ADV492 Final Presentation

1. STARBUCKS
HOYEON CHUNG
A42050055

2. History of Starbucks
• Founded by partners: Jerry Baldwin,
Gordon Bowker, Zev Siegl
• Starbucks first store opens in
Seattle’s Pike Place Market on March
30,1971.
• The name Starbucks was inspired by
Moby Dick.
• Inspired by entrepreneur Alfred Peet
who was inspired to sell high
quality coffee.

3. Company Overview
• 16,858 stores in 50 countries including
Over 11,000 in United States,
Over 1000 in Canada, and
Over 700 in United Kingdom
• As of 2010, Starbucks had
approximately 137,000 total
employees working at their
establishments.

4. Objectives & Challenges
• Objective : To Establish Starbucks as
the most recognized and respected
brand in the World
- Increasing the net profit margin
- Attracting more various market
segments by increasing
differentiations.
• Challenges:
– Amount of stores closure
– Competing with major competitors;
McDonald’s, Dunkin Donuts, Nestle

5. Campaign 1- YouTube
• Millions of people can watch YouTube
at the same time. People can be
exposed over millions of videos.
– It is costless
– High exposure rate
– Word-of-Mouth (WOM)
http://www.youtube.com/user/starbucks?blend=

6. Campaign – Blog
• Blog is one of the most effective ways
to promote new products and services
on the Internet today.
- It provides various information
- It is enable to upload images
- Easy way to communicate with
consumers

7. Campaign 3 – Google Adwords
- Enable to compare the results of
making bid adjustments on your
keywords with competitors.
- Enable to break down ad groups
structure into a more finely-tuned themes.
-> Help to determine specific target
audiences
-Free Tracking Tools allow to see the
click through rates for all ads
-> able to see where should allocate
the budget

8. SWOT
Strength:
- Product Diversification
-High visibility location to attract
customer
-Good relationship with suppliers
-Industry market leader
-Wide spread and consistency
Weakness:
-Cross function management
-Product pricing (Expensive)
-Lack of internal focus (too much
focus on expansion)
-High operation cost
Opportunity:
-Expansion into retail
operations
-Brand extension
-New products and services
-Co-branding with other food &
service manufacturers
-Brand franching
Threats:
-Too much strong competitors
-U.S. market saturation
-Political & cultural issues in
foreign country
-Consumer trends toward more
healthy way

9. Timeline

10. Budget Allocation
• Revenues were $10.7 Billion for the fiscal year ending
September, 2010.
• Comparable sales and profits during the fiscal year
ending September, 2010 increased at a higher rate
than the previous sales during the fiscal year ending
September, 2009 as a result of increased sales of
products, promotions, and developments of new
locations.
• The growth in total revenues for the fiscal year
ended September, 2010, as compared to the prior
year, was primarily due to the company achieving
a growth of 13.3% in operating revenues.
• During the year, Starbucks opened 13 in the US
and 97 Internationally and closed 70 in the US
and 112 Internationally while still turning a
staggering growth which helped grow its total
revenues to a record breaking amount of 10.7
Billion