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Presented To : Sir Talat Kiyani

INTERNATIONAL
MARKETING
Case Study Presentation
Group members
Tariq Yousaf
Sana Munir
Midhat Batool
Irfan zafar
Atif Talal
Bilal Zafar
COMSATS Institute Of Information Technology, Islamabad
STARBUCKS

Starbucks is a dominant multinational


coffeehouse chain based in the United
States. Starbucks is the largest
coffeehouse company in the world,
with 7,521 company-owned and 5,647
licensed stores in 40 countries,
making a total of 13,168 stores
worldwide. Starbucks sells drip
brewed coffee, espresso-based hot
drinks, other hot and cold drinks,
snacks and items such as mugs and
coffee beans.
Agenda
1. Controllable &
Uncontrollable elements

3. Risks and their solutions

5. Corporate Strategy

7. Improving Profitability in
Japan
Controllable Elements

Technological
Placement
development

Starbucks Card for  People socialize,


example, the read, study, or just
enjoy the music while
Company has Drinking their coffee.
created the
opportunity to  Modifying Coffee
improve customer shops to make their
service, shorten stores unique that
lines and make a will create an
appealing
customer’s visit at atmosphere.
Starbucks quicker  They focus on having
and more plenty of comfortable
convenient. seating so that
Research &
Advertising Development

Successful in Research developments


advertising on a local of new and exciting
level rather than to products like
the nation as a  4-cup thermal
whole. The Company coffeemaker
advertises through  ‘DoubleShot’ Espresso
print mediums, as beverage
Starbucks’ target  Starbucks Card is a
market tends to be wonderful convenience
educated people tool for customers that
can serve as great gifts,
Uncontrollable Elements

Economic Factors
In normal price variation, the demand for
coffee is price inelastic. when coffee
prices show increases, consumers reduce
their consumption.
Net revenues increased from $1.3 billion
in fiscal 1998 to $1.7 billion in fiscal
1999, due to Company’s store expansion
program
Experienced certain level of
cannibalization of existing stores by new
Sociological factors
Made outline of the company’s willingness to
make sure that its affect on the environment is
as positive as possible. These principles are
stated as:
1. Understanding of environmental issues
2. Developing innovative solutions to bring
about change.
3. Striving to buy, sell and use
environmentally friendly products.
4. Recognizing that responsibility towards
our environmental future.
5. Instilling environmental responsibility as a
corporate value.
6. Measuring and monitoring our progress for
Demographic Factors
People ages 15-64 make up the largest percentage of the
population, and will have greater control of the market.
This implies that the most important target market for
Starbucks are people within this age group.

2 largest ethnic groups in the U.S. are white 83.5% and


black 12.4. The ethnic background is important to a
company because it influences tastes, trends, perceptions,
values and beliefs of an individual

per capita purchasing power parity of $36,200 suggests


that Americans can buy specialty coffee drinks from an
expensive, quality-intensive organization such as
Starbucks.
Legal Issues

2.Companies challenging the status of


Starbucks California store managers and
assistant managers as exempt
employees under California wage and
hour laws
3.Threats could include a change in
import laws. A change in the status quo
as far as imports go could greatly affect
numerous areas of production for the
Risks & Solutions
Solution
Risk :
 Starbucks must push to be the first
Mark mover.
Innovate new products to stay
et

ahead of such competitive tactics.
 Should become alert towards
Threa competitive market
t  McDonalds entered into a coffee
agreement with Diedrich Coffee,
Starbucks could respond by
acquiring Diedrich Coffee. subsidiary
that specializes in catering to the
food service industry.
Risk : Solution:

Depen
ds on
 Heavy marketing campaign to
overse draw customers from Churchill’s.
as
growth  Another option could be to use
to Starbucks incredible purchasing
mainta power to acquire Churchill’s.
in
annual
20%
revenu
Solution:
Risk:
 The company could demonstrate
offerin Product Market Diversification
g through research

only  Environmental changes and make


sure to entice as many people as
one possible into their stores. For
example, Starbucks could start line
produ children’s fruit drinks and
ct “yummy” milkshakes which would
help bring families into the store.
Corporate Strategy
 Starbucks corporate strategy establish itself as the
premier purveyor of the finest coffee in the world.

 The firm principles of the company are its


maintenance of a proven work environment for every
staff member in its retail stores.

 It upholds diversity and promises Starbucks persists to


be profitable and it is.

 Starbucks Corporation purchases and roasts high


quality whole bean coffees and sells them, along with
fresh, rich-brewed coffees, Italian-style espresso
beverages, cold blended beverages, a variety of
pastries and confections, coffee-related accessories
and equipment, and a line of premium teas, primarily
through its Company-operated retail stores.
 In addition to sales through its
Company-operated retail stores,
Starbucks sells coffee and tea products
through other channels of distribution

 Starbucks, through its joint venture


partnerships, also produces and sells
bottled Frappuccino coffee drink and a
line of premium ice creams.

 The Company's objective is to establish


Starbucks as the most recognized and
Improving Profitability in
Japan
Starbuck’s improve profitability in Japan by the
following ways:

 Encouraging domestic competition and greatly


expanding the market for coffee chains
 Introducing a dynamic decision-making style and
corporate governance policies
 Focusing on job creation and staff retention
through stock options and by promoting a
Japanese-style “family” atmosphere
 Finding a partner with similar corporate values
and complementary strengths, and helping it
grow much faster
 Adding a unique dimension to the local coffee
culture by offering a nonsmoking environment
CONCLUSI
ON

AND

RECOMMENDATION
Thank You

QUESTIONS ???

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