Professional Documents
Culture Documents
1) Provide a great work environment and treat each other with respect
and dignity.
2) Embrace diversity as an essential component in the way we do
business.
3) Apply the highest standards of excellence to the purchasing, roasting
and fresh delivery of our coffee.
4) Develop enthusiastically satisfied customers all of the time
5) Contribute positively to our communities and our environment
6) Recognize that profitability is essential to our future success.
Vision: To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.
Objectives:
• Our Coffee- It has always been, and will always be, about quality. We’re
passionate about ethically sourcing the finest coffee beans, roasting them
with great care, and improving the lives of people who grow them. We
care deeply about all of this; our work is never done.
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• Our Partners- We’re called partners, because it’s not just a job, it’s our
passion. Together, we embrace diversity to create a place where each of
us can be ourselves. We always treat each other with respect and dignity.
And we hold each other to that standard.
• Our Customers- When we are fully engaged, we connect with, laugh
with, and uplift the lives of our customers – even if just for a few moments.
Sure, it starts with the promise of a perfectly made beverage, but our work
goes far beyond that. It’s really about human connection.
• Our Stores- When our customers feel this sense of belonging, our stores
become a haven, a break from the worries outside, a place where you can
meet with friends. It’s about enjoyment at the speed of life – sometimes
slow and savored, sometimes faster. Always full of humanity.
• Our Neighborhood- Every store is part of a community, and we take our
responsibility to be good neighbors seriously. We want to be invited in
wherever we do business. We can be a force for positive action – bringing
together our partners, customers, and the community to contribute every
day. Now we see that our responsibility – and our potential for good – is
even larger. The world is looking to Starbucks to set the new standard, yet
again. We will lead.
• Our Shareholders- We know that as we deliver in each of these areas,
we enjoy the kind of success that rewards our shareholders. We are fully
accountable to get each of these elements right so that Starbucks – and
everyone it touches – can endure and thrive.
be gaining market share from gourmet coffeehouse chains. Looking at data from
the period January through March 2009, compared with the same period last
year, the total number of coffee servings within the quick-service segment was
estimated to total 1.4 billion. Of that, 653 million servings were reported as
specialty coffees. The number of specialty coffee transactions from hamburger
restaurants was up 61%, accounting for 10.9% of specialty coffee servings within
quick service. For the comparable period, specialty coffee transactions at
doughnut outlets were up 26%, accounting for 18.7% of servings. Meanwhile, the
number of specialty coffee servings at coffeehouse concepts declined 10% for
the same period to 49.2% of servings.
or chocolate. In each case, once consumers tasted better quality, for many there
was no turning back.
Another factor boosting coffee’s popularity is that it’s an affordable luxury.
The best gourmet coffee sold in the U.S. today costs perhaps 32 cents a home-
brewed cup, says Ric Rhinehart, executive director of the Specialty Coffee
Association of America, or SCAA. In hard times, consumers may buy cheaper
wine, but coffee is relatively recession-proof. “You can drink specialty coffee
anytime and not feel bad about it,” Rhinehart says. Chicago-based market
research firm Technomic reports that consumption of hot specialty coffee has
grown 14 percent in each of the past three years. Some 82 percent of American
adults are coffee drinkers, up from 79 percent in 2004. The SCAA reports the
specialty market topped $12 billion at the end of 2008. Additionally, the number
of coffee shops in the United States has grown from 1,640 in 1991 to nearly
24,000 at the end of 2008. The bulk of those, about 11,000, belong to the
Seattle-based company that coffee-watchers agree almost single-handedly
brought specialty coffee to the masses.
“Starbucks capitalized on the trend to better coffee by offering a unique
new presentation of that coffee,” Rhinehart says. “Americans weren’t used to
espresso-type drinks. We were starting to take more meals and beverages out of
the home. Starbucks was in that perfect spot of having a unique product, they
offered great value, there was a new consumer pattern…and they were
cognizant of their place in the social fabric, as a third place for people to gather.”
World coffee exports totaled 7.75 million bags in July 2008, an increase of
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1% compared with the volume of 7.67 million bags recorded in July last year.
Total exports in the first 10 months of coffee year 2008-09 (Oct-06 to Jul-07)
were up by 13.3% from the same period last year, totaling 81.52 million bags
compared to 71.94 million bags in the prior year.
Brazil 35
Vietnam 18
Columbia 12
Indonesia 6
Ethiopia 5
Coffee consumption in the United States has increased steadily since the
1960’s. Through the recent recession, coffee was essentially recession-proof.
Daily consumption of coffee beverages among consumers remained unchanged
as compared to 2009, with 56% of adults partaking. 84% of consumers have not
changed their consumption habits despite the economic environment.
Today, consumers enjoy having a coffee place that's right around the
corner and worth the price. Unfortunately, it is common belief that, Starbucks
took the demand of the consumer a step too far, by over saturating the market
with stores.
One of the best examples of over saturation can be found in a strip mall in
Colorado. Exactly three Starbucks locations can be found; no more than 750 ft
away from one another, and two of the three stores are only 200 ft away from
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each other. By flooding the market with spots for coffee, Starbucks has been
wasting growth potential, and opting for current market optimization.
Unfortunately, the optimization is becoming wasteful and hurting the brand
image.
In a number of press releases, Howard Schultz, Chairman and Founder of
Starbucks, has mentioned the loss of original roots associated with becoming a
chain store. The focus on coffee shop ambiance was the root to Starbucks'
success, but somewhere along the line the company lost the entrepreneurial
spirit. It is not just the fact that Starbucks is now on every block that has hurt the
company; it is the loss of the entrepreneurial spirit that has affected the public
opinion. At one point in their history, Starbucks was seen as a coffee shop
dedicated to customer satisfaction. After rapid expansion and growth Starbucks
is now seen as a corporate giant concerned with one thing; profit. This problem
was quickly addressed with the return of Howard Shultz, and the effects are
starting to be noticed by the change in public opinion.
"We are reaching more and more new customers by introducing innovative food
and beverage products with broad appeal and by taking our stores into
increasingly diverse markets," said Jim Alling, president, Starbucks Coffee U.S.
"By connecting with customers, serving the highest quality coffee and striving to
consistently deliver legendary service, our store partners are at the core of the
Starbucks Experience."
convenience. They regard relationships very important and enjoy small talk with
family and friends in a relaxed social setting.
Specialty Operations
Starbucks’ specialty operations segment tries to develop the company's
brand through third parties outside the traditional coffeehouse. Specialty retail
operations accounted for 16% of Starbucks’ total revenue in 2008.
challenge' of the instant versus fresh roast. The consumer test showed that many
people could not tell the difference, often preferring the instant over the fresh
brewed. Some analysts worry that by introducing instant coffee Starbucks will
devalue its own brand. The successful launch was soon followed by a Decaf
Italian Roast, and later with a sweetened version called "iced" (even though all
VIA varieties can be made directly as an iced drink). In October 2010, Starbucks
expanded the VIA selection by introducing four new presweetened flavored
versions: Vanilla, Caramel, Cinnamon Spice and Mocha.
3.1.4 Others
In terms of perception, 7-Eleven and Dunkin Donuts provide coffee in a
"no-nonsense fashion", which attracts customers who are extremely price
sensitive. Caribou Coffee's environment is similar to that of Starbucks because of
furniture, free Internet, and cozy surroundings, but their lack of market expansion
has prohibited them from gaining the notoriety Starbucks has achieved. Finally,
BIGGBY Coffee is in the middle ground where the likes of Dunkin Donuts and
also beneficial for college students to study during finals week. Starbucks is all
about the experience and being able to provide their consumers a high quality
coffee. I believe that is also a benefit; they only provide the best coffee, which is
why they charge a higher price.
3.4 Perceptual Map of Starbucks and its Competitors (Coffee Shop Market)
3.5.1 Product
The company has also been constantly introducing new products, such as
"Instant via Ready" and "Full Leaf Tazo Tea Lattes" and "Tazo Tea Infusions".
The Instant via Ready is an instant coffee that the company claims is
indistinguishable from its regular brewed coffee (Jargon). Full Leaf Tazo Tea
Lattes and Tazo Tea Infusions are the company's new tea offerings through
which it hopes to attract tea drinkers. The company also offers Starbucks coffee
and cappuccino makers for consumers who wish to replace their existing home
coffee makers.
3.5.2 Price
3.5.3 Place
3.5.4 Promotion
This section will explain in detail what differentiates Starbucks from its
competitors. The evaluation will consist of analyzing the marketing concepts,
principles, and strategic tools that Starbucks utilizes in differentiating themselves.
to all stakeholders in the business - from the coffee bean farmers to the issues of
climate change. Starbucks maintains that being ethical is a top priority of the
organization. Starbucks is also very much involved in community activities. The
company sent 2,000 volunteers to Louisiana to help locals get their lives back on
track after Hurricane Katrina, and in several communities laid sod, and planted
over 1000 trees ("FY 2008 Global Responsibility Report"). As one volunteer said,
"Starbucks is all about the human connection" - this statement is a powerful
representation of what the company represents. The focus on the greater good of
the customers is what Starbucks wants to be known for. Starbucks wants its
customers, and potential customers to perceive them as a company that has a
positive impact on the world. This is one of the ways Starbucks is using
marketing concepts to strengthen its marketing strategy of a differentiator.
– It is a global coffee brand built upon a reputation for fine products and
services
nutritional value and great flavor. Food items include pastries, prepared breakfast
and lunch sandwiches, oatmeal, and salads as well as sodas, juices and bottled
water. Additionally, Starbucks is a retailer of specialty coffee in the world.
Starbucks also sells coffee and tea products and licenses its trademark through
other channels such as licensed retail stores. Starbucks operated 8,832
company operated stores and 7,803 licensed retail stores worldwide as of
September 2009. Such an extensive product offering enabled the company to
enhance its reach, cater to a wider customer base and meet their diverse needs
efficiently.
The core strength behind Starbucks's brand is the quality of its products.
The company has a strong research and development team which is responsible
for the technical development of food and beverage products and new
equipment. Starbucks's strong research and development capabilities enable it to
focus on relevant product innovation, expansion and leveraging of its existing
products and sales channels. For instance, in FY2009, the company launched
Starbucks VIA ready brew coffee to capture a significant share of both the $21
billion global instant coffee category and the single-serve market and further
expanding its coffee expertise and leadership in local and international markets.
Starbucks VIA is made with a proprietary, US patent-pending microgrind
technology to preserve the coffee’s taste, quality and freshness. Additionally in
September 2009, the company’s brand Seattle’s best coffee introduced “Just
Pure Flavor”, an innovation for fresh brewed coffee that offers customizable
flavor by the cup. The new flavors use no dairy, sugar or artificial sweeteners,
and add less than 50 calories to a 12 fl. oz. (5 calories) beverage.
Starbucks invests substantial amount of resources on technical research
and development activities including customary product testing and product and
process improvements. For instance, Starbucks spent approximately $6.5 million,
$7.2 million and $7.0 million during FY2009, 2008 and 2007, respectively on its
research and development activities. Starbucks's focus on quality and product
innovation help sustain the brand value of the company and introduction of new
products at regular intervals helps them to stay competitive.
Starbucks is well positioned to increase its revenues, customer’s base,
and profit margins through its expanded presence in international markets.
Starbucks currently operates in more than 50 countries.The company’s
international markets include Argentina, Australia, Austria, Brazil, Bulgaria,
Canada, China, Czech Republic, France Germany, Greece, Hong Kong,
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Indonesia, Ireland, Japan, Malaysia, Mexico, Middle East New Zealand, Peru,
Poland, Portugal, Romania, Russia, Singapore, South Korea, Spain Switzerland,
Taiwan, Thailand, Turkey and the UK.
Additionally, Starbucks also has established relationships with Kraft
Foods, the largest confectionery, food and beverage corporation in the US. For
instance, Starbucks sells its branded packaged coffees and teas in grocery and
warehouse club stores throughout the US through its licensing relationship with
Kraft Foods. Kraft Foods manages all distribution, marketing, advertising and
promotion of Starbucks products. Additionally, Starbucks also sells packaged
coffee and tea internationally both to warehouse club stores, such as Costco
Wholesale, and to grocery stores through a licensing relationship with Kraft in
Canada, the UK and other European countries.
4.2 Weaknesses
– Product recalls by Starbucks affect margins and brand image
– The organization has a strong presence in the United States of America
with more than three quarters of its cafes located in the domestic market
– Starbucks has a reputation for new product development and creativity.
However, they remain vulnerable to the possibility that their innovation
may falter over time, and product acceptance will come to a halt
eventually slowing growth.
– Higher coffee prices compared to competitors
– Downward turn in economy, people being more conscious of their
spending habits and grabbing the less expensive option, Starbucks not
being the one.
Starbucks has recalled few of its products in the recent times. For instance in
FY2009, the Consumer Product Safety Commission ordered recall of thousands
of Starbucks and Seattle's best coffee blade grinders. The recall was prompted
as the company’s grinders can fail to turn off or can turn on unexpectedly, posing
a laceration hazard to consumers. The total recalls of company products included
530,000 grinders. Additionally, the company announced a voluntary recall of
more than 12,000 glass water bottles due to the possibility of lacerations. The US
Consumer Product Safety Commission and Health Canada claimed that while
removing or reapplying the bottle’s stopper, the bottle can shatter and cut the
consumer which strained Starbucks to recall its glass water bottles in FY2009.
Furthermore, Starbucks also recalled few of its products containing peanut butter
from its stores following an outbreak of salmonella in the US. Product recalls
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such as these hurt the value of the Starbucks brand and lead to a decline in the
demand for its products.
4.3 Opportunities
– Cost reduction initiatives such as rationalizing of global retail network to
improve margins
– Entry into Europe’s ready-to-drink coffee sector and a tie-up with Arla
Foods
– Introduction of Starbucks VIA coffee essence in Japan
– Stable credit ratings strengthen stakeholder confidence
The company in FY2009 initiated a cost reduction program to improve its
margins through rationalizing its global store portfolio. For instance, during the
year, Starbucks completed the closure of nearly 1,000 company-operated stores
globally. At the end of FY2009, approximately 800 US company-operated stores,
61 stores in Australia and 41 company-operated stores in other international
markets had been closed. The remaining international store closures are
expected to be completed by the end of FY2010. Initiatives such as these helped
the company to improve its operational efficiencies through reduced cost
expenditures. For instance, through closure of company’s stores globally has led
to cost savings of $580 million in FY2009 for Starbucks, and few more closures
expected in FY2010 is likely to reduce further cost of the company which
positively impact the margins. Cost reduction initiatives and related operational
efficiency efforts such as these will significantly contribute to the margin
improvement of the Starbucks.
Starbucks announced to enter the ready-to-drink (RTD) coffee products in
Europe in January 2010. The ready-to-drink coffee category market in Europe is
valued to be $550 million. Furthermore, during the same year, the company also
signed an agreement with Arla Foods, a leading producer and distributor of
quality milk products in Europe. Under the agreement, Arla Foods will
manufacture, distribute and market Starbucks-branded premium RTD coffee
beverages in Europe. The new relationship with Arla Foods complements
Starbucks coffee expertise and experience in the ready-to-drink coffee category.
Furthermore, extending the Starbucks brand into new distribution channels
globally is a part of the company’s long-term plans to target international growth
in key regions such as Europe. The success of Starbucks premium RTD
products in the US and Asia demonstrates strong business opportunity for the
company in European markets. The company’s decision to enter European
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markets through introduction of its strong RTD coffee category products will
boost its top line and also expand its geographical reach.
After the company’s successful introduction of Starbucks VIA ready brew in
the US, UK and Canadian markets in FY2009, it launched Starbucks VIA coffee
essence in FY2010, its first premium coffee stick product in Japan, where 63% of
total coffee sold is instant. The company will sell its Starbucks VIA coffee
essence product through 870 Starbucks stores in Japan and eventually expand
distribution to include grocery shops and other retail channel. Japan is one of the
biggest market at-home coffee markets valued at $5 billion. With the body, flavor
and rich aroma expected from Starbucks coffee,
Starbucks VIA coffee essence will create a new category for coffee drinkers
looking to enjoy Starbucks quality coffee in Japan. Additionally, Japan is a key
market for Starbucks as it eyes the $23 billion instant and single serve coffee
market. The launch of Starbucks VIA coffee essence in Japan is likely to expand
Starbucks customer base besides enhancing revenues.
Starbucks has been rated well by credit rating agencies on account of
recording strong financials for FY2009. For instance, the rating agency Standard
and Poor’s Ratings Services in August 2009, revised its outlook on the Starbucks
credit ratings to stable from negative based on improved credit metrics and
stabilizing performance. It also affirmed the BBB corporate credit rating on the
company and raised the short-term rating to A-2 from A-3. Strong financial
performance and improved cash flows were the main reason for Starbucks’s
improved ratings. The stable credits of the company increase stakeholder
confidence and also provide an opportunity to raise finances to meet any
expansion plans in the future.
4.4 Threats
– Increased minimum wages affect operating margins
US, which remained at $5.15 per hour since 1997 reached $6.55 per hour in July
2008. It is expected to further rise to $7.25 an hour from July 2009. Starbucks
employed about 142,000 people in the US, as on September FY2009. Increased
labor costs could increase overall costs and affect the company's operating
margins.
As a retailer dependent upon consumer discretionary spending, Starbucks will
face an extremely challenging FY2011. All major western counties including the
US, UK, Germany, France, Italy, Spain, Japan and Australia are in the grip of
recession and are forecast to remain so through 2010. Even the key emerging
market economies are currently experiencing downturns, including China, Middle
East and Brazil. The global economic downturn has led to a severe decline in
consumer confidence. Consumers also have less money for discretionary
purchases as a result of job losses, foreclosures, bankruptcies and reduced
access to credit. A decrease in consumer confidence and the resultant curbed
consumer spending would result in decreases in customer traffic and average
value per transaction. Starbucks's business is highly sensitive to changes in
customer traffic, and the current economic downturn would put downward
pressure on the company's margins.
Starbucks's products contain caffeine, dairy products, sugar and other active
compounds, the health effects of which are the subject of increasing public
scrutiny. It is suggested that excessive consumption of caffeine, dairy products,
sugar and other active compounds can lead to a variety of adverse health
effects. Particularly in the US, there is increasing consumer awareness of health
risks, including obesity, due in part to increasing publicity and attention from
health organizations, as well as increased consumer litigation based on alleged
adverse health impacts of consumption of various food products. Increasing
health awareness among American consumers could significantly reduce the
demand for the company's beverages and food products.
conducted the convention. The convention took place in, Los Angeles, Seattle,
Phoenix, Dallas, Miami, New York, Charlotte, Atlanta, and on the Internet. The
convention provided consumers with the opportunity to taste new potential
brewing flavors, while they shared their opinion on what Starbucks needed to
change.
The results were very eye opening and what we found was that Starbucks
had lost their personal touch and had become another profit hungry corporate
machine. The following opinions are those of real Starbucks customers. The
people interviewed ranged from Starbucks fanatics, average Joes, and anti-
Starbucks activists. We looked at every survey and suggestions submitted,
(almost 500,000 surveys in total) and picked out the ones that represented what
most customers were saying.
“Personalization is Key”
“The coffee is still as good as ever, the flaw is in the ambiance. The interior
of each Starbucks location is growing more and more placid; meaning it needs
SOUL. I recall a Starbucks in Kent, Ohio where students from the nearby
university would gather on all nights of the week to reminisce, relax, and enjoy
coziness away from school life. The employees were students as well and they
joined their classmates in discussions while still doing their job. The atmosphere
at this Starbucks was warm in the winter and vibrantly cool in the summer.
Being a college student who has recently moved to New York City, I have noticed
a slight similarity in the Starbucks locations here—the interiors are all the SAME.
It could be that the general method of Manhattan-ites is “In quick to get my coffee
and go”, but I am not always in a rush and would like some identity as a
consumer. I want to be able to say, “It’s MY Starbucks and they are MY
Baristas.” –Kristopher Patel, St. Johns University
fresh, custom-made drinks are prepared the old fashioned way. That’s what
made Starbucks. –Jamey Shields, Los Angeles, California
“Slow down!!”
Everything needs to slow down at Starbucks. It’s becoming a fast food
restaurant because the employees are letting it. There needs to be more of a
welcoming in-store feeling where people can enjoy a coffee without a lineup of 30
people and employees yelling “triple skinny latte!” Perhaps offering a few select
dine-in coffee services? I know this is bold and very different, but I feel like it
reflects the luxury Starbucks is trying to convey. Having a full-service coffee
place also allows for people who go to meet up for a coffee somewhere a little
special to relax and chat without all the hustle and bustle. It’ll give a little revamp
to the image, and hopefully upgrade it a bit. –Rob Stevens, New York, New York
so how can we get a similar kick in a better tasting WARM drink without coffee
flavoring. Starbucks does this well in the summer, but poorly the rest of the year,
with their only real non-coffee offering being tea and the popular Chai Latte.
#3) Treat each store as its own entity. I don’t mean with store layout design.
Create buzz around each store if you want a local feel. Stores near college
campuses should be open 24 hours during finals week, or at least offer free drip
coffee during those weeks for anyone with a Student ID. Many small business
meetings occur at Starbucks. What are their needs? Wi-Fi, of course. But maybe
they also need to be able to reserve space to meet. Let them call in advance to
reserve a small, comfort- able area in the corner for a set price. Does the area
mostly cater to families? Have toys for children to play with while the moms grab
a Chai tea, or free treats if you bring in your dog. Cater to your local crowd, and
they’ll keep coming back for more.- Eric Cassilious, ChangeThis.com
6.0 Objectives
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7.0 Strategies
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a higher price for such a high quality. The high quality, luxurious coffee will now
be available in the single cup, in-home brewing machine or the VIA instant coffee
packets that have been taste tested with great success. We will have one page
ads in a handful of magazines that Starbucks has always ran in the past which
are: Rolling Stone, ESPN, Maxim, Lucky, Cosmo, US Weekly and Entertainment
Weekly. Starbucks has never done a large amount of advertising compared to
competitor, McDonalds who saturates the advertising market. There will be a
select few commercials that will be launched in the ad campaign. The
commercials will be informative of the new in-home brewing systems, (Starbucks
single cup maker & the VIA) but also focusing on the ‘bring the luxury coffee
home’ factor. The ad campaign will be a large hit towards Folgers, who is a big
leader in the in-home brewing coffee segment. Starbucks will be in every aspect
of the coffee market. Each Starbucks will have a drive threw, for the ‘grab a
coffee and go drinkers’, they will still keep the same environment throughout the
Starbucks stores, for the college student and business professional target
market, and they now will have the in-home brewing system along with a grab
and go from home instant coffee.
7.4 Starbucks change in focus – from Quantity of locations to Quality
We felt that the continuation of openings of Starbucks on every corner was
not in Starbucks best for future profits, the quantity shouldn’t be the focus. The
focus of Starbucks is in the quality, not just the coffee, which has already been
established, but also the quality of the businesses. This strategy is more focused
on the launch of the “15th Avenue” stores. We will conduct an undercover
Starbucks board that continuously listens to the customer’s opinions throughout
the current Starbucks locations and the new “15th Avenue” locations that will be
built. We want the quality of each “15th Avenue” to be sincere. Each “15th Avenue”
will be a different experience that adapts to that location. These coffee shops will
not have a corporate feel like Starbucks tends to have. There will be large
amounts of market research done in each particular location that a store may be
desired. We want to know the location, environment, demographics, culture, and
everything that has to do with the city to be able to portray the “third place”, from
work and home, as these new “15th Avenue” coffee shops.
8.0 Tactics
8.1 Expansion of specialty branch “15th Avenue”
that other brewers do not. We want to portray a luxury that no other brewer can
provide because we believe that no other company offers coffee better than ours.
For our on the go coffee Via coffee, we would like to have an add that
shows potential customers that the coffee tastes the same as coffee brewed the
traditional way. Our main marketing focus will be to prove that you can have the
great taste of Starbucks coffee, no matter where you go.
much for consumers to remember or engage in. If not enough advertising is the
case we will know this by consumers still not being aware of our product when
we conduct market research 6 months down the road after the advertising as
been launched. We would then decide to use more money into advertising, much
like competitor McDonalds does. We do not feel that a large amount of
advertising is the key to a successful coffee business, but if the lack of
knowledge is significant after months of advertising that may be our next focus.
11.4 Starbucks change in focus – from Quantity of locations to Quality
“What if the qualities of the “15th Avenue” stores are not accepted in the
selected areas?” “What if adding additional stores is the answer in creating more
revenue?” We believe that our extensive market research throughout the
locations of the stores will be sufficient enough that the coffee shops will be
openly accepted as a new aspect of their town. But, if they are not wanted or
welcomed in the community we would conduct more market research that
included several intensive focus groups to determine what would make it a better
coffee shop for the consumers to approve of in their area. If we are not creating
profit throughout the “15th Avenue” coffee shops within 6 months to a year we will
need to reconvene and determine whether opening up more Starbucks stores is
the answer. We think the “15th Avenue” stores are going to be a great success.