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.

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

4. MOBY DICK
STARBUCKS NAME

5. BALDWIN – BOWKER – SIEGL
SEATTLE, 1971 - FIRST STARBUCKS

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

9. HOWARD SCHULTZ – HIS PHILOSOPHY

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

12. 2011 - STARBUCKS NEW LOGO

13. HOWARD SCHULTZ – THE NEW LOGO

14. 1st ROASTER AND
RETAILER
50 COUNTRIES
15.000+ STORES
STARBUCKS TODAY

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

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

24. Adapting their products
•Different muffin flavours, different cheesecakes
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

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

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

40. STARBUCKS DOUBLE SHOT ESPRESSO
PROMOTION: ADVERTISING

41. STARBUCKS FRAPUCCIONO COFFEE DRINK
Staring Michael Bublé
PROMOTION: ADVERTISING

42. STARBUCKS IN MOVIES
The devil wears Prada
PROMOTION: PRODUCT PLACEMENT

43. STARBUCKS IN MOVIES
Meet The Fockers 4
PROMOTION: PRODUCT PLACEMENT

44. STARBUCKS IN MOVIES
Fight Club
PROMOTION: PRODUCT PLACEMENT

45. PROMOTION: DIRECT MARKETING

46. SNS

47. SNS

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

50. 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

53. Helping countries after natural disasters
PROMOTION: COMMITMENT TO THE WORLD

55. Starbucks entered the Korean market
in 1999
STARBUCKS IN KOREA

56. AMERICAN COMPANY
DUNKIN DONUTS

57. AMERICAN COMPANY
THE COFFEE BEAN AND TEA LEAF

58. ITALIAN COMPANY
CAFFEE PASCUCCI

59. KOREAN COMPANY
CAFFE BENE

60. KOREAN COMPANY
ANGEL-IN-US COFFEE

61. KOREAN COMPANY
SEVEN MONKEYS COFFEE

62. KOREAN COMPANY
EDIYA COFFEE

63. KOREAN COMPANY
HOLLYS COFFEE

64. KOREAN COMPANY
TOM N TOM COFFEE

65. 600
500
400
300
200
100
0
Caffebene Ediya Angel-in-us Starbucks
NUMBER OF STORES IN KOREA

66. Caffe Mocha or
Size(ml) Americano Caffe Latte
mocha latte
Short(237) 2800 3300 3800
Starbucks Tall(335) 3300 3800 4300
Grande(473) 3800 4300 4800
Small(335) 4000 4500 5000
Coffee bean
Regular(473) 4500 5000 5500
Small(335) 3300 3800 4500
Angel-in-us
Regular(473) 3800 4300 5000
Caffebene 4000 4500 5000
Pascucci Short(260) 3800 4000 4500
Seven monkeys Regular 3500 4000 4500
Ediya Regular 2500 2800 3000
Small(335) 3200 3700 4200
Hollys
Regular(473) 3700 4200 4700
Dunkin donuts Small(300) 2000 2500 2500
Tall(335) 3300 3800 4100
Tom n toms
Large(473) 3700 4100 4600
PRICE COMPARAISONS

67. Prices per 100ml (won)
Americano Caffe latte Caffe mocha
Pascucci 1461.54 1538.46 1730.77
Coffee bean 951.37 1057.08 1162.79
Starbucks 803.38 909.09 1014.80
Angel-in-us 803.38 909.09 1057.08
Tom n Toms 782.24 866.81 972.52
Hollys 782.24 887.95 993.66
Dunkin Donuts 666.67 833.33 833.33
PRICE COMPARAISONS

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

70. Global company
Howard Schultz: Geocentric Orientation
Adaptation Strategy
Globally Successful
Future Oriented
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

71. STARBUCKS TODAY