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STARBUCKS: Increase Shareholder Value

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Title: STARBUCKS: Increase Shareholder Value Author: Jessica Settle Last modified by: Jessica Settle Created Date: 5/5/2008 6:38:58 PM Document presentation format – PowerPoint PPT presentation

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Title: STARBUCKS: Increase Shareholder Value


1
STARBUCKS Increase Shareholder Value
  • Transforming the Starbucks Experience
  • BY Jessica Settle

2
The Company
  • Starbucks purchases and roasts high-quality whole
    bean coffees and sells them along with fresh,
    rich-brewed, Italian style espresso beverages, a
    variety of pastries and confections, and
    coffee-related accessories and equipment --
    primarily through its company-operated retail
    stores.

3
The Company's objective is to establish Starbucks
as the most recognized and respected brand in the
world.
  • continue to rapidly expand its retail operations
  • grow its specialty sales and other operations
  • selectively pursue opportunities to leverage the
    Starbucks brand through the introduction of new
    products and the development of new distribution
    channels

4
Is Starbucks losing steam? Investors are worried
5
Starbucks Announces Strategic Initiatives to
Increase Shareholder Value Chairman Howard
Schultz Returns as CEO
UNCLE HOWIE
6
The Campaign Transforming Starbucks for the
Future
  • Introducing new products, revitalizing old ones

7
Campaign GOAL
  • To increase shareholder value by refocusing the
    Company on providing customers with the
    distinctive Starbucks Experience

8
Objectives
  • To improve the current state of the U.S. business
  • To re-ignite the Starbucks experience through
    driving improvement and change in all areas that
    touch the customer
  • To build for the long term
  • a) to realign our organization and streamline
    the management of the organization to support
    customer focused initiatives
  • b) to accelerate our International success
    story and growth even further

9
Revitalizing old products by introducing new ones
  • Revitalizing old brands
  • Introducing new products when there is no
    advertising news
  • Making packaging news when there is no product
    news
  • Create marketplace excitement
  • Bringing a brand to life

10
Strategies Tactics
  • Media campaign
  • Face-to-Face interactions with consumers
  • AD/Internet campaign
  • MPR campaign

11
TACTICS
  • New products and store design elements
  • New training tools for partners (employees)
  • Slowing Companys pace of US stores
  • Renew focus on store-level unit
  • Re-igniting emotional attachment (Our Promise)
  • Billboards and Radio advertisements
  • Blogging for customers partners

12
MPR Tactics
  • Created leadership team
  • New training tools
  • Slowing the Companys pace of store growth
  • Renovating customer relationships

13
Lessons Learned
  • Involve the customer with the product
  • Think BIG, think Globally
  • Always keep the message simple
  • Keep product top of mind
  • Make it an on-going story
  • Generate word-of-mouth
  • Add a cause related element to campaign
  • Create an incentive program and offer product as
    rewards
  • Giving your customers a test-drive is always
    worthwhile

14
Evaluation
VERY INNOVATIVE, CONSISTENT AND WILL BE VERY
SUCCESSFUL!
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