Starbucks is the largest international coffeehouse chain, operating over 16,000 stores globally. It offers coffee beverages, tea, food items, and coffee accessories. Starbucks' strengths include its leading position in specialty coffee, high-quality products and service, and strong brand recognition. However, it faces weaknesses such as high prices and a reliance on the US market. Opportunities for growth include expanding into new international markets. Threats include rising costs and increased competition from other coffee retailers. Starbucks pursues a strategy of providing consistently excellent customer experiences focused on coffee quality, atmosphere, and personalized service to build brand loyalty.
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.
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.
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)
August 2009 - UC Irvine - Grade: A+
This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.
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
This presentation slides are strictly for education purposes.
Please do not download this presentation template and try to make money out of it. Contact me if you want to have your very own business presentation.
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.
All aspect of strategic management of Stabucks.
If you would like to download these slides, send me via: nguyenpuyen91@gmail.com with your purpose of download.
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)
August 2009 - UC Irvine - Grade: A+
This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.
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
This presentation slides are strictly for education purposes.
Please do not download this presentation template and try to make money out of it. Contact me if you want to have your very own business presentation.
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.
All aspect of strategic management of Stabucks.
If you would like to download these slides, send me via: nguyenpuyen91@gmail.com with your purpose of download.
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 ...
Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".
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 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
2. Company Overview
• Starbucks corporation is an international
coffeehouse chain born in Seattle – United States of
America, being the largest coffee house in the world
• Operates 16,635 stores in 50 countries and more in
establishment, while licensees and franchisees
operate more than 7,800 units worldwide (primarily
in shopping centers and airports).
• Product :-
– Beverages – Coffee, Tazo Tea, Soda, Juices
– Pastries
– Whole coffee beans
– Merchandise- Mugs, CDs
4. Strength
• Leading retailer and roaster for brand specialty coffee
in the world
• Known for providing superior products and services
• Number 7 on Fortune Magazine's "100 Best Companies
to Work For" for 2008
• Consistent high quality of service
• Limited number of strong competitors
•High market share and market growth
5. Weakness
• High pricing because of the quality ingredients used
• Starbucks refuses to guarantee that milk,
beverages, chocolate, ice cream, and baked goods
sold in the company’s stores are free of genetically-
modified ingredients.
• Strong presence in the U.S. - more
than three quarters of its cafes located
in the domestic market.
• In order to reduce business risk,
expansion is needed.
6. Opportunity
• High growth of economy and market in Indonesia,
especially in urban areas
• Could diverse their product not only in coffee
• The potential employees are educated people which
make it easier to train them
• Strong financial support
7. Threat
• Competitors and copycat brands could pose
potential threats
• Sentimental issue to the bad effect of coffee from
society
• Global financial crisis - makes people tend not to
spend
• Threats of substitute products and services such as
colas, teas or juices that are sold in retails
• Exposed to rises in the cost of coffee and dairy
products
8. Strategies Used
• Maximize market penetration
• Provide a relaxing social atmosphere
• Offer high-quality products
• Encourages a great working
environment
• Achieve profitability
12. What is Starbucks’ retail strategy? What is its target market and how
does it try to develop an advantage over its competition?
RETAIL STRATEGY: to maintain loyalty and repeat business among its target
market (upscale coffee drinkers) encompasses hiring and training knowledgeable
counter servers, called BARISTAS (Italian for bartenders), to educate customers about
Starbucks’ specialty coffee drinks and associated products, and to provide customers
with an opportunity to take a break from their busy lives in a relaxing atmosphere.
TARGET MARKET AND ADVANTAGE OVER THE
COMPETITORS: The company has also entered some creative
partnerships to put its cafes in Nordstrom and Barnes & Noble stores
and serve its coffee on United Airlines. Licensing the brand name for
other food products such as ice cream and soft drinks also increases
its brand awareness.
13. Describe Starbucks’ retail mix: location, merchandise assortment,
pricing, advertising and promotion, store design and visual
merchandising, customer service, and personal selling. How does
its retail mix support its strategy?
With respect to location,
individual sites are selected in
the most highly visible places
possible, and centralized cities
serve as hubs or regional
centers (clustering) for rollout
expansion into nearby markets.
Its merchandise assortment based on sales distribution is composed
of coffee beverages (58 percent), whole bean coffee by the pound
(17 percent), food items (16 percent), and coffee-related equipment
(9 percent). Coffee beverages are standardized across outlets, but
food offerings vary from store to store.
percentage coffee beverages
whole bean coffee
by the pound
food items
coffee-related
equipment
14. Continued…
Product pricing is premium
and expense on
advertisement and
promotion is minimum
Spacious stores
High end customer service through
personalization
15. What factors in the environment provided the opportunity for Starbucks to develop
a new, successful retail chain?
The insight of Howard Shultz
Americans lacked the opportunity to savor a
good cup of coffee while engaging good
conversation in a relaxed atmosphere
In 1987 he purchased Starbucks, because he was convinced
after a trip to Italy that Americans would be enticed by Italian
coffee house culture. Prior to that time, coffee consumption in
the U.S. was steadily falling as the three major coffee
manufacturers – Proctor & Gamble, Nestle, and Kraft – fought
for market share in a stagnant market. They did so by
decreasing the quality of the beans in their blends so that they
could offer coupons and in-store promotions without
negatively impacting their profits.
What demand and supply conditions prevailed in the U.S. coffee market when
Howard Shultz purchased Starbucks in 1987?
What insight did Shultz have that other players in the coffee market did not?
16. What were the principal drivers behind Starbucks’ success in the marketplace?
What does the Starbucks brand mean to consumers?
How have the growth opportunities that Starbuck has pursued affected the value of
its brand name?
Starbucks owes its success to its employees
Their employees are treated like partners, and their customers like
stars. The payoff is what the Starbucks brand name means to
consumers.
Starbucks has pursued an extensive product line
strategy, creating a variety of products, beyond
simply the coffee beans. Through partnerships, it
now provides coffee flavor and expertise and/or
its brand name to jazz music CDs, frappuccino
beverages, carbonated ready-to-drink (RTD)
coffee, flavored ice creams, and branded coffee
sold through supermarkets.
17. What are the major challenges facing Starbucks as it goes forward?
Increased competition from other retailers with a similar, if not
identical concept
Is the brand advantage sustainable going forward?
Can Starbucks defend its position against other specialty coffee retailers?
Starbucks should be able to defend its position against these other
retailers because of the extensive initiatives it has undertaken to
sustain its brand advantage.
It remains to be seen whether or not its
competitors will ever be able to catch up to
Starbucks, given all of the lead time that
Starbucks, as the market pioneer, has had to
develop its retail mix and form all of these
alliances.
Its product pricing is premium, which is due to the company’s commitment to quality products and a high level of customer service. Its advertising and promotion budget is however, minimal.
Stores, which are spacious so that customers can wander around the store, drinking their coffee and considering the purchase of coffee paraphernalia ranging from coffee to preparation equipment, are typically designed around a planned mix of organic and manufactured components.
Customer service and personal selling are promoted by training new hires to deal with product related customer complaints on the spot without having to check with a manager. They are also trained to customize each espresso drink and to explain the origins of different coffees.
Due to their training, empowerment, benefits, and growth opportunities, Starbucks’ turnover is only 60 percent, considerably less than the 150 to 200 percent turnover at other firms in the food service business.
The average Starbucks customer visits the store 18 times a month, and 10 percent visit twice a day.
Moreover, in terms of distribution, brewed Starbucks is now available at a variety of places including Barnes & Noble bookstores, United Airlines, Sheraton and Westin hotels, and Holland America Cruise Lines, as well as through licensing and joint venture agreements in 15 countries. One may argue that the Starbucks' core image of premium coffee marketer remains consistent across all these product and distribution strategies. However, while the firm could have greater control over the production and distribution of coffee beans, it may have less control when it comes to the brewed product and service available through numerous locations. Consistency of the premium brand image for coffee beans may remain intact, but it is possible that the brew and services available through various outlets may vary widely, potentially causing an adverse impact on the value of the brand name.
The potential major challenges facing Starbucks are increased competition from other retailers with a similar, if not identical concept (New World Coffee, Timothy’s, etc.) and their lack of experience in doing business in a price sensitive market. Starbucks should be able to defend its position against these other retailers because of the extensive initiatives it has undertaken to sustain its brand advantage. In addition to its direct retailing activities, Starbucks has formed distribution alliances with Dreyer’s Grand Ice Cream, Barnes & Noble Booksellers, Capitol Records, Pepsi-Co, and Nordstrom to expand its product and distribution portfolios. It remains to be seen whether or not its competitors will ever be able to catch up to Starbucks, given all of the lead time that Starbucks, as the market pioneer, has had to develop its retail mix and form all of these alliances. The only foreseeable problems that Starbucks may encounter would be due to overall economic conditions. Starbucks has never had to conduct its business during an extended economic recession. The upscale nature of its retail mix might prove to be too upscale for many of its loyal customers should the economy take a downturn.