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Starbucks Presentation

Starbucks began in 1971 as a small coffee shop in Seattle specializing in whole bean coffee. In the 1980s, Howard Schultz joined Starbucks and was inspired by Italian espresso bars to introduce espresso drinks. Schultz later bought out the founders and rapidly expanded Starbucks nationwide. By 2002, Starbucks had over 5,000 stores serving 20 million customers weekly. The company focuses on delivering a premium coffee and cafe experience through high quality coffee, customer service, and ambiance. Starbucks seeks to establish itself as the world's most recognized and respected brand in the coffee industry.

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513 views8 pages

Starbucks Presentation

Starbucks began in 1971 as a small coffee shop in Seattle specializing in whole bean coffee. In the 1980s, Howard Schultz joined Starbucks and was inspired by Italian espresso bars to introduce espresso drinks. Schultz later bought out the founders and rapidly expanded Starbucks nationwide. By 2002, Starbucks had over 5,000 stores serving 20 million customers weekly. The company focuses on delivering a premium coffee and cafe experience through high quality coffee, customer service, and ambiance. Starbucks seeks to establish itself as the world's most recognized and respected brand in the coffee industry.

Uploaded by

nida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Starbucks

Delivering Customer Service


Starbucks History
1971
– Founded by Gerald Baldwin, Gordon Bowken, Ziev Siegl
– Opened small coffee shop in Seattle
– Specialized in whole bean
– Focused on coffee purists
1982
– Howard Shultz joined Starbucks Marketing Team
– Travel to Italy
– Observed espresso bars in neighborhoods
– Convinced management to set up an espresso bar in Seattle downtown shop
1984
– Schultz bought out founders
– Began opening stores
– Sold whole bean premium-priced coffee
– Target affluent, well educated, white collar, 25-44, skewed female
1992
– 140 stores in northwest + Chicago
– Competed against well known coffee chains
– Went public
2002
– Schultz –COB, Chief strategist, Orwin Smith – CEO
Starbucks Success
• 11 years of 5% or more CAGR (Same stores)

• Serving 20 million customers in 5000 stores

• Starbucks value proposition


– Premium coffee
– Physical environment
– Service philosophy
3
Business Decision?
Increase Hours/Store/Week 20 hours
• Meet Customers expectations
• 20 hr/week store for 4,500 stores
• Goal: Improve speed of service and increase
customer satisfaction
• Will excellent service increase sales?
• Concerns:
– Labor is already biggest expense
– Cost of added labor $40m
4
Starbucks Value Proposition
• Brand strategy is “live” coffee = Unique
Experience

• Three components of experiential branding


strategy:

1) Best coffee highest quality – control supply chain


2) Service = customer intimacy – recognize customer,
remember their drink
3) Ambience – Atmosphere – Come for coffee then
lounge – upscale environment

5
Value Proposition
• According to Schultz:
– “It’s based on the human spirit, it’s based on a
sense of community, the need for people to
come together.”
• Company Overall Objective
– To establish Starbucks as most recognized and
respected brand in the world.
Starbucks Channels
• Company owned most stores in U.S.
• Stores in high traffic, highly visibility
– Sold beans, rich brewed coffee, Espresso, Teas
• Retail Mix
Coffee Beverage 77%
Food 13%
Whole Bean Coffee 6%
Equipment/Accessories 4%

• Specialty Operations 15% of Sales


North America food service 27%
Hotels, airline, restaurants
Domestic Retail stores 18%
Int’l Stores, grocery, clubs
Pepsi Frappuccino 55%
100%
• Goal: Reach customers where they work, travel, shop, dine
7
Starbucks Partners
• Partners (Employees)
USA 50,000
10,000
Total 60,000
• Compensation / Benefits
– Paid Hourly
– Health Insurance
– Stock Options
• Turnover
– Starbucks: 70%
– Fast food industry average: 300%
– Highest T.O. is in 1st 90 days
• Experience
– 70% of Store mgrs ex-baristas
– 60% of District mgrs ex-store managers
– All Senior mgrs – Train + Succeed as baristas
• Howards DNA
– Training
• Hard Skills – Mix drinks, Register
• Soft Skills – Connect w/ customer, Just say Yes
8

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