Starbucks began in 1971 in Seattle as a small coffee bean roaster and retailer. It has since grown to over 30,000 stores globally, making it the largest coffeehouse company in the world. Starbucks aims to be more than just a coffee seller, but a place to gather with others and feel a sense of community. The company's success is largely due to its adaptation to local cultures while maintaining a consistent brand image. Going forward, Starbucks continues to focus on global expansion, new product innovation, and social responsibility initiatives.
Starbucks History, Products and Marketing Strategies
1. STARBUCKS
CHARLES BONGRAIN - CAMILLE LESAGE
FREDERIC MONTOIR – XXX XXX
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
2. CONTENT
I. HISTORY OF STARBUCKS
I I . STARBUCKS CUSTOMERS
I I I . STARBUCKS IN THE W ORLD
I V . SW OT ANALYSIS
V . MARKETING MIX
V I . STARBUCKS IN KOREA
V I I . CONCLUSION
6. 58 years old
Grew up poor
His father had a hard life
Excelled at sports and won an
athletics scholarship
Graduated in Business &
Marketing
Joined Starbucks Company in
1982 as Diector of Marketing
HOWARD SCHULTZ – CEO OF STARBUCKS
7. 1983 he went on a trip in Milan:
Coffee bars existed on
every street
200.000 in the country
Served as meeting places
His idea: bring the Italian
coffeehouse tradition back to
the United States
The pilot coffee concept was
successful but the owners
refused to develop the concept
HOWARD SCHULTZ – VISION OF A CEO
8. 1985: Started his own coffeehouse: Il Giornale Coffee
1987: purchased Starbucks Coffee (6 stores)
Renamed Il Giornale Coffee with the Starbucks name
Expended aggressively first across the United States
and then around the world
HOWARD SCHULTZ – VISION OF A CEO
10. 2008: regained his status as a CEO of Starbucks
Co-authored: “Pour Your Heart Into It”
“Starbucks may become another soulless big chain”
HOWARD SCHULTZ – HIS FEAR
11. 2009:
616 US Starbucks Coffee closed
1/3 of the headquarters employees were fired
2000 jobs lost
TOO MANY STORES…TOO EXPENSIVE
14. 1st ROASTER AND
RETAILER
50 COUNTRIES
15.000+ STORES
STARBUCKS TODAY
15.
16. 18-45 year olds
Youngsters who want to gather with their friends
Office workers and students who need to catch up with
their work
Those who feel that drinking coffee is "cool"
People who are adventurous, willing to try new things
TARGET
17.
18. Egypt
South Africa
2 / 52 - (4%)
STARBUCKS IN AFRICA
19. EAST ASIA NORTHEN ASIA
• China • Russia
• Hong Kong
• Macau WESTERN ASIA
• Japan • Armenia
• South Korea • Barhain
• Taiwan • Cyprus
• Jordan
SOUTH EAST ASIA • Lebanon
• Indonesia • Kuwait
• Malaysia • Oman
• Philippines • Quatar
• Singapore • Saudi Arabia
• Thailand • Turkey
23 / 44 - (52%)
• United Arab Emirates
STARBUCKS IN ASIA
20. NORTH AMERICA (100%)
• Canada
• USA
• Mexico
• Puerto Rico
CENTRAL AMERICA (3/52 - 14%)
• Aruba
• Bahamas
• El Salvador
• SOUTH AMERICA (4/10 - 40%)
• Argentina
• Brazil
• Chile
• Peru
STARBUCKS IN THE AMERICAS
21. • Austria • Ireland
• Belgium • Netherlands
• Bulgaria • Poland
• Czech Republic • Portugal
• Denmark • Romania
• France • Spain
• Germany • Sweden
18 / 37 – (49%) • Greece • Switzerland
• Hungary • UK
STARBUCKS IN THE EUROPE
22. Australia
New Zealand
2 / 9 – (22%)
STARBUCKS IN OCEANIA
23. Names are translated into local languages
• South Korea: 스타벅스 (transliteration: seutabeokseu)
• Arabic-speaking countries: (transliteration: stārbaks)
• Bulgaria: Старбъкс (transliteration: Starbâks)
AN ADAPTATION STRATEGY
25. Adapting to their markets
• Products launched in limited international
markets.
• Sold in supermarkets and convenience stores
AN ADAPTATION STRATEGY
26. 2003: Starbucks closed all six of its locations in Israel
due to difficult business environment
2007: closed its store in Beijing's Forbidden City
2008: closed 61 of its 84 stores in Australia: Starbucks
failed to truly understand Australia’s cafe culture.
STARBUCKS FAILURES
27. “The Forbidden City is a symbol of China’s cultural
heritage. Starbucks is a symbol of lower middle class
culture in the West. We need to embrace the world but
we also need to preserve our cultural identity.There is a
fine line between globalization and contamination. But
please don’t interprete this as an act of nationalism. It is
just about us Chinese people respecting ourselves. I
actually like drinking Starbucks coffee. I am just against
having one in the Forbidden City”.
STARBUCKS FAILURES – ONLINE PETITIONS
28.
29. Product diversification
Established logo, developed
brand, copyrights, trademarks, website and patents
Company operated retail stores
International presence
Valued and motivated employees, good working
environment
STRENGHTS (1/2)
30. Good relationships with
suppliers
Industry market leader
Customer loyalty
Wide spread and consistent
Knowledge based
Strong Board
Trendy brand image
Strong financial foundation
STRENGHTS (2/2)
31. Lack of internal focus (too much focused on
expansion)
Cross functional management
Product pricing is high
WEAKNESSES
32. Competition (restaurants, street
carts, supermarkets, other coffee shops, other
caffeine based products)
Market saturation
Coffee price volatility in developing countries
Negative publicity from poorly treated farmers in
supplying countries
THREATS (1/2)
33. Consumer trends toward more healthy ways and
away from sweet coffee beverages and cakes
Cultural and Political issues in foreign countries
THREATS (2/2)
34. Expansion into retail
operations
Technological advances
New distribution channels
(delivery)
New products
Distribution agreements
Brand extension
Emerging international
markets
Continued domestic
expansion/domination of
segment
OPPORTUNITIES
35.
36. Width
• Espresso beverages
Caffe latte, Caffe Mocha, Caramel machiato…
Iced caffe Latte, Iced vanilla Latte…
• Frapuccino
Coffee base, cream base and tea base Depth
Lenght • Coffee and tea
Hot chocolate, soya milk, tea
• Food
Cookies, muffins, salads, sandwiches, coffee
bags…
• Equipment: mugs, coffee machines…
STARBUCK’S PRODUCT RANGE
37. COMPARATIVE VALUES OF STARBUCKS’ CAFFE LATTE
Price of a tall caffe Price of lunch in the
Towns & countries
Latte (€ and won) neighbourhood
3,70€ 14€
Paris, France 5880 KRW 22240 KRW
2,85€ 5,70€
Dubai, UAE
4530 KRW 9050 KRW
Seoul, South 2,40€ 3,15€
Korea 3800 KRW 5000 KRW
PRICE
38. Warmth, Comfort, Diversity
A place of quiet contemplation
Some kind of neighbourhood office
A gathering place for neighbours and friends
PLACE: A PLACE FOR AMBIENCE & EXPERIENCE
39. Friendly baristas Customized beverages
PLACE: A PLACE FOR AMBIENCE & EXPERIENCE
48. Environmental impact
Creating “Grounds for
your Garden”
Using recycled materials:
ranked 15 on the
U.S. Environmental
Protection Agency’s list of
Top 25 Green Power
Partners
PROMOTION: COMMITMENT TO THE WORLD
49. Fair trade
Largest buyer of Certified Fair Trade coffee in North
America (10% of the global market)
Starbucks has given the FTC label greater visibility,
helping to raise consumer awareness in the process.
Payes above market prices for all of its coffee
Opens farmer support centers in Africa
PROMOTION: COMMITMENT TO THE WORLD
51. Ethos water
Ethos bottles feature prominent
labeling stating "helping
children get clean water”
$.05 from each $1.80 bottle sold is
used to fund clean water projects in
under-developed areas.
Sales have raised over $6,200,000
PROMOTION: COMMITMENT TO THE WORLD
52. Product (red)
Raise awareness and funds to help eliminate AIDS in
Africa.
Starbucks’ Red products and Red card:
PROMOTION: COMMITMENT TO THE WORLD
68. Number of stores 529 339
Sales
102,256 242,133
(million won)
Net profit
11,225(14.8%) 16,853(9.3%)
(million wons)
Management 100% Direct mgmt Mostly franchise
Menu Focus on beverage Focus on dessert
CAFFE BENE AND STARBUCKS’S STRATEGIES
69.
70. Global company
Howard Schultz: Geocentric Orientation
Adaptation Strategy
Globally Successful
Future Oriented
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE