Starbucks

1
Starbucks Strategic Action Plan
2
Issues and Outlook For Next 3-5 Years

• Become best known brand
• Move into areas other than coffee
• Expand beyond retail outlets
• Develop a Global presence
• Determine Acceptable Growth Rate

3
External Analysis Opportunities

• International Expansion
• Different Product Lines
• Co-Branding
• Expansion of Target Market

4
External Analysis Threats

• Low Barriers to Entry
• Extreme Reliance on Commodity
• Limited Quality Suppliers

5
Internal Analysis Strengths

• National Brand Recognition (Coffee)
• Skilled/Knowledgeable Employees
• Perfected Roasting Techniques
• Product Proliferation
• Real Estate Strategy
• Tremendous Growth

6
Financial Highlights Net Revenue (in millions)
7
Financial Highlights Net Earnings (in millions)
8
Internal Analysis Weaknesses

• Supply Chain Operations
• Not available in Grocery Stores
• Limited Market Segment
• Commodity Reliance
• Dependent on Debt and Equity to Grow

9
Mission
To establish Starbucks as the most recognized
and respected brand in the world
10
Goals

• Slowed but Continued Growth
• Expansion of Specialty Lines
• Selectively Pursue other Opportunities

11
Our Plan Enter Grocery Store Market

• Place Doppios or similar stands in stores for
  initial entry--Start only on East and West coast(
• Hire Marketing Executive to Develop National
  advertising campaign
• Use Coupons during First Year for all Starbucks
  Products
• After Initial Entry--Basic Coffee Line

12
Our Plan Establishing new relationships

• College Vending machine Contracts--at least 1 in
  each Coastal State
• Airline Contracts--2 Major Airlines
• Office Services--Sign on 50 New Offices a Year

13
Our Plan Specialty Operations

• Expand ShopStarbucks.com
• Expand Brewing Equipment lines
• Develop 4 New Ice Cream Products
• Develop Teas and Juices Lines
• Develop liter bottle of Frappucino

14
Our Plan Strengthen Distribution Channels

• Conduct Semi-annual Training Seminars with
  Suppliers to Attune Suppliers to Companys Needs
• Integrate Suppliers and Franchisees in
  Decisionmaking Process
• Establish a Contract with UPS to be Sole Shipper
  of Starbucks Products

15
Financial Highlights Retail Store Count
16
Our Plan Franchise more stores

• 25 of New Stores will be Franchised
• 10 of Existing Stores Franchised Each Year
• Conduct Quarterly Franchisee Training Meetings
  to Ensure Top Quality and Service

17
Our Plan Growth

• 750 New Stores in US
• 100 New Stores in International market
• Branch into one New Country Each Year
• Co-brand with an International Company to Better
  Serve Regional Tastes

18
Whats New for Starbucks
19
Questions?