STARBUCKS CASE STUDYUNITED ARIB EMIRATES(UAE)
MAGGIE BRYANT
JORDAN COUTURE
MEAGAN ROSE
Starbucks Entertainment unit can contribute a significant
amount to Starbucks bottom line by offering a unique in store
experience that will generate repeat customers. . Increasing sales
to increase the bottom line is essential for any business, and
Starbucks wants to achieve this by offering a new selection of
products that incorporates music from local artists.
Analysis of the United Arab Emirates
The strengths are that
they have a stable
economy with most of
their profits coming
from the large amount
of oil reserves they
posses
Rising education and
income level only gives
Starbucks more
opportunity for growth.
There weakness is that
they are geographically
located in the desert,
which could be an
obstacle to overcome
when serving
steaming hot
beverages.
Competition
from other coffee
shops would be a
threat.
• Incorporating Music with
Coffee
• Featuring music in stores
• Making use of travel and
the coffee mugs
• Tying it in to local
holidays and festivals
Music Inside the Starbucks Stores
Starbucks can play music in
the stores by modern artists
from the UAE as well as
traditional music of the
UAE.
Music will enhance the
consumers experience by
making them want to stay in
the store longer which will
lead to the purchase of more
items
CDs and Gift Cards
iTunes and Music Master
Loyalty Punch Cards
• Promotional Ideas
Starbucks and Music
Popular music artists,
traditional musical instruments,
and traditional names of dances
and images of the dances can be
placed on the mugs.
The names of the dances with
images or a brief history of the
dance could be included on the
mugs.
Another way to incorporate
music and coffee would be to be
involved in local holidays and
festivals.
Music of the UAE Internationally
• The music offered through Starbucks in the UAE
will be a mix of modern artists as well as
traditional music and there is an audience for
both.
• The UAE has a strong music heritage and there
were songs for everyday tasks as well as historic
battles and milestones.
Why Starbucks will sell in the UAE
• The UAE culture is male
dominated so targeting
products to men will bring
in the most revenue.
The UAE has a high per
capita income and a high
standard of living which
works well for Starbucks
since its coffee is higher
priced than other
competitors.
Why Starbucks will sell in the UAE
• The urban population is 84% which works for
Starbucks stores because there is a lot of places to
have stores and the consumers will be
technologically savvy
Dubai International Jazz Festival, Dubai Desert Rock,
Desert Rhythm, and the Abu Dhabi
-Glocalization
By determining in what key ways your customers and products are
different, you can target your product offerings and marketing
efforts more tightly
Target Market
• Starbucks can offer music, products, and even
beverages that have a Middle Eastern flavor so
that they connect to their consumers.
• Men from the ages 15-64. Approximately 78% of
the population fits into that age category, and
there are three times as many men as women.
Sales Forecast
• Starbucks wants to increase
profits, as Dunkin Donuts has,
by continuing to expand
throughout the UAE.
• Starbucks can open 125 stores
in the UAE within
approximately 5 years, with a
minimum of twenty locations
built a year.
Sales Forecast cont..
Dunkin Donuts planned to open around 120 stores in the same amount of time, so
Starbucks should be able to top their competition, especially when they have
many successful locations already up and running.
The entertainment provided should account for at least 25% of profits made, and
simultaneously increase sales for coffee as well.
Where to Build the new stores?
They can start to add locations in the most populated
cities in the Northern region, and focus on expandion
down into the Southern region, prominently in Abu
Dhabi because it is the wealthiest Emirate.
References
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