starbucks an example of improvement and brand quality

3. Team Members
Ishtiaq Bhatti
Roll # 17
Qasim Shah
Roll # 21
Farhan
Mehmood
Roll # 31
Sahl khan
Roll # 86
Aamir Rao
Roll # 114
Annan Akbar
Roll # 44

5. Starbucks
10/31/2011

6. Table of Contents
• Introduction: Then and Now
• Mission Statement
• Product line
• Advertisement
• Promotional activities
• Packaging
• Competitors
• Success factors
• Positioning
• Downfall
• Scope
• Action Plan & Recommendations
• Conclusion

7. Then…
• First Starbucks opened in Seattle Washington
• March 30, 1971
• Jerry Baldwin-English Teacher
• Gordon Bowker-Writer
• Zev Siegh – History Teacher

8. Then…
• Entrepreneur Howard Schultz joined the company
in 1982
• Director of Retail Operations and Marketing
• Idea of selling beverages

9. Then…
• April, 1984 first store to sell beverages was opened
• Served 400 customers – over the 250 customer
average at their best store
• II Giornale Acquires Starbucks
• Howard Schultz – Starbuck’s President and CEO

10. Now…
• World's premier roaster and retailer of specialty
coffee
• 14,432 company-owned stores
• 9,336 licensed stores in more than 50 countries

11. Now…
• Annual sales of about $10 billion as of April 2010
• Sell : beverages, pastries, whole bean coffee,
ground coffee, and coffee-related products

12. Mission Statement
1990 – October 2008
• Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles as we grow.

13. Logo changing

16. • More than 30 blends and single-origin premium
coffees
• Whole Been & ground
• Starbucks reserves coffee
• Verismo pods
• Starbucks K-cup pods
• Starbucks VIA Instant coffee

17. • entered the tea business in 1999
• acquired the Tazo brand
In late 2012, Starbucks paid US$620 million to
buy Teavana
• 2015, Starbucks began to roll out Teavana teas
into Starbucks stores

18. Fresh Food items
• Muffins
• Salad
• Sandwich
• Cake
• Fruit cups
• Oatmeal
• Cookies (etc)

19. • Coffee & tea Equipment
• Mugs
• Packed goods
• Music
• Books
• Gift items

20. Advertising and Media Analysis
20

21. Starbucks Advertising
 Starbucks company chooses to focus on the
customers in-store experience
 In-store experience will be more effective than
having advertisements and commercials for
Starbucks via mass media
 Stores as another home to the consumer
 This is done by providing a comfortable chairs for
the customers to relax in, relaxing music, and
laptops area
21

22. Starbucks Advertising
 Starbucks depends on word-of-mouth advertising through
this “third home” which had proved greater success
than actual commercials
Providing quality products and services
 Starbucks has a slogan “Uniquely Starbucks”
The uniqueness of customers experience at Starbucks results
in the word-of-mouth advertising with their customers
22

23. Starbucks Advertisements
 Starbucks creates advertisements with a unique
content
 With large and bold headlines promoting the brands
qualities
 The ad’s which Starbucks had placed in newspapers
explain how Starbucks chooses only the best 3 percent
of beans for their coffee
 The ad’s also emphasize how they roast the beans
until they pop twice to ensure quality taste
23

24. Starbucks Advertising
 The few commercials which Starbucks had created
were quite successful
 One commercial featured a character drinking a double
shot drink in the morning before going to work
 The band “Survivor” is in the background singing
“Eye of the Tiger” while character is drinking
 Another commercial has a character named “Stacey”
who takes a break at work to drink a Frappuccino
beverage
24

25. Starbucks Advertisements
On May 3rd, 2009 Starbucks had launched a long term, multi
channel campaign. It’s goal was to emphasize the unique
experience, exceptional coffee, and the brand’s quality value
25

26.  Starbucks created a joint venture with Pepsi-Cola
which had driven up company sales
 Starbucks had partnered with the CW in 2010 for an
online contest. This online contest was to show
ingredients for the Frappuccino beverage, and transitions
and music into one commercial
26
Starbucks Advertising

27. Starbucks Social Media
 Starbucks has a social media marketing strategy, as well
 Their social media has created an online community with the Starbucks
brand
 Starbucks is part of many social media sites, such as Facebook, Twitter
 Consumers are able to express their opinions about the company through
online blogs
 The company is able to join consumers during blog conversations
 Discussions via blogs are another word for “new media”
27

28. Starbucks Mobile Advertising Campaign
 In 2011, Starbucks had run a Mobile ad
campaign to increase downloads of its mobile
applications. The ad’s were run by Flixster
iphone Applications. When consumers tap on
the banner, “Pay Faster, Sip Slower”
 mobile payments
 Starbucks generates mobile ad’s to maintain
the mobile aspect of their advertising strategy.
28

29. Starbucks Mobile Advertising Campaign
 Mobile campaign which allows consumers to chose their
ideal summer beverage
 Starbucks had run mobile banners ads through music site,
Pandora IPhone application
29

30.  When consumers tap on the ad, they are directed to swipe this screen:
 Consumers can choose a summer drink once they swipe the icy screen.
Such drinks include iced coffee with milk or Tazo shaken iced passion tea
lemonade.
30

31. Starbucks Billboards
 In 2008, Starbucks had put up a number of billboards in
Seattle
31

32. Promotional Activities
 • In this world of IT the company believes on one to one
promotion rather than electronic media advertisement.
 •Spends little budget on its promotion.
 • Seasonal induction of items are considered main source of
customer attraction.
 • Beside that cards are issued that promotes its popularity.
 • Certain gift cards are given on beverages that increase sales
considerably.
 • Coffees are transported to offices free of additional cost and
irrespective of cup size, making officials permanent
32

33. Promotional Tactics
 On college campus’ have a free
specialty coffee day 8am-Noon in the
top 20 DMA’s.
 This will draw college students into
Starbuck’s for their free drink in return
drawing them to make more purchases
in store.
 Sponsoring one concert featuring the
stars of the television show The Voice
held in Los Angeles.
 Starbucks will hand out free drinks
during the concert.
33

34. PROMOTION: PRODUCT PLACEMENT
STARBUCKS IN MOVIES
The Devil Wears Prada

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

36. PROMOTION: PRODUCT PLACEMENT
STARBUCKS IN MOVIES
Fight Club

38. Packaging
• Starbucks
wants its
cups to be
100
percent
recyclable

39. Product (red)
 Raise awareness and funds to help
eliminate AIDS in Africa.
 Starbucks’ Red products and Red card:

40. Competition
McDonalds Dunkin Donuts
Second Cup New World
Coffee
Caribou Coffee

43. Success Factors
 There ability to design strategic approach to growth
that is quick
 Sustainable supply chain of high quality coffee
 Strategic alliances
 The unique, innovative, upscale atmosphere that will
differentiate Starbucks.
Starbucks
10/31/2011

44. Success factors
 The establishment of as a community hub for
socialization and entertainment.
 Highly motivated employees
Treated as partners
Low employee turnover rate 70%
44

45. 45

46. Mission Statement
October 2008 - Present

47. • Downfall of Starbucks began after 2005
and problems continued till 2010
 2007 global crisis affects Starbucks as well
 660 stores closed in 2008 due to lack of profit
ability.
 300 more in 2009
 2008, Howard D. Schultz returned as CEO of
Starbucks
He takes revolutionary steps to get back
Starbucks image

49. • Next 5 years
• Starbucks will grow to nearly $30 billion in annual
revenue
• more than 30,000 stores globally.
“We have an opportunity to make history. I’ve never
been more optimistic, more enthused about the
things that we are going to do.” Howard
Schultz,CEO”

50. Starbucks seven strategies for growth
1. Be the Employer of Choice
2. Lead in Coffee
3. Grow the Store Portfolio
4. Create New Occasions to Visit Stores
5. CPG Brand Growth
6. Build Teavana
7. Extend Digital Engagement

51. • The emerging markets of starbucks
• Brazil, India, China, South Africa & Pakistan
• Offer significant opportunities
• Starbucks has already made significant inroads into
the Chinese market but there still is a lot of
untapped potential

52. Suggestion &
Recommendations
• international strategy
• opportunities in Tea and Fresh Juice
• U.S. market should focus on getting additional
penetration
• Enhance atmosphere
– Entertainment to attract more customers
• Increase marketing
• Advertise
• Sales promotions
• Promote healthy products

53. Conclusion
• Starbucks changes the behaviors and viewpoints of
global consumers of coffee, and this successful
example has caught global attention.
• Nowadays it is not only one of the fastest growing
corporation but also an outstanding business model
with low employee turnover rate & high profit
performance.
• The motivation and the teamwork is the key factor
of a company policy, opposite to the principles of
classical management which is only concerned
about production and ignores worker’s idea.

54. Starbucks
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55. Starbucks
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56. Starbucks
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