S T A R B U C K S C O F F E E

In this presentation . . .

• Business description • Strategy• Industry• Finance

Julia Nykänen Paula Tuppurainen

Leban Ibrahim Annika Nuutinen

Henna Hiltunen Anna Winschel

BUSINESS DESCRIPTION

What is Starbucks? A premier roaster of speciality coffee/an international coffee shop

chain Founded in 1971 in Seattle, United States Bought Howard Schultz in 1987 Became a publicly listed company in 1992 (SBUX) Concept focused on premium quality coffee and customer experience Company responsibility

International First store outside North America in Tokyo, 1996 Today over 15 000 stores over 50 countries Helsinki-Vantaa Airport in spring 2012

BUSINESS DESCRIPTIONMain products Whole bean coffee Boxed tea Made-to-order beverages Baked goods Merchandise Frappucchino beverages Smoothies Bottled beverages

Also. . .

Ethical sourcing

BUSINESS DESCRIPTION

Customers Young adults Adults Business

men/women Busy people International

STRATEGY More than just coffee For businesses foodservice

office coffee

licensed store

starbucks card corporate sales “To inspire and nurture the human spirit – one person, one cup and

one neighbourhood at a time.” Quality coffee & human connection Customer welfare and trust: service, atmosphere and quality coffee

STRATEGY Mission statement

Coffee

Partners

Customers

Stores

Neighbourhood

Shareholders

“Each interaction is unique”

INDUSTRYIndustry 40 percent of those 18 to 24 years old said they drink coffee daily, up from

31 percent in 2010 For those 25 to 39 years old, 54 percent said they drink coffee daily, up from

44 percent in 2010 Gourmet coffee continues to be a significant role of total coffee consumption, Consumers taking coffee at work are increasing 60 percent of all employed coffee drinkers consider free coffee as an

employee benefit Another growth factor of coffee industry was the continued expansion of

single-cup coffee consumption

Market shares Market share in U.S.- 29% Total global market: Only one in 100 cups of coffee served today is Starbucks’ Starbucks has a 70% market share in China Expansion to new locations such as China & India

INDUSTRYCompetitors Primarily in the restaurant & café industry McDonald’s, Dunkin Donuts, Caribou Coffee Nationwide coffee manufacturers such as Kraft General Foods,

Procter & Gamble, and Nestlé, which distribute their coffees through supermarkets.

Also Non-alcoholic beverages Candy & confections Consumer Electronics & Appliance retail sector

INDUSTRYTrends A wide range of products and not just coffee Entry into the digital and social media world including

EGifting and Facebook New products include mobile payment apps for smartphones To entertain and attract people not just through coffee itself

FINANCEAnnual Report Starbucks is listed in NASDAQ Global Select Market under the symbol

SBUX. Total net revenues in 2010 were 10.7 billion USD Operating income was 1.4 billion Total liabilities are 2.7 billion USD Starbucks’ share price development during the last 5 years

FINANCE

BIBLIOGRAPHY http://www.starbucks.com/business http://www.starbucks.com/about-us/company-information/mission-statement http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statement

s/Starbucks-Coffee-Mission-Statement.htm

http://www.vendingmarketwatch.com/article/10317126/a-new-professionalism-defines-ocs

http://blogs.indews.com/marketing/starbucks_competitors.php http://www.hoovers.com/free/co/burn.xhtml?ID=15745?cm_ven=PAID&cm_cat

=YHS&cm_pla=CSP&cm_ite=SBUX_competitors http://www.vendingmarketwatch.com/article/10317126/a-new-professionalism

-defines-ocs http://www.quora.com/What-is-starbucks-market-share-globally-and-in-the-US http://www.espressocoffeeguide.com/2011/06/starbucks-coffee-2011-2012-sta

rbuck-locations-expand-starbux-revolution-new-starbucks-logo/

THANKS FOR YOUR ATTENTION!