CURRENT AND FUTURE STRATEGIES Mariagracia León Aguayo

INDEX Brief history How is Starbucks today General Strategies Local Strategies Sales Reborn

A Brief History of Starbucks 1970´s 1971 Opens the first Starbucks in Seattle. The name comes from Herman Melville´s Moby Dick 1980´s Howard Schultz joins Starbucks in He visits Milan´s famous espresso bars. He was impressed with their popularity and culture and he saw their potential in Seattle. Seattle quickly becomes coffee- crazy. 1990´s Starbucks expanded beyond Seattle.

FIRST STARBUCKS

How is Starbucks TODAY? More than Stores In more than 55 Countries Offers the best service client Sells a nice experience to customers while buying You can stay in Starbucks as long as you will The average consumer visit Starbuck 6 times per month, while the loyal one goes more than 16 times.

Business Model Starbucks has initiated a marketing model called “Experiential Marketing”, which generate their competitive advantage in front of their competition.

Experiential Marketing Local Establishments with decoration, lighting, clean olfactory marketing Starbucks welcomes customers with a pleasant aroma of coffee Product High quality coffee. Package with protective anti burns Personalization of the beverage Personalization of flavors and of the cup Direct responsibility to the community -Starbucks Foundation -Support Coffee growing communities -Support For the recovery of places affected by natural disasters

Strategies - LOCAL Starbucks often announces new products on their doors Starbucks puts his counter orders in the middle or in the back of the store to ensure that customers pass through the area of the stores chairs

Starbucks use lighting to guide customers in the shop. Lighting also serves to attract the attention of customers to Starbucks products Starbucks puts its publicity between the order counter and the counter where you pick up your coffee

Starbucks Sales 75 % Beverages 19 % Food sales 4 % Sale of packaged and single serve coffees 2% Others

Starbucks REBORN Starbucks have made a five-year growth plan: New and varied food offerings, including alcohol New store formats Food and beverage delivery Mobile platform enhancements Global growth -The coffee shop expects to double U.S. food revenues to over $4 billion. -It expects the new food items, along with the alcohol, to generate about $1 billion in new sales. -The coffee shop expects to double U.S. food revenues to over $4 billion. -It expects the new food items, along with the alcohol, to generate about $1 billion in new sales.

Delivering the goods Starbucks will begin food and beverage delivery to enhance its ties to customers, extend their loyalty, and meld the process with its mobile apps for ordering and payment 8 million members GENERATES 7 million weekly mobile payment transactions