2. Starbucks & The International Crisis: a.US Starbucks, which long considered itself virtually immune to economic swings, has admitted in recent months that some consumers have avoided its relatively expensive coffee as the economy soared. According to recent US news reports, the coffee shop chain slashed its quarterly and 2008 profit forecast below Wall Street targets and said it faced the "weakest economic environment" in its history.

3. b. Egypt While its coffee aroma seems to be waning in its homegrown market on the heels of the US mortgage meltdown, Starbucks is robust on Egyptian market operations. “ As a new market for Starbucks, Egypt’s [sales] figures are better than those of other countries,” said Omar Abdelhay, operations manager at Starbucks Egypt. “ On average, some 150,000 people enter Starbucks Egypt stores per month.”

7. Suggested strategies to push the sales up: Starbucks is considered to be a famous coffeehouse targeting a special ‘skimmed’ segment. It is obvious that lowering prices would affect it negatively and cause it to lose much of its image.

12. Starbucks Commercials: You can hardly notice a Starbucks commercial, a thing that highlights the company’s unique advertising strategy – don’t advertise. Thus, company executives feel that improving the in-store customer experience is a much more effective means of advertising than via Starbucks commercials. Starbucks encourages the promotion of their stores as a ‘third home’ , providing comfortable chairs for customers to relax and spend time in, playing music and providing outlets for people to plug their laptops into……..etc.

13. Factor influencing Sales

15. Happily serving you for more than 30 years…..

16. More than 14,000 branches all over the world..

17. Great variety of food and beverages specially made for you..

18. One of Fortune’s 100 Best Companies to work for, 2009

19. We share you your best moments,,

20. Share us our success,, Be part of it…

21. your third home….

23. Setting the Promotion Budget Starbucks Income Statement 2008 2007 2006 Revenue ($ mil.) 10,383.0 9,411.5 7,786.9 Gross Profit ($ mil.) 5,737.7 5,412.4 4,608.2 Operating Income ($ mil.) 512.9 - - Total Net Income ($ mil.) 315.5 672.6 581.5 Diluted EPS (Net Income ) 0.43 0,87 0.71

25. Allocation of Promotional Budget