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Starbucks

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Alex Ancimer

on 7 April 2015

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Transcript of Starbucks

Starbucks
The Worlds Biggest Coffee Chain
Starbucks main focus is to lour in morning customers in the afternoon after a long, hard day at work.

Not only would customers come in the morning for their coffee and a muffin, but customers can come after 4 pm and grab a glass of wine or a beer followed with cheese and nuts
Starbucks Turns to Alcohol
Canada's Starbuck President

With the coffee sales flat, the 44- year old java giant is pushing aggressively into different areas as it faces stiff competition from fast- food chains serving coffee along with indepedent coffee chains popping up everywhre" (Wright).
Rossann Williams is pushing aggressively into different areas as it faces stiff competition from fast- food chains serving coffee along with independent coffee chains popping up everywhere

Starbucks is also adding breakfast sandwiches and bakery items in a bid to step up competition with fast- food restaurants

Starbucks major competition brands include
1. McDonalds Corporation
2. Nestle S.A
3. Dunkin' Brand Group, Inc






Competition
Due to the flat rate of coffee sales in Canada, the Evenings Program will be introduced to Starbucks in Canada. (Rosann Williams)

Rosann Williams says that there is also a lack of Starbucks' iconic green mermaid logo on highways to signify drive- thrus, compared to other chains

Her goal is for there to be a Starbucks logo at every third exit on the Hwy 401!

Williams says that Starbucks is introducing customized and carbonated beverages this summer as well as new food offerings in Ontario and B.C starting as of March 3

Starbucks is faced with a dilema: Do they want to be in the coffee business or in refreshments and food?
Cities Allowing the
Starbucks Mission:
Our mission: to inspire and nurture the human spirit- one person, one cup and one neighbourhood at a time
The Beginning of Starbucks


Starbucks opens their first store in Seattle's Pike Place Market in 1971

Starbucks was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle's Pike Place Market

After traveling to Italy and seeing the popularity in espresso bars in Milan, Howard Schultz believed there was a great potential to test the coffeehouse concept in downtown Seattle.

The Starbucks Latte was served and the successful experiment was the genesis for the company that Howard Schultz founded in 1985

As of December 28, 2014, there are 21, 878 retail stores in 66 countries around the world

Howard Schultz is still currently the CEO and Chairman of Starbucks Corporation

Works Cited
http://www.biography.com/people/howard-schultz-21166227
Starbucks Logo
Launching the Evening Program
An evening menu of wine, beer and tapas, including flatbreads, olives, nuts and cheese will be launched at the coffee chain's locations in Toronto and other big cities by the end of the year, Starbucks Canada President Rossann Williams told the Toronto Star nine months ago.

Starbucks evening programs are offered already in over 35 locations in the United States

They launched the Evening Program in the UK offering a range of meals and shareable hot and cold snacks.
Starbucks Canada to offer wine, beer and tapas by year's end by Lisa Wright
Why the Evening Program?
Starbucks is aiming to appeal women who make up 60% of Starbucks' customers and don't necessarily like to hang out in bars with friends

The Evening Program adds customers after 4pm

Starbucks is aiming to double food revenue to more than $4 billion (US) in the next five years

Beer and wine is also a no- brainer for them. It's a $100- million opportunity for Canadian restaurants, and it appeals to Starbucks' core customers because it's not the bar scene

Many females do not want to necessarily go out and grab a drink at a bar. Starbucks is the perfect, comfortable home- like place customers can go to for a drink at night.
McDonalds Corporation Vs Starbucks
Strengths
1. Brand equity

2. Customer satisfaction is top priority

3. Excellent Management

4. Corporate Social Responsibility
Competition and Weaknesses
Journal Case Research in Business and Economics by Michael G. Brizek from South Carolina State University:


Starbucks faces many threats from other coffee shops around the world.
These threats include:

1. Competitors who offer quality products at a lower price

2. The economic recession leads consumers to seek cheaper options (McDonalds, Dunkin Donuts, Tim Hortons or give up higher quality specialty coffee with less expensive options

3. Tough economic times result in customers seeking substitutes for what are considered luxuries, like an expensive cup of specialty coffee. .

4. Several new companies are marketing specialty coffee machines where the consumer can save by brewing their own single serve cups of Joe at home. (Keurig Machine)

5. McDonald’s is threatening to take over Starbucks’ international business as well, though its McCafe’s being opened abroad.
A Night Out at Starbucks?
Reasons to go to Starbucks instead of the bar:
Coffee Wars
According to the article...

Over the last year McDonalds, which has enjoyed great success with its McCafe, bumped Starbucks as the second- largest coffee player by market share in Canada after Tim Hortons

A way Starbucks is dealing with this harsh competition from these major corporations around the world is by introducing the EVENING PROGRAM

Starbucks is also adding breakfast sandwiches and bakery items in a bid to step up competition with fast- food restaurants

"Rossann Williams is pushing aggressively into different areas as it faces stiff competition from fast- food chains serving coffee along with independent coffee chains popping up everywhere" (Wright).
Rosann Williams- Starbucks President of Canada
Competition
Responsible for global partners, learning and development, talent acquisition and organizational development for the company's
150, 000 partners

Has demonstrated the ability to deliver results and develop partners, and is helping starbucks continue to attract , and develop the talent necessary to achieve its growth
Question:
IF YOU WERE 19, WOULD YOU GO TO STARBUCKS AND GRAB A DRINK WITH YOUR FRIENDS? WHY OR WHY NOT? WOULD YOU RATHER GO TO A BAR? WOULDN'T IT BE ODD GOING TO STARBUCKS FOR AN ALCOHOLIC BEVERAGE WHEN THEY ARE MAINLY KNOWN AS A COFFEE SHOP?
The Starbucks App
Competitors
The three major competitors of Starbucks:
1. Mcdonalds
2. Tim Hortons (Canada)
3. Dunkin' Donuts (US)
If you use the starbucks app you are entitled to enjoy a drink or treat for free on you birthday.
Green Level:
Five stars puts yo to green level
Free refills of brewed coffee and iced coffee

Gold Level
Collect 30 stars witin 12 months
Now enjoy free drink every 12 stars
Redeem treats and drinks with the benefits gold level emails you

La Boulange
"It's a huge opportunity in Canada"
Better food will increase the chance customers to buy food with their hot or cold drink
Williams expects food in particular to be a big driver of sales and traffic for the chain.
Two out of three customers who visit Starbucks do not order anything with their beverage
Food sales jumped 15 per cent since Starbucks put artisanal baked goods in the U.S locations two years ago
Items include: soups, grilled heese, ham and cheese croissants and other sandwiches
DO YOU THINK THAT STARBUCKS ADDING THE EVENING PROGRAM WILL ADD A SIGNIFICANT AMOUNT OF CUSTOMERS IN THE EVENING? WHY OR WHY NOT?
Works Cited
Brizek, Michael. Coffee Wars: The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts (n.d.): n. pag. Web.

"Rossann Williams, Senior Vice President and President of Starbucks Canada, Starbucks Corporation." Www.spokeintel.com. N.p., n.d. Web. 24 Feb. 20, 2015.

Plates., Savory Small, Thoughtfully Selected Wines., and Casually Elegant Atmosphere. Menu Starbucks Evenings (n.d.): n. pag. Web.

"Starbucks Coffee Company." Starbucks Coffee Company. N.p., n.d. Web. 24 Feb. 2015.

Wright, Lisa. "Starbucks Canada to Offer Wine, Beer and Tapas by Year’s End | Toronto Star." Thestar.com. N.p., n.d. Web. 24 Feb. 2015.

STARBUCKS HAS GONE OUT OF THEIR WAY TO APPEAL WOMEN. WHAT INITIATIVES SHOULD STARBUCKS TAKE TO APPEAL MEN?
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