STARBUCKS: Increase Shareholder Value Transforming the Starbucks Experience BY: Jessica Settle

The Company Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily through its company-operated retail stores. Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily through its company-operated retail stores.

The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. continue to rapidly expand its retail operations continue to rapidly expand its retail operations grow its specialty sales and other operations grow its specialty sales and other operations selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels

Is Starbucks losing steam? Investors are worried…

Starbucks Announces Strategic Initiatives to Increase Shareholder Value; Chairman Howard Schultz Returns as CEO UNCLE HOWIE

The Campaign: Transforming Starbucks for the Future Introducing new products, revitalizing old ones

Campaign GOAL To increase shareholder value by refocusing the Company on providing customers with the distinctive Starbucks Experience To increase shareholder value by refocusing the Company on providing customers with the distinctive Starbucks Experience

Objectives To improve the current state of the U.S. business To improve the current state of the U.S. business To re-ignite the Starbucks experience through driving improvement and change in all areas that “touch the customer” To re-ignite the Starbucks experience through driving improvement and change in all areas that “touch the customer” To build for the long term To build for the long term a) to realign our organization and streamline the management of the organization to support customer focused initiatives b) to accelerate our International success story and growth even further

Revitalizing old products by introducing new ones Revitalizing old brands Revitalizing old brands Introducing new products when there is no advertising news Introducing new products when there is no advertising news Making packaging news when there is no product news Making packaging news when there is no product news Create marketplace excitement Create marketplace excitement Bringing a brand to life Bringing a brand to life

Strategies & Tactics Media campaign Media campaign Face-to-Face interactions with consumers Face-to-Face interactions with consumers AD/Internet campaign AD/Internet campaign =MPR campaign

TACTICS New products and store design elements New products and store design elements New training tools for partners (employees) New training tools for partners (employees) Slowing Company’s pace of US stores Slowing Company’s pace of US stores Renew focus on store-level unit Renew focus on store-level unit Re-igniting emotional attachment (Our Promise) Re-igniting emotional attachment (Our Promise) Billboards and Radio advertisements Billboards and Radio advertisements Blogging for customers & partners Blogging for customers & partners

MPR Tactics Created leadership team Created leadership team New training tools New training tools Slowing the Company’s pace of store growth Slowing the Company’s pace of store growth Renovating customer relationships Renovating customer relationships

Lessons Learned Involve the customer with the product Involve the customer with the product Think BIG, think Globally Think BIG, think Globally Always keep the message simple Always keep the message simple Keep product top of mind Keep product top of mind Make it an on-going story Make it an on-going story Generate word-of-mouth Generate word-of-mouth Add a cause related element to campaign Add a cause related element to campaign Create an incentive program and offer product as rewards Create an incentive program and offer product as rewards Giving your customers a ‘test-drive’ is always worthwhile Giving your customers a ‘test-drive’ is always worthwhile

Evaluation VERY INNOVATIVE, CONSISTENT AND WILL BE VERY SUCCESSFUL!