![Page 1: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/1.jpg)
Listening to StarbucksAlison Overholt
July 2004
Leah BungoMatt Smith
Melissa Fredette
![Page 2: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/2.jpg)
Hear Music Background• Howard Schultz, chairman at Starbucks,
discovered Hear Music 10 Years ago in Palo Alto, California
• Starbucks purchased Hear Music in 1999 and launched Hear Music Coffeehouse
![Page 3: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/3.jpg)
•Buy CDs and DVDs•Burn CDs from a
collection of Music (150,000 songs)
•Purchase Starbucks Hear Music on ITunes•Listen to music• Promote
independent artists
![Page 4: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/4.jpg)
Why….• Starbucks operates in
the Coffee shop business– Reaching plateau
point?– Market becoming
Saturated?• Redefine their business• Music and coffee go
together– Personalized products– created individually
![Page 5: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/5.jpg)
• Walt Disney (Cartoon Studio)– Theme Park– develops, produces, and
distributes films
• Martha Stewart (caterer)– Multimedia company:
Cookbooks, lifestyle-products, TV show
Redefining Businesses
![Page 6: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/6.jpg)
Concept Roll out• Add CD- burning
capabilities to 10 Starbucks locations in Seattle
• With HP assistance have 1000 Hear Music locations by end of 2005 (mix of coffeehouse and retail)
![Page 7: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/7.jpg)
Other Exclusives
• Artists Choice– Exclusive to Starbucks– Sold 400,000 copies
• Playing for Change– Launches April 28th– Connect people of the
world through music– Benefits (Red) Wire in
the fight against AIDS in Africa
![Page 8: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/8.jpg)
2009 Update• Slower than expected roll out– Closing stores (600 in US)
• Expanded offerings– Promotes CDs, DVDs, and Books at almost all locations– Sold 4.4 million CDs in 2007– “Oprah’s Book Club” feel
• Conclusion– Increases foot traffic and time spent in stores by customers– diversifies revenue stream
![Page 9: Listening to Starbucks Alison Overholt July 2004 Leah Bungo Matt Smith Melissa Fredette](https://reader034.vdocument.in/reader034/viewer/2022051000/56649d2f5503460f94a067e2/html5/thumbnails/9.jpg)
Sources
• International Herald Tribune• Hear Music• Trading Markets• Playing for Change• Smart Brief