Presented by:

Bhut Piyush Aanchal

Table of Contents
Introduction Mission Statement case SWOT Analysis Strengths, Weaknesses, Opportunities, Threat Strategies, Products Competition, Charts Action Plan & Recommendations Conclusion

Introduction
First Starbucks opened in Seattle Washington
March 30, 1971 Jerry Baldwin-English Teacher Gordon Bowker-Writer Zev Siegh History Teacher

Cont..
Entrepreneur Howard Schultz joined the company in 1982 Director of Retail Operations and Marketing Idea of selling beverages

Cont..
April, 1984 first store to sell beverages was opened Served 400 customers over the 250 customer average at their best store II Giornale Acquires Starbucks Howard Schultz Starbucks President and CEO

Cont..
World's premier roaster and retailer of specialty

coffee
8,812 company-owned stores 7,852 licensed stores in more than 50 countries

Cont..
2009: Becomes the worlds largest buyer of Fair

Trade Certified coffee

Annual sales of about $10 billion as of April 2010 Sell : beverages, pastries, whole bean coffee, ground

coffee, and coffee-related products

Mission Statement
1990 October 2008

Establish Starbucks as the premier purveyor of

the finest coffee in the world while maintaining our uncompromising principles as we grow.

Mission Statement
October 2008 - Present

ABOUT THE CASE

Starbucks was promoting its coffee for $4.00 with a punch line, you can now wake up to smell the $4.00 per cup at Starbucks. While McDonalds was saying $4.00 coffee is dumb and sold coffee worldwide for $1.00. Starbucks needed a strategic plan as McDonald was attracting all customers of Starbucks. By 2009 Starbucks started grinding coffee each time a new pot was brewed so to let their customers know that they believe in serving fresh so their customers can smell coffee aroma all day long. This all was a part of strategy to fight from the competition from McDs, 7eleven & Dunkin Donuts.

Contt..
On June 15, 2009, 7-eleven came out with iced coffee in US, it became very popular & particularly in females as it was low on calories & high on caffine. To take benefit of this new trend Starbucks started to sell a 16-ounce iced coffee for $1.95 for first quarter of 2009 and by third quarter of 2009 Starbucks reported earnings of %151.5 million compared to a loss of $6.7 million the prior year. As per CEO Howard, media actually played a very important role in helping them to develop strategy because of their reports on McDonalds versus Starbucks coffee products.

Problems
Barrier to entry is low. Specialty coffees are expensive. Health conscious may lead to consumers to stray away from the caffeinated drinks. Too many stores everywhere people get sick of seeing Starbucks.

Products
Coffee- More than 30 blends and single-origin premium Arabica coffees Handcrafted Beverages- Fresh -brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies and Tazo teas, ice creams Merchandise- Home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books and gift items Fresh Food- Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups

Cont..

Consumer Products- VIA Ready Brew coffee, bottled Starbucks Frappuccino beverages, Starbucks Discoveries chilled cup coffee (in Japan, Taiwan and Korea) , Starbucks Double Shot espresso drinks, Starbucks Iced Coffee, whole bean coffee and Tazo teas at grocery and a line of super-premium ice creams Brand Portfolio- Tazo tea, Ethos water, Seattles Best Coffee and Torrefazione Italia Coffee

SWOT Analysis
Strengths

Threats

Weaknesses

Opportunities

Strengths
Leading retailer and roaster for brand specialty coffee in the world Known for providing superior products and services

Number 7 on Fortune Magazine's "100 Best

Companies to Work For" for 2008 Consistent high quality of service Limited number of strong competitors High market share and market growth

Weaknesses
High pricing because of the quality ingredients used

Starbucks refuses to guarantee that milk, beverages, chocolate, ice cream, and baked goods sold in the companys stores are free of geneticallymodified ingredients Strong presence in the U.S. - more than three
quarters of its cafes located in the domestic market In order to reduce business risk, expansion is needed

Opportunities
High growth of economy and market, especially in urban areas Could diverse their product not only in coffee

The potential employees are educated people

which make it easier to train them Strong financial support

Threats
Competitors and copycat brands could pose potential threats

Global financial crisis - makes people tend not to

spend Threats of substitute products and services such as colas, teas or juices that are sold in retails Exposed to rises in the cost of coffee and dairy products

Strategies
Maximize market penetration Provide a relaxing social atmosphere Offer high-quality products

Encourages a great working environment

Achieve profitability

Promotional Strategies
Membership Cards 1. Corporate Cards 2. Regular Cards Internet / Wi-Fi facility Social Networking sites 1. Facebook 2. Twitter

Membership Cards(Regular)

Competition
McDonalds Second Cup Caribou Coffee Dunkin Donuts New World Coffee

Action Plan & Recommendations

Enhance atmosphere Entertainment to attract more customers Increase marketing Advertise Sales promotions Promote healthy products

Conclusion
Starbucks continues to be the coffeehouse of choice for many domestic and international consumers. Their strategy remains one of progressive expansion, but perhaps with more measured caution given the economic times. Recent closures of less than profitable loca-tions combined with worldwide economic conditions presents challenges for the company. Firms such as McDonalds and Dunkin Brands desire to lure all Starbucks customers away to cheaper cups of coffee. Develop a clear strategic plan for Starbucks.