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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 ,[object Object],[object Object],[object Object],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 ,[object Object],[object Object],[object Object],[object Object],[object Object]
INTERNAL ANALYSIS
VALUE CHAIN ,[object Object],[object Object],[object Object],[object Object],Inbound Logistics •  Centralized control of raw material distribution  ,[object Object],[object Object],[object Object],[object Object],[object Object],Operations •  Only coffee is pre-processed (integrated roasting plants) • Other products either finished goods or processed in store  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Margin Margin
[object Object],[object Object],[object Object],[object Object],[object Object],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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],http://bit.ly/pAUiud
[object Object],[object Object],[object Object],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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marketing mix
STRATEGY FORMULATION
BLIND SPOT ,[object Object],[object Object]
OVERALL ANALYSIS S ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],W ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],T ,[object Object],[object Object],[object Object],[object Object],O ,[object Object],[object Object],[object Object],[object Object],[object Object]
Impose a new retro positioning & Propose new services to reinforce the new storytelling brand vision  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],STRATEGY
SUITE STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Impose a new retro positioning & Propose new services to reinforce the new storytelling brand vision
MARKETING MIX RECOMMENDATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Target market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marketing mix
INNOVATION FUNNEL
SYNTHESIS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],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)
[object Object],2040 2010 2020 2030 2050 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 INNOVATIVE CONCEPT
Starbucks storytelling ,[object Object],[object Object],[object Object]
[object Object],[object Object],2012 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Concept Stores
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How to spread the word
Inspiration
[object Object],[object Object],[object Object],2020 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Breaker Bucks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How to spread the word
Inspiration
2020 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Drive  ‘ i n’Bucks ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How to spread the word
[object Object],[object Object],[object Object],[object Object],2030 Brand linkage :  /5 Target focus :  /5 Innovation :  /5 Cooking’Bucks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],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 ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How to spread the word
HOW TO AVOID BEING COPIED ,[object Object],[object Object],[object Object],[object Object],[object Object]
BRAND POSITIONING STATEMENT EXTENDED Creation : 1927 Revenues : $m Brand value : $m ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Starbucks

  • 2.
  • 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)
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  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
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  • 24. 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)
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  • 37. GROWTH PROJECTION First Pasta Shop in Seattle, 1 shop/ year Pasta market (world): 8 billions dollars, +10%/year
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  • 41.

Editor's Notes

  1. Turnover : 10,7 milliards