Get Going With

Starbucks Doubleshot

Starbucks Marketing Plan

Lecturer Dr. Yusniza Kamarulzaman

Prepared By

Mohammad Shahid CGA 070092Muhammad 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

58

11

412

212 3 1 3

Klang Valley

Penang

Johor Bahru

Pahang

Malacca

Negeri Sembilan

Perak

Kedah

Sabah

Saraw ak

Genting Highlands

Starbucks Market Share In Malaysia

Starbucks Market share in gourmet coffee

45%

55%

Starbucks

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.

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow

Mission StatementMission Statement

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

Guiding PrinciplesGuiding Principles

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’sAnalysis

Product

Price

Place (Location)

Promotion

Panini

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

Lankawi

Penang

Klang Valley

Malacca

Johor Bahru

Kuching

Kota Kianblu

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 marketReferring 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

Age Group MalaysOther

BumiputerasChinese Indians Others

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

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?

Starbucks Survey50 people

98%

2%

70%

30%

54%

46%

52%

48%

0

10

20

30

40

50

60

Yes No Yes No Yes No Yes No

Am

ou

nt

of

Peo

ple

A B C D

Thank You