 3.DunkinWhat: <br />Any alternative substitute for coffee, muffins, and a social area to hang out with friends.<br />Why: <br />All other places are substitutes for Starbucks because they offer very similar products for a cheaper price and some people do not like to hang out while having coffee and like to just get it on the go.<br />How: <br />The competitors of Starbucks are able to take customers from them because they are expanding their company all over the US offering more alternatives to Starbucks at an ease. <br />
  55. 55. CorporatePartners<br />1. Who: JumpstartWhat: A nonprofit organization that pairs tutors withpreschoolers.Why: Starbucks thinks that it is part of the culture of their company to help out ones in need.<br /> How: Starbucks contributed $250,000 in 2001 to Jumpstart.<br />2. Who: Heifer International What: A global nonprofit with a proven solution to end hunger and poverty in a sustainable way. <br /> Why: Starbucks is invested in this company because they also believe in helping people and stopping world hunger.<br /> How: Starbucks partners exceeded the goal to provide 30 heifers for 30 families in Rwanda. In all, Starbucks raised $55,700 in less than five months to help coffee-growing communities. <br />

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