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STARBUCKS' SUCCESS IN JAPAN
Transcript of STARBUCKS' SUCCESS IN JAPAN
Opening of the
1987 : Start of the
1996 : Beginning of the international expansion
1995 : entered into a 50-50 joint-venture with the Japanese company
: Opening of the 1st Starbucks in
1st Starbucks store outside North America.
1st Strarbucks in Japan
STARBUCKS japan :
The king of coffee
Founded in 1971 by :
Based in Seattle, Washington
STarbucks Company profile
Starbucks Coffee Japan
McDonald's - McCafé
Espresso-based beverages :
Caffe Latte, Cappuccino
White Hot Chocolate
fresh food menu
Coffee beans & Tea
Merchandises : coffee and tea making equipments, mugs and accessories, books and gifts
ready-to-drink coffee drinks
at convenience stores
Howard SCHULTZ -CEO of Starbucks
Why is starbucks so successful in japan ?
Starbucks' first international market was Japan
Strategic alliance with
= 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"
Japan is traditionally a smoking culture
Its smoke-free environment made its success
: downtown business and shopping districts in large cities
Surrounding every major
very close to each other
, located in front of Tokyo's busy
"THE Third Place"
Spending time comfortably between house and workplace
Strong demand for Starbucks as a "third place"
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
Resistance to the "Starbucks experience"
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
Crushed Marron Pie Frappuccino
Starbucks store in Shinjuku, Tokyo
Chocolate Cookie Crumble
Frappuccino with white
Chocolate Brownie Matcha
Starbucks' presence around the world
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
“Innovation and an enhanced, yet relevant, customer experience are critical to our success in Japan.”
Wooden Japanese-style home
Starbucks store at
Toyama Kansui Park
, Toyama Prefecture
Starbucks' 1st outlet built in a park
A Starbucks store with a
that overlooks the
Western style Starbucks
in Kobe (2009)
Traditional Japanese crafts
Starbucks store, in
Reflects its local customers
Different stores cater to different types of consumers !
Locally-relevant beverage and food offerings
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)
with a Starbucks inside, Takeo, Saga prefecture (2013)
Support Center :
Representative director :
Record revenue and profit
- ¥116.5 billion revenue (about $1.4 billion)
- ¥9.7 billion profit (about $95 million) .
2nd biggest international market
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
Starbucks is Collectible
Starbucks Shared Planet
” program based on :
Ethical sourcing of coffee beans,
Local community involvement: CSR (corporarate social responsibility) activities.
Eco-friendly Starbucks :
Starbucks teamed up with ANA to offer its instant coffee to ANA's passengers. (2010)
Starbucks Japan is Creative
Starbuck store in
Inspired by Starbucks -
"Your neighborhood cafe”,
Pop-up Starbucks Store
, Harajuku, Tokyo (2012)
Jennifer Da Costa
in the world
With the Japanese
, Japanese people tend to drink more coffee
: the largest economy in the Pacific Rim
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.
2003 : Starbucks Japan operations announced an annual loss in revenue.
Expanding its business
Expanding its store portfolio
where market cannibalisation can be avoided
A way to capture
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
Diversification of locations
Diversification of services
Aimed at providing visitors with
memorable coffee drinking experience
Starbucks has created
to tempt Japanese consumers and to
better suit local tastes.
Seasonal offerings available for a
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