MORE THAN COFFEE 1

Presented By

GROUP# 6

Mahmoud Reza Karimkhaninejad

Hesam Kashani Amin

Hanieh Heidari

Ahmad Reza Tavasoli

Fall 92

About Starbucks

Established in 1971 at Seattle, Washington

Famous for its quality fresh-roasted coffee

Beans and stylish atmosphere.

Over 20,000 stores worldwide

Product lines include :

• − beverages (coffee, Tazo tea, soda, juices)

• − pastries

• − whole coffee beans

• − coffee-related hardware and equipment

• − merchandise (mug, CDs)

Starbucks Logo

Starbucks Today

Number of Starbucks’ stores world wide

Starbucks around the Globe

Starbucks Sales & Revenue

“ Establish Starbucks as the

premier purveyor of the finest coffee in the world while

maintaining our

uncompromising principles while we grow.”

“ Starbucks is committed to a

role of environmental leadership in all facets of

our business.”

Building a Company with Soul.

Opposing Franchising because of

Quality Control and

Culture.

Only selling coffee beans

without artificial flavors.

Satisfy customers

by all means.

Employees’ contribution

and involvement

in making Starbucks a

better acompany.

Starbucks GoalsSTARBUCKS MORE THAN COFFEE

Pricing Strategy

Customer Experience

Strategy

Societal Marketing Concept

Loyalty Programs

Promotion Strategy

Place StrategyProduct Strategy

Marketing Strategies

Product Strategies

• Introduction of various new products

• Product with flexible drink options such as extra cream,

caramel

• Co-Branding with Tea Tazo , Teavana and La Boulange …

Pricing Strategies• Starbucks has offered a wide range of products that vary in

price

• Starbuck – Higher price

• Seattle's’ Best Coffee – Lower price

Promotions Strategies• Active participation on Website, televisions advertisements,

and email marketing• Daily Deal” sites such as Groupon and LivingSocial

Location Strategies

• Reach its target customers and eliminating its competitors

• High visibility, high traffic and convenient location

• Stores located on the corners, shopping malls, bar districts

and populated business towers

• Based on target culture

Societal Marketing Concept

• Ethical sourcing

• Using paper cup

• Other green campaign

• Main Concept of Starbucks

• Create Value to the company

Customer Experience Strategy• The customer satisfaction is the key success of Starbucks

• From the starting point of ingredient to serving to customers

hand

• Service minds and friendly environment

Loyalty Programs

• Starbucks Loyalty Card

• The Starbucks Card or

the Duetto Visa Card

Key Success

Product QualityThird Place

To Go

Customer Satisfaction

Starbucks Community

Social Responsibility

Innovation

Advertising

SWOT Analysis

Strength• market leader in the coffee Market.

• Customers satisfaction

• High brand equity

• Operating in 70 countries

• Huge number of employees

Opportunity• Entry into Asian market like Pakistan, India

and Bangladesh.

• Market penetration in International

• Co-branding with other manufactures.

• Whole bean sales in supermarkets like.

Weakness

• Higher prices

• High operating cost

• The business profits are highly

dependent on coffee product

Threats:• competitors increasing

• Variation in coffee prices

• People become more health conscious·

• Labor Unions issues

• resistance in international countries over

cultural and political issues.

• Rapid grow

Revenue Dropping in 2009

Strategy Adjustment

Stores Reduction

Places Improvement

Product diversification

Promotion Increasing

Co-branding Re-branding

Recommendation

More penetration in Asian market

Increasing costumer equity by develop Of Rebranding

Reducing product’s cost

Co-branding with potential related Business

1.How Starbucks initially segmented and targeted the coffee market.

2.What changed first—the Starbucks customer or the Starbucks Experience?

3.How is Starbucks now segmenting and targeting the coffee market?

Will Starbucks ever

return to the

revenue and profit

growth that it once

enjoyed?! Why or

why not ?!

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE