Karim Ragab

StarbucksPresented by:

AstraZeneca Gulf Region

Dubai – 30th September 2010

Company Background

Started in 1971 in Seattle, Washington

Howard Schultz

Grew from 55 stores in 1989 to over 17,133 stores today

How did Starbucks sell coffee for more than a 1$ in a paper cup when local coffee shops sold it for 50 cents?!

3 Pillars of Success

The 3 component brand strategy

Targeting and Segmenting

Expansion and Innovation.

But…is that Enough?

3 Component Brand Strategy

Ø The “live coffee” mantra.

“Offering what is believed to be the highest coffee quality in the world”

3. Customer Intimacy.

“create an uplifting experience every time you walk through the door”

5. The Atmosphere.

“People come for the coffee, but the ambience is what makes them want to stay.”

Targeting customers: Affluent, well educated, white-collar patrons (skewed female) between the ages of 25 and 44

Clear vision of their highest market potential of growth which is the specialty coffee drinkers..

Targeting

Segmentation

Expansion and InnovationCaffeinating the WORLD

2. Retail Expansion

Open stores in new markets while geographically clustering stores in existing markets.

5. Product Innovation

Introducing a new hot beverage every holiday season.

The $400 million franchise FRAPPUCINO

9. Service Innovation

Starbucks’ stored-value card (SVC), about 6 million cards had been issued and initial activations and reloads had already reached $160 million in sales in 2006.

One of the most respected and recognized brands in the world

Thank You

2. www.starbucks.com

• Harvard Business School; Starbucks: Delivering Customer Service. (10th of July 2006)

6. www.moneytalksnews.com “Secrets Starbucks Doesn’t Want YOU To Know” by Michael Koretzky (23rd of September

2010)

References