S TARBUCKS ’ ‘V ENTI ’ P ROBLEM By: Daniel Gross Ian George, Jennifer Hartwell, and Jessica Thornton

S TARBUCKS E XPANDS T OO R APIDLY 1,000 to 13,000 stores in 10 years Losing the “Starbucks Experience” People complain that “the stores are sterile, cookie cutter, and no longer reflecting the passion of coffee”

E XPANSION I S N OT A LWAYS A G OOD T HING Starbucks had to sacrifice several things: Flavor-Locked Packaging Stores lost their distinctive aroma Automatic Espresso Machines No longer the “small coffee shop” experience or feel Chain – Like Feeling The neighborhood store feeling was gone

S TARBUCKS U PDATE Closing 600 underperforming stores 70% of those closing have only been open since October ,000 employees jobless Less than 350 stores plan to open in new fiscal year starting October store-development employees laid off

K RISPY K REME Doughnuts originally made fresh on the premises Customers would wait hours for a fresh doughnut After going public and expanding, they started making doughnuts in central locations and distributing them Sales plummeted, the stock collapsed

K RISPY K REME U PDATE Hot Doughnuts Now sign ~ Make fresh doughnuts at certain times of the day Still manufacture some doughnuts used for fundraisers Coffee The company reported a $5.9 million net loss for the quarter ended November 2, 2008 while revenues dropped 9% to $94.3 million.

S NAPPLE Originally liked for its funky flavors and offbeat advertising After purchased by Quaker Oats Co., they decided the suddenly big brand needed advertising that was more professional and high concept Sales plummeted, Quaker Oats Co. sold Snapple at a huge loss

S NAPPLE U PDATE Brought back original ad campaign New bottle design Snapple facts New Products Antioxidant water

C ALIFORNIA P IZZA K ITCHEN Pros: Gourmet pizzeria Different pizza experience Wood ovens with unique flavor Considered a “destination” Cons: No longer exclusive to certain areas of California People of that area are no longer considering it “their own”

T RADER J OE ’ S Pros: Offers a variety of foods that others do not (organic, hard to find) Has a different marketing technique, “funky” Low prices Been able to expand without losing its “flare” Cons: Can stand to expand more since it has been able to do this successfully

I N -N-O UT B URGER Pros: Old school hamburger joint feel “Not turning burgers into industrial process” Fresh made in front of you Has not given up its exclusiveness Cons: People are becoming more health aware

R EFERENCES www. Googleimages.com arbucks02.html chnology/ _starbucks02.html