Starbucks

40
Business Analysis Compiled By; Qamarudheen Thayyil [email protected] +919-6259-234-12 STARBUCKS COFFEE www.starbucks.com

description

An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.

Transcript of Starbucks

Page 1: Starbucks

Business AnalysisCompiled By;

Qamarudheen [email protected]

+919-6259-234-12

STARBUCKSCOFFEE

www.starbucks.com

Page 2: Starbucks

IntrductionOverviewHistroryMission

Key People

Page 3: Starbucks

I

n

t

r

d

u

c

t

i

o

n

Overview

Starbucks is a world renowned specialty coffeemaker.

It roasts, markets and retails specialty coffee.

It offers blends of coffee, handcrafted beverages,merchandise, and food items, ready-made drinks,and Starbucks ice cream.

It markets all of its products under the flagshipStarbucks brand.

3

Page 4: Starbucks

I

n

t

r

d

u

c

t

i

o

n

It also market some products under brands suchas Tazo Tea, Seattle’s Best Coffee, Starbucks VIA,Torrefazione, Italia Coffee, and Evolution Fresh.

The company-owned and licensed storesoperates across Asia-Pacific, the Middle East,Africa, Europe and the Americas.

Total stores: 19767 (as of September 29, 2013) Company-operated - 10194. Licensed stores - 9573.

Overview4

Page 5: Starbucks

I

n

t

r

d

u

c

t

i

o

n

The first Starbucks store opened in Seattle’sPike Place Market in 1971.

The company grew to be the largest roaster inWashington with multiple locations until theearly 1980’s.

In 1981,Howard Schultz, recognized a greatopportunity and began working with the founderJerry Baldwin.

History5

Page 6: Starbucks

I

n

t

r

d

u

c

t

i

o

n

Schultz wanted to bring the Italian café cultureto the United States. Selling espresso by the cupwas the first test.

Schultz left Baldwin to open his own and raisedmoney from investors to purchase the Italian Coffee House Giornale.

The company experienced rapid growth goingpublic in 1992, and growing tenfold by 1997,with locations around the United States, Japanand Singapore.

History6

Page 7: Starbucks

I

n

t

r

d

u

c

t

i

o

n

Starbucks coffee on United Airlines flights. Selling premium teas via Tazo Tea Company. Offering order Starbucks coffee online.

Introduced new products and operations.

Today, Starbucks has millions of customersevery day, in about 19,000 locations in over62 countries which have employed approximately 1,82,000 partners worldwide.

Starbucks also began expanding its brand by;

History7

Page 8: Starbucks

“To inspire and nurture the human spirit oneperson, one cup, and one neighborhood at a time.”

It ethically sources the finest coffee beans.

It embraces diversity.

It provides a human connection with employees.

It creates stores where customers feel comfortable.

It takes responsibility in each community.

I

n

t

r

d

u

c

t

i

o

n

8

Mission

Page 9: Starbucks

I

n

t

r

d

u

c

t

i

o

n

9

Key People

Howard SchultzChairmanPresident Chief Executive Officer

Troy AlsteadChief Financial Officer and Group President, Global Business Services

Adam BrotmanExecutive Vice President, Chief Digital Officer

Curtis GarnerExecutive Vice President, Chief Information Officer

Sharon RothsteinExecutive Vice President, Global Chief Marketing Officer

Arthur RubinfeldChief Creative Officer, President, Global Innovation And

Matthew RyanExecutive Vice President, Global Chief Strategy Officer

Page 10: Starbucks

PRODUCTSDrinksFood

Merchandise

Page 11: Starbucks

P

R

O

D

U

C

T

SEspresso

®FrappussinoNon-Coffee

Cappuccino

11

Drinks

Page 12: Starbucks

Pastry/ Cakes

CookiesMuffins

Sandwitch

P

R

O

D

U

C

T

S

12

Food

Page 13: Starbucks

P

R

O

D

U

C

T

S

13

Merchandise

Blends

Coffe MakersMugs

Tumblers

Page 14: Starbucks

SWOT AnalysisStrengths

WeaknessesOpportunities

Threats

Page 15: Starbucks

Innovation

Global presence

Strong financials

Brand identity

Store ambience

15

StrengthsS

W

O

T

A

n

a

l

y

s

i

s

Page 16: Starbucks

High employee turnover

Over dependence on US market

Small product mix

Higher prices

Too many products

16

WeaknessesS

W

O

T

A

n

a

l

y

s

i

s

Page 17: Starbucks

S

W

O

T

A

n

a

l

y

s

i

s

International markets

Customization

Inorganic growth

New product mix

Localization

17

Opportunities

Page 18: Starbucks

Intense competition

Govt. Regulations

Uncertain suppliers

Target of terrorism

Saturated US market

S

W

O

T

A

n

a

l

y

s

i

s

18

Threats

Page 19: Starbucks

StrategySuccess FormulaInternalization

Page 20: Starbucks

S

T

R

A

T

E

G

Y

Motivated employees & superior customerservice is the key success factor of Starbucks.

Starbucks focuses on recruiting anddeveloping rightpeople.

Starbucks partner serving coffee with a smile :)

20

Success Formula

Attractivecompensationpolicies.

Page 21: Starbucks

S

T

R

A

T

E

G

Y

21

Market Entry

Local joint-venture is the preferredentry strategy of Starbucks.

Page 22: Starbucks

Financial AnalysisShare PriceSales Mix

Income StatementEarnings

Balance Sheet

Page 23: Starbucks

F

I

N

A

N

C

I

A

L

S

$46.50

$56.55$62.00

$54.28 $54.90$58.97

$67.48

$77.84

$35.12

$45.28

$51.03

$43.04 $44.27

$52.39$56.65

$65.82

12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4

High Low

23

Share Price

Page 24: Starbucks

F

I

N

A

N

C

I

A

L

S

74% 75% 75%

20% 19% 19%

3% 4% 4%3% 2% 2%

2013 2012 2011

Beverages Food Packaged and single serve coffees Coffee-making equipment and other merchandise

24

Sale Mix

Page 25: Starbucks

F

I

N

A

N

C

I

A

L

S

14892.2

13299.5

11700.4

15469

11512.8

10175.8

-325.4

1197.41728.5

8.3

1384.7 1248

2013 2012 2011

Net Revenue Operating Expense

Operating Income Earnings After Interest & Tax

25

Income Statement

Page 26: Starbucks

F

I

N

A

N

C

I

A

L

S$0.01

$1.83$1.66

$0.89$0.72

$0.56

2013 2012 2011

EPS Cash Dividends

26

Earnings

Page 27: Starbucks

F

I

N

A

N

C

I

A

L

S

$5,471.40

$4,199.60

$6,045.30

$4,019.60

$5,377.30

$2,209.80

$1,657.10

$894.90

$4,482.30

$5,114.50

2013 2012

Current Assets Fixed Assets Current Liabilities

Long Term Liabilities Equity

27

Balance Sheet

Page 28: Starbucks

MARKETINGSegmentTargeting

PositioningProduct

PricePlace

Promotion

Page 29: Starbucks

M

A

R

K

E

T

I

N

G

Every age group.

Tech savvy individuals.

Men and women.

High disposable income.

Brand focused.

Savvy and avid coffee lovers who enjoythe “Starbucks Experience”.

29

Segment

Page 30: Starbucks

M

A

R

K

E

T

I

N

G

Starbucks targets commuters and captiveconsumers.

Commuters consist of people heading to or fromwork or people on their lunch break.

Captive consumers consist of those who arestuck in a campus environment. Eg: high school & college students, corporatecampuses.

30

Target Customer

Page 31: Starbucks

M

A

R

K

E

T

I

N

G

Starbucks has positioned itself as an upscalebrand which provide rich experience.

It is obvious from the mission statement thatthey are trying to make it the best for socializing.

Starbucks is trying to reposition itself as a “third place” for its customers.

31

Positioning

Page 32: Starbucks

M

A

R

K

E

T

I

N

G

Coffee: More than 30 blends and premium coffees.

Handcrafted Beverages: Fresh-brewed coffee, ®hot and iced espresso beverages, Frappuccino

coffee and non-coffee blended beverages, ®smoothies and Tazo teas.

Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups.

Merchandise: Coffee- and tea-brewing equipment,mugs and accessories, packaged goods, music,books and gifts.

32

Product

Page 33: Starbucks

M

A

R

K

E

T

I

N

G

Startbucks offers all of its products at a premiumprice.

Prices range from $1.00-$4.20 for drinks which ishigher than any other retailers.

In case of foods, Starbucks is more expensivewhen compared to quick-service restaurants,

33

Price

Page 34: Starbucks

M

A

R

K

E

T

I

N

G

Distributed directly to customers through ownretail stores and retail partners.

Located in high-traffic, high-visibility locations,focusing on pedestrian consumers.

Company also focus on drive-thru retail stores forthe convenience of non-pedestrian consumers.

34

Place

Page 35: Starbucks

M

A

R

K

E

T

I

N

G

AdvertisingStarbucks spends under 3% of revenue on ads.But spends more on ensuring customersatisfaction to increase word of mouth.

PersonalSelling

PublicRelations

SalesPromotions

Passionate employees, customer satisfaction.

Events, public performances, green initiatives philanthropic endeavors.

Store decoration, viral videos, sample vans,billboards, newspaper, magazines andsocial media.

35

Promotion

Page 36: Starbucks

FACTSFive Facts

Page 37: Starbucks

F

A

C

T

S

37

Five Facts

Starbucks has added an average 15 stores on a dailybasis since 1987.

The average Starbucks customer visits the store 6 timesper month while loyal 20% of customers visit 16 times.

There are over 87000 drink combinations at Starbucks.

The Starbucks cinnamon chip scone has more caloriesthan a McDonald’s quarter pounder with 480 calories.

Starbucks uses 93 million gallons of milk and 2.3 billion paper cups per year.

1

2

3

4

5

Page 38: Starbucks

RecognitionsAwards

Page 39: Starbucks

R

e

c

o

g

n

i

t

i

o

n

s

“No. 1 Best Coffee,” Fast Food and QuickRefreshment categories Zagat’s Survey ofNational Chain Restaurants – 2009-2010 “No. 1 Most Popular Quick Refreshment Chain” Zagat’s Survey of National Chain Restaurants– 2009-2010 One of the “World’s Most Ethical Companies” Ethisphere – 2007-2010

39

Awards

One of “The 100 Best Companies to Work For” FORTUNE – 1998–2000, 2002–2010 One of the “Most Admired Companies in America” FORTUNE – 2003–2010

One of the “Global 100 Most Sustainable Corporations in the World” Corporate Knights– 2010

Page 40: Starbucks

Compiled By;Qamarudheen Thayyil

[email protected]+919-6259-234-12

THANKS

www.starbucks.com