Get Going

With
Starbucks
Doubleshot
 Starbucks
Marketing Plan

Lecturer Dr. Yusniza Kamarulzaman

Prepared By

Mohammad Shahid CGA 070092

Muhammad Zia Aslam CGA 070040
(University of Malaya)
 Contents
 Introduction of Starbucks
 Starbucks Malaysia
 SWOT Analysis
 4 Ps
 Strategy
 About Starbucks

 Overview

 Starbucks Malaysia

 Starbucks Vision

 Starbucks Mission
Statements
 Starbucks Overview
 Specialty Eatery in the Quick-
Service Restaurant sector

 Established in 1971 in Seattle,

Washington

 Known for its quality coffee and

store ambiance

 Over 14,000 locations in 40

countries
 Starbucks Overview
(Con’t)
 1971 – First Starbucks coffee shop
opened in Seattle USA

 1985 – Howard Schultz became CEO

 1987 – Changes name to Starbucks

Corporation

 1992 – listed as a public entity with

trading symbol “SBUX”

 1996 – Starbucks Coffee International

went international in Japan and Singapore
 Starbucks Overview (Con’t)

 1999 – Acquires Tazo Tea company and

Hear Music company.

 2003 – Acquires Seattle’s Best Coffee.

 2005 – Introduces Starbucks Coffee

Liqueur; Acquires Ethos Water.
 Starbucks Malaysia

 The first Starbucks opened 17th of December 1998 in KL Plaza, Kuala

Lumpur, Malaysia

 Berjaya Starbucks Coffee Company Sdn Bhd is jointly owned by

Starbucks Coffee International and Berjaya Corporation Berhad. The
company operates Starbucks retail locations throughout peninsular
Malaysia.

 To date, the company has 100 outlets in Malaysia.

Starbucks Stores in Malaysia
Starbucks Stores in Malaysia

Klang Valley

3 1 3 Penang
2
21 Johor Bahru
2
1 Pahang
4
Malacca
Negeri Sembilan
11 Perak
58 Kedah
Sabah
Saraw ak
Genting Highlands
Starbucks Market Share In Malaysia

Starbucks Market share in gourmet coffee

45% Starbucks
55% Others
 Starbucks Vision

• Create one of the worlds greatest brands.

• Maintain an uncompromising commitment to coffee quality.
• Create a great work environment and believe in the power of
our people.
• Lead with integrity, courage and passion.
• Maintain our commitment to our communities and the
environment.
 Mission Statement

Establish Starbucks as the premier purveyor of

the finest coffee in the world while maintaining
our uncompromising principles as we grow
 Guiding Principles
 Provide a great work environment and treat each other with
respect and dignity
 Embrace diversity as an essential component in the way we do
business
 Apply the highest standards of excellence to the purchasing,
roasting, and fresh delivery of our coffee
 Develop enthusiastically satisfied customers all of the time
 Contribute positively to our communities and our environment
 Recognize that profitability is essential to our future success
 S.W.O.T
Analysis

 Strengths

 Weaknesses

 Opportunities

 Threats
 S.W.O.T Analysis

Strengths
 Starbucks is the “Most Trusted Brand” .
 Global presence, as of July 2007 the company had
over 14000 outlets in 40 countries.
 Socially responsible reputation ‘ committed to
socially responsible coffee buying practices
 Employee Satisfaction “ focuses on maintaining
employee happiness”
 Starbucks annual revenue growth in Malaysia is 30%.
 S.W.O.T Analysis

Strengths
 “The Starbucks logo is recognized by most, which also helps to
retain customers that travel internationally, allowing them to get
the same Starbucks coffee in the same Starbucks cup that they
enjoy back home.”
 Starbucks was one of the Fortune Top 100 Companies to Work For
in 2005. The company is a respected employer that values its
workforce.
 Starbucks Holds 45% of the gourmet coffee market share.
 Starbucks Corporation is a very profitable organization, earning
$600 million and generating revenue of $5 billion in 2007.
 S.W.O.T Analysis

Weaknesses

 Reliance on in house selling.

 Starbucks has a reputation for new product development and

creativity. However, they are dependant on a main competitive
advantage, the retail of coffee.

 Overcrowding the Market: If Starbucks has two stores close to

each other, they potentially take business away from each other.
 S.W.O.T Analysis

Threats

 Stiff competition in the

gourmet coffee market.
 Intense competition
from local coffee
specialists as well as
fast food operators like
McDonald’s and
Dunkin’ Donuts
 S.W.O.T Analysis

Threats
 One “wow” move form international
players like Coffee Beans can pose a big
threat.
 Volatility of coffee prices in the
international market.
 Premium brand higher expectations
 S.W.O.T Analysis

Opportunities
 Expansion in Asia,
specifically in Asia Pacific
and China
 Increasing popularity of
gourmet coffee-drinking in
developing countries
 Opportunity to extend
further its distribution and
product range
 Four P’s
Analysis

 Product
Panin
i
 Price

 Place (Location)

 Promotion
 Four P’s Analysis

Products

 DoubleShot is delicious
intensity of rich espresso,
mellowed by a touch of
cream.
 DoubleShot Light is the
delicious intensity of rich
espresso, mellowed by a
touch of cream with half
calories.
 Four P’s Analysis

Products

 Both the products comes

in 250 ml can.
 Four P’s Analysis

Price

 The Price of Starbucks Double Shot

Per Unit is Rm 3.50. The price for
6 pack of cans Rm 20.
 Four P’s Analysis

Locations

Kuching

Lankawi
Kota
Penang Kianblu

Klang Valley

Malacca
Johor Bahru
 Locations

Starbucks Ready to Drink coffee will be

available in the big retail stores like
Carrefour, Jusco, Tesco, Giant, Metrojaya
and other retail chains stores in Malaysia.
 Promotions
Now you can feel Starbucks anywhere,
anytime. (Starbucks always be with you)

 Television Advertisement.
 Print Media
 Billboard
 Event Sponsor (Akademi Fantasia)
 Marketing Objectives
 Strengthening Brand image aiming to be the
leading coffee retailer in each market
 Enhance Malaysian market leadership even
in the ready to Drink coffee segment
 To achieve 25% market share in ready to
drink coffee segment in the first year.
 To achieve sales target 17,500,000
 Target market
 Referring to rate card provided by the
company, the age group of 20-35 contribute
the largest portion (68%) of the total
population in Malaysia.
 As such, the age group of 20-35 definitely
will be our target.
Distribution of Citizen Population by Broad Age Group and Ethnic Group, 2006

Other
Age Group Malays Chinese Indians Others
Bumiputeras

Number ('000)

0-4 1473.7 343.1 476.8 169.5 41

5-20 2908 649.9 1012.4 339.4 74.1
20-29 3103.9 717.1 1450.5 469.4 68.3
30-59 3520.9 727.5 2251.2 607.9 46.1
60 & Over 673.9 130.2 501 93.9 40.2
Total 11680.4 2567.8 5691.9 1680.1 269.7
0-4 12.6% 13.4% 8.4% 10.1% 15.2%
5-14 24.9% 25.3% 17.8% 20.2% 27.5%
15-29 26.6% 27.9% 25.5% 27.9% 25.3%
30-59 30.1% 28.3% 39.6% 36.2% 17.1%
60 & Over 5.8% 5.1% 8.8% 5.6% 14.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
 Positioning

 We want to position DoubleShot as a premium brand in

the Ready to Drink coffee market in Malaysia.

 Distinguished from traditional to Ready to Drink coffee

available in the market.
Strategy
 Strategy
 Our strategy is to establish as the most
recognize and respected brand in the region,
specifically in Malaysia.
 To achieve this, selectively pursue
opportunities through the introduction of the
new products and development of new
distribution channel
 Strategy Implementation
 Introduction of DoubleShot will help
company to penetrate the other bigger
segment
 Joint venture with Coco-cola for production
and distribution of Double Shot in the
Malaysian market.
 Starbucks Financial Performance
(2007 FY)
Financial Ratios Starbucks
Profit Margin 6.88%
Return on Equity 28.80%
Return on Assests 11.89%
Current Ratios 0.771
Quick Ratios 0.332
Net working Capital 1.46 Billon US$
Price Earning Ratios 19.52
Earning Per Share 0.89
Market Capital 13.32 Billon US$
 Sales Forecast
Sales Forecast in (Malaysian Rinngit)

Sales 2008 2009 2010

DoubleShot Coffee Drink 12250000 13475000 15496250

DoubleShot Coffee Drink Light 5250000 5775000 6641250

Total Sales 17,500,000 19250000 22137500

 Sales Forecast
Sales Forecast in Units
Sales in units 2008 2009 2010

Sales Per Week 104,166 units 114,582 131,769

Sales Per month 416,666 units 458,328 527,076

Sales Per Year 5 Mill units 5.5 Mill units 6.325 Mill
units
 Market: Customer Use
Starbucks Survey
50 people
60
98%
50
Amount of People

70%
40
54% 52%
30 48%
46%
30%
20

10
2%
0
Yes No Yes No Yes No Yes No

A B C D

A: Do you know Starbuck?

B Do you want to bring Starbucks at home?
C Are you a customer of Starbucks?
D Do you like ready to drink coffee?
Thank You