PowerPoint Presentation

MORE THAN COFFEE

118/29/2013

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History1971 - Starbucks opens first store in Seattles Pike Place Market.1982 - Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars.1987 - Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation. - Total stores : 171990 - Starbucks expands headquarters in Seattle. - Total stores: 841991 - Becomes the first privately owned U.S. company to offer a stock option program that includes part-time employees. - Total stores: 116

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1992 - Completes initial public offering (IPO), with common stock being traded on the NASDAQ National Market under the trading symbol SBUX.- Total stores: 1651993 - Opens roasting plant in Kent, Wash. - Announces first twoforone stock split.- Total stores: 2721994 - Opens first drivethru location.- Total stores: 4251995 - Begins serving Frappuccino blended beverages.- Introduces Starbucks superpremium ice cream.- Announces second twoforone stock split.- Opens roasting facility in York, Pa.- Total stores: 677

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1996 - Begins selling bottled Frappuccino coffee drink through North American Coffee- Partnership (Starbucks and PepsiCola North America).- Opens stores in: Japan (first store outside of North America) and Singapore.- Total stores: 1,0151998 - Extends the Starbucks brand into grocery channels across the U.S.- Launches Starbucks.com.- Opens stores in: England, Malaysia, New Zealand, Taiwan and Thailand.- Total stores: 1,8861999 - Acquires Tazo Tea.- Acquires Hear Music, a San Franciscobased music company.- Announces third twoforone stock split.- Opens stores in: China, Kuwait, Lebanon and South Korea.- Total stores: 2,498

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2000 - Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffee in U.S. and Canada.- Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and United Arab Emirates.- Total stores: 3,5012001 - Introduces ethical coffeesourcing guidelines developed in partnership with Conservation International.- Introduces the Starbucks Card.- Opens stores in: Austria, Scotland, Switzerland and Wales.- Total stores: 4,7092002 - Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland.- Opens stores in: Germany, Greece, Indonesia, Mexico, Oman, Puerto Rico and Spain.- Total stores: 5,886

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2003 - Acquires Seattle Coffee Company, which includes Seattles Best Coffee and Torrefazione Italia coffee.- Opens roasting facilities in Carson Valley, Nev., and Amsterdam, Netherlands.- Opens stores in: Chile, Cyprus, Peru and Turkey.- Total stores: 7,2252004 - Opens first Farmer Support Center in San Jose, Costa Rica.- Releases Ray Charles, Genius Loves Company CD with Concord Records.- Introduces Starbucks Coffee Master Program.- Opens stores in: France and Northern Ireland.- Total stores: 8,5692005 - Acquires Ethos Water.- Announces fifth twoforone stock split.- Opens stores in: Bahamas, Ireland and Jordan.- Total stores: 10,241

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2006 - Launches the industrys first paper beverage cup containing postconsumer recycled fiber.- Opens stores in: Brazil and Egypt.- Total stores: 12,4402007 - Eliminates all artificial trans-fat and makes 2 percent milk the new standard for espresso beverages.- Opens stores in: Denmark, the Netherlands, Romania and Russia.- Total stores: 15,0112008 - Acquires Coffee Equipment Company and its Clover brewing system.- Launches My Starbucks Idea, Starbucks first online community.- Launches Pike Place RoastTM, which quickly becomes Starbucks topselling coffee.- Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic and Portugal.- Total stores: 16,680

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2009 - Launches Starbucks VIA Ready Brew Coffee.- Opens East Africa Farmer Support Center in Kigali, Rwanda.- Launches myStarbucks and Starbucks Card iPhone apps and Starbucks Card Mobile payment.- Opens stores in: Aruba and Poland.- Total stores: 16,6352010 - Expands digital offerings for customers with free unlimited WiFi, Starbucks Digital Network.- Opens stores in: El Salvador, Hungary and Sweden.- Total stores: 16,8582011 - Celebrates 40th anniversary with global community service.- Acquires Evolution Fresh.- Opens stores in: Guatemala.- Total stores: 17,003

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2012 - Introduces Starbucks Blonde Roast.- Announces Verismo system by Starbucks premium singlecup espresso machine.- Opens Farmer Support Center in Manizales, Colombia.- Acquires La Boulange bakery brand to elevate core food offerings.- Launches Starbucks Refreshers beverage platform.- Opens stores in: Costa Rica, Curacao, Finland, Morocco and Norway.- Total stores: 17,651Present- Total stores : 20,891 stores (62 countries)

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Mission Statements To inspire and nurture the human spirit one person, one cup and one neighborhood at a time.CoffeePartnersCustomersNeighborhoodsStoresShareholders13Brands

Tazo TeaFounded in 1994Offering finest botanicals and teas from all over the world.Seattles Best CoffeeFounded in 1970Offering great cup of coffee every day, no matter where they are (lower price compare to Starbucks)

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Evolution FreshFounded in 1992Offering retail stores offer juices and foods that are alive with freshpicked flavor and bursting with bright color and vibrant, pure taste

La Boulange Founded in 1999Offering skillfully crafted authentic French pastries and breads made from scratch using high-quality, fresh ingredients

15Brands

TeavanaFounded in 1997Offering new tea enthusiasts like its Heaven of Tea customers are introduced to the aromas, textures, and beneficial qualities of super-premium.

16Corporate Social Responsibility

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Corporate Social Responsibility18

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Corporate Social Responsibility20Corporate Social Responsibility

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Target CustomersYoung generation who want to gather with friends.Office staff and students who need to catch up with task schedule.Coffee lovers who have passion on coffee.Adventurous person who willing to try new thingsMarket StructureMonopolistic Competition CompetitorsDunkins DonutsCosta CoffeeCoffee BeanMcCafeLavazzaDifferentiation25Marketing StrategiesSocietal Marketing ConceptEthical sourcing Using paper cup Other green campaignMain Concept of StarbucksCreate Value to the companyDifferentiationProducts Customer experience Brand valueProduct StrategiesIntroduction of various new productsProduct with flexible drink options such as extra cream, caramel syrup etc.Tea Tazo , Teavana and La Boulange

Pricing StrategiesStarbucks has offered a wide range of products that vary in price.Starbuck Higher priceSeattle's Best Coffee Lower priceDiversificationBrand diversification expand into a new segment of an industry to stimulate new market not only in premium coffee26Marketing StrategiesPromotionsActive participation on Website, televisions advertisements, and email marketingDaily Deal sites such as Groupon and LivingSocialCustomer Experience StrategyThe customer satisfaction is the key success of StarbucksFrom the starting point of ingredient to serving to customers handService minds and friendly environmentLocation StrategiesThousands of its stores worldwide to reach its target customers and eliminating its competitorsHigh visibility, high traffic and convenient location Stores located on the driver side in USA or on corners, shopping malls, bar districts and populated business towersLoyalty ProgramsStarbucks Loyalty Card The Starbucks Card or the Duetto Visa Card 27Marketing StrategiesKnowledge Based Management StrategyPublishing a booklet for coffee syntaxHorizontal IntegrationThe acquisition of Tazo Tea Company Seattles Best Coffee and Torreazione Italia CoffeeThe Company will open about 1300 stores world-wide in fiscal 2013 Vertical IngrationOwn coffee bean roasting centersRecycle centerPartnershipUsing Seattle Best Coffee to provide products to new market segmentation through Burger King. Burger King and Seattle Best Coffee (as subsidiaries of Starbuck)Joining Google in order to provide free internet access service for customers inside the store28Key SuccessProduct QualityThird Place To GoCustomer SatisfactionStarbucks CommunitySocial ResponsibilityInnovationAdvertising

29RewardsNo. 1 Best Coffee, Fast Food and Quick Refreshment categoriesZagats Survey of National Chain Restaurants 20092011No. 1 Most Popular Quick Refreshment ChainZagats Survey of National Chain Restaurants 20092011One of The 100 Best Companies to Work ForFortune 19982000, 20022012One of the Most Admired Companies in AmericaFortune 20032012One of the Worlds 50 Most Innovative CompaniesFast Company 2012One of the Worlds Most Ethical CompaniesEthisphere 20072012One of the 100 Best Corporate CitizensCorporate Responsibility/Business Ethics 20002012Sustainability Design AwardGlobal Green USA 2011Most Ethical Company, European Coffee IndustryAllegra Strategies 20092011Business Person of the Year, Howard Schultz, Starbucks chairman, president and chief executive officerFortune 201130million in fiscal 2011

Business PerformanceTotal net revenues (increased)increased 14% to $13.3 billion in fiscal 2012 compared to $11.7 billion in fiscal 2011Consolidated operating income (increased) was $2.0 billion in fiscal 2012 compared to $1.7 billion in fiscal 2011 and operating margin increased to 15.0% compared to 14.8% in fiscal 2011EPS (decreased) for fiscal 2012 was $1.79, compared to EPS of $1.62 reported in fiscal 2011Cash flow from operations (increased)was $1.8 billion in fiscal 2012 compared to $1.6 billion in fiscal 2011Capital expenditures (increased)were approximately $856 million in fiscal 2012 compared to $532 31STARBUCKSs Main Competitors

Starbucks celebrate their first ranks in global largest coffee chain brands with highest countries expansion, number of stores and Revenue. Number of countries and number of store might related to the huge sale volume of Starbucks compare to Dunkin Donuts, Costa Coffee and The Coffee Bean. 1st Starbucks2nd Dunkin Donuts3rd Costa Coffee4th The Coffee Bean32STARBUCKS VS DUNKIN DONUTS

Comparing the largest global coffee chain as following rank1st Starbucks2nd Dunkin Donuts Starbucks revenue, operating income and EPS much more than Dunkin Donuts and increasing by years passing.The cause may from the expansion of the stores.33Future PlanFiscal 2013 Targets:We expect moderate revenue growth driven by mid-single-digit increased comparable store sales, new store openings and strong growth in the Channel Development business. Licensed stores will comprise more than half of new store openings.We expect continued robust consolidated operating margin and EPS improvement compared to fiscal 2012,reflecting the strength of our global business and the pipeline of profitable growth initiatives. Full year earnings per share in the range of $2.22 to $2.23We expect increased capital expenditures in fiscal 2013 compared to fiscal 2012, reflecting additional investments in store renovations, new store growth and manufacturing capacity.Fiscal 2014 Targets: Revenue growth of approximately 10% to 13% Mid single digit comparable store sales growth An additional 1,400 net new stores: Americas: approximately 600 EMEA (Europe, Middle East, and Africa): approximately 100 CAP (China / Asia Pacific): accelerating to 700 Earnings per share in the range of $2.55 to $2.65 representing growth of 18% to 22%34Future PlanWhile expanding worldwide, they must pay very big attention on many factors as weather, location, traditions, religion, politics and etc.Make more presentations about their quality of coffee beans and service, and let people free test of new products.They can diversify their business in snacks and juices.Expand more project on ethical sourcing35

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