STARBUCKS

1
STARBUCKS

• BACKGROUND

2
STARBUCKS

• STARBUCKS WAS A SINGLE STORE IN SEATTLES PICE
• PLACE MARKET SELLING PREMIUM-ROASTED COFFEE
• THIRTY YEARS AGO.
• TODAY IT IS A GLOBAL ROASTER AND RETAILER OF
• COFFEEE WITH SOME 17,700 STORES, 40 OF WHICH
• ARE IN 50 COUNTRIES OUTSIDE THE UNITED STATES.
• STARBUCKS SET OUT ON ITS CURRENT COURSE IN THE
• 1980s WHEN THE COMPANYS DIRECTOR OF MARKETING,
• HOWARD SCHULTZ, CAME BACK FROM A TRIP TO ITALY
• ENCHANTED WITH THE ITALIAN COFFEEEHOUSE
• EXPERIENCE.

3
Starbucks

• Schultz, who later became CEO, persuaded the
• companys owner to experiment with the
• coffehouse formatand Starbucks was born.
• Strategy
• Sell companys own premium-roasted coffee
• and freshly brewed expresso-style coffee
• beverages, along with a variety of pastries,
  coffee
• accessories, teas, and other products, in a
• tastefully designed coffeeehouse setting.

4
Starbucks

• The company focussed on selling a third place
• Experience, rather than just the coffee.
• Led to spectacular success in the United states,
• where Starbucks went from obscurity to one of
• the best-known brands in the country in a
• decade.
• Coffee stores became places for relaxation,
  chatting with friends, reading the newspapers,
  holding business meetings, or (more recently)
  browsing the web.

5
Starbucks

• The first target outside the United States was
• Japan.
• Established a joint venture with a retailer,
• Sazaby Inc. with a 50 percent stake in the
  venture, Starbucks Coffeee of Japan.
• Invested 10 milliion
• Licensed the venture, charged with taking over
• responsibility for growing Starbucks presence
  in
• Japan

6
Starbucks

• Training to japanese employees similar to those
  give to
• U.S. employees
• Stock option plan for all Japanese employees
• By the end of 2009850 stores and a profitable
  business in Japan
• 1998purchased Seattle Coffee, a British coffee
  chain with 60 retail stores, for 84 million
• In late 1990s opened stores in Taiwan, China,
  Singapore, Thailand, New Zealand, South Korea,
  and Malaysia.

7
Starbucks

• Strategy in Asialicense its format to a local
• operator in return for initial licensing fees and
  
• royalties on store revenue.
• 2002aggressive expansion in Europe
• Switzerland to start with followed by other
• countries
• Joint venture with Bon Appetot Group, largest
• food service company

8
Starbucks

• Ethical Policy Environmental Responsibility
• Fair Trade Certified Coffeee
• Empower small-scale farmers organized in
  cooperatives, develop skills necessary to compete
  in the global market place
• 2010some 75 of the coffee Starbucks purchased
  was Fair Trade Certified, and the company has a
  goal of increasing that to 100 by 2015