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					Starbucks
         The Starbucks Logo
• The idea of the siren used in the Starbucks
  logo originates from Herman Mellville’s
  Moby Dick
• She is designed to mesmerize the coffee
  drinkers; to “lure them to the cup”
• A slightly different logo was created for
  each coffee, and appeared beside it on the
  menu board as well as on the package of the
  coffee.
        Starbucks’ Objective


• To establish Starbucks as the most
  recognized and respected brand in the
  world.
  Starbucks’ Mission Statement

• To establish Starbucks as the premier
  purveyor of the finest coffee in the world,
  while maintaining our uncompromising
  principles while we grow.
   Guidelines to Reach Mission
            Statement
• Provide a great work environment and treat
  each other with respect.
• 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.
   Guidelines to Reach Mission
     Statement (continued)
• Develop enthusiastically satisfied customers
  all the time.
• Contribute positively to our communities
  and our environment.
• Recognize that profitability is essential to
  our future success.
                           Starbucks Timeline
                    Schultz founded II
                    Giomale offering
 Howard            brewed coffee &                     676 Starbucks
 Schultz joins      espresso beverages 84              locations &         2,292
 Starbucks as       w/ Starbucks coffee Starbucks       Starbucks Intl      Starbucks
 Dir. of Retail     beans               locations       formed              locations
       1982               1985            1990               1995          2000


1971               1984            1987             1993            1998           2003
1st              Schultz       II Giomale     272         1,886 Starbucks     6,604
Starbucks         tests new      acquires        Starbucks    locations            Starbucks
location in       coffee bar     Starbucks       locations                         locations
                                                              Joint venture w/
Seattle           concept        assets
                                                              Magic Johnson        Acquired
                                 Changes                                          Seattle’s Best
                                                              Launch Starbucks
                                 name to                                           Coffee Co.
                                                              .com
                                 Starbucks
                                 Corp.
          In the beginning…


• Starbucks first opened in 1971 in Seattle’s
  Pike Place Market.

• In 1982, Starbucks began providing coffee
  to espresso bars and fine restaurants.
• In 1987, Starbucks became Starbucks
  Corporation.

• And this, of course, was just the beginning
  of the astounding growth that we have
  witnessed over the last decade.
So, does anyone remember where
  the Starbucks logo (the siren)
           came from?

       Moby Dick, by
      Herman Mellville
                              The Growth of Starbucks
                   7000


                   6000


                   5000
Number of Stores




                    4000

                                                                                    6294
                    3000
                                                                             4707
                    2000

                                                                      2135
                     1000                                      1412
                                                       676
                            17     55     116   272                                   S1
                           0
                           1987   1989   1991   1993   1995    1997   1999   2001   2003
                                                       Years
           Starbucks Today
• Starbucks now has approximately 6,294
  coffeehouses in North America alone,
• And they have approximately 900 locations
  outside of North America.
They grow up so fast…but how?
• In 1991, Starbucks became the first
  privately owned company to offer a stock
  option program to all of their employees.

• Higher employee satisfaction leads to lower
  turnover rates, which in turn leads to lower
  employee training costs, which leads to
  greater profits.
• Starbucks also gives back to the
  community, both local and abroad.

• This provides Starbucks with plenty of good
  publicity.

• Starbucks also takes great interest in its
  suppliers well-beings.
           Foreign Exchange
• Starbucks opened its first store outside of
  North America in 1996, in Tokyo, Japan.
• Starbucks sometimes faces fierce opposition
  when trying to enter certain markets.

• In 1999, when Starbucks came to downtown
  Athens, many locals and college students
  objected.
    What major bookstore is a
Starbucks most likely to be found
            inside?

• In 1993, Starbucks Corporation started a
  relationship with Barns and Noble, Inc.
   Since, they have won accounts with
     many other companies, such as:
• Sheraton Hotels (now   • Westin Hotels
  Starwood Hotels)       • Canadian Airlines
• United Airlines        • Kraft Foods (to extend
• Nordstrom                into grocery stores)
• Canadian Bookstore     • Hyatt Hotels Corp.
  Chapter
Starbucks Gives Back
                  CARE
• Starbucks distributes funds in response to
  any natural disasters that may occur in
  countries where their coffee and tea
  originate.
        Starbucks Foundation
• Created by the Chairman of Starbucks,
  Howard Schultz.
• Dedicated to creating hope, discovery, and
  opportunity in communities where
  Starbucks are located.
      Support Conservation
   International’s Conservation
         Coffee Program

• Encourages ecologically sound coffee
  growing practices.
         FY 2002 Revenue by Division

                         85%
100

 80

 60

 40                                    15%

 20

  0
      Company-Operated Retail Stores   Speciality Operations
             FY 2002 Net Revenues
Millions
3,500                                                      3,288.9

3,000                                            2,649.0

2,500                                  2,177.6

2,000                        1,686.8
                   1,308.7
1,500
           975.4
1,000

  500

     0
       1997      1998     1999      2000    2001       2002
123 consecutive months of positive comparable store sales growth
11 consecutive fiscal years of comparable store sales growth of 5% or more
Revenue growth of 24% in Fiscal Year 2002
Net Earnings of $2151 million
                               Starbucks Vs. Top Competitors
                                      Annual Revenue
                                         FY 2002
          Millions
        3,500
        3,000                      3,288.9
        2,500                                               Starbucks

        2,000                                               AFC Enterprises

        1,500                                               Diedrich Coffee
                                             692.6
        1,000
           500                                       62.2

                0

Source: Hoover's Online Services
     FY 2002 Specialty Operations % Revenue By
                   Business Unit
30                                        Foodservice
        27%

25                                        Retail Store Licensing

20            18%                         Intl Retail Store
                    17%                   Licensing
                                          Grocery Channel
15                        13%
                                          Licensing
                                          Warehouse Club
10                              7%        Accounts
                                     5%   Interactive
 5                                        Operations
                                          Equity Investees &
 0                                        Other Initiatives
                   FY 2002
      % Retail Sales Mix by Product Type
80
70
60
50
             77%
40
30
                         13%
20                                  6%        4%
10
0

     Beverages   Food Items    Whole Bean   All Other Retail
 Now for a tough one…About
how many Starbucks stores are
            open?

  There are approximately 6,294
   Starbucks stores currently in
             operation
  Your last chance to answer!
    Name the two Starbucks
beverages available at most (non-
    Starbucks) retail centers:

           • Frappuccino
           • Double Shot
         Keeping it Fresh



• Starbucks tries to introduce a few new
  beverage ideas every year, just to keep
  things interesting.
    Notable Additions for 2002
• Cream Frappuccino
  – Geared more towards non-coffee drinkers
• Starbucks Card
• Name Game
  – Effort to “get to know customers”
  They say, “Don’t mess with a
good thing”…but what if we did?
• Say Starbucks wanted to introduce a new,
  very aromatic coffee beverage. Is the
  observation method the best way to go?
• Of course!
  – Personal observation should be used to evaluate
    people’s reaction to the new flavor and aroma.
  – Mechanical observation should be used to track
    the sales of the new product.
Survey Results
                          Why do you go to Starbucks?


                                        12


12




10



                      7
 8




 6
                             4


 4
                                                        2

                  1                                 1                    1
 2




 0
     Quality of                                             Atmosphere
      Drinks
                          Starbucks' Beverages as Compared to Others


                  7                 7


7
                      6                        6


6



5



4



3
                                                           2


2



1
                                                                       0               0


0
    Better than                                                             Not as Good
     Others                                                                as than Others
                      Starbucks' Atmosphere as Compared to Others


                                            8


8
                  7


7
                      6         6


6


5


4


3


2
                                                       1


1
                                                                    0             0


0
    Better than                                                         Not as Good
     Others                                                              as Others
                      How Likely are You to Choose Starbucks over Others?


                  8


8
                       7


7



6
                                                5


5



4
                                    3                       3


3
                                                                                           2


2



1
                                                                        0


0
    Very Likely                                                             Not at all Likely
                                 How Frequently do you Visit Starbucks?




14                                                           13



12



10



 8                                                                              7



 6

                                          4

 4

                        2

 2                                                                                          1



 0
     More than Once a       Once a Week       Once a Month        Once a Year       Never
           Week
                              For What Purpose do You go to Starbucks?




                                                             Socialize with Friends
                                                                      16%



Just to get some coffee and
            leave
             47%



                                                                            To do office/school work
                                                                                       28%



                                                 To read
                                                   9%
                                                                               Starbuck’s Snapshot
                          Store #:                                               Date:                                                                  Basic Score:
                          Store:                                                 Time:                                                                  Legendary Service:




S tor e # :__ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ D a te:_ _ _ _ _ __ _ _ _ _                           B a s ic S c o re _ _ _ _ _ _ _ _ _                     L e g e n d a ry S e rv ic e
                                                                                C le a n lin e s s                                             /2 6                      * = V er y P o or                  * * = P oor                         St
                                                                                T a bles an d ch air s clean (in sid e an d ou tsid e)            /5                   * * * = N eu tra l                * * * * = G ood
S e rv ic e                                                            /3 4
                                                                                C on d im en t bar clean /fr ee of d e br is                      /5                               * * * * * = L eg en d ar y
R eg ister p artn er ver ba lly g r eeted you                             /6
                                                                                F loor s fr ee o f sp ills/d ebris                                /4
R eg ister p artn er m ad e e ye c on ta ct                               /4
                                                                                R estr o om clean /su p plies a va ila ble                        /4         D escr ibe th e ton e or feelin g of th e ser vice ex p er ien ce
R eg ister p artn er th an k ed you                                       /6
                                                                                T r a sh can s clean an d n ot over fl o w in g                   /4         in th e stor e.
B a r ista th an k ed you                                                 /6
                                                                                  (in sid e an d ou tsid e)                                                  ____________________________________
B a r ista m a d e eye c on ta ct                                         /4
                                                                                B a ck ser vice c ou n ter clean an d or g an iz ed               /1
P a rtn er disp la yed kn ow led g e o f p r od u cts                     /4                                                                                 ____________________________________
                                                                                P a str y ca se clea n an d or g an iz ed                         /2
P a rtn er s w er e n ea t an d clean                                     /4                                                                                 ____________________________________
                                                                                P a str ies sign ed corr ectly                                    /1
                                                                                                                                                             ____________________________________
C om m en ts: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
                                                                                C om m en ts :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
____________________________________
                                                                                ____________________________________
____________________________________                                                                                                                         D id you see a n y cu stom er s bein g p er son ally
                                                                                ____________________________________                                         r ecog n iz ed ?
____________________________________
                                                                                ____________________________________                                         _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
____________________________________
                                                                                                                                                             _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
                                                                                                                                                             _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
                                                                                S p e e d o f S e rv ic e                                     /1 6
                                                                                T ota l W a it T im e                                         _ _ __
P ro d u c t Q u a lity                                               /2 4                                                                                   W er e a ll p artn er s focu s ed on c u stom er n eed s?
                                                                                T ota l tim e w ith in th e stan dar d s?                       /1 6
B e v er a g e P ur ch a sed : _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _                                                                                 ____________________________________
                                                                                A m ou n t of tim e sp en t in lin e                          _ _ __
O r d er w a s filled a ccur ately                                       /6                                                                                  ____________________________________
                                                                                A m ou n t of tim e w a itin g for bev er a g e               _ _ __
B e v er a g e tem p a ccep ta ble                                       /6
                                                                                N u m ber of ser vice ch an n els/lin es op en                _ _ __         ____________________________________
B e v er a g e w eig h t a ccep ta ble                                   /6
                                                                                N u m ber of p ar tn er s obser ved on flo or                 _ _ __
B e v er a g e pr esen ted corr ectly                                    /3
C on d im en t bar su p plies a va ila ble                               /3
                                                                                S er vice T im es
                                                                                                                                                             D id you see a n y p ar tn er s in itia te con ver sation w ith
                                                                                < 3 m in = 1 6 pts
C om m en ts: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _                                                                                        cu stom er s?
                                                                                3 :0 1 – 3:3 0 = 1 3
                                                                                                                                                             _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _          3 :3 1 – 4:0 0 = 1 0
                                                                                                                                                             _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
____________________________________                                            4 :0 1 – 4:3 0 = 7
                                                                                                                                                             _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
____________________________________                                            4 :3 1 – 5:0 0 = 4
                                                                                > 5 m in = 0 p ts
____________________________________
                                                                                                                                                             W er e p artn er r esp on sive to ser vice d ela ys or oth er
                                                                                C om m en ts: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
                                                                                                                                                             issu es th at occu rr ed ?
                                                                                ____________________________________                                         _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
                                                                                ____________________________________                                         _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _
                                                                                ____________________________________                                         _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

				
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