2. Introduction
In 1971;
Starbucks is founded by Jerry Baldwin, Gordon Bowker and Zev Siegel in Seattle.
It sold only whole-bean coffee and coffee brewing machines.
It is establised as a coffee and coffeehouse chain.
In 1980’s;
Howard Schultz joined Starbucks in 1982,
Then Schultz became CEO and changed the vision of Starbucks.
He expanded the scope and exposed the brand wider.
Now;
Starbucks is the largest coffeehouse company in the world with 17,009 stores in 50 countries,
including over 11,000 in the United States, over 1,000 in Canada, and over 700 in the United
Kingdom.
From coffee Business to salad, hot&cold sandwich, ice-cream, tea, music and film…
3. The Main Success Keys
1. Quality Policy
Starbucks has always prefered to offer extreme quality in every aspects. Worked directly with the
best growers to puchase high quality coffee beans. Applied the highest standards of excellence to
roasting and brewing these beans. Provided the service experience consistently for all customers by
well educated employees which called “Baristas” The taste of your favorite coffee never changes
due to the standardized processes and quality control focus of management…
2. Vision of “Third Place”
Starbucks aimed to be a “third place” for its customers as well as their workplace and home. Each
Starbucks store is carefully designed to enhance the quality of everthing about the customers’
sensory feelings such as see,smell,hear or taste. Starbucks symbolize not just a coffehouse ,but a
pleasurable coffee-centered experience…
3. Strong Commitments By Mission Statement and Brand Values
“ To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.
Based on this mission statement, Starbucks identified its brand values as;
Coffee: Always with high quality
Partners: Starbucks’ employees are passionate in what they are doing.
Customers: Uplifting the lives of the customers, creating a special bond.
Neighborhood: Social responsibility and leading the way for progress
4. The Growth Strategy Evaluation
Starbucks planned its expansion of specialty coffee stores into new markets carefully worldwide.
The most important feature of Starbucks is its expertising in coffee roasting and brewing processes.
Also all Starbucks employees’ deep feel has constantly increased the success of the brand in core
business.
By the way, Starbucks is extremely careful to avoid losing the brand identity and core values while
diversificating the product. So, Starbucks focused on maintaining the leader position in coffee
business.
Partnershiping is the main and also successful part. It is no coincidence that 14% of Starbucks
customers had their first Starbucks coffee in United Airlines flights. This is a good example for
desicion of cooperation. On the other hand, it’s a clever venture to expand the distribution
network with a strong business partner such as Kraft and Apple.
5. The Growth Strategy Evolution
With creating new products such as “Frappuccino” with Pepsi, Starbucks increased its brand
awareness and recognation. It provided Starbucks and Pepsi $152 mio in sales and 83%
marketshare in ready to drink market in 2005.
Howard Schults’ desicion from the beginning was that Starbucks would only enter into partnerships
with companies who maintain the same commitments to quality and people that Starbucks had as
the foundation of its business… WORLD WIDE....
6. Starbucks: A Global Brand?
YES! YES! YES!
Starbucks is in over 55 countries around the world and has 17.009 stores now.
Over 11.000 in the United States
Over 1.000 in Canada
Over 700 in England
It ‘s easy to understand the growth of the brand by looking at Starbucks revenue that
comes from the open stores.
Also, Starbucks plans to open 900 new stores on the world in next year.
7. Moving Into Non-Coffee Area
Starbucks has positioned itself not just a coffeehouse, also a pleasurable coffee centered
experience place. “Third Place” vision is an indicator of this approach.
As a result, Starbucks moved into some non-coffee areas such as;
1. Credit Cards
Made it easier for customers to purchase
Combined Starbucks reloaded card and credit card
2. Starbucks Entertainment
Investment in film industry
Custom-made CDs in stores
3. Ethos Water
4. Tazo Tea
8. Moving Into Non-Coffee Area
Although moving into new areas is succeeded, there are some disanvantages for Starbucks.
Advantages
Increased Brand Awareness
Improved Brand Image
Enhanced Parent Brand
Disadvatages
Lost Brand Identity
Lost Core Value
Frustrated Customers
In the next step, Starbucks may improve “new products which will be related with core business of
coffee” and “its store chain more qualfied and enhanced”
9. Starbucks International Expansion
Starbucks expansion strategy is very successful.
Now, Starbucks has 17.009 retail outlets in more than
55 countries worldwide.
Starbucks has already taken place in many countries
with an aggresive strategy with brand awareness and
recognation.
After then, Starbucks should increase its marketshare
in this countries with local approaches and improve its
product category.
10. Starbucks: Turkey
Starbucks is brought into Turkey by Shaya A.Ş which also serves
diffirent internatonal brands to consumer market, such as Topshop,
Evans, Dorothy Perkins, The Body Shop, Peacocks, Claire’s,
Debenhams, Topman, Miss Selfridge, Le Pain Quotidien
Starbucks Coffee franchise system in Turkey does not
work like that all over the world. By the central management of Shaya
all stores are being opened, operated and controlled.
General Manager
Can İkinci
Starbucks is in 12 cities in Turkey and has 161 stores. 8
7
Over 100 in Istanbul 6
Over 20 in Ankara 5
4
3
Starbucks also has an enlargement strategy in other 2
cities in Turkey. 1
0
11. Competition Threats: Global
The biggest threat for Starbucks in global market is the strong
competitor, Dunkin’ Donuts...
Donkin’ Donuts is one of the most famous food and beverage
company that headquartered in New York, in international markets.
In Feb.2011, Dunkin' Donuts earned the No. 1 ranking for
customer,
Loyalty in the coffee category by Brand Keys for the fifth year,
Dunkin' Donuts has more than 1,000 donut varieties along with
other products, especially with a wide varieties of coffee beverages.
In 2010, Dunkin' Donuts' global system-wide revenue was $6 billion.
Brand Keys is active in predictive brand equity, loyalty, and
engagement metrics since 1984.
12. Competition Threats: Turkey
The biggest threat for Starbucks in Turkish market is the strong competitors, Kahve Dünyası.
Kahve Dünyası opened its first store in Eminonu in 2004, selling retail and wholesale coffee, now
one of the major brand names in the sector thanks to its fast growth.
Kahve Dünyası offers more than 50 kinds of coffee from traditional Turkish coffee to espresso-
based gourmet coffee varieties, from flavored filter coffee to chilled coffee, and from packaged
coffee products to regional coffees.
Along with coffee, chocolate production is also another area in which Kahve Dünyası is an expert
13. Human Resource Management
Starbucks realized early on that motivated and committed human
resources were the key to the success of a business.
Company takes great care in selecting the right kind of people
and make an effort to retain them. The company’ s human
resource policies reflects its commitment to its employees.
Starbucks hires people for qualities like adaptability, dependability
and the ability to work in a team.
Starbucks also is one of few companies who invest in employee
training and provide comprehensive traing to all classes of
employees, including part-timers.
Employees are trained and educated by “Coffee Master” in coffee
tasting, growing regions, roasting and purchasing with 25-hours of
coursework.
14. Pay for Starbucks Experience
CustomerThink, a research company, organized a
survey on the Starbucks in-store experience and
they received 3,865 valid responses collected across
the globe.
And as you can imagine, “Price” was the No. 1 factor
respondents like least about Starbucks. (%25)
No.2 Factor was also “Wait Time” with %24.
The Should Starbucks lower its price? As a customer, I believe that price
cuts are always welcome. But if the company could deliver a truly
effective experience that addresses my most critical needs while
reflecting unique brand values, I'm willing to pay a premium price to
enjoy my cup of coffee.
Starbucks still has ample opportunity windows to provide an effective,
branded experience to its customers. It will be interesting to see what
the company does.
