presentation_on_Starbucks_The_Best_Coffe.pptx
- 3. GROUP MEMBERS - Sr. no NAME ID 13. M.d Roman Hawlader 14102086 14. Md. Shoreful Islam 14102113 15. Sanyul Islam Sany 14102131 16. Shabiha Islam 14102143 17. Aziza Mohammed 14102174 18. Abdullah-Al Mahmud 14102195
- 4. STARBUCKS DIGGING TO THE BOTTOM OF THE TOP HQ: Seattle, Washington, U.S. CEO: Howard Schultz Founders: Jerry Baldwin, Gordon Bowker, Zev Siegl Founded In: March 30,1971 in Seattle Stores: 20,891 stores in 62 countries Employed :1.6 Lac partners IT’S NOT JUST COFFEE ITS STARBUCKS Introduction:
- 5. STARBUCKS COFFEE’S MISSIONSTATEMENT: “TO INSPIRE AND NURTURE THE HUMAN SPIRIT – ONE PERSON, ONE CUP AND ONE NEIGHBORHOOD AT A TIME.” IT’S NOT JUST COFFEE ITS STARBUCKS
- 6. STARBUCKSCOFFEE’S VISION STATEMENT: “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” IT’S NOT JUST COFFEE ITS STARBUCKS
- 7. IT’S NOT JUST COFFEE ITS STARBUCKS Fig: The International Marketing Task 1. Identify the controllable and uncontrollable Elements that Starbucks has encountered in entering global markets.
- 8. CONTINUES.... Controllable factors: 1. price: Price of their products 2. product: types of coffee and other additional foods or snacks. 3. place: placement of their stores 4. promotion: their budget and ways of advertising. 5. Research: about the consumers liking, popularity, price, economy e.t.c Uncontrollable factors: 1. Economy: In Japan, they cannot control the growing numbers of competition and also the economy. As they had been experiencing a depressed economy and Starbuck's Japan profits were down 14%. 2. Political and legal bindings: In France, arcane regulations and generous labour benefits 3. Culture: In Vienna, Coffee houses are old for this reason Starbucks has a possibility to capture the market through young generations. Its just a possibility. Some also may like the old ones. IT’S NOT JUST COFFEE ITS STARBUCKS
- 9. 2. WHAT ARE THE MAJOR SOURCES OF RISK FACING THE COMPANY? DISCUSS POTENTIAL SOLUTIONS. Major Risk One of the major risks for the company is the market saturation in USA. Another risk is losing customers Global expansions is a huge risk, in some counties cultural difference is another major issue. Low wages and salary of the employees and managers of the starbucks company is another risks of this organization. Starbucks is not focused on the quality of their core product coffee and they do not have other items beside coffee it also a major risk for the company IT’S NOT JUST COFFEE ITS STARBUCKS
- 10. POTENTIAL SOLUTIONS Market saturation can be overcome by focused on international marketing or global marketing. Losing customer risk can be overcome by reducing the coffee price Global expression is a huge risk for them but they can reduce this risk by researching foreign cultural and understanding the customer needs. Low wages and salary is another huge risk for this company but starbucks can overcome by paying the legal wages and salary. Coffee is their core product but they do so that they can improve the quality of coffee they can arrange some new items beside coffee , it helps the company to overcome from this major risk. IT’S NOT JUST COFFEE ITS STARBUCKS
- 11. 03. CRITIQUE STARBUCKS CORPORATE STRATEGY IT’S NOT JUST COFFEE ITS STARBUCKS
- 12. STRATEGY…… Eight cities in US and Canada remained untapped. More the outlet = More Sales. No different pricing for different Generation. Low Ad spending although it is going IT’S NOT JUST COFFEE ITS STARBUCKS
- 13. CONTINUE…… Predatory real – estate strategy Focused Product Concept Employee Dissatisfaction Schultz should be More cautious to various Cultural and affairs IT’S NOT JUST COFFEE ITS STARBUCKS
- 14. 4. HOW MIGHT STARBUCKS IMPROVE PROFITABILITY IN JAPAN ? Starbucks and its competitors in Japan are providing the same fare - competitors can easily eat up Starbucks’s share. Therefore: Either reduce the price or increase benefits in Japan. Introduce US style online system in Japan, so that busy Japanese can provide their order in the internet. Introduce various cultural campaign or entertainment campaign in Japan, so that Japanese youth feel attraction to come Starbucks. In times of economic recession extra activities are necessary to boost up sales. IT’S NOT JUST COFFEE ITS STARBUCKS 04. How might Starbucks improve profitability in Japan?
- 15. STARBUCKS IN JAPAN For attracting the Japanese market in addition to coffee, arrangement of internet facility and other amenities should also be provided. Invest in extensive R&D efforts to develop new flavors, blends, or even roast fusions - start by providing free samples for a limited period of time to introduce the novelties to the market Offering new beverages according to the Asian or Japanese culture - wider range of different, delicious teas or soft drinks Starbucks in Japan Offering special, Japanese food in Starbucks stores - Japanese candies, cakes or sweets or even small snacks – Starbucks’ may become more Japanese IT’S NOT JUST COFFEE ITS STARBUCKS Continue….
- 16. SUMMARY: Starbucks name came from a character in classical Novel Moby dick, published in 1851, which takes place in sea. Logo was chosen with the start of the company in 1971. Controllable and Uncontrollable elements Major source of risk Overall strategy Profitability in Japan IT’S NOT JUST COFFEE ITS STARBUCKS
- 17. CONCLUSION: IT’S NOT JUST COFFEE ITS STARBUCKS There are many topics that arise throughout the case with starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the Youth appeal strategy to gain entrance into new markets. Overtime Starbucks has been able to require a solid brand reputation and has a world renowned company logo. There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. Starbucks image has been achieved also through their ability to provide honest quality service.