starbucks compiled

7/27/2019 Starbucks Compiled

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StarbucksFirm Analysis

Compiled By:Shelly LiaBraaten, Laura Keller, Stephanie Latimer,

Steven Austed, Nate Tuenge, Aaron Lum


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Outline

About Starbucks Overview

Timeline

Mission Statements

Corporate SocialResponsibility

Four Ps Analysis Product

Price

Place (Location)

Promotion

S.W.O.T Analysis Strengths

Weaknesses

Opportunities

Threats

Current Events Ichiro Card

Ethos Water

Giving Voices


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About Starbucks

Overview

Timeline

Mission Statements

Corporate SocialResponsibility


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About StarbucksOverview

Specialty Eatery in the Quick-Service Restaurant sector

Established in 1971 in Seattle, Washington

Named after the first mate in Moby Dick

Known for its quality coffee and stylish atmosphere

Over 9,000 locations in 35 countries

New CEO: Jim Donald (2005)


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About StarbucksTimeline

1971First Starbuckscoffee shop opens in Seattles Pike Place Market coffee bean roastingcompany

1985 Howard Schultz becomes CEO and founds Il Giornale Coffee Company espressobeverages using Starbucks coffee beans

1987 Changes name to Starbucks Corporation

1992IPO under the trading symbol SBUX

1995Starbucks Coffee International opens in Japan

1996 Begins selling bottled Frappuccino drinks

1999 Acquires Tazo Tea company and Hear Music company

2003 Acquires Seattles Best Coffee

2005 Introduces Starbucks Coffee Liqueur; Acquires Ethos Water


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About Starbucks

Mission Statements

Company Mission Statement:

Establish Starbucks as thepremier purveyor of the finestcoffee in the world whilemaintaining our uncompromisingprinciples while we grow.

Environmental Mission Statement:

Starbucks is committed to a role

of environmental leadership in allfacets of our business.


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About Starbucks

Corporate Social

Responsibility

Starbucks focuses its efforts on improving social and economicconditions for coffee farmers; minimizing our environmental impact;making a positive contribution in the communities where we dobusiness; and providing a great work environment for our partners(employees).

Make Your Mark matches cash contributions for volunteer work todesignated nonprofits

2004 EnviroStars Recognized Leader Award for environmentalleadership in the Seattle community

C.A.F.E Coffee and Farmer Equity environmentally, socially, andeconomically guidelines for buying coffee from farmers promotesmutually beneficial relationship


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About Starbucks

Target Market

Starbucks says that they do nottarget a specific market

Products are consumed bypeople who want to take abreak from the daily workroutine and those who want acaffeine stimulant

Distinguished from traditional coffee shop because of thetaste of the coffee and the hip or fashionable store

environment


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Four Ps

Analysis

Product

Price

Place (Location)

Promotion

Panini


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Four Ps AnalysisProducts (in store)

Starbucks sells brewed coffees,espresso beverages, cold blendedbeverages, food items, teas,branded coffee drinks, a line ofice creams, and a line of compactdiscs through its retail stores

Also offers pastries, sodas, juices, games, seasonal noveltyitems, and coffee-related accessories and equipment


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Four Ps Analysis

Products

Starbucks also engages inpurchasing, roasting, andselling whole bean coffeesworldwide to grocery stores andlarge hotels


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Four Ps Analysis

Price

Prices range from $1.00-$4.20 for drinks

Surprisingly, this is lower than its rivals, althoughnot by much

Starbucks regular coffee was 4% less expensiveand its iced blended drinks were as much as 30% less

expensive when compared with specialty competition

When compared to quick-service restaurants, however,Starbucks was more expensive. Dunkin Donuts 16-ounce latteis an average of 17% cheaper


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Four Ps Analysis

Prices on the Rise

Starbucks is planning toraise prices this yearbecause of an increase inmilk and green coffee beanprices

This could also be due to thefact that specialtycompetition has beencharging more


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Four Ps Analysis

Locations

Operates in all 50 statesplus the District of Columbiaand Puerto Rico.

They also operates in 34countries outside the United

States such as Australia,Canada, China, Germany,Singapore, Thailand, andthe United Kingdom toname a few.


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Four Ps Analysis

More on Locations

Starbucks retail stores are typically located in high-traffic, high-visibility locations.

Because the Company can vary the size and format, its storesare located in or near a variety of settings, including downtownand suburban retail centers, office buildings and university

campuses.

The Company can also locate retail stores in select rural and off-highway locations to serve a broader array of customers outsidemajor metropolitan markets and further expand brand awareness.


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Four Ps Analysis

More on Locations

While the Company selectively locates stores in shopping malls,it focuses on locations that provide convenient access for

pedestrians and drivers.

To provide a greater degree of access and convenience for non-pedestrian customers, the Company has increased focus on

drive-thru retail stores.

At the end of fiscal 2004, theCompany had approximately 700Company-operated drive-thru

locations


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Four Ps Analysis

Promotions

Starbucks has been able to use a standardized advertisementtheme around the world in order to incorporate different

cultures.

Currently they are promoting their new Tazo green teaFrappuccino Blended crme. (Inspired by Japanese tradition)
http://www.starbucks.com/retail/summerphase3.asp


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S.W.O.T

Analysis

Strengths

Weaknesses

Opportunities

Threats


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S.W.O.T Analysis

Strengths

Starbucks Corporation is a very profitable organization,earning $600 million and generating revenue of $5 billion in2004.

Ad Week Magazine recognized the Company as one of theMost Trusted Brands in 2003. The Starbucks logo is

recognized by most, which also helps to retain customers thattravel internationally, allowing them to get the same Starbuckscoffee in the same Starbucks cup that they enjoy back home.


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S.W.O.T AnalysisStrengths (continued)

It is a global coffee brand built upon a reputation for fineproducts and services. It has about 8500 stores in over 30countries.

Starbucks was one of the Fortune Top 100 Companies toWork For in 2005. The company is a respected employer that

values its workforce.

They have strong ethical values and an ethical missionstatement as follows, Starbucks is committed to a role of

environmental leadership in all facets of our business.


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S.W.O.T Analysis

Weaknesses

Starbucks has a reputation for new product development andcreativity. However, they are dependant on a main competitive

advantage, the retail of coffee.

Overcrowding the Market: If Starbucks has two stores close toeach other, they potentially take business away from each other.

They have a strong presence in the United States with morethan three quarters of their cafes located in the home market.Many have said that they need to look for a portfolio ofcountries, in order to spread business risk.


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S.W.O.T AnalysisWeaknesses (continued)

They have been facing certain difficulties in some of itsinternational operations. In 2003 Starbucks ended its joint

venture in Shalom in Israel and closed six stores in Tel Aviv.

There was the infamous situation after September 11, when theStarbucks in Manhattan charged firefighters outrageous prices

for water, $130 for three cases.


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S.W.O.T AnalysisThreats

Suppliers

Weather?

Fuel costs?

Re-adjustmentsto licensingcontracts?

0.0

50.0100.0150.0200.0250.0300.0

2000

2001

2002

2003

2005

2010

2015

YearPrice(Cents/KG.)

Coffe (othermills)

Coffee(robusta)

Tea,auctions (3)avg.

Distribution Marketing

Advertising

Promotions
http://www.pepsi.com/pepsi_brands/all_brands/index.php


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S.W.O.T AnalysisThreats (continued)

Gov. Regulation

Minimum Wage?

New Entrants

Krispy Kreme?
http://www.krispykreme.com/coffeeroasts.html


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S.W.O.T AnalysisOpportunities

Joint Venture

Krispy Kreme?

Innovation RTDs & Ice-Cream

Breakfast Snack Bar?
http://www.boardsmag.com/screeningroom/commercials/1755/http://www.krispykreme.com/investorrelations.html


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S.W.O.T AnalysisOpportunities (continued)

Market Expansion

China & Europe

Menu Expansion?

Full Service Breakfast &Lunch Eatery?

Current Locations 2003

Suria KLCC- Mall at the base of the

Petronas Twin Towers; KL, Malaysia
http://www.starbucks.com/


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Current

Events

Starbuck hear music

Starbucks card

Wireless Internet

Brewing equipment

Ichiro Card

Ethos Water

Giving Voices
http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016https://www.starbucks.com/card/default.asphttp://www.starbucks.com/retail/wireless.asphttp://www.starbucks.com/retail/brewing.asphttp://www.mp3.com/albums/516018/summary.htmlhttp://www.starbucks.com/retail/brewing.asphttp://www.starbucks.com/retail/wireless.asphttps://www.starbucks.com/card/default.asphttp://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016


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Current Events

Ichiro Card

Starlight StarbrightChildren's Foundation
https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/ichirosweeps.asphttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichiro


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Current Events

Ethos Water

Five cents from the sale of each bottle ofEthos(TM) Water will support Starbucks

goal of donating $10 million over the nextfive years to non-profit organizations thatare helping to alleviate the world watercrisis.
http://biz.yahoo.com/bw/050803/35233.html?.v=1http://biz.yahoo.com/bw/050803/35233.html?.v=1


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Current Events

Giving Voices

The grant program -- called "Giving Voice" -- will primarilyfund educational initiatives for youth, aged between six and18 years old, in the arts, literacy, and environmentaleducation.

The grants will range from $5,000 to $20,000 and will be

awarded twice a year.


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Sources

Brewing Equipment; http://www.starbucks.com/retail/brewing.asp Card; https://www.starbucks.com/card/default.asp Datamonitor - Starbucks Corporation;

http://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdf

Ethos Water;http://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoo

Giving Voice; http://biz.yahoo.com/bw/050802/25224.html?.v=1 Hear MusicNorah Jones;

http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016 Ichiro Card;

https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichiro

Jim Donald brings new energy to Starbucks CEO post; 31 March 2005;http://seattlepi.nwsource.com/business/218261_starbucks31.html.
http://www.starbucks.com/retail/brewing.asphttps://www.starbucks.com/card/default.asphttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://biz.yahoo.com/bw/050802/25224.html?.v=1http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttp://seattlepi.nwsource.com/business/218261_starbucks31.htmlhttp://seattlepi.nwsource.com/business/218261_starbucks31.htmlhttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttps://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product%5Fid=Ichirohttp://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations&product%5Fid=795016http://biz.yahoo.com/bw/050802/25224.html?.v=1http://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.fortune.com/fortune/investing/articles/0,15114,1089995,00.html?promoid=yahoohttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttp://www.investor.reuters.com/data/files/Company%20Profile%20Sample%20for%20Reuters.pdfhttps://www.starbucks.com/card/default.asphttp://www.starbucks.com/retail/brewing.asp


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Sources(continued)

Marketing Teacher; http://www.marketingteacher.com/ SBUX: Profile for STARBUCKS CP - Yahoo! Finance Shareowner: Starbucks corporation Starbucks Apologizes for Water Flap;

http://www.foxnews.com/story/0,2933,35198,00.html Starbucks Company Fact Sheet; August 2005;

http://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdf. Starbucks Company Profile; August 2005;

http://www.starbucks.com/aboutus/CompanyProfileFeb05.pdf. Starbucks Company Timeline; August 2005;

http://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdf. Starbucks Corporation; http://www.starbucks.com/default.asp Starbucks Everywhere; http://www.starbuckseverywhere.net The Insider: Starbucks' prices won't be cheaper for much longer Wireless Internet; http://www.starbucks.com/retail/wireless.asp Yahoo! Finance; http://finance.yahoo.com
http://www.marketingteacher.com/http://finance.yahoo.com/q/pr?s=SBUXhttp://www.findarticles.com/p/articles/mi_qa4037/is_200203/ai_n9048368http://www.foxnews.com/story/0,2933,35198,00.htmlhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.starbucks.com/aboutus/CompanyProfileFeb05.pdfhttp://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdfhttp://www.starbucks.com/default.asphttp://www.starbuckseverywhere.net/http://seattlepi.nwsource.com/business/184428_theinsider02.htmlhttp://www.starbucks.com/retail/wireless.asphttp://finance.yahoo.com/http://finance.yahoo.com/http://www.starbucks.com/retail/wireless.asphttp://seattlepi.nwsource.com/business/184428_theinsider02.htmlhttp://www.starbuckseverywhere.net/http://www.starbucks.com/default.asphttp://www.starbucks.com/aboutus/CompanyTimelineFeb05.pdfhttp://www.starbucks.com/aboutus/CompanyProfileFeb05.pdfhttp://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdfhttp://www.foxnews.com/story/0,2933,35198,00.htmlhttp://www.findarticles.com/p/articles/mi_qa4037/is_200203/ai_n9048368http://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://finance.yahoo.com/q/pr?s=SBUXhttp://www.marketingteacher.com/

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