2. Group Members
Chin Siow Lyn
(2752505)
Damian Lim Kwi
Hoong
(2752508)
Dr. Razak Abdul
Rahman Hamzah
(2752464)
Ng Yee Jie
(2821942)
3. Objective of Report
• Product levels
• Classification of products
• Individual product decisions
• Brand & customer equity
• Brand positioning
• Service marketing at Starbucks
• International marketing issues
• Recommendations for continuous international
expansion
To discuss and analyze Starbucks’:
5. Starbucks’ Global Expansion
1971 1982 1987 1993 1996 1998 1999 2001 2002 2004 Now?
↑
1st Starbucks
in Seattle by
Jerry Baldwin,
Gordon
Bowker & Zev
Siegl
Howard
Schultz
recruited as
Marketing
Director
↓
↑
Schultz
became
President of
Starbucks –
Reshaped
image
Starbucks is
worth $13.5
billion
↓
↑
Ventured
into Japan &
Singapore
Purchased
the Seattle
Coffee
Company in
London, UK
↓
↑
Starbucks is
worth $18
billion
Opened
coffeehouses
in Zurich,
Switzerland
& Vienna,
Austria (late
2001)
↓
↑
Total stores
worldwide is
5,405 stores
with 1,153
stores outside
US
More than
2,000 stores
in 34
international
markets
↓
6. About Starbucks
A Global
Coffee
Brand
Offering
The “Starbucks Experience” – A
coffee drinking experience which
combines the ‘community’ ambience,
background music, freshly brewed
premium coffee, friendly baristas, free
wi-fi and plush seats.
A variety of
related
products
Gourmet
Coffee
17. Product Attributes
Premium quality coffee beans
• Arabica beans are chosen instead of Robusta
beans
• Sources: Sumatra, Kenya, Ethiopia, Costa
Rica, etc.
• Example of premium coffee: Brazil Ipanema
BourbonTM
27. Customer Equity
Customer Equity: value derived from
customer relationship
Free Wi-fi
Customer
feedback
mechanism
Expanding
outlets to
offer
convenience
Increases Customer Equity
28. Brand Positioning
“Experience”,
offering
emotions, self-
expressive and
functional
benefits to
customers.
Also known as
“Starbucks
Experience”
Community
feeling
Cool, stylish,
active, healthy
Gourmet
coffee
Brand
Positioning
Strategy
Emotions
Benefits
Self-
Expressive
Benefits
Functional
Benefits
29. Brand Positioning (Cont.)
•Use of high technology
•Prepaid card system
•Cashless system
•Wireless internet
Maturing brand – Gen-Y
Green corporate colour scheme
32. Services Marketing at
Starbucks (Cont.)
Starbucks: Product or Service?
Equipment-
based
People-
based
Almost
pure
service
Almost
pure
physical
goods
Starbucks
33. Services Marketing at
Starbucks (Cont.)
Top-notch services play a pivotal role
in providing the “Starbucks
Experience”
Starbucks leveraged on emotions by
creating a multi-sensory atmosphere
Inherent services characteristics:
variability, perishability,
inseparability, intangibility
34. Services Marketing Mix at
Starbucks
• Comfortable chairs, store design, cozy corners
Physical Evidence as
Visual Representation
• Employees including baristas
• Training to inculcate Starbucks culture
• Customers
People
• Standardized yet allows room for customization
by customersProcesses
• High quality beverages
• Higher price
• “Clustered” stores
• Promotion through direct employee-
customer contact, sponsor parties, etc.
Product, Price, Place &
Promotion
38. Standardizing the
Marketing Mix
Why?
• Creates homogeneity of customers’ tastes & wants
• Strong global brand
How?
• Marketing mix: product attributes, positioning,
brand, packaging/labeling, price, placement at
retail outlets, promotions, processes, and services
• ‘Standardized’ internationally
39. International Supply
Chain Management
Why?
• Support high growth rate & ensure continuous
supply of premium-quality coffee beans
How?
• Societal marketing: Coffee and Farmer Equity
(C.A.F.E.) Practices
• Preferred supplier program
• New coffee suppliers. E.g. China
42. Standardization – Vs –
Adaptation
Adaptation
• Make changes to
products &
services to fulfill
requirements of
customers from
specific markets
Food menu
• Include local
foods
Different levels of
ability to afford
• Reduce costs &
lower prices
43. Marketing in Fast-paced
Societies
Fast-paced societies: Hong Kong, Singapore
Demand for quick & efficient service with same
high quality, minimal waiting time
Re-introduce Starbucks Express
• Order coffee through phone, online web portals, SMS
• Drinks ready upon arrival at store
45. Conclusion
Reviewing branding and positioning
strategy to ensure relevance to current
markets
Corporate social responsibility
Staying relevant to the current generation:
Generation –Y
