Академический Документы
Профессиональный Документы
Культура Документы
GURILEM
Rany
Reza
Deru
Joddy
VIDEO INTRO
HISTORY
1971
Founded by Baldwin, Bowker, and Siegl
1982
Howard Schultz joined the marketing team
1988
Owned by Schultz
1992
Went public
VISION
BRAND STRATEGY
Creating experience
Product Highest quality coffee from Asia, Central & South America, Pacific Merchandise People Service from partners (barista) Customer intimacy Our goal is to create an uplifting experience Place The atmosphere The aroma Interior, invites people to linger Building a sense of community
PRODUCT
SALES
6% 13%
4%
Coffee Beverages
Food Items Whole Bean Coffees
77%
DISTRIBUTION CHANNEL
Office
Retail
Campus
COMPETITION
People
Retail Expansion
Product Innovation
Service Innovation
PEOPLE
Partners = barista 17-23 years old Generous policy
Health insurance Stock option
TRAINING
Hard Skills
Partner
Soft Skills
PARTNERS
Partner satisfaction leads to customer satisfaction The success of a new beverage depended on partner acceptance
42% 58%
Starbucks Others
50%
50%
Starbucks Others
Market test
*
Ran focus group Tinkered with product formulation
SERVICE INNOVATION
MAIN PROBLEMS
No unified marketing department
COMPETITION
Substitutes
COMPETITION ANALYSIS
New Entrants
Low barriers to entry Generic product Costly in fast retail expansion Different pricing strategy
Substitutes
Various substitutes of coffee (tea, beverages, candies) Low switching cost Lower price offered Healthy issues of coffee
Buyers
Low switching cost Many other choices for coffee products Price sensitivity Searching for different atmosphere
Suppliers
Many suppliers for qualified coffee Low switching cost Volume-based purchasing (volume is important to supplier) cost relative to total purchase Market determines the commodity price
high
high
high
The market is still far from saturation Starbucks is not a single-player Drinking coffee becomes part of life-style Opportunity for product differentiation
RESOURCES
Tangible Profitable company Cross-country store location Availability of stores near customers Technology in coffeemaking, payment Supply-chain management
Intangible Human resource capability (skillfully well-trained) &integrity The training (knowledge transfer) Brand image (perception as serving high-quality product with excellent service) Brand value
CORE COMPETENCIES
Product
People
Place
THE BRAND
No Chief of Marketing Officer 3 separate groups of marketing department gather and analyze market data develop new products and manage the menu and margins develop the quarterly promotional plans Everyone has to get involved in a collaborative marketing effort
Everywhere Good coffee on the run Place to meet and move on Convenience oriented Accessible and consistent
Capitalist
Starbucks cares primarily about money Starbucks cares primarily about building more stores
established
newer
Younger Less well-educated Lower income than established customers Visited the store less frequently
CHARACTERS OF GENERATION
legalcareers.about.com
The reason
Because the trend is expanding to the younger generation more promising market
THE QUESTION
Yes!
Create innovation in coffee making process (coffee machines)
Do store Improvement (interior & facilities) Give privileges to frequent buyers
RECOMMENDATIONS
Adapt local characteristic / taste (ex : Mexican foods menu on South USA states) Periodic research in consumer behavior & preferences Retain customers by continuous promotion programs (ex : free x after y drinks) Create events to promote and engage customerspartners relationship (ex : coffee tasting)
TODAY AT STARBUCKS
Gen Y College students young office workers Tech savvy Linger for studying, socializing, gathering
LESSONS LEARNED
In service marketing, its important to monitor changes that happen in consumer demographic & behavior to create dynamic, up-to-date strategy. Therefore, company can give better service. Customer engagement is the foundation taking place in every service encounter. Therefore, it is a must that the front-line people represent the value and knowledge of the company at the best level.
VIDEO OUTRO
We are not in the coffee business, serving people. We are in the people business, serving coffee.
- Schultz -
THANK YOU