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Case: Starbucks


Case: Starbucks ... Starbucks ended 2001 with a total of 4,709 retail locations. ... Starbucks has improved its website since it was first developed. ... – PowerPoint PPT presentation

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Title: Case: Starbucks

Case Starbucks
  • By Patrick Boas, Keith Brickley, Michael Duke,
    Michelle Evans, and Dustin Johnson

Domestic Growth
  • Main goal is to continuously expand its retail
    operations and to selectively pursue more
    opportunities to advance the Starbucks brand
    throughout the United States.
  • Starbucks ended 2001 with a total of 4,709 retail
    locations. At the end of 2004 they had a
    whopping 8,337 locations with a forecast of over
    10,000 retail establishments by the close of
  • US will occupy over 8,000 of the 10,000

Domestic Growth
  • By the end of 2004 a share went for 95 cents
    mainly because of a sales growth of 27 percent
    from 2003
  • Share price expected to increase even more in
  • Forecasted 1.12 to 1.15 per share.

Domestic Growth
  • Further growth is expected to continue as
    Starbucks enters new markets and introduces new
    ideas for years to come.

Starbuck International
  • Throughout the 90s Starbucks had been struggling
    quite a bit with international revenues
  • In 2004 there was a huge turning point, 413 new
    stores opened internationally, making 2,437
    stores international
  • Starbucks Internationals president Martin Coles
    says their goal of 15,000 stores worldwide is
    very attainable

Least likely to consider
  • A list of current international store locations
    can be found on Starbucks website
  • Store locations that you would least likely to
    consider include
  • South Korea
  • Shanghai
  • Turkey
  • Taiwan
  • Beijing

Setting the Standards
  • Starbucks has been acclaimed as one of the
    leading examples in Off shoring
  • Joint ventures - independent firms establishing a
    jointly owned company
  • Wholly owned subsidiaries - setting up a new
    company within the country

Setting Its Mark
  • Clearly Starbucks has set up the standards for
    the coffee housing industry and taken the market
    by storm leaving its now famous brand logo mark
    on almost every corner not only here in America
    but across the seas as well.

  • Pours 7 of all coffee consumed in US
  • Current Competition
  • Local coffeehouses, Krispy Kreme, McDonalds,
    7-11, Dunkin Doughnuts, restaurants, street
    carts, and any other outlet that sells coffee
  • CEO of Starbucks views all competitive threats as
    the same

  • Friend or Foe Krispy Kreme
  • Increase Quality
  • Close Location
  • In Financial Trouble
  • Big Competitor Dunkin Doughnuts
  • Increase Quality
  • Introduce Alternative
  • Sales Increase

  • Growing Company Caribou Coffee
  • Expanding in many locations
  • Lots of choices
  • Coffee Card

  • New Product Launch
  • Starbucks Coffee Liqueur
  • Jim Beam
  • Market Dominated
  • Kahlua
  • Tia Maria
  • Already selling out
  • 750ml bottle 22.99

Marketing Strategy
  • Various techniques to achieve success
  • Expansion
  • Broadening product offerings
  • Partnerships and alliances
  • Interest in repeat customers

Marketing Strategy
  • Broadening product offerings
  • Some products sold at local grocery stores
  • Whole bean coffee
  • Ice cream
  • Frappuccino
  • DoubleShot
  • New products

Marketing Strategy
  • Partnerships and alliances
  • Kraft Foods, Inc.
  • Jim Beam Brands Co.
  • XM Satellite radio
  • Locally co-branded food items
  • Top Pot Doughnuts

Marketing Strategy
  • Repeat customers
  • Starbucks card
  • Starbucks Duetto Visa

Starbucks and the Internet
  • The Internet is an important resource for
    Starbucks, which is made notable by the fact that
    its site is very user friendly.
  • The website allows customers to purchase coffee
    beans, kitchenware, and gourmet food with ease.
  • A recent addition is the ability to purchase the
    Starbucks card, which can not only be purchased
    online but can also be given as a gift to someone
    who enjoys Starbucks products.
  • Another unique feature of the card is that the
    Internet site can be used to automatically
    replenish funds on the card.

Starbucks on the Web
  • Starbucks has utilized its website as a tool to
    help reach customers who do not drink coffee
    often and to those that drink it regularly.
  • Starbucks has grown so much that in the last 5
    years its revenues have tripled. The company is
    constantly opening new locations in the United
    States and internationally, which is another
    reason why a good, dependable website for its
    customers is a necessity.
  • Starbucks has improved its website since it was
    first developed. More recent additions include
    links to nutritional information and brewing
    information for those consumers who are
    interested in making coffee at home.