-
Business AnalysisCompiled By;
Qamarudheen [email protected]
+919-6259-234-12
STARBUCKSCOFFEE
www.starbucks.com
-
IntrductionOverviewHistroryMission
Key People
-
Intrduction
OverviewStarbucks is a world renowned specialty coffeemaker.
It roasts, markets and retails specialty coffee.
It offers blends of coffee, handcrafted beverages,merchandise,
and food items, ready-made drinks,and Starbucks ice cream.
It markets all of its products under the flagshipStarbucks
brand.
3
-
Intrduction
It also market some products under brands suchas Tazo Tea,
Seattles Best Coffee, Starbucks VIA,Torrefazione, Italia Coffee,
and Evolution Fresh.
The company-owned and licensed storesoperates across
Asia-Pacific, the Middle East,Africa, Europe and the Americas.
Total stores: 19767 (as of September 29, 2013) Company-operated
- 10194. Licensed stores - 9573.
Overview4
-
Intrduction
The first Starbucks store opened in SeattlesPike Place Market in
1971.
The company grew to be the largest roaster inWashington with
multiple locations until theearly 1980s.
In 1981,Howard Schultz, recognized a greatopportunity and began
working with the founderJerry Baldwin.
History5
-
Intrduction
Schultz wanted to bring the Italian caf cultureto the United
States. Selling espresso by the cupwas the first test.
Schultz left Baldwin to open his own and raisedmoney from
investors to purchase the Italian Coffee House Giornale.
The company experienced rapid growth goingpublic in 1992, and
growing tenfold by 1997,with locations around the United States,
Japanand Singapore.
History6
-
Intrduction
Starbucks coffee on United Airlines flights. Selling premium
teas via Tazo Tea Company. Offering order Starbucks coffee
online.
Introduced new products and operations.
Today, Starbucks has millions of customersevery day, in about
19,000 locations in over62 countries which have employed
approximately 1,82,000 partners worldwide.
Starbucks also began expanding its brand by;
History7
-
To inspire and nurture the human spirit oneperson, one cup, and
one neighborhood at a time.
It ethically sources the finest coffee beans.
It embraces diversity.
It provides a human connection with employees.
It creates stores where customers feel comfortable.
It takes responsibility in each community.
Intrduction
8
Mission
-
Intrduction
9
Key PeopleHoward SchultzChairmanPresident Chief Executive
Officer
Troy AlsteadChief Financial Officer and Group President, Global
Business Services
Adam BrotmanExecutive Vice President, Chief Digital Officer
Curtis GarnerExecutive Vice President, Chief Information
Officer
Sharon RothsteinExecutive Vice President, Global Chief Marketing
Officer
Arthur RubinfeldChief Creative Officer, President, Global
Innovation And
Matthew RyanExecutive Vice President, Global Chief Strategy
Officer
-
PRODUCTSDrinksFood
Merchandise
-
PRODUCTS
Espresso
FrappussinoNon-Coffee
Cappuccino
11
Drinks
-
Pastry/ Cakes
CookiesMuffins
Sandwitch
PRODUCTS
12
Food
-
PRODUCTS
13
Merchandise
Blends
Coffe MakersMugs
Tumblers
-
SWOT AnalysisStrengths
WeaknessesOpportunities
Threats
-
Innovation
Global presence
Strong financials
Brand identity
Store ambience
15
StrengthsSWOT
Analysis
-
High employee turnover
Over dependence on US market
Small product mix
Higher prices
Too many products
16
WeaknessesSWOT
Analysis
-
SWOT
Analysis
International markets
Customization
Inorganic growth
New product mix
Localization
17
Opportunities
-
Intense competition
Govt. Regulations
Uncertain suppliers
Target of terrorism
Saturated US market
SWOT
Analysis
18
Threats
-
StrategySuccess FormulaInternalization
-
STRATEGY
Motivated employees & superior customerservice is the key
success factor of Starbucks.
Starbucks focuses on recruiting anddeveloping rightpeople.
Starbucks partner serving coffee with a smile :)
20
Success Formula
Attractivecompensationpolicies.
-
STRATEGY
21
Market Entry
Local joint-venture is the preferredentry strategy of
Starbucks.
-
Financial AnalysisShare PriceSales Mix
Income StatementEarnings
Balance Sheet
-
FINANCIALS
$46.50
$56.55$62.00
$54.28 $54.90$58.97
$67.48
$77.84
$35.12
$45.28$51.03
$43.04 $44.27
$52.39$56.65
$65.82
12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4
High Low
23
Share Price
-
FINANCIALS
74% 75% 75%
20% 19% 19%
3% 4% 4%3% 2% 2%
2013 2012 2011
Beverages Food Packaged and single serve coffees Coffee-making
equipment and other merchandise
24
Sale Mix
-
FINANCIALS
14892.2
13299.5
11700.4
15469
11512.8
10175.8
-325.4
1197.41728.5
8.3
1384.7 1248
2013 2012 2011
Net Revenue Operating Expense
Operating Income Earnings After Interest & Tax
25
Income Statement
-
FINANCIALS$0.01
$1.83$1.66
$0.89$0.72
$0.56
2013 2012 2011
EPS Cash Dividends
26
Earnings
-
FINANCIALS
$5,471.40
$4,199.60
$6,045.30
$4,019.60
$5,377.30
$2,209.80
$1,657.10
$894.90
$4,482.30
$5,114.50
2013 2012
Current Assets Fixed Assets Current Liabilities
Long Term Liabilities Equity
27
Balance Sheet
-
MARKETINGSegmentTargeting
PositioningProduct
PricePlace
Promotion
-
MARKETING
Every age group.
Tech savvy individuals.
Men and women.
High disposable income.
Brand focused.
Savvy and avid coffee lovers who enjoythe Starbucks
Experience.
29
Segment
-
MARKETING
Starbucks targets commuters and captiveconsumers.
Commuters consist of people heading to or fromwork or people on
their lunch break.
Captive consumers consist of those who arestuck in a campus
environment. Eg: high school & college students,
corporatecampuses.
30
Target Customer
-
MARKETING
Starbucks has positioned itself as an upscalebrand which provide
rich experience.
It is obvious from the mission statement thatthey are trying to
make it the best for socializing.
Starbucks is trying to reposition itself as a third place for
its customers.
31
Positioning
-
MARKETING
Coffee: More than 30 blends and premium coffees.
Handcrafted Beverages: Fresh-brewed coffee, hot and iced
espresso beverages, Frappuccino
coffee and non-coffee blended beverages, smoothies and Tazo
teas.
Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt
parfaits and fruit cups.
Merchandise: Coffee- and tea-brewing equipment,mugs and
accessories, packaged goods, music,books and gifts.
32
Product
-
MARKETING
Startbucks offers all of its products at a premiumprice.
Prices range from $1.00-$4.20 for drinks which ishigher than any
other retailers.
In case of foods, Starbucks is more expensivewhen compared to
quick-service restaurants,
33
Price
-
MARKETING
Distributed directly to customers through ownretail stores and
retail partners.
Located in high-traffic, high-visibility locations,focusing on
pedestrian consumers.
Company also focus on drive-thru retail stores forthe
convenience of non-pedestrian consumers.
34
Place
-
MARKETING
AdvertisingStarbucks spends under 3% of revenue on ads.But
spends more on ensuring customersatisfaction to increase word of
mouth.
PersonalSelling
PublicRelations
SalesPromotions
Passionate employees, customer satisfaction.
Events, public performances, green initiatives philanthropic
endeavors.
Store decoration, viral videos, sample vans,billboards,
newspaper, magazines andsocial media.
35
Promotion
-
FACTSFive Facts
-
FACTS
37
Five FactsStarbucks has added an average 15 stores on a
dailybasis since 1987.
The average Starbucks customer visits the store 6 timesper month
while loyal 20% of customers visit 16 times.
There are over 87000 drink combinations at Starbucks.
The Starbucks cinnamon chip scone has more caloriesthan a
McDonalds quarter pounder with 480 calories.
Starbucks uses 93 million gallons of milk and 2.3 billion paper
cups per year.
1
2
3
4
5
-
RecognitionsAwards
-
Recognitions
No. 1 Best Coffee, Fast Food and QuickRefreshment categories
Zagats Survey ofNational Chain Restaurants 2009-2010 No. 1 Most
Popular Quick Refreshment Chain Zagats Survey of National Chain
Restaurants 2009-2010 One of the Worlds Most Ethical Companies
Ethisphere 2007-2010
39
Awards
One of The 100 Best Companies to Work For FORTUNE 19982000,
20022010 One of the Most Admired Companies in America FORTUNE
20032010
One of the Global 100 Most Sustainable Corporations in the World
Corporate Knights 2010
-
Compiled By;Qamarudheen Thayyil
[email protected]+919-6259-234-12
THANKS
www.starbucks.com
Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Page 9Page
10Page 11Page 12Page 13Page 14Page 15Page 16Page 17Page 18Page
19Page 20Page 21Page 22Page 23Page 24Page 25Page 26Page 27Page
28Page 29Page 30Page 31Page 32Page 33Page 34Page 35Page 36Page
37Page 38Page 39Page 40
