Starbucks Experience Management Made In Vietnam Starbucks Vo Thi Thuy An (Anna) Bye a aL) Thai Thanh Son (Vincent)Company Overview en Se a v Largest coffeehouse chain (16,120 stores/44 countries) ¥ Since 1971 in Seattle, Washington, USA v Restaurant/Retail Coffee and Tea Beverages/Entertainment v Net income: USS672 mil (2007) v Brand values ranking: 35 v Employees: 172,000 (2008) v CEO: Howard SchultzKey Milestones 1971 1987 1997 First Starbucks Schultz took Japan, UK, Partnership eh store ‘aver Starbucks Singapore with Apple ‘ 8 op Op 2008 2003 1982 + Schultz to CEO Howard Bttering 168 6,400 stares Schultz joined fiat worldwide # blew espresso. system) + Starbuck Cards + Selling Product Red goodsWhat have Starbucks done: Vo Thi Thuy An (Anna)Competition nT Y Caribou Coffee TOP 10 RESTAURANT CHAINS v Peet's Coffee & Tea sna aster nein io ¥ Dunkin Donuts Pace a — ’ ee at ¥ Mc-Donald’s = a raat oo. — v And thousands of .= ea independent specialty — > steaes fe tnt ae e me coffee shops oe aon eet PtStarbucks Past and Current CRM Strategies eenennceccmaeaminemammss {7} an Starbucks CRM StrategiesPRM — Partner Relationship Management v External: ¥ Control supply chain as well as possible v Partnership with Apple, T- mobile, PepsiCo, Dreyer’s Grand Ice Cream... v Internal: Y Partner satisfaction Y Training courses v “Just say yes” policy ¥ “Customer Snapshot” programCEM — Customer Experience Management ¥ Customer Intimacy Y Diversified menu ¥ Promotion campaign ¥ One moment of life... Y Distribution channel & grocery storesSRM — Social Relationship/Responsibility Management am v Employ over 172,000 partners ¥ Coffee farmer supporter ¥ "Grounds for your Garden" programWine Tacieclaell[e, Car hy ACMgy RAAHKR AS SWOT Analysis : ay REN! Quality coffee in the world Industry market leader Legendary service Professional staff Pleasant atmosphere Good location Product diversification & innovation Company operate retail stores & international stores Good working environment + valued and motivated employees Consistent on quality product + operationSWOT Analysis ¥ Retail expansion, lack of internal focus ¥ Self cannibalization v High labor expense & high rental rate ¥ Problems in some international operationsSWOT Analysis OPPORTUNITIES Ce Y Global famous coffee brand ¥ Growth in coffee market ¥ Technological advance v Market expansionSWOT Analysis THREATS ay v Economic recession ¥ Competition v US market saturation Y Coffee price volatility in developing countries ¥ Rising dairy cost ¥ Negative publicity from poorly treated farmer in supplying countries ¥ Cultural and Political issues in foreign countries ¥ Changing customerStarbucks and Global Financial Meltdown Economic Recession Credit Leioy ee} cy MarketWhat will Starbucks de Thai Thanh Son (Vincent)Do you know what is your major problem, Starbucks? SLOW DOWN OR DIERecommendations semnereeensomarnceensaneetmmmcscmmetios! $5) sm "Increasing Customer Lifetime Value oe. Restructuring Chain System & r OperationRetaining the Right Customers @ FRIENDLY / ATTENTIVE STAFF PLEASURE ATMOSPHERE COFFEE TASTE/ FLAVOR RESTORE DECORATION KNOWLEDGEABLE STAFF (@ BACKGROUND MUSIC @ RELAXED ENVIRONMENT SEE & BE SEEN (FEEL YOU ARE “PART OF THE GROUP") EASE OF LOCATING A COMFORTABLE SEAT EXPERIENCE RATINGS AVAILABILITY OF NEWSPAPERS / MAGAZINES IMPORTANCE LEVEL—PURCHASE Made In Vietnam Starbucks That Thanh Soa (Vincent) 18Different Perceptions from Different Customers I'm drinking Starbucks! Outside inStarbucks Customer is Changing " ‘i f ) Relative attitude Low Repeat purchaseMoment of... Me & Starbucks Me & Entertainment & Starbucks Me & My Work & StarbucksRestructuring the Chain System & Operation sae a a v Re-allocating the stores v Internal competition ™ y¥ Financial center v Separating with Fast foods industry Y Drive thru ¥ Hot food ¥ Consistent but not cloning Y Coffee taste ¥ Decoration v Atmosphere ¥ Local adaptabilityIncreasing Customer Lifetime Value ig “Valued Custo lac lee ls Caves ta Eo Friendlier, more attentive staff 19% Faster, more efficient service 10% Personal treatment (remember my name, my order) 0% More knowledgeable staff 4%. Better service Cie me Free cupatter x number of visits Reduce prices 11% Offer promotions. specials 3% Other (total) Be Better quality/Variety of products 9% Improve atmosphere 3% Community outreach/Charity 2% More stores/More convenient locations 2% Pine | Po Made in Vietnam Starbucks Thai Thanh Son (Vingent} 2aCustomer is not only Starbucks’ drinker...Thank you for your attention Vietnam is waiting for you, Starbucks!Do you want to watch some Starbucks’ TVC?