Starbucks Strategy Deck

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STARBUCKS,

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Strategy deck for Get Local campaing for Starbucks. Collaborative project at SCAD.

Transcript of Starbucks Strategy Deck

STARBUCKS,

EVERY DAY, WE GO TO WORK HOPING TO DO TWO THINGS: SHARE GREAT COFFEE WITH OUR FRIENDS AND HELP MAKE THE WORLD A LITTLE BETTER.-Starbucks website

”Starbucks was founded on the mission to inspire and nurture the human spirit–one person, one cup and one neighborhood at time. It was founded on the sole purpose of creating an environment and a culture around coffee.Starbucks brought coffee to a new level– a level above that of the typical “diner pot.” It gave words like cappuccino and frapuccino meaning. Today it has become the largest chain of coffee houses in the world. Starbucks distinct atmosphere and personalized coffee sets them apart from everyone else.

”It was true when the first Starbucks opened in 1971...

With more than 17,000 locations in over 50 countries, there is seemingly a Starbucks on every corner. Similarly, their menu of fancy coffee drinks has grown to include over 30 blends, fresh brewed coffee, hot and iced espresso beverages, as well as coffee and non-coffee blended beverages. It is this variety that draws in more than one million customers everyday.

STARBUCKS HAS GROWN FROM A NEIGHBORHOOD COFFEE HOUSE

INTO A GLOBAL CAFFEINATED GIANT

With so many locations and so many Starbucks-branded products in stores, the company has morphed into exactly what they didn’t want to become– a corporate America coffee house.

The perception that people carry about Starbucks has many negative connotations that their vast menu of coffee drinks simply cannot fix. What once was a neighborhood coffee hang-out has become a quick service chain for coffee. This has lead to customers feeling the presence of a major corporation—a corporation that lacks the transparency to keep the trust that they once had.

There are 5 main areas where you, as a corporation, need to improve in order to gain back the trust and image that got you started.

1. Store Environment 2. Quality of Coffee and Products3. Community Outreach4. Sustainability5. Fair Trade

When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life –sometimes slow and savored, sometimes faster. Always full of humanity.-Starbucks website

1. STORE ENVIRONMENT

Starbucks has lost that environment they were founded on. They have become rubber-stamped from location to location, causing them to lose the hip-factor that they once had. It is no longer a location that people will go out of their way to experience, but instead, has become the place where people go to quickly grab a cup of coffee. People are trading in the corporation that they once loved for neighborhood hot spots that still have that hip, community feel.

It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.-Starbucks website

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90% of the cost of a cup goes to retailers/cafes, roasters, and importers

7% to shippers, exporters, and local traders

1-3% to farmers

The effect of mass produced product is easy to see when you look at a brand like Starbucks. They used to be known for their great tasting coffee and their variety of delicious flavors. Although they still have a variety of choices that people flock to stores to find, the quality of the products have plummeted into the world of over priced, mediocre coffee. People have grown to know Starbucks as “the guy that sells really expensive coffee that isn’t worth the price.” They have become the coffee house for convenience rather than great coffee.

Aside from their in-store brewed and mixed beverages, the Starbucks name can be found on a variety of different products: ice cream, chocolate and packaged coffee to name a few. The issue? Consumers are shocked to find that Starbucks has no real control over these products. When the only thing Starbucks about a “Starbucks product” is the logo, people begin to wonder what the real mission of the company is. It seems as though the corporation that used to pride itself on the quality of their coffee, now relies on slapping its logo on anything in order to make a profit.

They have become the coffee house for convenience rather than great coffee.

2. QUALITY OF COFFEE & PRODUCTS

Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.

-Starbucks website

3. COMMUNITY OUTREACH

Starbucks used to be a part of something larger than itself– it used to be a part of an active community. They had created an environment that welcomed the communities that they were apart of and invited them in for a cup of coffee.Today, with the corporate vibe that radiates from the stores, consumers see Starbucks as another chain store in or near their neighborhood. Aside from not creating a neighborhood-like atmosphere, Starbucks also forgets that there are things that they could be doing to change this. Besides sponsoring events that are already happening, it seems to most people that Starbucks is not using the power that they have in the community to do good. It takes more than a sponsorship to do good. It takes getting out, rolling up your sleeves and getting work done. Not because your consumer thinks you should, but because you really should. You can’t just speak of the things that the company has done. You have to do something, something major that won’t just blend into the corporate, “we care” mentality.

TOGETHER WE CAN CHANGE THE WORLD

We believe in the importance of caring for our planet working with and encouraging others to do the same. As a company that relies on an agricultural product, it makes good business sense. And as people living in the world, it is simply the right thing to do.-Starbucks website

4. SUSTAINABILITY

Today, people are looking to corporations to do more than donate money, make good products, or provide them with the things that they want. People want companies to do their part not only just for their own communities, but for the world. “Going green” has become a slogan that has become like second nature to today’s society. Consumers see Starbucks and the things that they do, or rather, don’t do, and think, “they could be doing so much more”. Something as simple as turning off a running faucet, turning off lights when you leave the break room and finding ways to recycle are just a few of the things that Starbucks can do to make a drastic impact on the world around us.

In addition, the average consumer isn’t seeing the things that Starbucks really is doing to help the environment. For example, the company offers complementary bags of used coffee grounds to enrich soils, but very few people are aware of this. Starbucks needs to be bring such things into the light so that the company can stop talking about what they’re doing, and really show the consumer the efforts that they are trying to make.

Responsibly grown, ethically traded coffee means working with farmers to produce coffee in ways that help provide benefits to their business, their communities and the environment.-Starbucks website

In 2010, Starbucks bought 43 million lbs. of coffee that were not ethically sourced.

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4. FAIR TRADE

With the rapid growth of Internet use, consumers are more up to date on the happenings within a corporation and around the world. Similarly, people are on the Internet wanting to know the stance corporations have on major issues. To the coffee industry, Fair Trade is the topic of choice. Consumers want to know where their coffee is coming from, how much the “quality coffee” really costs, and above all else, they want to know that the people growing it are getting their cut of the profit.

Upon visiting Starbucks’ website, consumers are greeted with lovely designed graphs and figures that show the workings of how Starbucks handles Fair Trade. However, it doesn’t take much digging to understand that Starbucks plays by their own rules, even going as far as creating their own organization (C.A.F.E) to set standards that sometimes they can’t meet. Starbucks should be able to afford to morally and ethically purchase coffee. As a world corporation, Starbucks needs to care about the things that are happening globally.

Starbucks seems to be doing a lot of talking and not so much doing when it comes to fair trade.

The forward thinking coffee culture Starbucks brought together turned on their leader at signs of corporate America. Starbucks needs to engage that mentality that got them started. They can show the public their values by acting on their principles. By stripping themselves of the corporate fabric they’ve wrapped themselves in, they can allow their original nature to shine again. Starbucks needs to gain back the trust of their original consumer. By caring about the things their consumer cares about.

A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. -Michael E. Porter and Mark R. Kramer, Harvard Business Review

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create shared value

STARBUCKS NEEDS A NEW FOCUS

FROM THE NEIGHBORHOODS WHERE OUR STORES ARE LOCATED, TO THE ONES WHERE OUR COFFEE IS GROWN – WE BELIEVE IN BEING INVOLVED IN THE COMMUNITIES WE’RE A PART OF.-Starbucks website

”Starbucks has the opportunity to be one of the trend setters in the idea of creating shared value. This is an idea that takes the corporation off of their pedestal and makes them once again a part of society. Shared value means more than heartless contributions that have been given out simply for the ability to say that you did. Instead, it is about really adding something to the society that you’re a part of. When you do something that shows the community that you are valuable, they in return, will think more highly of you as a company.

CSV

Creating shared value is a cycle. When you give something great to society, it in return, will give you back something great. Because Starbucks is an international corporation, society means more than just the stores where your products are sold. It means coffee growers, roasters, distributors, all the way down to the consumer. If you really take a look at these individual groups of people, you will find that each group has different wants and needs. If these wants and needs are met, a better product will be produced, a better image will be created and Starbucks will increase their value.

CHANGE BY DOING

The only way a giant corporation, like Starbucks, will ever discover exactly how they are going to help, is to get down on a local level and really take a look around. By going to where these people live and work. By actually going to the places where Starbucks is having a direct impact on communities, and actually making a difference. This local level is where Starbucks started and is where you need to get back to.

The Get Local initiative is a simple process. Starbucks Corporation will commit to help improve the lives of coffee growers in different parts of the world, with the help of people from local Starbucks in different locations in the U.S.

Three groups of people from 3 different Starbucks locations will form teams to represent their cities. These teams will be sent to 3 separate coffee growing countries where they will interact with the locals and gain an understanding of what they really need. Each community might need something different, it could range from building schools, to improving plumbing. Once a decision about what is needed is reached, Starbucks will work to complete the necessary projects. Throughout the initiative, lines of communication will be drawn between the people here and the people of the different regions.The result: better understanding of other cultures, a better way of life for the people in these countries, and ultimately, a better, more transparent Starbucks.

10 people from 3 local Starbucks locations in the U.S. will go to 3 different countries and interact with local coffee growers, all looking to help one another toward the betterment of the world.

Atlanta

Guatemala

Seattle

Indonesia

New York

Ethiopia

1. PRE-LAUNCH

The initiative will start where the coffee is grown, in the co-ops where farmers are struggling to live and work. Specifically, Indonesia, Ethiopia and Guatemala. By starting here, you are showing the world you care about more than just the profits that customers bring to the company. That you care about every aspect and every person in the coffee process. In order to find out the real needs of the people in these areas, it will take time, exploration and a group of ready and able people. These people will not only be responsible for finding out the needs of the growers and their families, but also spreading the word about the amazing things that Starbucks is leading the way on. People want to get involved, and they want to know that corporations are leading the way in involvement.

10 people will be selected from 3 different cities, with each city being sent to a different country. These cities will be: Atlanta, New York and Seattle. The Cast will consist of people from all types of backgrounds and expertise who will also be able to spread the word to people across the world.

People from Starbucks• Someone from Starbucks corporate (CEO, CFO, etc.)

• Local manager from one of the selected cities

• Local barista chosen by the manager

Blogger that already has a following on the Internet (hand picked)Smart people

• Agricultural scientist (hand picked)

• Environmentalist that already has a good reputation in the community

• Business person with knowledge in economics and the treatment off employees

Local coffee drinkers (selected by the people)

THE CAST

There will be one video booth in each Starbucks location that will travel around the city. People will have access to props and will be allowed to do basic editing while inside the booth to enhance their video. Once finished, the videos are uploaded to city specific pages within the site, as well as Facebook, where people can “Like” the videos. Three people from the top 10 most “liked” videos will be hand selected to become a part of The Cast to represent their city.

The coffee drinkers from each location will be selected by the people based on video submissions.

SELECTING COFFEE DRINKERS

While there, the Cast will be uploading various types of content (posts, videos, etc.) to spread the word about the things that they’re doing and seeing. Additionally, the villagers will have access to their own communication booths to allow them the opportunity to speak to the world about the positive changes that are happening and the things that they believe they need most.

For 3 weeks the chosen Cast will live in their designated countries–interacting with coffee growers to figure out what their communities need.

2. LAUNCH -PHASE I

In order to spread to word about the strides that Starbucks is making toward a better planet, several things will have to happen. The best way to do this, has always been to allow people to speak freely to each other, to spread the word themselves.

First, is visual proof. While on their mission to find out what these co-ops need, The Cast will be followed around by a small film crew. This film crew will create daily videos about the lives of the growers and about their needs. A new video will be produced each week and will be uploaded to the website along with other social channels. This will allow people to spread the word about the awesome things that Starbucks is doing.

Secondly, free conversation between the people the Cast and the locals is vital. While in the co-ops, The Cast will have access to the Internet so that they may document and share their experiences with the world. Additionally, a well known blogger (who is a part of The Cast) will be constantly updating and documenting their adventure. Posts will be uploaded to their personal sites, as well as the main site.

SPREADING THE WORD

The home page will feature a hero video that will introduce the Get Local initiative. Immediately after the video, there will be a ticker with statistics about what Starbucks is, or is not, doing in regards to the 5 main areas previously mentioned. There will also be a gallery with infographics providing the viewer with more information about the initiative.

Landing Page

As the viewer scrolls down in the landing page, he will find a section featuring the different communities involved. By rolling over one of the squares, more information will be revealed.

Each location involved in the Get Local initiative will have a page featuring different content specific to that location.

Region Pages

Meanwhile, the local coffee shops will gain in the effort by getting involved in one of the many initiatives that will be offered during this time. Aside from helping raise money and resources for the people in the coffee regions, local coffee shops will cater to new activities and events that help to bring communities together in their own backyard. Events like art shows, live music and poetry readings from local artists help to bring the community together, while regaining the local vibe that Starbucks used to have.

Once the Cast has returned from their various coffee regions, Starbucks Corporate will be responsible for selecting, carrying out, and maintaining a project in each country.

2. LAUNCH -PHASE II

Once the trips have finished, people will want to know that this was not all just a mirage. Some of the transparency that Starbucks has been lacking can be recaptured through the continued use of the communication booths that were set up for the villagers to communicate with people around the world. This gives the coffee growers the opportunity to speak about the things that are or are not being done to help support them. This direct access will let people know that Starbucks is being honest by acknowledge that they are not perfect, and that they are making strides to become a much better coffee company.

COMMUNICATION WITH LOCALS

Viewers wil be able to follow the initiative through their tablet and mobile devices. By making the information available on different platforms, viewers will be able to become more engaged wit the initiative.

Mobile Experience

By this point, people all over the country, and all over the world are buzzing about the things that Starbucks is doing to create shared value. Which, can only mean it’s time to start the process over again. Change cannot be made through one, short-term, quick fix, so Starbucks has to facilitate continued change through: new locations and projects, keeping communication lines open between coffee regions and coffee shops, sustaining completed projects and continually adding the local coffee shop vibe.

When the original 6 locations have all finished their parts of the get local project, it is time to continue the strides.

3. POST-LAUNCH

Through simple action, Starbucks can change its focus from simply selling coffee, to changing the world, just by bringing people together to Create Shared Value. Simple action that leads to big things, all starting with getting local.