1
In the People Business serving Coffee
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Mission Statement

• Establish Starbucks as the premier purveyor of
  the finest coffee in the world while maintaining
  our uncompromising principles while we grow.
• Provide a great work environment and treat each
  other with respect and dignity.
• Embrace diversity as an essential component in
  the way we do business.
• Apply the highest standards of excellence to the
  purchasing, roasting and fresh delivery of our
  coffee.
• Develop enthusiastically satisfied customers all
  of the time.
• Contribute positively to our communities and our
  environment.
• Recognize that profitability is essential to our
  future success.

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Marketing Campaign - The 4 As

• Acceptability
• Consistent Quality
• Availability
• Ubiquitous number and location of stores
• Affordability
• Price for a premium product
• Awareness
• Branding high quality items sold under
  Starbucks brand name

4
Advertising

• Mainstream Media
• TV commercials for new products
• Partnerships
• Barnes Noble, Albertsons
• Branding
• Sells high quality items with Starbucks logo

5
Keys to Starbucks Success

• Quality
• Corporate-Owned and Employees are Shareholders
• Innovation
• Customer Experience
• Starbucks Bingo
• Sample a Mocha Frappuccino to a customer working
  on a laptop
• Sample Tazoberry to a customer wearing a red
  article of clothing
• Conversation inspiring blurbs on cups
• Efficiency
• Process Engineers shave seconds off wait time
  (floaters, scoops)
• Dont swipe credit card for bills under 25

6
Products

• Music
• Sells Custom music track compilations
• Barista Espresso machines
• Warm food
• Large variety of specialty beverages

7
Competition Impact (Need for Speed)

• Dunkin Donuts
• Faster and cheaper coffee
• Lower quality
• Better donuts
• Starbucks
• Must continue to innovate
• Not alienate customers with cornucopia of growth
• Corporate culture
• Employee incentive programs
• Servant Leadership shared vision,
  interdependence, managing with respect, honesty,
  and empathy

8
Profitability

• Starbucks has grown quite rapidly in the last 10
  years

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Future Growth Prospects

• Significantly increase number of stores abroad
  (outside North America)
• Currently only 7 of coffee consumption in
  North America
• Believe that they could have 10,000 stores in
  the N. America and 15,000 stores outside N.
  America
• Increase marketing scope
• Replace coffee at work
• Increase the number of times people drink coffee
  during the day
• Increase the number of people drinking coffee

10
Questions