A presentation on Strabucks coffe witch explain the new marketing trends of the brand with the QR codes.

1. TD 3207
2009-2010

2. I. Starbucks
a) A brief history and key facts about the
company
b) Expansion and Internationalization
II. QR codes Marketing
a) Definition & Advantages
b) Examples
III. Starbucks & QR Codes Marketing
a) New business opportunities
b) A promising future for this new marketing
trend?

3.  1971: The first Starbucks opened in Seattle
 1982: Howard SCHULTZ (today’s CEO) entered in Starbucks
 1985: He started up his own coffee bar « Il Giornale »
 1987: He purchased Starbucks and renamed his coffee bars with this name
 1996: The first Starbucks location outside North America opened in Tokyo
 2004: Opening the first store in France
Brand concepts:
- The « third place »
- Takeaway
Howard
SCHULTZ

4. STRENGHTS
- World’s most famous coffee brand
- Present in social media (facebook, twitter,
youtube)
- Partnerships with numerous brands
(Barnes & Nobles libraries, United Airlines,
Marriott and Hyatt Hotels)
- Large choice of drinks
- Present in more than 40 countries
- Position of the stores
- 6th enterprise the most admired (Fortune,
2008)
- Diversification of products = satisfaction of
clients
- Strong ethical values and an ethical mission
statement
WEAKNESSES
- The ratio of quality/price is in decline
- Product pricing (more expensive than the
competitors)
-Too much focus on expansion : Lack of internal
focus
- An American business model which can’t be
adapted to all countries easily (ex: Italy or
France)
- Dependant on the retail of coffee

5. OPPORTUNITES
- A strong potential in the global
operations : new markets for coffee
are beginning to emerge as in India,
Pacific Rim nations
- Expansion : new products and
services that can be retailed in the
stores such as Fair Trade products,
new trends related to their activity
- Possibility of brand franchising, co-
branding
- New products with new distribution
channels
- Continued domestic
expansion/domination of segment
THREATS
- Competition (other coffee shops,
restaurants, supermarkets, etc.)
- Price volatility in developing
countries
- Cultural and political issues in
foreign countries
- Negative image from poorly treated
farmers
- Change of consumer trends

6.  Constant innovation
 Variation of products and
tastes

7.  Use of the brand to launch new
different types of product
 Advantage : Benefit from the
notoriety and the image of the
brand
 Inconvenient : Risk of negative
impacts on the brand in case of a
failure
Pepsi Co
Dreyer’s

8.  In 2007, it had a global reach of over 17,000
stores in 56 countries.
 Between 2007 and 2009, Starbucks’
relentless march was slowed by 3 forces:
o Increasingly intense competition
o Rising coffee bean prices
o Global economic recession
o Result: 977 stores closed in worldwide

9. STARBUCKS IN THE WORLD

10.  To maintain their dominant market position
 Buying out competitors’ leases
 Clustering several locations in a small
geographical area : saturating the market
 ex: 2 Starbucks stores in the same shopping plaza
 Being positioned as independent stores to
sell Starbucks products
 ex: Barnes & Noble

11.  Joint ventures
 the formation of a new entity that is owned
jointly by two or more parent organizations :
option for supplying foreign markets that Starbucks
doesn’t have enough knowledge regarding their target
market
 ex: expansion in Spain joint venture agreement with
VIPS in Spain
 Retail stores :
 international licensing : the firm grants rights to
a foreign company to sell the products
 Ex: partnership with Restaurant Brands New Zealand
Ltd. helped to gain the competition intensity during
90s in the industry of coffee retaining in the country

12.  Quick Response Code : two dimensional
matrix barcode that is readable by smart
phones
 Created by Denso Wave, Japanese Company,
a Toyota subsidiary. The codes were originally
used for tracking inventory.
 How does it work?
 Mobile tagging : the smart phone’s owner points
the phone at a QR code and opens a barcode
reader application

13.  The QR codes typically
contains :
 An invitation to download a
mobile application,
 A link to view a video,
 An SMS message inviting the
viewer to respond a poll.
Objectives:
 Disseminate large amounts of
information about the products
to the general public
 Billboards, posters, television,
newspapers, magazines

14. Static QR Codes :
The code’s creator can track
information about the number of
times a code was scanned and its
associated action taken, along
with the times of scans and the
operating system of the devices
that scanned it.
So they are able to see how well
their advertising campaign is
working immediately and on a
continuous basis with a high rate
of precision.
Dynamic QR Codes :
The owner can edit the code at any time and can target a specific
individual for personalized marketing. Such codes can track more
specific information, including the scanners names and email address,
in conjunction with tracking codes on a website, conversion rates.

15.  QR codes on business cards link to the
individual's full resume or website.
 Victoria’s Secret incorporated QR
Codes into “Sexier than Skin”
campaign
 huge billboards with nearly nude
models. QR Codes were placed over
the most “revealing” areas When
users scan the codes their new line of
women’s undergarments where
revealed

17. Starbucks : one of the companies that use qr
codes in the best way. Why?
 A NEW WAY TO INTERACT WITH ITS CUSTOMERS
 QR codes program designed to let consumers
learn more about its coffee
 Codes created by Scanbuy a company that
provides mobile bar code products and software
 QR codes appear at some Starbucks locations
and in ads in popular magazines like People and
in daily newspapers as well as on billboard ads

18.  videos and description by
some coffee experts
about what makes
starbucks’ coffee unique
 Information about the
company’s various
products, their taste and
what food goes best with
them

19. A new promotion
strategy
 Special QR codes to
promote new line of
coffee products
 Smart way to boost sales
of its mobile application
downloads: smartphone
users get it in one click:
When a customer at
Starbucks scans a QR code
it brings them to a
dedicated mobile page
which promotes their app
for mobile phones

20.  A QR code when scanned help find
the nearest starbucks, browse the
menu
 coffee lovers can find their
favorite roast with a new
campaign that incorporates mobile
bar codes=promotion of their roast
 When consumers scan the QR
code, they can vote for their
favorite roast= a strategy to
connect their stores, their digital
networks and their customers

21.  Customers can also pay for drinks with QR codes
 Starbucks’ mobile payment system uses an app
that can create QR codes unique for each
customer. The code is scanned by employees at
checkout
 possibility to check card balance and to
constantly keep track of how much money is
left on their giftcards
 Starbucks helped Lady Gaga promote her new
album: organized a program "SRCH by Starbucks
featuring Lady Gaga", Gaga fans could scan QR
codes on Starbucks banners and other materials
to receive clues about a game
 Posssibility to win free download of the new
songsSmart way to promote the brand

22.  QR codes marketing helps
Starbucks develop its company
through an innovative
promotion strategy, a
proximity with its customers
opportunities to save money in
advertisements
 Smart way to evaluate the
impact of their marketing
communication campains

23. B) A PROMISING
FUTURE FOR
THIS NEW
MARKETING
TREND?
QR codes are here to stay
Many more opportunities left to
discover
Companies that has already begun
to use it like Starbucks can spread
the strategy in their other markets
Competitors can follow and even
improve the new strategies
created thanks to this new
marketing trend

24. B) A PROMISING
FUTURE FOR
THIS NEW
MARKETING
TREND?
For example LevelUp, a mobile
payment platform for smart
phones and other mobile
devices has taken a new
approach to developing a new
system based on a model used
by Starbucks
The company has has re-
launched its mobile payment
system: more than 1,400
businesses signed up

25.  New trends in marketing can
revolutionize business opportunities in
a short time
 New techniques like QR codes
marketing, mass customization…make
the most innovative companies
frequently rethink and quickly adapt
their strategies.
 one of the reason why they remain
leaders in their field of activity.
 So we can wonder if all companies have
to adopt new marketing trends to avoid
loosing profitable opportunities and
market shares?