“In the People Business serving Coffee”

Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.

Marketing Campaign - The 4 A’s Acceptability Consistent Quality Availability Ubiquitous – number and location of stores Affordability Price for a premium product Awareness Branding – high quality items sold under Starbucks brand name

Advertising Mainstream Media Partnerships Branding TV commercials for new products Partnerships Barnes Noble, Albertsons Branding Sells high quality items with Starbucks logo

Keys to Starbucks’ Success Quality Corporate-Owned and Employees are Shareholders Innovation Customer Experience Starbucks Bingo Sample a Mocha Frappuccino to a customer working on a laptop Sample Tazoberry to a customer wearing a red article of clothing Conversation inspiring blurbs on cups Efficiency Process Engineers shave seconds off wait time (floaters, scoops) Don’t swipe credit card for bills under $25

Products Music Barista Espresso machines Warm food Sells Custom music track compilations Barista Espresso machines Warm food Large variety of specialty beverages

Competition – Impact (Need for Speed) Dunkin’ Donuts Faster and cheaper coffee Lower quality Better donuts Starbucks Must continue to innovate Not alienate customers with cornucopia of growth Corporate culture Employee incentive programs Servant Leadership – shared vision, interdependence, managing with respect, honesty, and empathy

Profitability Starbucks has grown quite rapidly in the last 10 years

Future Growth Prospects Significantly increase number of stores abroad (outside North America) Currently only 7 % of coffee consumption in North America Believe that they could have 10,000 stores in the N. America and 15,000 stores outside N. America Increase marketing scope Replace coffee at work Increase the number of times people drink coffee during the day Increase the number of people drinking coffee

Questions