1. MORE THAN COFFEE
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5. History
• 1971
- Starbucks opens first store in Seattle’s 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 : 17
• 1990
- Starbucks expands headquarters in Seattle.
- Total stores: 84
• 1991
- 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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6. •
1992
- Completes initial public offering (IPO), with
common stock being traded on the NASDAQ
National Market under the trading symbol SBUX.
- Total stores: 165
• 1993
- Opens roasting plant in Kent, Wash.
- Announces first two‐for‐one stock split.
- Total stores: 272
• 1994
- Opens first drive‐thru location.
- Total stores: 425
• 1995
- Begins serving Frappuccino® blended beverages.
- Introduces Starbucks® super‐premium ice
cream.
- Announces second two‐for‐one stock split.
- Opens roasting facility in York, Pa.
- Total stores: 677
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7. • 1996
- Begins selling bottled Frappuccino® coffee drink
through North American Coffee
- Partnership (Starbucks and Pepsi‐Cola North
America).
- Opens stores in: Japan (first store outside of
North America) and Singapore.
- Total stores: 1,015
• 1998
- 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: 1,886
• 1999
- Acquires Tazo Tea.
- Acquires Hear Music, a San Francisco–based
music company.
- Announces third two‐for‐one stock split.
- Opens stores in: China, Kuwait, Lebanon and
South Korea.
- Total stores: 2,498
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8. •
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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: 3,501
2001
- Introduces ethical coffee‐sourcing guidelines
developed in partnership with Conservation
International.
- Introduces the Starbucks Card.
- Opens stores in: Austria, Scotland, Switzerland
and Wales.
- Total stores: 4,709
2002
- 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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9. •
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2003
- Acquires Seattle Coffee Company, which
includes Seattle’s 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: 7,225
2004
- 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: 8,569
2005
- Acquires Ethos Water.
- Announces fifth two‐for‐one stock split.
- Opens stores in: Bahamas, Ireland and Jordan.
- Total stores: 10,241
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2006
- Launches the industry’s first paper beverage
cup containing post‐consumer recycled fiber.
- Opens stores in: Brazil and Egypt.
- Total stores: 12,440
2007
- 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: 15,011
2008
- 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 top‐selling 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: 16,635
2010
- Expands digital offerings for customers with
free unlimited Wi‐Fi, Starbucks Digital Network.
- Opens stores in: El Salvador, Hungary and
Sweden.
- Total stores: 16,858
2011
- Celebrates 40th anniversary with global
community service.
- Acquires Evolution Fresh.
- Opens stores in: Guatemala.
- Total stores: 17,003
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12. • 2012
- Introduces Starbucks® Blonde Roast.
- Announces Verismo® system by Starbucks
premium single‐cup 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: 17,651
• Present
- Total stores : 20,891 stores (62 countries)
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13. Mission Statements
“To inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time.”
Coffee
Partners
Customers
Stores
Neighborhoods
Shareholders
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14. Brands
Tazo Tea
• Founded in 1994
• Offering finest botanicals
and teas from all over the
world.
Seattle’s Best Coffee
• Founded in 1970
• Offering great cup of
coffee every day, no
matter where they are
(lower price compare to
Starbucks)
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15. Brands
Evolution Fresh
• Founded in 1992
• Offering retail stores offer
juices and foods that are
alive with fresh‐picked
flavor and bursting with
bright color and vibrant,
pure taste
La Boulange
• Founded in 1999
• Offering skillfully crafted
authentic French pastries
and breads made from
scratch using high-quality,
fresh ingredients
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16. Brands
Teavana
• Founded in 1997
• Offering new tea
enthusiasts like it’s
“Heaven of Tea”
customers are introduced
to the aromas, textures,
and beneficial qualities of
super-premium.
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17. Corporate Social Responsibility
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18. Corporate Social Responsibility
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19. Corporate Social Responsibility
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20. Corporate Social Responsibility
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21. Corporate Social Responsibility
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22. Corporate Social Responsibility
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23. Corporate Social Responsibility
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24. Corporate Social Responsibility
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25. Market Structure
Monopolistic
Competition
Differentiation
Competitors
1. Dunkin’s Donuts
2. Costa Coffee
3. Coffee Bean
4. McCafe
5. Lavazza
Target Customers
Young 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
things
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26. Marketing Strategies
Societal Marketing
Concept
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Ethical sourcing
Using paper cup
Other green campaign
Main Concept of Starbucks
Create Value to the company
Product Strategies
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Introduction of various new products
Product with flexible drink options such
as extra cream, caramel syrup etc.
Tea Tazo , Teavana and La Boulange
Differentiation
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Products
Customer experience
Brand value
Pricing Strategies
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Starbucks has offered a wide range of
products that vary in price.
Starbuck – Higher price
Seattle's’ Best Coffee – Lower price
Diversification
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Brand diversification expand into a new
segment of an industry to stimulate
new market not only in premium coffee
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27. Marketing Strategies
Promotions
Customer
Experience Strategy
• Active participation on Website,
televisions advertisements, and email
marketing
• Daily Deal” sites such as Groupon and
LivingSocial
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Location Strategies
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Thousands of its stores worldwide to
reach its target customers and
eliminating its competitors
High visibility, high traffic and convenient
location
Stores located on the driver side in USA
or on corners, shopping malls, bar
districts and populated business towers
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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
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Starbucks Loyalty Card
The Starbucks Card or the Duetto Visa
Card
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28. Marketing Strategies
Knowledge Based
Management
Strategy
Horizontal
Integration
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• Publishing a booklet for coffee syntax
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Partnership
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Using 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 store
The acquisition of Tazo Tea Company
Seattle’s Best Coffee and Torreazione
Italia Coffee
The Company will open about 1300
stores world-wide in fiscal 2013
Vertical Ingration
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Own coffee bean roasting centers
Recycle center
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29. Key Success
Product Quality
Third Place
To Go
Customer
Satisfaction
Starbucks
Community
Social
Responsibility
Innovation
Advertising
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30. Rewards
“No. 1 Best Coffee,” Fast Food and Quick
Refreshment categories
Zagat’s Survey of National Chain
Restaurants – 2009‐2011
“No. 1 Most Popular Quick Refreshment
Chain”
Zagat’s Survey of National Chain Restaurants
– 2009‐2011
One of “The 100 Best Companies to Work
For”
Fortune – 1998–2000, 2002–2012
One of the “Most Admired Companies in
America”
Fortune – 2003–2012
One of the “World’s 50 Most Innovative
Companies”
Fast Company – 2012
One of the “World’s Most Ethical
Companies”
Ethisphere – 2007‐2012
One of the “100 Best Corporate Citizens”
Corporate Responsibility/Business Ethics –
2000‐2012
“Sustainability Design Award”
Global Green USA – 2011
“Most Ethical Company, European Coffee
Industry”
Allegra Strategies – 2009‐2011
“Business Person of the Year,” Howard
Schultz, Starbucks chairman, president and
chief executive officer
Fortune – 2011
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31. Business Performance
Total net revenues (increased)
increased 14% to $13.3 billion in fiscal 2012 compared to $11.7 billion in fiscal
2011
Consolidated 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 2011
• million in fiscal 2011
EPS (decreased)
for fiscal 2012 was $1.79, compared to EPS of $1.62 reported in fiscal 2011
Cash flow from operations (increased)
was $1.8 billion in fiscal 2012 compared to $1.6 billion in fiscal 2011
Capital expenditures (increased)
were approximately $856 million in fiscal 2012 compared to $532
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32. STARBUCKS’s Main Competitors
Stores
Countries Revenue
Starbucks
20,890
62 13.3 billion US $
Dunkin' Donats
10,083
36 0.54 billion US $
Costa Coffee
1,700
28 1.4 billion US $
The Coffee Bean
900
23 0.45 billion US $
1st Starbucks
2nd Dunkin’ Donuts
3rd Costa Coffee
4th The Coffee Bean
• 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.
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33. STARBUCKS VS DUNKIN’ DONUTS
• Comparing the largest global coffee chain
as following rank
1st Starbucks
2nd 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.
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34. Future Plan
Fiscal 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 $2.23
• We 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% 34

35. Future Plan
• While 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 sourcing
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