CURRENT AND FUTURE STRATEGIES Mariagracia León Aguayo INDEX • • • • • • Brief history How is Starbucks today General Strategies Local Strategies Sales Reborn A Brief History of Starbucks 1970´s 1971 Opens the first Starbucks in Seattle. The name comes from Herman Melville´s Moby Dick 1980´s Howard Schultz joins Starbucks in 1982. He visits Milan´s famous espresso bars. He was impressed with their popularity and culture and he saw their potential in Seattle. Seattle quickly becomes coffeecrazy. 1990´s Starbucks expanded beyond Seattle. FIRST STARBUCKS How is Starbucks TODAY? • • • • • • More than 21 000 Stores In more than 55 Countries Offers the best service client Sells a nice experience to customers while buying You can stay in Starbucks as long as you will The average consumer visit Starbuck 6 times per month, while the loyal one goes more than 16 times. Business Model • Starbucks has initiated a marketing model called “Experiential Marketing”, which generate their competitive advantage in front of their competition. Experiential Marketing Local Establishments with decoration, lighting, clean olfactory marketing Starbucks welcomes customers with a pleasant aroma of coffee Personalization of the beverage Personalization of flavors and of the cup Product High quality coffee. Package with protective anti burns Direct responsibility to the community -Starbucks Foundation -Support Coffee growing communities -Support For the recovery of places affected by natural disasters Strategies - LOCAL • Starbucks often announces new products on their doors • Starbucks puts his counter orders in the middle or in the back of the store to ensure that customers pass through the area of the stores chairs • Starbucks use lighting to guide customers in the shop. Lighting also serves to attract the attention of customers to Starbucks products • Starbucks puts its publicity between the order counter and the counter where you pick up your coffee Starbucks Sales 75 % Beverages 19 % Food sales 4 % Sale of packaged and single serve coffees 2% Others Starbucks REBORN • Starbucks have made a five-year growth plan: • • • • • New and varied food offerings, including alcohol New store formats Food and beverage delivery Mobile platform enhancements Global growth - The coffee shop expects to double U.S. food revenues to over $4 billion. - It expects the new food items, along with the alcohol, to generate about $1 billion in new sales. Delivering the goods • Starbucks will begin food and 8 million members 7 million beverage delivery GENERATES to enhance weekly mobile payment transactions its ties to customers, extend their loyalty, and meld the process with its mobile apps for ordering and payment