1. Competitor Overview  Group no.05  James Esler  Jared Hendricks  Jonathan Hanabusa  Riki Montgomery  Talena Sword

2. What’s it about?  Strengths and Weaknesses  Profile of the two major competitors of Starbucks McDonalds + Dunkin’ Donuts’  Where these companies sit within the BCG Matrix The heck is that?

3. Why should you care!  Free Coffee  You don’t have to hear another speech that’s all about Starbucks and world domination Its about Burgers and Donuts and world domination  Did I mention Free COFFEE?

4. Myths and Facts  While we pass out the free coffee Would like to thank our sponsors Starbucks and Dunkin’ Donuts’ for the caffeine fix Grrr McDonalds wouldn’t even give me one cup of coffee (probably cause they still brew Starbucks coffee)

5. Myth  Starbucks Bought out Coffee People  Fact Coffee people went BANKRUPT! No Benjamins Starbucks Paid off their leases and gave their employees jobs

6. Myth  McDonalds coffee currently tastes better than Starbucks  Fact McDonalds coffee is a Seattle’s Best roast which is owned by Starbucks

7. Myth  Starbucks is crushing the little guy to take over the world  Fact According to Duane Sorensen, owner of the Portland- based Stumptown Coffee Roasters “they've raised the standards in the industry” 1989 Portland 28 non Starbucks shops Today 91 Mom and Pop business has seen a 40% growth since Starbucks moved into the market

8. The Competition  McDonalds 1954 31,000 restaurants In 100 different countries The Largest foodservice chain in the WORLD  Dunkin’ Donuts’ 1950 Largest coffee & baked goods chain in the WORLD Selling 4 million donuts and 2.7 million cups of coffee a day In 46 different countries

9. McDonalds  The History 1954 California hamburger stand ran by Dick & Mac Ray Croc who admired Dick & Mac expanded the restaurants to 500 by 1963 Went Global in 1967 in Canada and Puerto Rico Big Mac invented 1968 1970 growing at a rate of over 500 stores a year 80’s and 90’s competition slowed growth 1997 focus became international expansion

10. Financial Performance 2006  Revenues of $21,586 million 8.8% increase from $19,832 mill 2005  Largest geographic market = Europe 35.4% of total revenue  Plans to expand $6billion share of current $60 billion coffee market.

11. McDonalds  Coffee Strategy  Fall ’08 McCafe In its 14,00 U.S. restaurants McBaristas will serve various espresso beverages including the “Frappe” (sound familiar?)

12. Strength  Brand ranked 9 th of top 100 in world Estimated value of $27,501 million  Easy and cheap integration of specialty coffee in its already well established brand stores  Cheap Coffee 60-80 cents less than competition (Starbucks)

13. Weakness  Cheap = quality? Consumer perception  Big Mac and Fries + Gourmet Coffee? Product combination  Customer service and atmosphere Hey lets go relax and chill at McDonalds…?

14. Dunkin’ Donuts’  The History 1950 Quincy, Mass. Founder William Rosenberg  First called The “Open Kettle” ??? Franchise began in 1955 and went global with basic coffee as a specialty. 2004 ad campaign and introduction of coffee menu with a variety of espresso beverages

15. Financial Performance 2005  $517 million in world wide sales With a 1 year sales growth of 27.4%

16. Dunkin’ Donuts’  Coffee Strategy High quality and speed of service  Core Strategies Expand brand nationally Transform Baskin-Robbins Grow international with Focus & Disciplin

17. Strength  Donuts + Coffee = Delicious Baked good & donuts means breakfast all day long!  Speed of Service  Simplified Menu and Drink Sizes  Reasonably Priced and Fair Trade

18. Weakness  Atmosphere  Can’t be found on every street corner…yet Mainly dominates the west coast

19. BCG Matrix Analysis

20. How is Starbucks preparing for the competition  Howard is Taking it back to the Classic No more breakfast sandwiches They smell like McDonalds New Products to look out for (new honey latte is da bomb) Skinny Beverages with fewer calories for healthier people Improved baked goods and pastries Taking over the world…a little slower And improved Coffee atmosphere and barista training