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1. STARBUCKS
COFFEE
MBA 55
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2. STARBUCKS
COFFEE
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3. STARBUCKS COFFEE
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Starbucks History
1971 Starbucks opens first store in Seattle’s Pike Place Market.
Partners Jerry Balwin ,Gorden Bowker & Zev Sigel Founded Starbucks.
1982 Howard Schultz joins Starbucks as director of retail operations and
marketing. Starbucks begins
…….
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4. STARBUCKS COFFEE
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Starbucks Shops Around the world
Total stores: 18,000 stores in 62 countries
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5. STARBUCKS COFFEE
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Starbucks Drinks :
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6. STARBUCKS COFFEE
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Starbucks Foods :
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7. STARBUCKS COFFEE
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Starbucks Marketing Strategies
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8. Taking the
Starbucks experience into
Germany
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9. THE ALLIANCE
 Signed in october 2001, between starbucks coffee international
and KarstadtQuelle Group.
- starbucks: world`s leading retailer and roaster of specialty brand coffee product.
- KarstadtQuelle: One of Europe1s largest retailes.
 Opening of individual starbucks retail locations
- First scheduled for Berlin in spring 2002
- Goal: up to 1,450 locations
 Offer starbucks products and services within selected karstadt
department stores
 82% owned by karstadtquelle; 18% owned by starbucks
 All German outlets will be branded as starbucks
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11. -
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12. COFFEE QUALITY AND CULTURE
HIGH
Switzerland
Austria
ITAL
Y
German
y
Franc
e
Latin
America
Scandinavia
India
NZ/Aust.
Japa
n
UK
South
East Asia
US
LOW
LOW
MARKET POTENTIAL (ESTIMATED)
HIGH
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14. COMPLIMENTARIES
HAS:
HAS:
• Strong global brand
• Coffee retailing
• Strong supplier network
• Prime retail space in German
• Knowledge of local German
market
• Catering/gastronomy business
experience
NEEDS:
NEEDS:
• Quick entrance into German
market
• High-traffic location
• Localizes knowledge
• Portfolio diversification into
potential grows areas
• Drowing younger, brand-oriented
consumers to its locales
• Development of specialized
outlet for the growing German
coffeehouse segment
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15. joint venture SWOT analysis
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Offer local specialties
Cross-selling potential
Brand known by target group
Large retail infrastructure
High margins
Starbucks raises karstadt image
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• Growing coffee culture
• Coffee specialties gaining
popularity
• Fragmented coffee shop market
• Increasing disposable income
• Trend toward higher individuality
• Euro has a positive psychological
effect in prices
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• Karstadt has no experience with intl
alliance
• Different standard operating
procedure
• Compatibility
• German perception of American
product and services of starbucks
• Unequal alliance control (82% 18%)
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• Established competitors
• Opening hours restriction
(especially for stores inside
karstadt)
• Low traffic on Sunday
• Price issue/sensitivity to cup of
coffee
• European coffee tastes
• In-home coffee machine sales
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16. RECOMMENDATIONS
Recruitment
• Hire mangers who have cross-cultural, international experience
Headquarters
• Establish starbucks Germany HQ outside of Essen
Cross-managerial/ employee training
• Management of starbucks Germany spends considerable time in American starbucks store
• Management from starbucks international in Seattle should experience working in a
German starbucks store
• Rotate an international project team in Seattle
• Implement an exchange program for front-line baristas.
Branding
• Adapt product offerings & store design to European tastes and standards
• Market starbucks as an international brand versus American brand
• Differentiate brand from competitors
Operational adoptions to the German market
• Low traffic Sunday: create starbucks as a distinct destination for patrons
• Competitors, substitutes: work to demonstrate that experience can not be attained at home
or another setting
• Price point sensitivity; highlight value and uniqueness of high-end products, store
atmosphere
• European coffee testes: add a traditional European coffee to product line
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17. SUCCESS DETERMINATION
HARD
•IPO of starbucks Germany
•Increase of karstadt stock price
•Profit of starbucks Germany
•Market share of starbucks Germany
SOFT
•Entry of starbucks into other EU
countries
•Spillover of starbucks Germany HR
policies into karstadt
•Product development
•Brand expansion
•Expansion of starbucks Germany
strategies to other starbucks location
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18. STARBUCKS COFFEE
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Starbucks Furniture
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Starbucks Entertainments
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20. STARBUCKS COFFEE
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Starbucks Foods and Drinks
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21. STARBUCKS COFFEE
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Starbucks and Environments
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22. STARBUCKS COFFEE
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Starbucks in Stock Exchange
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23. STARBUCKS COFFEE
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Starbucks Green Apron Books
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5 Principle for Turning Ordinary into Extraordinary
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24. STARBUCKS COFFEE
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Starbucks with IT & Technology
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25. STARBUCKS COFFEE
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Starbucks with IT & Technology
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26. STARBUCKS COFFEE
Starbucks More Information's :
 www.starbucks.com
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