CURRENT AND FUTURE STRATEGIES

Mariagracia León Aguayo

INDEX

• Brief history• How is Starbucks today• General Strategies• Local Strategies• Sales• Reborn

A Brief History of Starbucks

1970´s 1971 Opens the first Starbucks in Seattle. The name comes from Herman Melville´s Moby Dick

1980´s Howard Schultz joins Starbucks in 1982. He visits Milan´s famous espresso bars. He was impressed with their popularity and culture and he saw their potential in Seattle. Seattle quickly becomes coffee-crazy.

1990´s Starbucks expanded beyond Seattle.

FIRST STARBUCKS

How is Starbucks TODAY?

• More than 21 000 Stores • In more than 55 Countries• Offers the best service client• Sells a nice experience to customers while

buying• You can stay in Starbucks as long as you will• The average consumer visit Starbuck 6 times per

month, while the loyal one goes more than 16 times.

Business Model

• Starbucks has initiated a marketing model called “Experiential Marketing”, which generate their competitive advantage in front of their competition.

Experiential Marketing

LocalEstablishments with

decoration, lighting, clean

olfactory marketingStarbucks welcomes

customers with a pleasant aroma of coffee

ProductHigh quality coffee. Package with protective anti burns

Personalization of the beverage

Personalization of flavors and of the cup

Direct responsibility to the community

-Starbucks Foundation-Support Coffee growing communities-Support For the recovery of places affected by natural disasters

Strategies - LOCAL• Starbucks often announces new products on their

doors

• Starbucks puts his counter orders in the middle or in the back of the store to ensure that customers pass through the area of the stores chairs

• Starbucks use lighting to guide customers in the shop. Lighting also serves to attract the attention of customers to Starbucks products

• Starbucks puts its publicity between the order counter and the counter where you pick up your coffee

Starbucks Sales

75 % Beverages

19 % Food sales

4 % Sale of packaged and single serve

coffees

2% Others

Starbucks REBORN• Starbucks have made a five-year growth plan:

• New and varied food offerings, including alcohol• New store formats• Food and beverage delivery• Mobile platform enhancements• Global growth

- The coffee shop expects to double U.S. food revenues to over $4 billion.

- It expects the new food items, along with the alcohol, to generate about $1 billion in new sales.

Delivering the goods

• Starbucks will begin food and beverage delivery to enhance its ties to customers, extend their loyalty, and meld the process with its mobile apps for ordering and payment

8 million members

GENERATES 7 million weekly mobile payment transactions