EXTERNAL ANALYSIS
(TO BE DEFINED) EXTERNAL ENVIRONMENT Social - Importance of coffee in society - Favorite beverage in the world to be a cup of coffee Technology - Increasing spending of R&D  -  -  Environment - Standards of fair trade rule Politics Relationship between the government and t he  states coffee farmers Imposed regulations (quotas, taxes) Economy - Instability of coffee price -Impact of crisis on consumption - Raising of prices of the raw materials Legal -  Compliance with labor laws in provider countries
(TO BE DEFINED) NETWORK ECONOMY Source : Industrial marketing management, Schau, Smith 2005 (originally used on healthcare industry) CONSUMERS EMPLOYEES SOCIAL MEDIA COMPETITORS STATE DESIGNERS SHAREHOLDERS SUPPLIERS
(TO BE DEFINED) COMPETITIVE FORCES Threat of New Entrants Brands experimental and passionate about coffee. They can be attached to a fast food.  This new brands offer exciting experiences (MEDIUM) Bargaining Power of Buyers Perception of brand image Presence of social networks Customer relationship (LOW) Bargaining Power of Suppliers Change in price of coffee Impact of fair trade Risk of vertical integration (LOW) Threat of Substitutes Vending machines can deliver functional benefits, home espresso machines,coffee pod, provide different experience at lower price, as can premiumized customizable power coffee. (HIGH) Rivalry among  Existing Competitors Predominance of large chains know internationally. Poor differentiation in products. The differentiation is done by location, service and value proposition (MEDIUM)
KEY FACTORS COFFEE Customizable coffee To manage customer relationship Hedonism Sen so belonging of community Ta manage the price of materials raws (coffee bean)
INTERNAL ANALYSIS
VALUE CHAIN Procurement Agreement with fair trade independent suppliers Firm Infrastructure Duplication of stores worldwide Inbound Logistics •  Centralized control of raw material distribution  Human Resource Management No long term training process (2 days) Management by stress and competition Technology No competitive edge despite pioneer in the market Operations •  Only coffee is pre-processed (integrated roasting plants) • Other products either finished goods or processed in store  Outbound Logistics In store warehousing of fresh bakery & merchandising items (cups, CDs...)  Some products (like milk) are bought locally Marketing  &  Sales Centralized strategy & decision making  •  No consumer insight known research Sales monitored by category No personalisable offer Weak consumer relationship  Service Friendly Comfortable Nice Professional Margin Margin
Customizable customers relationship. The customer must fell that he’s a special person.  Very significant setting up strategy Sell dreams and a service confortable and a social statut International cover Media cover Key Skills
STARBUCKS MANAGEMENT Howard Shultz, 58 years old Chief Global Strategic Nothern Michigan University Xerox , Hammerplast ENFP William Bradley 67 years old Director since 9 years University of Maryland Director of A&C investment banking firm, Mc Kinsey Company Olden lee 69 years old Director  Partner Ressources since 9 years Pepsi Co Business school of university Arizona Javier Teruel  60 years old Director  since 7 years Pepsi Co Director General manager of colgate Nielsen Holding Melody Hobson 41 years old Director  since 7 years Director of Ariel investment Dreamworks animation, Esthée Lauder… Princetown University Myron Ullman 64 years old Director  since 7 years Group managing director of LVMH University of Cincinnatti Craig Weatherup 65 years old Director  since 15 years Chief Executive Officer of its world-wide Pepsi-Cola business  Arizona University Sheryl Sandberg  41 years old Director  since 3 years Chief operating officer Facebook Mc Kinsey Company, Disney Harvard University ENFP James Shennan 69 years old Director  since 22 years old Chief executive Adidson Consultant University of Stanford Kevin Johnson 50 years old Director  since 3 years Chief executive officer of network Microsoft Corporation University of California
PORTFOLIO ANALYSIS Relative position (market share) Business growth rate high low high low ? % Industry growth (%) % BEVERAGES  (Coffee and Tea) COFFEE MAKING EQUIPMENT AND OTHER MERCHANDISE WHOLE BEAN COFFEES FOOD
STARBUCKS HISTORY TIMELINE Communication Products Brand Revenues Distribution 1971 2011 1982 1986 1987 1989 1990 1996 2000 2007 Starbucks Brand Creation Sales Coffee bean and machines Howard Shultz arrival in the company Redemption of Starbucks by Howard thanks to Henri gates (business angel) New Logo New : Espresso bar comfortable + quality Coffee bean sales 118 Starbucks Chicago, Seattle Vancouver A shop in Seattle European market Asia Market. Barbara Bass ex CEO  Magnim joined Starbucks Casblanca Creation : Label hear Music Fair Trade Jeff Brotman business angel arrival 14400 Starbucks coffee in the world Introducing semi skimmed milk in their beverages  California 6 shops Seattle, Chicago “ Starbucks Corporation”  was born “ The third Place” Coffee Expert, traditional End of Manual Espresso PIO New Logo
1 . Competitive Environment Friendly & relaxing place and experience but the uncontrolled development of Starbucks coffee cause a standardized and undifferentiated performance.  2. Target Hedonist people who want to spend a good time, but target undefined, mass market.   3. Consumer Insight I like to consume coffee and enjoy a good cake in a relaxing atmosphere and stay connected thanks to WIFI.  4. Benefits Customizable food in a home-like atmosphere .  5. Values & Personality Welcoming, self confident .  6. Reasons to Believe Large range of coffee in which you can add extra.   7. Consumer Discriminator Combining quickness of service + customizable flavor +  relaxing atmosphere.  8. Essence Individualized customizable coffee . Creation : 1971 Revenues : $m Brand value : $m STARBUCKS POSITIONING STATEMENT VISION
UNDERLYING BRAND PILLARS Sense of belonging:  Enhance social status, real community Clear vision :  High quality services, authentic, vintage Power from enemies :  Unexempled performance Sensory appeal:  Special environment atmosphere, the smell of old,  sweet an design Sofa,  minimalist, cocoon Storytelling:  It ’ s a fairy tale, in 1927 a young student meet her mermaid Symbols :  Authenticity, reassurance, well being Mystery:  Strong mystery with coffee bean and the unknown country  Rituals:  The secret rituals of the torrefying  coffee machine http://bit.ly/pAUiud
The brand Starbucks treats his employees not very good (just average) and consumers seems to know that : lot of turnover, and media began to deals with the Starbucks employees problem, but Mc Donald ’s  are worst  ( just 28) Mc Donald ’s products  are not considered  as good and healthy product by consumers (just 23) and they thinks that Starbucks products are better. (64) The commitment  to the environment seems to be stronger To Starbucks from Mc donald ’s 360° BRAND PERCEPTION
MARKETING MIX DIAGNOSIS Target market Promotion -Social Network -Word of mouth Product/Service -Seller of coffee, coffee machines, mug, food and bean coffee. -Standardization of STARBUCKS Price -2011= Increase price of 11% -Prices more expensive than  c ompetitors: STARBUCK is  60% more expensive than MacCafé Seasonal variation of  S ales : Holiday season Place -  15 000 shops -  50 countries -  42 drinks 49 foods 87 000 different drink  combinations Physical evidence WIFI Identical instore music Materials from local artisans Recycled materials Wood Steel  Floor varnish Metal seats Ligh industrial type  Club armchairs Brick wall - Employees wear green or black aprons Process STARBUCK site show these products, s tores and values - No specific service People Co creation My STARBUCKS idea 2011: Tempory partnership with LADY GAGA Partnership with CARE 137 000 employees 50 million consumers Marketing mix
STRATEGY FORMULATION
BLIND SPOT www.mindtools.com/pages/article/newTED_90.htm Direction members seems to  work in the company for a long time ( 10 years and more).   They don ’ t have a recent vision and they don ’ t understand needs of generation Z.
OVERALL ANALYSIS S Notoriety Implementation strategy International coverage Rapid implementation strategy Media coverage Presence on social media Co creation W T a rget so wide  L a ck of communication L a ck of differentiation factor Lower sales of some shops Management The perceived image of the  brand is bad Standardization of supply T Global financial crisis = Drop of purchasing value Medical research concerning the effects of caffeine Health conscious group Competitions from restaurants, doughnut shops, specially coffee and fast food O Coffee is the favorite drink  Trends of fair trade Consumers want a personalized relationship Search of authenticity of flavors Search of value proposition unique and creativity
Impose a new retro positioning & Propose new services to reinforce the new storytelling brand vision  Marketing & Sales Identify new opportunities to develop new market adequacy to the new  retro positioning Re-find authentic brand values, the Italian know how and craft, The atmosphere in USA in the late 70 ’s , keeping the story of the brand Give a new positioning, more retro, which make the difference  and  prove that ’s Starbucks doesn't’t lie to his customers( ex : new design shop, high quality services and products, new  distribution…) Enhance the storytelling of Starbucks, like a real upscale brand…( dream, fairy tales) Revenues objective :  13, 4B  (+  4,1 %) Production Partnership with  Universal in order to  re edit  old movie and use 3D Enhance production line ( to manufacture the new cup) Equip Starbucks shops : authentic coffee roasting machine and training employees  Buy  plot of land for drive in Partner Ship with Volkswagen STRATEGY
SUITE STRATEGY Operations (management, logistics, legal, finance) Modification direction and find people who can put a new life into the brand a new vision.  New team attached to anyone. It will consist of a vintage design, one architect, two community manager and head of communications (blog, evening, events and partnership). This team has the mission to give back to its original image STARBUCK and rejuvenate the company's vision. Improve shop Management (end of the turn over) by re-introducing the famous coffee roasting machine, significant  service quality and good customer relationship.  The baristas will be close to their customer and attentive. They must offer quality service and  proximity. -  Net result objective :  28,36B (+8,2  %) Impose a new retro positioning & Propose new services to reinforce the new storytelling brand vision
MARKETING MIX RECOMMENDATION Product/Service - Seller of coffee, mug, food and bean coffee. Personalized service and quality Single service Dream Promotion - Social Network Blog Press specialized Event sponsored by  STARBUCKS -Word of mouth Target market Price -2012= Increase price of 0% thanks a Breaker’s Bucks (cf 2 nd  Innovation) -Prices more expensive than  C ompetitors but less than before:  STARBUCK is  40% more expensive T han MacCafé No more seasonal effect Place -  Reduce number of shops -  50 countries 32 drinks 49 foods Physical evidence WIFI Identical instore music Wood Natural  Cozy  - Software style 70 years Process Service unique Service personalized and high tech Back to basics and nature People Co creation My STARBUCKS idea 68 500 employees 75 million consumers Marketing mix
INNOVATION FUNNEL
SYNTHESIS KEY FACTOR OF COFFEE Customizable coffee To manage customer relationship Hedonism Sens of belonging of community To manage the price of materails raws (coffee bean) KEY SKILLS OF STARBUCKS Customizable customers relationship: the customer must fell that he’s a special person Very significant setting up strategy Sell dreams and a service confortable and a social statut International cover Media cover OBSERVATION The uncontrolled development of STARBUCKS COFFEE cause a standardised and undifferentiated performance does the brand own a colour, a shape, a texture, type of material , a sound, a type of taste (well above the brand identity and logo)
SELECTED BRAND CODES does the brand own a colour, a shape, a texture, type of material , a sound, a type of taste (well above the brand identity and logo)
Create an authentic storytelling. Come back at the outset of the brand, to create value, return to the roots in order to offer a unexampled services. 2040 2010 2020 2030 2050 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 INNOVATIVE CONCEPT
Starbucks storytelling Once upon a time in 1927 in north America, a young italian student, Giuseppe Calvelli who  be used to worked as a barman in a coffee bar every afternoon in order to earn some money to pay his school  overview one day, a wonderful woman  came in the coffee bar. Her beauty was so captivating, amazing, and mysterious, She has a very long blond hair an every one, who were in the coffee bar  at the moment were hypnotize by this strange woman…She didn't ’t speak english so he didn't’t know what she went to drink.  He thought for a long time and he decided to prepared her an exceptional beverage. Indeed he added some rare and uncommon quality coffee beans which it came from a distant and mystery land and use a roasting coffee machine that he made him himself. The young woman was subjugated by the wonderful  taste, and the faraway flavor…Unfortunately when the boy come back toward the women, she had disappeared but he saw on the table 3 shells. Some years after, the student decided to create Starbucks, everywhere in the world in order to find his  mermaid. Nowadays its seems that some coffee beans  in some Starbucks coffee are still rare and nobody knows exactly where there are come from but that is sure that the roasting coffee machine  and the how know  have crossed the century… The End…
Make live the storytelling thaks to STARBUCKS coffee shop.  Renforce brand vision and return at this origin .  2012 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Concept Stores
EVENTS Invit the best customers thanks to customer file in order to show them, new design shop with « 70’s costume party » To liven up social network, with competitions to earn the new beaker bucks.  Organizing a treasure hunt relayed via Twitter. Photos of STARBUCKS mug will be scattered throughout Seattle. The first fifteen people who have found the 10 hidden pictures will earn their invitation. Each time a photo is found, it should be posted on twitter with the hang tag # newstarbucks STREET MARKETING Drinkin fountain of coffee Reproduction of concept stores of STARBUCKS in the subway in SEATLLE (cf H&M, ETAM et IKEA ) Patnership with blogopub.tv COMMUNICATION Short film on the story about starbucks (Youtube) In each STRABUCKS, customer can take picture in a old photo booth and pusblish them ,directly, on Facecebook and Twitter. Photo booth will have a process of gelocation.  Invitation Michael Azoulay creator of website AMERICAN VINTAGE How to spread the word
Inspiration
The strategy create a real sens of beloging and latches the customer (lock in strategy) Old coffee roasting machine: have a differenciating ans no copyabe element Reassert value of the barista’s job 2020 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Breaker Bucks
CONCEPT Bendable cup. will be carried in a purse or coat pocket. It is thanks to the warming rays of the sun. EVENTS In 2020, STARBUCKS will be 50 years.  In 50 STARBUCKS in the world, 50 Breaker Bucks novel will be sold. Cups will design by Roberto GIOLITO(Designer of FIAT 500) STREET MARKETING Ashtray, Trash, Bus stop and Floor lamp in form of Breaker Bucks. A QRCode on each photo will be placed. With an applicaton STARBUCKS consumers can the scanner. This scan will give them information on the new cup (cups future design, information on future designers, technical characteristics of the cup) These actions should be relayed on social networks. Invitation Michael Azoulay creator of website AMERICAN VINTAGE Roberto GIOLITO  designer of FIAT 500 How to spread the word
Inspiration
2020 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Drive  ‘ i n’Bucks Reissue old movie in 3D, Blue Ray to confront past with new technologies Objective: To relieve the storytelling, be in adequacy with the brand vision and try to be more autentic as possible Offer an other way to consume STARBUCKS product
CONCEPT Guests can watch movies of their car. Old and new movies will be released. During these sessions, a Starbucks will be installed and distribute drinks and food. EVENTS The first screening will be place in SEATTLE.  COMMUNICATION On the STARBUCKS in SEATTLE Website  Drive’in’Bucks: Allow to promote concept, choose movie and consumer can give their opinion on this new kind of cinema Social Network Invitation Young actors who consume often STARBUCKS: Actors in U.S series (GLEE, 90210, PRETTY LITTLE LIARS…) Brand ambassadors How to spread the word
Touch a new target Prove the know how of the brand  To convey apprenticeship To reafrim the credibility of the brand 2030 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Cooking’Bucks
CONCEPT An Italian chef will give a cooking class. Each day, novice  will arrive in the morning. They will go to market with the chef who will teach them to choose the right products and products specifically italiens.Ensuite bring them to the head Cooking 'bucks. There, they learn to make  “ real ”  pasta and cook them. Participants enroll in via a website dedicated to this activity. Each month one recipe will be posted, recommendations and opinions will be given. EVENTS Invit the best customers thanks to customer file in order to show them « Pasta’Bucks » To liven up social network, with competitions to earn a class free COMMUNICATION Press culinary Socail network  Create a landing page INVITATION Launch of Concept stores: Michael Azoulay creator of website AMERICAN VINTAGE Lauchn of cooking’Bucks: Joel Robuchon How to spread the word
GROWTH PROJECTION First Pasta Shop in Seattle, 1 shop/ year Pasta market (world): 8 billions dollars,  +10%/year
2050 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Van ’Bucks Introduce the notion of travel to present the orign of the brand name.
CONCEPT Coopetition with  DYXAMION:  "Camping Car" fully equipped with TV, internet connection and the ability to stream music. The decor will resemble that of Starbucks. In each Van Bucks sold a camera with filters VINTAGE be offered. This device will allow its owner with taking pictures of his trip and will send them directly via Twitter or Facebook. These photos will parade in every STARBUCKS. COMMUNICATION Short film (YOUTUBE): As a promotional movie trailer App for smartphone: Consumer will follow the creation of the first Van Bucks Breaker Bucks as a effigy of the Van Bucks Presentation of the motor show in GENEVA Social Network INVITATION Jonathan GLANCEY.  Guardian's architecture and design correspondent. How to spread the word
HOW TO AVOID BEING COPIED To register patents (all the products) To buy all the production of the south west of BRAZIL in order to the competitors can ’ t buy the same raws materials that is to say coffee bean Benchmarking  The Starbucks coffee roasting machine unexampled To have a leg up vis a vis competitors
BRAND POSITIONING STATEMENT EXTENDED Creation : 1927 Revenues : $m Brand value : $m Competitive Environment We want to offered a real authentic and  “come back in the past” experience, Italian Know-How and craft, Premium experience, an original travel in the old Italia confront to new design experience. 2. Target Hedonist people who want to spend a good time,  People who are fond of old design, technologies, simplicity, people who need authenticity… People who need to believe and dream… 3. Consumer Insight I want to live a real experience and be disoriented with authentic values, food and beverage healthy. High quality performance, exceptional furniture and remarkable dishes and travel atypical. 4. Benefits A privileged place reserved to initiated and gourmet, people who want to live a new drinking experience 5. Values & Personality Welcoming, self confident , reassuring (authentic values = security), glamourous 6. Reasons to Believe The storytelling, the unique coffee roasting machine 7. Consumer Discriminator H igh quality services and unexampled flavor, holistic experience 8. Essence Dream, the storytelling travel, technology unique. Coffee at the core.

Starbucks

  • 1.
  • 2.
    (TO BE DEFINED)EXTERNAL ENVIRONMENT Social - Importance of coffee in society - Favorite beverage in the world to be a cup of coffee Technology - Increasing spending of R&D - - Environment - Standards of fair trade rule Politics Relationship between the government and t he states coffee farmers Imposed regulations (quotas, taxes) Economy - Instability of coffee price -Impact of crisis on consumption - Raising of prices of the raw materials Legal - Compliance with labor laws in provider countries
  • 3.
    (TO BE DEFINED)NETWORK ECONOMY Source : Industrial marketing management, Schau, Smith 2005 (originally used on healthcare industry) CONSUMERS EMPLOYEES SOCIAL MEDIA COMPETITORS STATE DESIGNERS SHAREHOLDERS SUPPLIERS
  • 4.
    (TO BE DEFINED)COMPETITIVE FORCES Threat of New Entrants Brands experimental and passionate about coffee. They can be attached to a fast food. This new brands offer exciting experiences (MEDIUM) Bargaining Power of Buyers Perception of brand image Presence of social networks Customer relationship (LOW) Bargaining Power of Suppliers Change in price of coffee Impact of fair trade Risk of vertical integration (LOW) Threat of Substitutes Vending machines can deliver functional benefits, home espresso machines,coffee pod, provide different experience at lower price, as can premiumized customizable power coffee. (HIGH) Rivalry among Existing Competitors Predominance of large chains know internationally. Poor differentiation in products. The differentiation is done by location, service and value proposition (MEDIUM)
  • 5.
    KEY FACTORS COFFEECustomizable coffee To manage customer relationship Hedonism Sen so belonging of community Ta manage the price of materials raws (coffee bean)
  • 6.
  • 7.
    VALUE CHAIN ProcurementAgreement with fair trade independent suppliers Firm Infrastructure Duplication of stores worldwide Inbound Logistics • Centralized control of raw material distribution Human Resource Management No long term training process (2 days) Management by stress and competition Technology No competitive edge despite pioneer in the market Operations • Only coffee is pre-processed (integrated roasting plants) • Other products either finished goods or processed in store Outbound Logistics In store warehousing of fresh bakery & merchandising items (cups, CDs...) Some products (like milk) are bought locally Marketing & Sales Centralized strategy & decision making • No consumer insight known research Sales monitored by category No personalisable offer Weak consumer relationship Service Friendly Comfortable Nice Professional Margin Margin
  • 8.
    Customizable customers relationship.The customer must fell that he’s a special person. Very significant setting up strategy Sell dreams and a service confortable and a social statut International cover Media cover Key Skills
  • 9.
    STARBUCKS MANAGEMENT HowardShultz, 58 years old Chief Global Strategic Nothern Michigan University Xerox , Hammerplast ENFP William Bradley 67 years old Director since 9 years University of Maryland Director of A&C investment banking firm, Mc Kinsey Company Olden lee 69 years old Director Partner Ressources since 9 years Pepsi Co Business school of university Arizona Javier Teruel 60 years old Director since 7 years Pepsi Co Director General manager of colgate Nielsen Holding Melody Hobson 41 years old Director since 7 years Director of Ariel investment Dreamworks animation, Esthée Lauder… Princetown University Myron Ullman 64 years old Director since 7 years Group managing director of LVMH University of Cincinnatti Craig Weatherup 65 years old Director since 15 years Chief Executive Officer of its world-wide Pepsi-Cola business Arizona University Sheryl Sandberg 41 years old Director since 3 years Chief operating officer Facebook Mc Kinsey Company, Disney Harvard University ENFP James Shennan 69 years old Director since 22 years old Chief executive Adidson Consultant University of Stanford Kevin Johnson 50 years old Director since 3 years Chief executive officer of network Microsoft Corporation University of California
  • 10.
    PORTFOLIO ANALYSIS Relativeposition (market share) Business growth rate high low high low ? % Industry growth (%) % BEVERAGES (Coffee and Tea) COFFEE MAKING EQUIPMENT AND OTHER MERCHANDISE WHOLE BEAN COFFEES FOOD
  • 11.
    STARBUCKS HISTORY TIMELINECommunication Products Brand Revenues Distribution 1971 2011 1982 1986 1987 1989 1990 1996 2000 2007 Starbucks Brand Creation Sales Coffee bean and machines Howard Shultz arrival in the company Redemption of Starbucks by Howard thanks to Henri gates (business angel) New Logo New : Espresso bar comfortable + quality Coffee bean sales 118 Starbucks Chicago, Seattle Vancouver A shop in Seattle European market Asia Market. Barbara Bass ex CEO Magnim joined Starbucks Casblanca Creation : Label hear Music Fair Trade Jeff Brotman business angel arrival 14400 Starbucks coffee in the world Introducing semi skimmed milk in their beverages California 6 shops Seattle, Chicago “ Starbucks Corporation” was born “ The third Place” Coffee Expert, traditional End of Manual Espresso PIO New Logo
  • 12.
    1 . CompetitiveEnvironment Friendly & relaxing place and experience but the uncontrolled development of Starbucks coffee cause a standardized and undifferentiated performance. 2. Target Hedonist people who want to spend a good time, but target undefined, mass market. 3. Consumer Insight I like to consume coffee and enjoy a good cake in a relaxing atmosphere and stay connected thanks to WIFI. 4. Benefits Customizable food in a home-like atmosphere . 5. Values & Personality Welcoming, self confident . 6. Reasons to Believe Large range of coffee in which you can add extra. 7. Consumer Discriminator Combining quickness of service + customizable flavor + relaxing atmosphere. 8. Essence Individualized customizable coffee . Creation : 1971 Revenues : $m Brand value : $m STARBUCKS POSITIONING STATEMENT VISION
  • 13.
    UNDERLYING BRAND PILLARSSense of belonging: Enhance social status, real community Clear vision : High quality services, authentic, vintage Power from enemies : Unexempled performance Sensory appeal: Special environment atmosphere, the smell of old, sweet an design Sofa, minimalist, cocoon Storytelling: It ’ s a fairy tale, in 1927 a young student meet her mermaid Symbols : Authenticity, reassurance, well being Mystery: Strong mystery with coffee bean and the unknown country Rituals: The secret rituals of the torrefying coffee machine http://bit.ly/pAUiud
  • 14.
    The brand Starbuckstreats his employees not very good (just average) and consumers seems to know that : lot of turnover, and media began to deals with the Starbucks employees problem, but Mc Donald ’s are worst ( just 28) Mc Donald ’s products are not considered as good and healthy product by consumers (just 23) and they thinks that Starbucks products are better. (64) The commitment to the environment seems to be stronger To Starbucks from Mc donald ’s 360° BRAND PERCEPTION
  • 15.
    MARKETING MIX DIAGNOSISTarget market Promotion -Social Network -Word of mouth Product/Service -Seller of coffee, coffee machines, mug, food and bean coffee. -Standardization of STARBUCKS Price -2011= Increase price of 11% -Prices more expensive than c ompetitors: STARBUCK is 60% more expensive than MacCafé Seasonal variation of S ales : Holiday season Place - 15 000 shops - 50 countries - 42 drinks 49 foods 87 000 different drink combinations Physical evidence WIFI Identical instore music Materials from local artisans Recycled materials Wood Steel Floor varnish Metal seats Ligh industrial type Club armchairs Brick wall - Employees wear green or black aprons Process STARBUCK site show these products, s tores and values - No specific service People Co creation My STARBUCKS idea 2011: Tempory partnership with LADY GAGA Partnership with CARE 137 000 employees 50 million consumers Marketing mix
  • 16.
  • 17.
    BLIND SPOT www.mindtools.com/pages/article/newTED_90.htmDirection members seems to work in the company for a long time ( 10 years and more). They don ’ t have a recent vision and they don ’ t understand needs of generation Z.
  • 18.
    OVERALL ANALYSIS SNotoriety Implementation strategy International coverage Rapid implementation strategy Media coverage Presence on social media Co creation W T a rget so wide L a ck of communication L a ck of differentiation factor Lower sales of some shops Management The perceived image of the brand is bad Standardization of supply T Global financial crisis = Drop of purchasing value Medical research concerning the effects of caffeine Health conscious group Competitions from restaurants, doughnut shops, specially coffee and fast food O Coffee is the favorite drink Trends of fair trade Consumers want a personalized relationship Search of authenticity of flavors Search of value proposition unique and creativity
  • 19.
    Impose a newretro positioning & Propose new services to reinforce the new storytelling brand vision Marketing & Sales Identify new opportunities to develop new market adequacy to the new retro positioning Re-find authentic brand values, the Italian know how and craft, The atmosphere in USA in the late 70 ’s , keeping the story of the brand Give a new positioning, more retro, which make the difference and prove that ’s Starbucks doesn't’t lie to his customers( ex : new design shop, high quality services and products, new distribution…) Enhance the storytelling of Starbucks, like a real upscale brand…( dream, fairy tales) Revenues objective : 13, 4B (+ 4,1 %) Production Partnership with Universal in order to re edit old movie and use 3D Enhance production line ( to manufacture the new cup) Equip Starbucks shops : authentic coffee roasting machine and training employees Buy plot of land for drive in Partner Ship with Volkswagen STRATEGY
  • 20.
    SUITE STRATEGY Operations(management, logistics, legal, finance) Modification direction and find people who can put a new life into the brand a new vision. New team attached to anyone. It will consist of a vintage design, one architect, two community manager and head of communications (blog, evening, events and partnership). This team has the mission to give back to its original image STARBUCK and rejuvenate the company's vision. Improve shop Management (end of the turn over) by re-introducing the famous coffee roasting machine, significant service quality and good customer relationship. The baristas will be close to their customer and attentive. They must offer quality service and proximity. - Net result objective : 28,36B (+8,2 %) Impose a new retro positioning & Propose new services to reinforce the new storytelling brand vision
  • 21.
    MARKETING MIX RECOMMENDATIONProduct/Service - Seller of coffee, mug, food and bean coffee. Personalized service and quality Single service Dream Promotion - Social Network Blog Press specialized Event sponsored by STARBUCKS -Word of mouth Target market Price -2012= Increase price of 0% thanks a Breaker’s Bucks (cf 2 nd Innovation) -Prices more expensive than C ompetitors but less than before: STARBUCK is 40% more expensive T han MacCafé No more seasonal effect Place - Reduce number of shops - 50 countries 32 drinks 49 foods Physical evidence WIFI Identical instore music Wood Natural Cozy - Software style 70 years Process Service unique Service personalized and high tech Back to basics and nature People Co creation My STARBUCKS idea 68 500 employees 75 million consumers Marketing mix
  • 22.
  • 23.
    SYNTHESIS KEY FACTOROF COFFEE Customizable coffee To manage customer relationship Hedonism Sens of belonging of community To manage the price of materails raws (coffee bean) KEY SKILLS OF STARBUCKS Customizable customers relationship: the customer must fell that he’s a special person Very significant setting up strategy Sell dreams and a service confortable and a social statut International cover Media cover OBSERVATION The uncontrolled development of STARBUCKS COFFEE cause a standardised and undifferentiated performance does the brand own a colour, a shape, a texture, type of material , a sound, a type of taste (well above the brand identity and logo)
  • 24.
    SELECTED BRAND CODESdoes the brand own a colour, a shape, a texture, type of material , a sound, a type of taste (well above the brand identity and logo)
  • 25.
    Create an authenticstorytelling. Come back at the outset of the brand, to create value, return to the roots in order to offer a unexampled services. 2040 2010 2020 2030 2050 Brand linkage : /5 Target focus : /5 Innovation : /5 INNOVATIVE CONCEPT
  • 26.
    Starbucks storytelling Onceupon a time in 1927 in north America, a young italian student, Giuseppe Calvelli who be used to worked as a barman in a coffee bar every afternoon in order to earn some money to pay his school overview one day, a wonderful woman came in the coffee bar. Her beauty was so captivating, amazing, and mysterious, She has a very long blond hair an every one, who were in the coffee bar at the moment were hypnotize by this strange woman…She didn't ’t speak english so he didn't’t know what she went to drink. He thought for a long time and he decided to prepared her an exceptional beverage. Indeed he added some rare and uncommon quality coffee beans which it came from a distant and mystery land and use a roasting coffee machine that he made him himself. The young woman was subjugated by the wonderful taste, and the faraway flavor…Unfortunately when the boy come back toward the women, she had disappeared but he saw on the table 3 shells. Some years after, the student decided to create Starbucks, everywhere in the world in order to find his mermaid. Nowadays its seems that some coffee beans in some Starbucks coffee are still rare and nobody knows exactly where there are come from but that is sure that the roasting coffee machine and the how know have crossed the century… The End…
  • 27.
    Make live thestorytelling thaks to STARBUCKS coffee shop. Renforce brand vision and return at this origin . 2012 Brand linkage : /5 Target focus : /5 Innovation : /5 Concept Stores
  • 28.
    EVENTS Invit thebest customers thanks to customer file in order to show them, new design shop with « 70’s costume party » To liven up social network, with competitions to earn the new beaker bucks. Organizing a treasure hunt relayed via Twitter. Photos of STARBUCKS mug will be scattered throughout Seattle. The first fifteen people who have found the 10 hidden pictures will earn their invitation. Each time a photo is found, it should be posted on twitter with the hang tag # newstarbucks STREET MARKETING Drinkin fountain of coffee Reproduction of concept stores of STARBUCKS in the subway in SEATLLE (cf H&M, ETAM et IKEA ) Patnership with blogopub.tv COMMUNICATION Short film on the story about starbucks (Youtube) In each STRABUCKS, customer can take picture in a old photo booth and pusblish them ,directly, on Facecebook and Twitter. Photo booth will have a process of gelocation. Invitation Michael Azoulay creator of website AMERICAN VINTAGE How to spread the word
  • 29.
  • 30.
    The strategy createa real sens of beloging and latches the customer (lock in strategy) Old coffee roasting machine: have a differenciating ans no copyabe element Reassert value of the barista’s job 2020 Brand linkage : /5 Target focus : /5 Innovation : /5 Breaker Bucks
  • 31.
    CONCEPT Bendable cup.will be carried in a purse or coat pocket. It is thanks to the warming rays of the sun. EVENTS In 2020, STARBUCKS will be 50 years. In 50 STARBUCKS in the world, 50 Breaker Bucks novel will be sold. Cups will design by Roberto GIOLITO(Designer of FIAT 500) STREET MARKETING Ashtray, Trash, Bus stop and Floor lamp in form of Breaker Bucks. A QRCode on each photo will be placed. With an applicaton STARBUCKS consumers can the scanner. This scan will give them information on the new cup (cups future design, information on future designers, technical characteristics of the cup) These actions should be relayed on social networks. Invitation Michael Azoulay creator of website AMERICAN VINTAGE Roberto GIOLITO designer of FIAT 500 How to spread the word
  • 32.
  • 33.
    2020 Brand linkage: /5 Target focus : /5 Innovation : /5 Drive ‘ i n’Bucks Reissue old movie in 3D, Blue Ray to confront past with new technologies Objective: To relieve the storytelling, be in adequacy with the brand vision and try to be more autentic as possible Offer an other way to consume STARBUCKS product
  • 34.
    CONCEPT Guests canwatch movies of their car. Old and new movies will be released. During these sessions, a Starbucks will be installed and distribute drinks and food. EVENTS The first screening will be place in SEATTLE. COMMUNICATION On the STARBUCKS in SEATTLE Website Drive’in’Bucks: Allow to promote concept, choose movie and consumer can give their opinion on this new kind of cinema Social Network Invitation Young actors who consume often STARBUCKS: Actors in U.S series (GLEE, 90210, PRETTY LITTLE LIARS…) Brand ambassadors How to spread the word
  • 35.
    Touch a newtarget Prove the know how of the brand To convey apprenticeship To reafrim the credibility of the brand 2030 Brand linkage : /5 Target focus : /5 Innovation : /5 Cooking’Bucks
  • 36.
    CONCEPT An Italianchef will give a cooking class. Each day, novice will arrive in the morning. They will go to market with the chef who will teach them to choose the right products and products specifically italiens.Ensuite bring them to the head Cooking 'bucks. There, they learn to make “ real ” pasta and cook them. Participants enroll in via a website dedicated to this activity. Each month one recipe will be posted, recommendations and opinions will be given. EVENTS Invit the best customers thanks to customer file in order to show them « Pasta’Bucks » To liven up social network, with competitions to earn a class free COMMUNICATION Press culinary Socail network Create a landing page INVITATION Launch of Concept stores: Michael Azoulay creator of website AMERICAN VINTAGE Lauchn of cooking’Bucks: Joel Robuchon How to spread the word
  • 37.
    GROWTH PROJECTION FirstPasta Shop in Seattle, 1 shop/ year Pasta market (world): 8 billions dollars, +10%/year
  • 38.
    2050 Brand linkage: /5 Target focus : /5 Innovation : /5 Van ’Bucks Introduce the notion of travel to present the orign of the brand name.
  • 39.
    CONCEPT Coopetition with DYXAMION: "Camping Car" fully equipped with TV, internet connection and the ability to stream music. The decor will resemble that of Starbucks. In each Van Bucks sold a camera with filters VINTAGE be offered. This device will allow its owner with taking pictures of his trip and will send them directly via Twitter or Facebook. These photos will parade in every STARBUCKS. COMMUNICATION Short film (YOUTUBE): As a promotional movie trailer App for smartphone: Consumer will follow the creation of the first Van Bucks Breaker Bucks as a effigy of the Van Bucks Presentation of the motor show in GENEVA Social Network INVITATION Jonathan GLANCEY. Guardian's architecture and design correspondent. How to spread the word
  • 40.
    HOW TO AVOIDBEING COPIED To register patents (all the products) To buy all the production of the south west of BRAZIL in order to the competitors can ’ t buy the same raws materials that is to say coffee bean Benchmarking The Starbucks coffee roasting machine unexampled To have a leg up vis a vis competitors
  • 41.
    BRAND POSITIONING STATEMENTEXTENDED Creation : 1927 Revenues : $m Brand value : $m Competitive Environment We want to offered a real authentic and “come back in the past” experience, Italian Know-How and craft, Premium experience, an original travel in the old Italia confront to new design experience. 2. Target Hedonist people who want to spend a good time, People who are fond of old design, technologies, simplicity, people who need authenticity… People who need to believe and dream… 3. Consumer Insight I want to live a real experience and be disoriented with authentic values, food and beverage healthy. High quality performance, exceptional furniture and remarkable dishes and travel atypical. 4. Benefits A privileged place reserved to initiated and gourmet, people who want to live a new drinking experience 5. Values & Personality Welcoming, self confident , reassuring (authentic values = security), glamourous 6. Reasons to Believe The storytelling, the unique coffee roasting machine 7. Consumer Discriminator H igh quality services and unexampled flavor, holistic experience 8. Essence Dream, the storytelling travel, technology unique. Coffee at the core.

Editor's Notes

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