Marketing End Term Project Presentation on Starbucks
description
Transcript of Marketing End Term Project Presentation on Starbucks
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