This presentation is made to do market research and identify business opportunities for Starbucks in Africa. Sample data is used only from Ghana but recommendation can be used to explore opportunities in other African countries as well.

1. STARBUCKS IN GHANA
ALOK SINGH

2. AGENDA
BUSINESS OVERVIEW & INTERNATIONAL ENTRIES
COFFEE & TEA MARKET
GHANIAN MARKET
STARBUCKS @ GHANA STRATEGY

3. AGENDA
BUSINESS OVERVIEW & INTERNATIONAL ENTRIES
COFFEE & TEA MARKET
GHANIAN MARKET
STARBUCKS @ GHANA STRATEGY

4. BUSINESS OVERVIEW
• Limited Service Café
• 20,000 restaurants across 65 countries around the world. It employs more
than 191,000 people.
• Brands
• Starbucks
• Teavana
• Seattle’s Best Coffee
• Evolution Fresh

5. REVENUE SOURCES
• Company-Operated Restaurants
• CPG, Foodservice
• Licensed Stores

6. 7 GROWTH STRATEGIES
1. Be the employer of choice
2. Lead the coffee
3. Grow the store portfolio
4. Create new occasions
5. CPG Brand Growth
6. Build Teavana
7. Extend Digital Engagement

7. INTERESTING INTERNATIONAL ENTRY
• International Entry through Acquisitions (South Korea, Lebanon), Ethical coffee
International Programs (France, Austria, Swiss), Local benefitting programs
(Jordan)
• South Africa, 2016
• Huge success in China. Created a market for coffee opened 548 shops.
http://www.tradeready.ca/2015/trade-takeaways/4-lessons-learned-famous-market-entry-succe

8. BUSINESS OVERVIEW & INTERNATIONAL ENTRIES
COFFEE & TEA MARKET
GHANIAN MARKET
STARBUCKS @ GHANA STRATEGY

9. CAFÉ KWAE
A TEMPLATE FOR SUCCESS
Café Kwae has seen success in providing Ghanaians a
casual place to gather with friends over food and coffee.
“I’m waiting for Starbucks to come any day now. I don’t
think Ghanaians are coffee drinkers per say but I think we
like things that revolve around food. Most of our social
interactions happen around food. A coffee shop is another
casual way for people to get together.” – Yvettte Ansah -
Owner, Café Kwae

10. COFFEE CONSUMPTION
Ghana South Africa

11. COFFEE CONSUMPTION (CONT'D)
• Growth rate of coffee consumption in
Africa is nearly double that of the global
average
• Africa is the 2nd fastest area of growth
in the world
• Ghana's per capita consumption was
significantly higher in the mid-1990's
compared to today

12. COFFEE PRICE TREND
• Average monthly price was down $0.03/lb in May 2016 compared to May 2015
• Prices can vary day-to-day, behaving almost like the stock market

13. TEA CONSUMPTION
• Production growing
faster than
consumption
• Expect prices to decline
due to excess supply
• Creates environment
that is advantageous to
buyers

14. TEA PRICE TREND
As expected, prices have been declining in part due to production growing
faster than consumption

15. BUSINESS OVERVIEW & INTERNATIONAL ENTRIES
COFFEE & TEA MARKET
GHANIAN MARKET
STARBUCKS @ GHANA STRATEGY

16. POLITICAL ENVIRONMENT
• Constitutional Democracy and politically Stable.
• Active member of UN and Economic Community of West African States.
• Corruption is the major problem.
• Ranks 56th in terms of CPI (Corruption Perception Index). Still better than major
African Countries, including South Africa.
• Government Initiatives to reduce corruption practices.
• Africa’s most peaceful country. Ranks 40th in the world in terms of Global Piece
Index(GPI).

17. ECONOMY
• One of the fastest growing economy in the world.
• Average GDP growth 7.5 in last 10 years.
• Expected to grow 6-9% in future.

18. ECONOMY (CONT’D)

19. DEMOGRAPHICS
0 10 20 30 40 50 60 70 80 90
Population
Literacy
Employment
Female Male
Average Household Size - 4
Overall Literacy Rate – 56.3%
Employment – 77% (Adults)

20. PEOPLE

21. BUSINESS OVERVIEW & INTERNATIONAL ENTRIES
COFFEE & TEA MARKET
GHANIAN MARKET
STARBUCKS @ GHANA STRATEGY

22. CHARACTERISTICS MOVING INTO GHANA
• Good demographics (growing dense urban young population)
• Strong economic factors (low unemployment, good GDP growth, PPP
• Infrastructure good for that region (High Cellular Phone Usage, Roads and Rail)
• Government making business easier (Ghana Investment Promotion Center)
• Some Risks (High Inflation, low wealth, frontier economy)

23. CHARACTERISTIC FOR STARBUCK'S EXPANSION
• New Organizational Structure
• Strong Cash Flow
• Success in South Africa
• Growing global footprint

24. STRATEGY
• Location
• Store Design
• Products
• Acquistion
• Marketing

25. QUESTIONS??