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Transcript of Starbucks
in more than 50 countries
many different products (coffee beverages, food, fresh juice and other)
Global group: 11, 7 billion $ in 2011
In France: 72, 7 million $ in 2011. External Analysis Opportunities Threats Developing other products and services
Big potential of international
Co-branding with other food manufactures
Expansion of retail place and way
Customers consider more and more the importance of quality and large range product Expansion limited by competitors: direct and indirect
Increase of coffee machine’s development.
Market trends – healthy lifestyles: People started to become more health conscious.
Price fluctuations and possible supplying problems
Market‘s saturation in America and low growth in the European market in terms of consumption. Internal Analysis Strengths Weaknesses Strong brand equity: internationally recognized and has a global presence.
Leader in the coffee market.
Good reputation of their products and services (quality and original concept).
Succeed to create coffee as a mass product.
Profitable organization and have a strong financial. Expensive product pricing: pricing are higher as compared to the competitors.
Starbucks depends on the innovation of products
Business profits are highly dependent on coffee product
65% turnover of employee No benefits in the French market
Decline of their image: are you going to Starbucks only for one good coffee?
French culture: difficulties to integrate the concept of Starbucks Starbucks has succeeded in lots of places in the world. However, the French market still does not adhere to Starbucks’ concept.
The French are very conservative people with deeply held traditions especially about the way to drink coffee. How Starbucks could adapt and attract customers with its concept in one of the world's most traditional country? Increase turnover and market share
Make benefits in the French market
Change their corporate image Strategies Communication about fair trade Expand the retail way Starbucks could work on the fair trade communication according to a range’s diversification across organic and ecological products .
This strategy allows to boost their image by highlight the environment aspect and expand their target. Starbucks could invest the food market by joining forces (bakeries or companies).
They could also invest the supermarket by selling new coffee pod to adapt to French consumption way.
Starbucks should change the size of their standard cup. revive its brand
adapt to a French traditions
develop massively the brand in France Segmentation: Positioning: - People aged 25 40 -
- Middle and high SPC -
- Paris inhabitant and provincial people -
- Customers fans, business man, curious people -
- Taste new flavours, new experience, relaxation - For people who want to discover a new experience over the senses and to have awareness consumption. Marketing mix Product
- Pods with classical and original flavours
- Packaging size of the cup has to be reduced
- Sell their ground coffee with different flavours
- Develop a specific professional coffee machine for companies and/or services. Price - coffee pod (12 pods) 3,99 €
- The coffee machine: 89 €
- Reduce the price of coffee in the Starbucks Coffee according to the decrease of the cup’s size. Place For the coffee pod and new ground coffee:
-In the supermarket
-In the Starbucks coffee
The origin range :
-Partnership with bakeries/snacks to go along with breakfast and lunch menus.
-Selling coffee to the companies Promotion -Tasting (in the supermarket or in the street in front of Starbucks coffee)
-Hand out coffee pod in the street
-Poster campaign (public place)
-Special offer People
- In companies: professional coffee machine or give a service : provide waiter/tress which allow to give Starbucks experience
-Tasting will be done only by Starbucks employees Process -Make a market study (know which perfume of coffee will be better)
-Negotiation with companies (target big companies for the first time) and supermarket
-Re- negotiate about cup’s size with packaging suppliers Physical evidence -Stay with the original graphical
-Universal size for the coffee pod
-Colors of coffee pod change according to flavours but stay natural