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STARBUCKS' SUCCESS IN JAPAN

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Jenny penny

on 16 November 2014

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Transcript of STARBUCKS' SUCCESS IN JAPAN

Starbucks - Key dates
1971 :
Opening of the
1st Starbucks
in
Seattle

1987 : Start of the
expansion
throughout the
USA
.

1996 : Beginning of the international expansion
1995 : entered into a 50-50 joint-venture with the Japanese company
Sazaby
.

1996
: Opening of the 1st Starbucks in
Ginza
,
Tokyo.

1st Starbucks store outside North America.

1st Strarbucks in Japan
Competitors
STARBUCKS japan :
The king of coffee

Founded in 1971 by :
Gordon Browker
Jerry Baldwin
Zev Siegl

Based in Seattle, Washington
STarbucks Company profile
Starbucks Coffee Japan
McDonald's - McCafé
Starbucks products
Beverage menu
Brewed coffee
Espresso-based beverages :
Caffe Latte, Cappuccino
Tea beverages
Cocoa
White Hot Chocolate
Frappuccino
fresh food menu
Baked pastries

Sandwiches

Salads
Others
Coffee beans & Tea

Merchandises : coffee and tea making equipments, mugs and accessories, books and gifts
Ready-to-drink
Energy Drinks
Starbucks Discoveries
ready-to-drink coffee drinks
at convenience stores
Howard SCHULTZ -CEO of Starbucks
Why is starbucks so successful in japan ?
Japanese market
Starbucks' first international market was Japan
Local Partners
Strategic alliance with
Sazaby
= big help
Deep understanding of Japanese consumers
Insights about unique products and merchandising.
Marketing a Green Tea Frappuccino drink
Ignoring Bad advice from foreign consultants
"You will not succeed in Japan"
no-smoking policy
Japan is traditionally a smoking culture





Its smoke-free environment made its success
Strategic Spots
Trendy spots
: downtown business and shopping districts in large cities
Surrounding every major
train stations
Located
very close to each other
Starbucks
, located in front of Tokyo's busy
Shibuya
Station.
"THE Third Place"
Spending time comfortably between house and workplace

Strong demand for Starbucks as a "third place"


Comfy sofa

Western music

Well-lighted and designed interior

Fashionable and relaxing athmosphere

Free High speed wireless Internet service

13,3 UDS revenue (in Billions) - 2012
Starbucks Corporation Fiscal 2012 Annual Report
Problems
Stiff competition
Resistance to the "Starbucks experience"
Market saturation
The same image and customer service in all their stores all over the world

Store design, food and beverages, locally adapted to the specific country or culture.
Starbucks global strategy
THE NEW STRATEGY
Updading its food & beverage menu
Red Bean
+
Grean Tea
Frappuccino (
2011
)

Sakura
season menu

Spring 2013
Strawberry Cheesecake
Frappuccino
June 2013
Christmas season
menu
Crushed Marron Pie Frappuccino
Winter 2013
Starbucks store in Shinjuku, Tokyo
Chocolate Cookie Crumble

Frappuccino with white
Chocolate Pudding
Summer 2012
Chocolate Brownie Matcha
Cream Frappuccino
Summer 2013
Starbucks' presence around the world
20,891 stores
62 countries
STARBUCKS :
Largest coffeehouse chain in the world
Starbucks stores in Japan
According to the financial statement released on May 10 by Starbucks’ Japanese subsidiary
Starbucks store in Miki
rest and service area
Residential neighborhoods, amusement parks, universities, hospitals...and...
Starbucks Japan is
convenient
“Innovation and an enhanced, yet relevant, customer experience are critical to our success in Japan.”
Howard Schultz
CONCLUSION
WEBLIOGRAPHIE
Wooden Japanese-style home
(2009)
Starbucks store at
Toyama Kansui Park
, Toyama Prefecture
Starbucks' 1st outlet built in a park
Kamakura
concept
A Starbucks store with a
terrace
that overlooks the
Kamogawa river
in
Kyoto
(2011)
19th century
Western style Starbucks
in Kobe (2009)
"
Traditional Japanese crafts
"
Starbucks store, in
Meguro
(2013)
Reflects its local customers
:
Different stores cater to different types of consumers !
Locally-relevant beverage and food offerings

Emotional connection
with the local community :
Innovative and unparalleled in-store experience.
Starbucks ORIGAMI -
single-use drip coffee
Innovative & unique in-store Experience
Starbucks 1st LEED registered store,
Ohori park, Fukuoka (2010)
Japanese
public library
with a Starbucks inside, Takeo, Saga prefecture (2013)
Starbucks
japan
Support Center :
Meguro
, TOKYO

Representative director :
Jun

Sekine

46 Japanese

prefectures


1,000 stores

Record revenue and profit
in
2012
:
- ¥116.5 billion revenue (about $1.4 billion)
- ¥9.7 billion profit (about $95 million) .

Japan =
2nd biggest international market

DOUTOR Coffee
Excelsior Caffé
TullY's Coffee
Convenience stores
Vending machines

Extract of the report "
Howard Schultz - The King of Starbucks Coffee
"
Special collector mugs
, only available in a particular city or region of Japan.
Japan has a strong
souvenir
culture.
Starbucks is Collectible
Starbucks' Commitments

Starbucks Shared Planet
” program based on :
Ethical sourcing of coffee beans,
Humanitarian efforts,
Local community involvement: CSR (corporarate social responsibility) activities.

Eco-friendly Starbucks :
all-LED stores
.

Starbucks teamed up with ANA to offer its instant coffee to ANA's passengers. (2010)
Starbucks Japan is Creative
The
Kengo Kuma-designed
Starbuck store in
Fukuoka
(2011)
Inspired by Starbucks -
"Your neighborhood cafe”,
Tamagawa, Tokyo
First-ever
Pop-up Starbucks Store
, Harajuku, Tokyo (2012)
Jennifer Da Costa
M1 LAI

The
third-largest-coffee-consuming-country
in the world

With the Japanese
fast lifestyle
, Japanese people tend to drink more coffee
Dynamic market
: the largest economy in the Pacific Rim
http://www.starbucks.com/
http://www.starbucks.co.jp/
http://www.japantrends.com
http://japandailypress.com
http://en.rocketnews24.com
http://www.japanmarketingnews.com
http://asia.nikkei.com/


THANK YOU FOR YOUR ATTENTION!
STARBUCKS JAPAN : reasons of success
Improving its profitability in Japan

Strenghtening its brand competitiveness

Changing its long-held image of being urban.
Objectives
2003 : Starbucks Japan operations announced an annual loss in revenue.
Expanding its business
Expanding its store portfolio
New locations
where market cannibalisation can be avoided

A way to capture
new customers
Remodeling of existing-stores
: Starbucks is using more counter seats and large tables to be shared by many solo customers

Opening of innovative
concept stores :
characterized by a highly original design
Diversification of its product line
Starbucks - Narita
Airport
Diversification of locations
Diversification of services
Drive-through service
Aimed at providing visitors with
memorable coffee drinking experience
Starbucks has created
unique flavours
to tempt Japanese consumers and to
better suit local tastes.
Seasonal offerings available for a
limited-time
only
The certification provides proof that prerequisite standards are met for site construction, energy use, indoor air quality and recycling.
Starbucks :a pioneer of Japan's no-smoking movement
Full transcript