45571542 Marketing End Term Project Presentation on Starbucks

7/27/2019 45571542 Marketing End Term Project Presentation on Starbucks

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Name: wisam

Course: DICT

ID number:

IIC120801987

Date:

27/3/2013


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Contents

Introduction of StarbucksStarbucks Malaysia

SWOT Analysis

4 Ps

Strategy


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About Starbucks

Overview

Starbucks Malaysia

Starbucks Vision

Starbucks MissionStatements


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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 40countries


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Starbucks Overview (Cont)

1971First Starbucks coffee shopopened in Seattle USA

1985Howard Schultz became CEO

1987Changes name to StarbucksCorporation

1992listed as a public entity with

trading symbol SBUX

1996Starbucks Coffee Internationalwent international in Japan andSingapore


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Starbucks Overview (Cont)

1999Acquires Tazo Tea company and

Hear Music company.

2003Acquires Seattles Best Coffee.

2005Introduces Starbucks Coffee

Liqueur; Acquires Ethos Water.


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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.


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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


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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.


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Establish Starbucks as the premier purveyor of

the f inest coffee in the world while maintainingour uncompromising principles as we grow

Mission Statement


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Provide a great work environment and treat each other withrespect and digni ty

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 satisf ied customers all of the time

Contr ibute positively to our communities and our environment

Recognize that profi tabil i ty is essential to our future success

Guiding Principles


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S.W.O.T

Analysis

Strengths

Weaknesses

Opportunities

Threats


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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%.

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. Thecompany 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.


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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.


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S.W.O.T AnalysisThreats

Stiff competition in the

gourmet coffee market.

Intense competition

from local coffee

specialists as well as

fast food operators like

McDonalds and

Dunkin Donuts


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S.W.O.T Analysis

ThreatsOne 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


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S.W.O.T AnalysisOpportunities

Expansion in Asia,specifically in Asia Pacificand China

Increasing popularity ofgourmet coffee-drinking indeveloping countries

Opportunity to extendfurther its distribution andproduct range


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Four Ps AnalysisProducts

DoubleShot is deliciousintensity of rich espresso,

mellowed by a touch ofcream.

DoubleShotLight is thedelicious intensity of rich

espresso, mellowed by atouch of cream with halfcalories.
http://www.boardsmag.com/screeningroom/commercials/1755/


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Four Ps Analysis

Price The Price of Starbucks Double Shot

Per Unit is Rm 3.50. The price for

6 pack of cans Rm 20.

LocationsStarbucks 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.


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Promotions

Now you can feel Starbucks anywhere,anytime. (Starbucks always be with you)

Television Advertisement.

Print Media

Billboard Event Sponsor (Akademi Fantasia)


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Marketing Objectives

Strengthening Brand image aiming to be theleading 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


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Target market

Referring to rate card provided by thecompany, 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.


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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.


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Strategy

Our strategy is to establish as the most recognize and respectedbrand 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 Double Shot will help company to penetrate the

other bigger segment

Joint venture with Coco-cola for production and distribution ofDouble Shot in the Malaysian market.


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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$


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Thank You

45571542 Marketing End Term Project Presentation on Starbucks

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Transcript of 45571542 Marketing End Term Project Presentation on Starbucks