Starbucks: A Story of Growth - case study presentation for EBS/DBSBrandon J. Murray, PMP
For entry into the EBS European Business School / DBS Durham University Business School - dual Executive MBA programme, I was asked to analyze a case study from Kellogg School of Management at Northwestern University. I then had to write a handful of essays and give a 1-hour presentation consisting of 30 min of briefing and 30 min of Q/A from the EBS faculty audience.
Starbucks Corporation is known world-wide for their specialty coffee innovation and creative business design. Over time Starbucks has built a business around a relaxing, somewhat romantic atmosphere that brings to the customer a European feel and thus provides a strong user experience for its customers. In Starbucks’ earliest days, coffee consumption in the United States (US) was considered nothing special. Most US coffee offered a similar taste and wasn’t offered in a special “European” environment. With this absence of uniqueness, convenience was the dominant criteria used by US consumers to choose their coffee.
Enter Starbucks.
Starbucks: A Story of Growth - case study presentation for EBS/DBSBrandon J. Murray, PMP
For entry into the EBS European Business School / DBS Durham University Business School - dual Executive MBA programme, I was asked to analyze a case study from Kellogg School of Management at Northwestern University. I then had to write a handful of essays and give a 1-hour presentation consisting of 30 min of briefing and 30 min of Q/A from the EBS faculty audience.
Starbucks Corporation is known world-wide for their specialty coffee innovation and creative business design. Over time Starbucks has built a business around a relaxing, somewhat romantic atmosphere that brings to the customer a European feel and thus provides a strong user experience for its customers. In Starbucks’ earliest days, coffee consumption in the United States (US) was considered nothing special. Most US coffee offered a similar taste and wasn’t offered in a special “European” environment. With this absence of uniqueness, convenience was the dominant criteria used by US consumers to choose their coffee.
Enter Starbucks.
The ppt descibes the the Branding and marketing strategies of Starbucks Under 8 functional Bracket like Logo, Standardisation, expansion, Globalisation, Co-branding, Augmented Services, Facing Competition and Pricing Strategies.
Starbucks India or it can be called as Tatabucks. As Starbucks Corporation and Tata Global Beverages announced 50:50 joint venture called Tata Starbucks Ltd. in January 2012 which operate and own outlets branded Starbucks “A Tata Alliance”. An agreement was also signed between Starbucks and Tata coffee that coffee would 100% locally sourced and roasted
The first Starbucks opened in Seattle, Washington, on March 30, 1971,
By three partners who met while they were students at the University of San Francisco
English teacher Jerry Baldwin
History teacher Zev Siegl, and
Writer Gordon Bowker
The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans.
Mise en place d'une stratégie d'innovation sur 50 ans:
Analyse interne
-Analyse externe
-Facteurs clés de succès
-Chaine de valeur
-Matrice BCG
-Historique de la marque
-Analyse des piliers de la marque
-Perception de la marque
-Mix marketing à l'heure actuelle
-Mix marketing de la marque souhaiter après la mise en place des innovations
-Positionnement de la marque à l'heure actuelle
-Détail des innovations par tranche de 10 ans
-Plan de communication pour chaque innovation
-Positionnement de la marque souhaiter après la mise en place des innovations
-Mix marketing à l'heure actuelle
Mon profil:
http://www.viadeo.com/fr/profile/audrey.rouquette
Twitter: https://twitter.com/AudreyRouquette
Aliaz: http://aliaz.com/audrey-rouquette
The ppt descibes the the Branding and marketing strategies of Starbucks Under 8 functional Bracket like Logo, Standardisation, expansion, Globalisation, Co-branding, Augmented Services, Facing Competition and Pricing Strategies.
Starbucks India or it can be called as Tatabucks. As Starbucks Corporation and Tata Global Beverages announced 50:50 joint venture called Tata Starbucks Ltd. in January 2012 which operate and own outlets branded Starbucks “A Tata Alliance”. An agreement was also signed between Starbucks and Tata coffee that coffee would 100% locally sourced and roasted
The first Starbucks opened in Seattle, Washington, on March 30, 1971,
By three partners who met while they were students at the University of San Francisco
English teacher Jerry Baldwin
History teacher Zev Siegl, and
Writer Gordon Bowker
The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans.
Mise en place d'une stratégie d'innovation sur 50 ans:
Analyse interne
-Analyse externe
-Facteurs clés de succès
-Chaine de valeur
-Matrice BCG
-Historique de la marque
-Analyse des piliers de la marque
-Perception de la marque
-Mix marketing à l'heure actuelle
-Mix marketing de la marque souhaiter après la mise en place des innovations
-Positionnement de la marque à l'heure actuelle
-Détail des innovations par tranche de 10 ans
-Plan de communication pour chaque innovation
-Positionnement de la marque souhaiter après la mise en place des innovations
-Mix marketing à l'heure actuelle
Mon profil:
http://www.viadeo.com/fr/profile/audrey.rouquette
Twitter: https://twitter.com/AudreyRouquette
Aliaz: http://aliaz.com/audrey-rouquette
A Fortune 500 company, Starbucks share prices reached its peak in 2006 and declined unexpectedly in 2008. Although its business has picked up in 2011 with an increase in operating profits, Starbucks has lost its market leader position to Costa, a chain coffee shop business owned by Whitbread plc. Starbucks’ strategic issues are its decrease in market share, negative brand perception that was invoked by its competitors and its devalued Starbucks’ Experience that was its competitive advantage. A situational analysis of Starbucks was conducted to indicate possible opportunities and threats. Internal analysis and competitor analysis was conducted simultaneously to identify Starbucks distinctive capabilities and weaknesses against competitors. Strategic options such as Market Penetration, Product Development and Market development were assessed for their suitability, acceptability and feasibility. Strategic choices that unravel three issues that Starbucks is challenged with are presented in the report.
This slide is the solution to the Starbucks Case. The case is available in Google Docs. the solutions are well discussed , in case you have doubts check in the footnotes.
External and Internal Analysis 8Extern.docxgitagrimston
External and Internal Analysis 8
External and Internal Environmental Analysis
STR/581
Professor Alfonso Rodriguez
July 30, 2014
Sheila Medina
Introduction
Coffee has become an integral part of the lives of numerous people. In 1971, Starbucks coffee opened its first coffee shop in the Pike Place Market in Seattle, Washington. Now, according to research “Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim” (www.investor.starbucks.com). Starbucks aims to be the consumer’s favorite coffee shop and to achieve this the company focused on customer satisfaction as well as company advancement. Therefore, it is important to act based on what is written in Starbucks mission, value and vision statement, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (www.starbucks.com).
A review of Starbucks financial reports has identified an increase in revenue over the past few years. However, this increase in revenue doesn’t account for the increase in profits. The profit increase is not as high as it could be due to external factors such as other coffee shops and the increase in amount of competition. This report aims to identify the different internal and external environment factors attributing to the changes in Starbucks external environment by utilizing several different analyses.
SWOT Analysis
Strengths
Starbucks possesses several main strengths including their high visibility being located in high traffic areas, quality of service and products and their established brand loyalty. Starbucks remains an established leader being the number one known coffee house in the world while possessing a competent workforce, providing quality service, and continuing financial soundness. They also are known for their strong internal and external relationships with their suppliers.
Weakness
Weaknesses that Starbucks must address include: Product affordability and pricing, coffee beans price is the major influence over the firms profits, maintaining the positive public opinion of their products, avoiding any negative publicity, and remaining connected to their customers. Starbucks must also consider the fact they have expanded domestically and internationally resulting in saturation of the markets. They are also a non-smoking facility alienating some customers from purchasing coffee or other products from their store.
Opportunities
Opportunities include the ability for Starbucks to enter into different and new markets,
partnership opportunities with businesses, growing acceptance and customer satisfaction, and increase different product offerings. Starbucks must strive to continue expanding their products and food service to remain competitive and reach other consumers. Another option would be for Starbucks to allow consumers to order t ...
Running head STARBUCKS BUSINESS AND CORPORATE LEVEL STRATEGIES1.docxjeanettehully
Running head: STARBUCKS BUSINESS AND CORPORATE LEVEL STRATEGIES 1
STARBUCKS BUSINESS AND CORPORATE LEVEL STRATEGIES 2
Starbucks Business and Corporate Level Strategies
ASSIGNMENT #3
Introduction
Starbucks tends to be one of the most recognized brands in the coffee industry and due to this the company has been able to attain a global recognition due to its quality coffee products and other related services. The organization first opened its first outlet store in the year 1971 and since then it has continued to provide quality products and services that meet the needs of their clients. (4). In addition, Starbucks is categorized as one of the largest coffee companies around the globe as it operates in about 70 countries around the world (7). The organization is also popular for the various products it offers such as the lunch items, cold and hot beverages as well as other related food choices. The company also produces and sells its own merchandise like the coffee cups as well as coffee mugs. Additionally besides promoting their brand through coffee mugs as wel as cups the organization also has ventured into the grocery as a way of promoting their brand. For example, the company sells bottled Frappuccino drinks, tea as well as their coffee K-cups. Starbucks has incoporated significant business strategies as well as corporate strategies to develop a robust brand which gurantees the success of the organization. The paper will focus on analyzing Starbucks business level strategies, corporate level strategies, competitive environment and how the choices of Starbucks may differ in a slow-cycle market or a fast-cycle market. Starbucks ensures that it continually meets and satisfys the needs of its consumers in order to remain competitive in the market.
Starbucks Business Level Startegy
To be able to remain competitive in the coffee industry Starbucks has always implemented the differentiation business level strategy. Differentiation approach often focuses on the integration of the set of action taken in oder to effciently and effectively produce quality products and services that the clients perceive to be different in a manner that is essential to them. Therefore, in my opinion for Starbucks to continue providing its diverse client population with quality products as well as services using the differentiation approach is the right track to follow in order to achieve its organizational goals and objectives. Additionally, through the implementation of the differentiation strategy Starbucks has had the ability to continually produce unique products as well as provides its clients with quality experience at an equivalent price. Mainly, Starbucks often focuses on selling more than just coffee to its clients and it goes an extra mile of selling the ‘Starbucks Experience’ by transforming their coffee shops to a social place where customers can be able to relax, hold meetings as well as chat with friends (2). Generally, Starbuck ...
Mission, strategy, and ethics at starbucks v2Paul Mulzoff
My colleagues and I presented this discussion on leadership, ethics, corporate repsonsibility, and corporate strategy to folks at The Hagan Schol of Business - Iona College.
Starbucks has evolved from a mere seller of coffee products to a full-fledged chain “restaurant”, offering not only coffee products but also other beverages, foods, and merchandise.
Starbucks is still a global leader in the coffee shop chain business
Introduced an online app making it more convenient for customers to locate stores and place orders
Starbucks slogan of “Uniquely Starbucks” continues to play a huge role in company’s success
Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".
Structure outline for Toyota Airbags Defect Case Study1. .docxjohniemcm5zt
Structure outline for Toyota Airbags Defect Case Study
1. Introduction
Explanation of stakeholders’ theory and its relevance to the case under study
2. The case
2.1 Context
Facts of the case:
What? Toyota Motor Sales is recalling approximately 247,000 cars
Which cars are included in the recall?
When are they recalling?
In which areas are they recalling the cars from?
Why are they recalling?
History: has there been any other case of cars recall by Toyota?
2.2 Data
From Toyota’s website, under section of Press Room (Press Releases)
Takata’s official statements
2.3 Methodology
Manner of urgency of call, if any
How is Toyota dealing with customer complaints?
Customer reviews
What techniques did they adopt in recalling?
3. Findings
What part of the airbag defect situation did Toyota own up and what part did they put blame on
Takata?
Meetings of Toyota and Takata with other officials involved
How have other stakeholders helped Toyota in this situation of crisis or made it worse?
Which ethical codes did Toyota abide by in recalling?
Have there been instances when Toyota recalled cars late and suffered losses? Did it learn lessons
this time?
4. Conclusion
What features and elements of the stakeholders’ theory got implemented in this case?
History
1971 - Starbucks begins as roaster and retailer of whole bean and ground coffee, tea and spices in Seattle, Washington
Founded by Gordon Bowker, Jerry Baldwin, and Zev Siegl. They named it Starbucks after the first mate from the book Moby Dick
1982 - Howard Schultz joins company in as director of marketing
1983 - Schultz visited Milan brings back idea of traditional Italian coffee houses to America, but the idea was not developed by the owners
1985 - Schultz started his own coffee house II Giornale Coffee
1987 - Schultz purchases Starbucks (6 stores) to combined with his coffee house and begins to expand stores in America.
1996 - expands in the international market
2014 – 20,000 stores in 65 countries
Background
Stakeholders
Shareholders
Employees (Partners)
Customers
Communities
Suppliers
Social Responsibility
Every store is part of a community, and they take responsibility to be good neighbors seriously.
Community
Ethical Sourcing
They are committed to offering high-quality, ethically purchased and responsibly produced products.
Environment
Minimizing environmental footprint and inspiring others to do the same.
6
Business Ethics and Compliance
Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company
Business Ethics and Compliance is a program that supports Starbucks Mission and helps protect their.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
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RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Memorandum Of Association Constitution of Company.ppt
Starbucks 09 final
1. F. Jallat - CFVG - 2011
Trouble Brews at
Starbucks
2. 1. When Howard Schultz launched Starbucks, who was the target market, how was
Starbucks positioned and what decisions about product, price, distribution and
promotion supported the positioning?
2. Wall Street and Starbucks management placed great emphasis on the company’s ability
to continue its impressive growth rate. What were some of the initiatives undertaken
by Starbucks and how did they fuel company growth?
3. It’s clear that, in general, the company’s growth initiatives were sound in terms of
generating the growth expected by Wall Street. But which of Starbuck’s initiatives, in
retrospect, were sound decisions for the brand and which were inconsistent with brand
positioning?
4. What role should foreign expansion play in Starbuck’s strategy?
5. How should Starbucks define its target market and positioning after its decline in 2007?
6. Evaluate the actions taken to reinvigorate Starbucks.
Assignment QuestionsAssignment Questions
2
3. Starbucks: Creating A Third Place
Premium
Coffee
Physical
Environment
Service Philosophy
Consumption Patterns
tendency to linger;
ritualistic consumption;
looking to self-indulge
Target Customer
Sophisticated, affluent
coffee lover, embracing
the “live coffee” lifestyle
Brand Perceptions
best coffee;
classy, upscale;
a “third place”
4. JC Decaux – Enjeux et développement
…de la vocation de
l’entreprise
Une stratégie
dédiée à
plusieurs cibles
La Méfiance
Se rapprocher de
l’annonceur et
rendre service
La Pollution Visuelle
Fournir un mobilier
esthétique et bien
entretenu
La Citoyenneté
Intégrer le mobilier
urbain dans la vie
contemporaine
L’Ecologie
Respecter
l’environnement et
la vie dans la cité
…conjoncturels et
contemporains
Une réponse
adéquate aux
enjeux…
+
Politiques
Garantir la qualité et la
propreté de
l’environnement urbain
Citoyens
Réduire l’hostilité vis à
vis de l’affichage
publicitaire
Annonceurs
Proposer des supports de
qualité pour maximiser
l’impact des messages
5. The Profit Impact Equation:
Profit Impact = (Margins x Volume) – Fixed Costs
Volume = Number of Customers x Amount Purchased x Frequency of Purchase
1. Margins
Variable Costs
Selling Price
2. Volume
Numbers of Customers
Frequency of Visits and Amount of Purchase
3. Fixed Costs
Operational Costs
Marketing Costs
The Profit Impact of Starbucks Initiatives (1)The Profit Impact of Starbucks Initiatives (1)
5
6. Margins
Variable Costs
Better bargaining position relative to competitors
Coffee beans bought in advance through forward contracts
Increased prices of beverages (e.g. 1997)
Selling Price
Value to customers
The Profit Impact of Starbucks Initiatives (2)The Profit Impact of Starbucks Initiatives (2)
6
10. Volume
Numbers of Customers
Adding customers through new locations
Increasing number of customers through store clusters
Increasing number of customers through market response, policies and
procedures
Frequency of Visits and Amount of Purchase
Creating opportunities for incremental sales
Increasing loyalty with the Starbucks experience
The Profit Impact of Starbucks Initiatives (3)The Profit Impact of Starbucks Initiatives (3)
10
11. LIFE TIME VALUE CALCULATIONS
Visits/month (Ex.9)
Visits/year
$ per transaction (Ex.9)
revs/year
Unsatisfied
3.9
46.8
$3.88
$182
Satisfied
4.3
51.6
$4.06
$210
Highly Satisfied
7.2
86.4
$4.42
$382
Avg life (Ex.9)
Revs/life
Unsatisfied
1.1 years
$200
Satisfied
4.4 years
$922
Highly Satisfied
8.3 years
$3170
Difference = $28/yr Difference = $172/yr
Difference = $722 Difference = $2248
12. Volume
Numbers of Customers
Adding customers through new locations
Increasing number of customers through store clusters
Increasing number of customers through market response, policies and
procedures
Frequency of Visits and Amount of Purchase
Creating opportunities for incremental sales
Increasing loyalty with the Starbucks experience
Managing non-peak periods (new products and services)
The Profit Impact of Starbucks Initiatives (3)The Profit Impact of Starbucks Initiatives (3)
12
13. Starbucks Customer Acquisition Routes
Massive store
expansion
(many more
coffeehouses)
Non-coffeehouse
channels
(groceries, restaurants,
airplanes, etc.)
Non-coffee products
(ice cream, frappucino,
etc.)
Other feeder
mechanisms
(gift cards, etc.)
New Customer Acquisitions
14. Fixed Costs
Operational Costs
Systems and processes
Employee efficiencies
Marketing Costs
Promotion
Leveraging partnerships
The Profit Impact of Starbucks Initiatives (4)The Profit Impact of Starbucks Initiatives (4)
14
16. The Consumption Patterns of Established Customers
vs. New Customers
Established Customers New Acquisitions
Drinking Starbucks is part of a self-indulgent ritual Drinking Starbucks is part of a pragmatic routine
A tendency to linger A tendency to be in a rush
Starbucks is a sanctuary to escape from the real
world
Starbucks is a place to pass through on the way to work
Starbucks is desirable for its friendliness, its social
ambience
Starbucks is desirable for its convenience
18. Conflicting Definitions of “Service”
Established Customers… New Acquisitions…
Want a peaceful ambiance Crowd the store, create a rushed environment
Want friendly employees Make the employees grumpy
Want their customized beverages prepared just right Put pressure on the baristas to rush
19. Starbucks’ Service Deterioration
Too little
Experienced Labor
Baristas Have No
Time to Chat
Grumpy
Employees
Employee
Turnover
Lots of New
Customer
Acquisitions
Tendency to order
Hand-Crafted Drinks
+ Desire for
Customization
Long Lines
Grumpy
Customers
Don’t remember
me or my order
New Product
Complexity
Complex orders
Leave before ordering
Don’t come back
(as often)
Less of a “Third Place”
attachment (diminished
brand loyalty)
Order something simple
rather than complex
(lower ticket value)
20. Costs (no significant contribution to the company’s bottom line)
Implementation
Ownership and Employee Relations (sustainable ‘uncompromised quality’?)
Site Selections (without in-depth understanding of local markets?)
Product Assortment (able to play a role of potential ‘cultural arbiter’ abroad?)
Branding Issues
Public Relations Missteps (e.g. location in the Forbidden City)
Increasing Symbol of Encroaching US Capitalism and Culture?
The Role of Foreign ExpansionThe Role of Foreign Expansion
20
21. Starbucks’ Changing Brand Image / Positioning
Old Image… New Image…
the best quality coffee available good coffee on the run
a third place place to meet and move on
a sanctuary from the real world convenient, accessible, and consistent
22. Starbucks New Competitive Landscape:
Towards a ‘McDonaldization’ of the Third Place Experience?
Starbucks
Dunkin’ Donuts
Corner coffee shops
Convenient, high-quality coffee
in a clean, comfortable setting
An increasing number of
flavored coffee alternatives
23. Jim Donald’s Initiatives in 2007: Try to compete with McDonald’s or
Dunkin’ Donuts rather than strenghten the differentiation of
Starbucks
1$ Coffee and Free Refills (further dilute Starbucks positioning?)
National TV Advertising (advertise and remain ‘cool’?)
Howard Schultz’s Initiatives: Reevaluate the company’s strategy for
the long haul?
Actions Taken to Reinvigorate the CompanyActions Taken to Reinvigorate the Company
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24. Competitiveness of the Company
and Value Creation
VALUE
COMPETITIVENESS
PRICE
PROFITABILITY
COST
26. Recreating the Starbucks Experience
Inspiring Partners
Enhancing the Baristas’ contact with customers
Emphasizing the ‘Romance’ of Coffee
Enhancing dialog with customers
New Products
Breakfast sandwiches without the smell
New, milder coffee roasts
Smoothies
HHoowwaarrdd SScchhuullttzz’s Initiatives (1)’s Initiatives (1)
26
27. Location
Trimming US expansion
Closing of under-performing stores
Increased sales in non-Starbucks outlets
Entertainment Options
Reorganizing the entertainment segment
Moving away from movies
Enhanced Marketing Communication
Sales promotion
Advertising
HHoowwaarrdd SScchhuullttzz’s Initiatives (2)’s Initiatives (2)
27
Editor's Notes
Une Politique d’Elargissement La gestion stratégique de JCD s’inscrit dans une politique d’ élargissement : Consiste à élargir la cible autour du cœur de cible à partir d’une offre élargie. Et ce par deux démarches : Le complément de gamme : Concerne les attributs secondaires du produit afin de toucher des cibles périphériques pas totalement satisfaites par l’offre de base. Ex : Avoir rendu les vitrines d’abribus olfactives, tactiles… L’extension de gamme : Correspond à un accroissement de l’offre. C’est le cas de l’introduction du vélo libre service dans la gamme du mobilier urbain de JCD. II. Une Reponse adequate aux enjeux JCD doit d’abord répondre aux enjeux propres à son activité : JCD est un des grands groupes envers lesquels le public développe une méfiance , une hostilité par peur d’être instrumentalisé . JCD doit se rapprocher du citoyen pour lui proposer une offre innovante, pratique qui s’inscrit dans ses besoins quotidiens et lui rend service. A défaut, JCD va déclencher une méfiance du citoyen qui va nuire au message publicitaire propagé par l’annonceur. JCD diffuse des messages publicitaires qui participent à la pollution visuelle des villes. Afin de ne pas étouffer un citoyen exaspéré par la profusion de messages, JCD doit à la fois proposer un mobilier urbain esthétique et innovant qui embellit l’espace urbain. JCD doit ensuite répondre aux enjeux conjoncturels contemporains . La citoyenneté : Le public attend des grosses entreprises un comportement citoyen. La recherche du seul bénéfice n’est plus tolérée par le public. L’entreprise doit s’inscrire dans la vie sociétale. Ainsi, l’entreprise de traitement des déchets Veolia propose des jeux éducatifs aux enfants afin de les sensibiliser aux enjeux écologiques L’ écologie : Face à un public de plus en plus au fait des risques environnementaux, les entreprises doivent s’inscrire dans une démarche de respect de l’environnement et proposer des solutions de lutte contre le réchauffement climatique.
Consider a true commodity: the coffee bean. Coffee beans = a little more than $1 a pound (= one or two cents per cup.) Turn them into good (grind, package and sell) at 5 – 25 cents a cup. Brew the ground beans in a corner coffee shop = 50 cents to a dollar per cup. Serve that same coffee in a nice dine-in restaurant = $ 1.5 – 2 per cup. Five-star restaurants or Starbucks = $2 – 5 per cup.
