MANAJEMEN PEMASARAN INTERNASIONAL STARBUCKS COFFEE

LECTURER

: Dr. Kurniawati, MM

TEAM MEMBERS: Garry Annisa Septie Velly Anatasia Yuliana Ratnadewi 022.08.0004 022.08.0043 022.08.0143 022.08.0259

TRISAKTI UNIVERSITY 2011

STARBUCKS COMPANY PROFILE A Brief History of Starbucks Starbucks has always been a place where you can find the worlds best coffees. But in 1971, you would have had to travel all the way to our only store in Seattles historic Pike Place Market. 1970s The first Starbucks opens. The name comes from Herman Melvilles Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the worlds finest coffees to the cold, thirsty people of Seattle. 1980s Howard Schultz joins Starbucks in 1982. While on a business trip in Italy, he visits Milans famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. Hes right after trying lattes and mochas, Seattle quickly becomes coffeecrazy. 1990s Starbucks expands beyond Seattle, first to the rest of the United States, then the entire world. After becoming one of the first companies to offer stock options to its part-time employees, Starbucks becomes a publicly traded company. 2002 MAP the Indonesia leader in retail brand franchising, won the Master License agreement to operate Starbucks in Indonesia. MAP appointed seasoned hospitality expert Anthony Cottan to launch and manage the brand. Anthony with a team of 8 from Jakarta went to study for three months in Seattle before opening the first store in May 2002

Marketing Mix (4ps) of Starbucks

1) PRODUCTS FAVORITE BEVERAGES Starting September 2009, Starbucks is introducing 100% ethically traded and responsibly grown coffee beans to customers, including Starbucks Espresso roast whole beans. The products of Starbucks are Classic caff latte, Blended juice, Blended cream, Blended coffee. Not only coffe beverage products, Starbucks has tea beverage too Tazo teas, such as this cup of Earl Grey FRESH FOOD In Starbucks stores, consumers will find enticing, exciting and tasty offerings to enjoy as you snuggle up with your cup of coffee. From pure indulgence to healthy indulgence, for breakfast, lunch, snacks & treats, come into your local Starbucks and enjoy the experience. The fresh food that Starbucks offer are Pastries, Muffins, Cakes, Cookies and Scones, and Sandwiches. 2) PRICE Strategy pricing of Starbucks are: Premium Pricing Strategy/Skimming Pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. 3) PLACE The Starbucks Coffee Stores are in city and mall stores, hospital stores, office stores, outstation stores, residential stores, retail strip and stand alone stores, transportation- hub stores. In Indonesia Starbucks Store there are in mall stores such as at Pondok Indah Mall, Kelapa Gading Mall, Taman Anggrek Mall and another Super Mall not only in Jakarta. In Hospital, Starbucks Store such as in Siloam Hospitality, Kebun Jeruk. Not only in Super Mall, in Indonesia Starbucks there are in Gas Station, Cipularang, Interational Soekarno-Hatta Airport, and in Sampoerna Building, in Sudirman Street. 4) PROMOTION a. Community Programs and Events Starbucks believes in contributing to local communities through local stores and we invite you to join us. b. Care about Communities Every Friday, Starting at 10am join our Coffe talk in Starbucks store. c. Live at Your Starbucks

Youll find more than great coffee at your local Starbucks store. Its also a place for soul-stirring live music, intriguing book readings, interesting art displays, fascinating speakers and much more. Check this space often to see whats happening at your Starbucks. SEGMENTING, TARGETING, AND POSITIONING OF STARBUCKS SEGMENTATION One dimension of segmentation will be demographics (age and household status). We have selected married couples age 25 54 with children to be our primary target market. According to our data in figure 5, we found that these households spend more than other households on non-alcoholic beverages away from home. We also like this segment because the children can consume the coffee-free Frappuccino as well. We expect such events as parents buying the child a Frappuccino as a treat for a soccer game victory, or on a family trip to the beach. We anticipate the exciting summertime experience, will remain in the childs mind and will influence their purchase decisions as they mature. TARGET Starbucks cannot expect to grow by offering the same products as its competitors. Starbucks must offer points of difference that will make customers want to come to Starbucks rather than competitors. The points of difference that make Starbucks new Frappuccinos distinctive relative to competitors fall into four important areas: Brand Experience At Starbucks you arent just drinking a beverage, but are undertaking in an emotional experience by the surroundings. Brand Quality Starbucks has been recognized for exceeding expectations by the quality of their products and their service. This is what will create their loyal customers. Perceived Health People that are active are perceived to be healthier then those not active. According to our survey, Figure 6, aside from the coffee, Starbucks is perceived as a healthy establishment, which makes the new coffee-free Frappuccinos appear healthy as well. Convenient Access Starbucks is everywhere and easily accessible. In many locations Starbucks offers drive-thru windows, which are more convenient then its competitors. PRODUCT POSITIONING Starbucks is listening to the needs of the educated by devoting its business and research to developing ways to cater to this groups wants and needs (Pigott). Theyve begun to revamp its company by creating a drive-thru for the popular urban areas. The drive-thru caters to the new generation of coffee drinkers because college-age students and the general population are always in a rush with little time to spare (The Gale Group). The

drive-thru stores came out in 2004 and have been enormously profitable, making the process of buying coffee easier by eliminating long lines or creating alternative ways to buy coffee faster and avoid the prospect of impatient customers (Isidro). Starbucks continues to create a retail store experience that attracts customers and has them repeatedly coming back. In 2001, the coffee stores began to offer wireless highspeed Internet access to enhance the gourmet coffee experience for its new-age consumers who consist of students, business travelers, and web surfers (Isidro). By offering Internet service, customers are feeling more and more comfortable, allowing people to sit back and enjoy their coffee while enjoying the opportunity to be virtually connected to the world or listening to their favorite song. The company knows that the younger generation is concerned with brand affiliations and they have begun to diversify their product line. Later this year or in 2008, they plan to introduce CD burners so that customers can sample online music while sipping their coffee (Isidro). The company currently has mugs, bags, and other durable products with their logo which have been gobbled up by consumers who are coffee lovers. These promotions are also methods with cash in mind. By detaining customers in the stores, there is a greater opportunity for more purchases, whether they are more cups of coffee, food items, or other products. The world today as we know it is mostly based on convenience, electronics, and the latest new fad. Most of the new additions such as a drive-thru, a diverse selection of music aimed at different types of individuals, and high-speed internet access are all attempts aimed at younger individuals with less time on their hands (Isidro). By being innovative and increasing store ambiance, an environment that enhances and complements the coffee drinking experience has emerged. SWOT ANALYSIS OF STARBUCKS 1. Strengths a. Customer Loyalty Starbucks has very strong brand recognition and faithfulness among those who frequent the coffee shop. The Starbucks high flyers are known to frequent stores at least three times a weel, if it more. b. Employee Loyalty Starbucks partners are their greatest assets. They empower their employees, allowing them to make their customers experiences memorable and satisfactory. c. Themes Each Starbucks store is allowed its own individuality, though the business as a whole is unified in the look and feel of the restaurant envionment. For example, chalkboards are used for creativity in expressing the menu. CDs, books and movies are also sold, which the company helps to produce and/or promote. The book readings and signings have been very successful for both Starbucks as well as the individual authors. d. Social Issues Starbucks supports many social issues including, but not limited to: Fair Trade Organization, literacy, clean water and health issues.

e. Starbucks Growth Coffee is still an up and coming industry, and Starbucks is growing right along with this business. 2. Weaknesses a. Some of the stores may be overpowering to the cultures they merge into. For example, in their Dublin store in Ireland, local coffee shops open mid to late morning, while Starbucks opens much earlier. Some people feel that this takes away from the laid back atmosphere of the Irish culture (Hammonds). b. Starbucks has a somewhat narrow product line for their oversear countries. For example, it is hard for Starbucks Coffee to promote te in China. c. Many people and industries view the companys lack of advertising as a negative business strategy. d. Over-expansion: too many stores. Starbucks may eventually become too big for itself. e. Over-expansion: too many products. Right now Starbucks is venturing out of the coffee industry and into music, books, entertainment, and other foods as well. Too many brand extensions may become harmful to the company. 3. Opportunities a. Starbucks could add to their product line multiple brand extensions: desserts, sandwiches, coffee makers, espresso makers, IPOD stands, breakfast items, more coffee/hot chocolate variations, etc. b. There is a great deal of overseas expansion available to the Starbucks Coffee Corporation. 4. Threats Immediate competition from fast-food restaurants catching on the specialty coffee wave and developing products that competes with Starbucks. The competitor of Starbucks are Tim Hortons, Dunkin Donuts, McDonalds, and Nestle. COUNTRY SPECIFIC ADVANTAGE Now Starbucks are breaking into Asians market and the followings are some CSAs of Starbucks especially on Asians market. 1. Compared to the European market with a long-history tradition and more districts, Starbucks have gained more apllause in Asian ares, because its fashionanl icon. 2. Starbucks carry out some innovative rules to cater to the local meets of the Asian markets customers. For example, Starbucks mooncakes have been produced. After brought in to the Taiwans market, Starbucks mooncakes became hot sales and new booking were ordered very popularly. Because of the success, Starbucks is planning to lauch more new products including mooncakes and other traditional snack of special taste, high materials, and with fashional package, as the first choice to the festival present in local areas.

3. Starbucks is trying its utmost to build the most classic atmospheres and offer the high class services to customers. FIRM SPECIFIC ADVANTAGES Starbucks specific advantages are: 1. Starbucks is a very profitable Corporation, earning in excess of $600 million annually, although the sales figure decreased recently. It has almost 9000 cafes in almost 40 countries and is planning to open more than 700 new ones this year. 2. It is a global coffee brand built upon a reputation for products and services of great quality. 3. The cooperate principle of Starbucks is the Return of Happiness, which means only to the employees happiness, which leads to the happiness of the customers, can the company run a happy business. Hense, the company offer favourable welfare benefits and staff are valued. 4. Starbucks has strong ethical values and contribute to some ethical mission to the society.

KEY SUCCESS FACTOR OF STARBUCKS

1. 2. 3. 4. 5. 6. 7. 8. 9.

Maintain a deep knowledge of the product Carefully monitor the quality of the product Carefully chose the stores locations Recruit only knowledgeable management members at all levels Maintain a high level of employee performance Match the store capabilities with the store location Adopt aggressive growth tactics to maintain pressure and stay ahead of competition Avoid over-mediatization to prevent competitors early counteractions Leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels.

CASE OF STARBUCKS IN SAUDI ARABIA RIYADH, Saudi Arabia (AP) The powerful religious establishment has finally accepted her presence. The alluring, long-haired woman that Starbucks removed from its logo when it began opening its stores in this conservative kingdom in September 2000 is being restored on plastic and paper cups, bags of coffee and the aprons of the Starbucks staff. The Saudi religious establishment at first didnt want the Starbucks woman in the logo and regularly sent religious police, called the muttawa, to the stores to ensure they complied. The Seattle-based gourmet coffee retailer had customized its logo, keeping only the womans crown, in response to advice from the companys local partner.

But on Thursday, the companys president, Peter Maslen, said in a statement to The Associated Press that Starbucks original logo will be displayed in both existing and new stores in the country. It was not clear when the Starbucks local partner took the decision to introduce the original logo or why the woman has suddenly become acceptable to the religious establishment. Starbucks staff said the muttawa who had ordered the woman removed from their aprons in February returned less than a month later and said it was OK to restore her. Women in Saudi Arabia have to cover themselves with black cloaks in public and the sexes are strictly segregated. http://andfaraway.net/blog/2011/01/06/new-starbucks-logo-in-saudi-arabia/