Starbucks Marketing Project

2. Anisa Vrenozi
Eva Doda
Joxhina Rakipaj
Vasil Dajko

3. STARBUCKS
Creation of Starbucks:
From little beans big things grew
1971- Origins
Howard Schultz

4. • Company Profile
• Location and stores
• Products
• SBU
• Employees
STARBUCKS

5. Company Profile
16,000 locations in over 50 countries.
Total stores 16,706
8,850 Company-operated stores.
7,856 Licensed stores.
Operating in more than 50 countries
Starbucks Mission:“Establish Starbucks as the
premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles
while we grow .”
Coffee

6. Company Profile
• Products
Coffee, Handcrafted Beverages, Merchandise, Fresh
Food, Consumer Products, Brand Portfolio
• Strategic Business Units
 STARS : COFFEE PRODUCTS, SOLD AS RETAIL
 CASH COWS: COFFEEHOUSES STARBUCKS
 DOGS: OTHER MERCHANDISE
 QUESTION MARKS: HOME PRODUCTS/BISTROS AND
RESTAURANTS
• Employee are Starbucks’ best partners

7. STARBUCKS
Mission Statement
“Establish Starbucks as the premier
purveyor of the finest coffee in the
world while maintaining our
uncompromising principles while
we grow .”

8. STARBUCKS
• Provide a great work environment and treat
each other with respect and dignity.
• Embrace diversity as an essential component
in the way we do business.
• Apply the highest standards of excellence to
the purchasing, roasting and fresh delivery of
our coffee.

9. STARBUCKS
• Develop enthusiastically satisfied customers all
of the time.
• Contribute positively to our communities and
our environment.
• Recognize that profitability is essential to our
future success.
Starbucks is committed to a role of environmental
leadership in all facets of our business.

10. STARBUCKS
Marketing Environment
• Microenvironment
–Suppliers
–Distributors/Intermediaries
–Competitors
–Customers/Consumers
STARBUCKS

11. Suppliers
 Farms in Latin America, Africa and Asia to select
the highest quality Arabica beans
Distributors/Intermediaries
 Distributed by Kraft
 Sold in Marriot, airlines, website and even bookshops
like Waterstones
STARBUCKS

12. STARBUCKS
Main Competitors
– Caribou Coffee
– Costa Coffee
– Coffee Republic
– Nestle
Customers/Consumers
- First the Generation X
- Actually, Starbucks' Target Market: Starbucks'
target market is any person and any age

13. STARBUCKS
•Macroenvironment
(Only factors required by the study case)
• Globalization movements
• Population trends-Ageing Population
• Health Concerns

14. STARBUCKS’ BCG MATRIX

15. Starbucks SWOT Analysis
Strengths
Weaknesses
Profitable organization with an
amazing annual profit of $600 million.
Global coffee brand name with
reputation for excellent products and
services.
The company is a respected employer
that values its workforce. (Mission)
Strong ethical principles reflected in
the mission statement as well.
The main competitive advantage
of Starbucks is its coffee.
Lose the focus while spreading
worldwide.
Inability to adapt with the rapid
changes in the market environment
 Innovation may weaken with the
passing of time.
Opportunities Threats
Opportunity to spread out its
international operations.
New products and services can be
designed and sold in their own
coffeehouses.
Co-branding with other companies o
such as PepsiCo and Kraft, with which
Market entry of many competitors
and “copy cat” brands that create
possible threats of diminishing
Starbucks’ market share.
The possibility that another brand of
drink or free time activity will
substitute coffee in the prospect.

16. STARBUCKS
Growth Strategies:
-More Store Growth
-New Retail Channels
-New Products & Store Concepts
-International Growth

17. More Store Growth
Opening new Stores at a rapid pace
Not concerned about Store
Saturation
Expanding Store’s Food Offering
STARBUCKS

18. STARBUCKS
New Retail Channels
New Distributors and Intermediaries
Selling in supermarket aisles
Marriot, Sheraton and airlines
Waterstones bookshop stores
Consumers Catalogues
Website selling: Starbucks.com

19. STARBUCKS
New Products & Store Concepts
New Products
Extend the brand in new categories
PepsiCo & Breyer’s
New Store Concepts
Café Starbucks/Circadia

20. STARBUCKS
International Growth
1996 11 coffeehouses outside
North America
2003 24 international markets, 1000
in Asia and 600 in Europe
2005 Latin and South America,
plan to build 900 stores

21. Starbucks’ 4PS
Product Place Price Promotion
Variety
Quality
Design
Brand Name
Packaging
Services
Advertising
Promotion
Publicity
List Price
Discounts
Channels
Coverage
Locations
Transport

22. STARBUCKS vs. McDonalds
Differences in :
 Market segments
 Growth and Expanding Strategies

24. Recommendations
• Should be concerned about:
– Immense and high pace growth
– Price confronted with Quality

25. THANK
YOU!