STARBUCKS COFFEE

Make a new friend..

 BRIGHT PAST

 Established in 1971
 In 1980 – Largest roaster of Coffee in
Washington with 6 retail outlets.
 In 1992 – 165 stores
 In 1997 -1400 stores in North America and
Pacific Rim.
- Sales of US$ 967 million
- Profit of US$57.4 million
And it continues..
In 2000-- No. of outlets in US
reached 2200.
Opened new stores @ 1/day
From 2001 to 2004
--Starbucks opened on an avg
1200 stores/year.
In 2005
--1700 stores /year
-- more than 10,000 stores
worldwide.
In Early 2008
--15,000 stores in 40 Countries
-- annual sales of $10 billion.
The Five Success Principles..
Principle One..
Principle Two
Principle Three
Principle Four
Principle Five
POINTS OF CRITICISM

For impersonal services

Design of new stores on the

grounds that they lacked
character.

New decisions (hot food,

installing new espresso
machines) that limited the
interaction between Baristas and
Customers were received
REASONS FOR DECLINE

Economic situation in the US

Cost of opening new stores, distribution

expense, raw material cost, fuel cost were
touching new highs.

Centre for Science in the Public Interest

study claimed that stuff sold at Starbucks
were as calorie rich as at McDonald’s.

Government of Ethopia accused Starbucks

of “ blocking trademarks protections for the
names of the country’s top coffees”.

Became its own competitor, with many

stores in close proximity to each other.
CURRENT ECONOMIC POSITION
Announced a net loss of USD$6.7
Million for the Quarter ended June 2008.

 This corresponds to a loss of one cent per

share, as opposed to a profit of 2i cents per
share recorded for the corresponding period
in 2007.

 Net revenue grew 9 % in the quarter to

US $2.57 billion.

Announced to close down around 600 of

its under performing stores in US and 61 out
of 85 stores in Australia.

Company’s stock fell to 14.55,losing around

50 cents.
INITIATIVES TAKEN TO OVERCOME

7100 stores in USA closed for three

hours to relearn the art of coffee making
hoping to increase motivation.

Warm Sandwich removed from menu

list to avoid interference with coffee
aroma.

Complete re-invention of brewed

coffee in-store.

Introduction of a loyalty program that

would reward registered cardholders.

Launch of mystarbucksidea.com
MEDIA FOR COMMUNICATION

Websites
Feedback
Membership Programs
Personal Touch
Schemes
Sponsorship
Events
COMMUNICATION PLAN

Contest
CSR Activities
Merchandising
Using Social Media/Web 2.0
Use of Mobile Technology
Spending a bit more on advt than before.