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STARBUCKS COFFEE Financial Presentation. Alli Meurer Sarah Merritt Samantha LaChance Lin Lin Chen. About The Company. Mission. “Our mission is to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time.”. Starbucks Origins. The company name
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STARBUCKS COFFEEFinancial Presentation Alli Meurer Sarah Merritt Samantha LaChance Lin Lin Chen
Mission “Our mission is to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time.”
StarbucksOrigins • The company name • Starbuck, Captain Ahab’s first mate (Moby Dick) • First store • Pike Place Market • 2 Seattle teachers and a writer • Started in 1971 in Seattle, WA
Starbucks Origins • Initial public offering • Listed on NASDAQ in 1992 • First international store (Japan) in 1996 • Now 7,000,000 shareholders • Global presence • More than 16,785 stores worldwide • 49 international markets • 160,000 employees
Starbucks Trademark • The logo • - 16th century Norse woodcut • Mermaid or siren reflects seafaring • origins of the early coffee traders
Summary • Key Operations • Purchasing, roasting and selling of whole bean coffees worldwide • Offerings • Brewed Coffees • Italian-style espresso beverages • Cold blended beverages • Complimentary food items • Premium teas • Beverage-related accessories and equipment
Summary • Producing and Selling • Ready-to-drink beverages • Bottled beverages • Espresso drinks • Chilled cup coffees • Ice creams
Summary • Brand Portfolio • Seattle’s Best Coffee • Tazo • Frappuccino • Starbucks DoubleShot • Starbucks Discoveries • Starbucks super-premium Tazo Tea • Starbucks super-premium
Key Executives • Mr. Howard D. Schultz • Founder, Chairman, Chief Executive Officer and President • Mr. Troy Alstead • Chief Administrative Officer, Chief Financial Officer and Executive Vice President • Mr. Arthur I. Rubinfeld • President of Global Development
Key Executives • Mr. Clifford Burrows • President of Starbucks Coffee United States • Mr. Jinlong Wang • Chairman of Starbucks Coffee Greater China and Senior Vice President of Business Development–Starbucks Coffee International
Mr. Howard D. Schultz • First in family to graduate from college • Bachelor’s in Communications • Seattle SuperSonics • Salesperson for Xerox, then general manager for Hammarplast • Joined as Director of Marketing
Timeline • 1971: Starbucks opens first store • 1982: Howard Schultz joins Starbucks • 1984: Howard convinced founders to test the ‘coffeehouse’ concept • 1996: Domestic market saturated, entered international market
Target Market • Young college students • Higher than average income • Neighborhoods and social classes • Willingness to pay for luxury • Almost every demographic • Anyone who can afford
Corporate Strategy • Marketing mix-4Ps • Product • Product innovation • Good quality coffee beans • New product introductions • Every season
Corporate Strategy • Price • Position themselves according to quality
Corporate Strategy • Place • Urban cities with popular locations • Near large companies
Corporate Strategy • Promotion • Wireless Network • Store delivery service • Exchange accompanying card bonus points
Additional 3 P’s • Process • Fresh made right after the order • Allow customers to see the making order process
Additional 3 P’s • People • Employee first, profit second • Training • Friendly employees • Employees’ benefits package
Additional 3 P’s • Physical environment • The concept of “Third Space” • Social gathering place • Providing a retreat environment • A communicative space for society
Corporate Strategy • Spending on advertising • Brand name • Greatest success • Contribution • Location • Employees
SWOT Analysis • Strengths • Profitable organization • Global coffee brand • Fortune top 100 companies
SWOT Analysis • Weaknesses • New product development • Do not always work! • Home market • Dependant on a main competitive
SWOT Analysis • Opportunities • Fair Trade products • To expand its global operations • Co-branding
SWOT Analysis • Threats • Consumers’ taste • Competitors
Becoming International • Purpose • Gain foothold of cultures • Localize in foreign markets
Tough Economy • Rising gas and food prices • Though times are tough… • "Even though money is tight, Starbucks can still be a part of your daily routine.” • Pressure • Innovation • Marketing of goods
Recent Promotions • $2 cold drinks if you bring in your receipt from the morning • Applies to “Grande" or medium-sized drinks purchased after 2 p.m. • Common example • Geographic location • Simple • Coupons • Promo codes • Discounts • Card rewards • Increase profit with these!
Environmentally Friendly? • Criticisms • “Re-loadable” cards • Water to clean utensils • Trying to adopt new methods, but wasteful! • Some solutions • LEED certification beginning 2010 • 50% of each store’s energy from renewable sources
Environmentally Friendly? • New stores • Local materials and new looks • reflect the neighborhoods they're in • Starbucks Middle East • Columbia Narino El Tambo gourmet coffee • Growers use agricultural practices • help maintain clean ground water
Environmentally Friendly? “Ultimately, we hope customers will feel an enhanced sense of community, a deeper connection to our coffee heritage and a greater level of commitment to environmental consciousness.”
Caribou Coffee “Life is short. Stay awake for it.”
Quality Coffee • Search the world for quality coffee • Their size allows for special coffee
Rainforest Alliance • First to pledge 100% Rainforest Alliance Certified coffee • Protects rainforest by changing development practices • Goal to achieve this by 2011 • Currently at 85%
Other Facts • High quality Arabica beans • All natural processing • Support the community of the growers
Products (Drinks) • “Earthy Feel” drink names • Company marketing strategy
Products (Drinks) • Categories • Classics • Wild • Cold • Teas • Some examples • Reindeer drinks • Turtle mocha • Berry white mocha • Caramel high-rise • Campfire mocha
Products (Food) • Breakfast sandwiches • Oatmeal • Muffins • Brownie bars • Bread • Cake • Scones • Cookies • Bagels • Doughnuts
Locations • Caribou Coffee Domestic Locations • International Locations • Bohrain • Jordan • Republic of Korea • Kuwait • Oman • Qatar • Saudi Arabia • United Arab Emirates • United States