1. May 19, 2004 1 Starbucks Coffee France SAS Best in France Case Study Alexandre Borsari Damien Hammouchi Stéphanie Jaccaz

2. May 19, 2004 2 The Starbucks company (1/2) World leader in coffee retail with more than 7,500 locations in 34 countries. Key numbers : Annual Sales Turnover in billions of US dollars : The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion Its business : « From the bean to the cup of coffee » : Purchases directly to producers  Roasts whole bean coffees in 4 plants located in North America and Europe  Sells 15 different types of coffee, 30 beverages, pastries and coffee-related accessories in retail stores. Born in 1971 in Seattle, first came in Europe (UK) in 1998 and arrived the 16 th of January 2004 in Paris, France.

3. May 19, 2004 3 Starbucks France SAS (2/2) The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion Born from a joint-venture between Starbucks Coffee Company and Grupo Vips, one of the Spanish leader in restoration and retail. This group provides financial and logistic help. About 100 persons employed Around 10 stores expected in Paris before the end of the year 3 stores opened in Paris (Opéra, Montparnasse and La Défense)

4. May 19, 2004 4 Why it came to France France was a key market for them because of 2 main reasons : France is an emblem in the world of gastronomy and especially in the café society : accreditation It is a very profitable market The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion It was also a challenging project due to the French reserves against the American and their doubts about their ability to make good coffee. First settlement in Paris

5. May 19, 2004 5 Starbucks : a label Respect of employees The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion Stores : non-smoking, music, cosy Respect of clients Respect local traditions Image Creativity Quality of products

6. May 19, 2004 6 Constraints in France The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion Communication : Really sensible point, need to introduce themselves with discretion and humility.  No advert budget, their best advertising is their good location and the word-of-mouth influence ! Costs : High prices of real estate / High social security contributions / Heavy system of working hours (35 hours/week) Constraining specific laws (ex: purchasing lease) Need to apply the same price on comparable products (4 references)

7. May 19, 2004 7 Adaptation to France The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion As in every country, they adapt the menu to the local tastes and values. In France : « croissant » and « pains au chocolat » no large sizes of beverages improved the espresso menu ceramic mugs different prices between Paris and “Province”

8. May 19, 2004 8 We thank Camille Cochy de Moncan, Responsible of marketing and communication of Starbucks Coffee France SAS, ccochy@starbucks.fr Emilie Cassignac, Marketing and Communication of Starbucks Coffee France SAS, ecassignac@starbucks.fr The CompanyA labelConstraintsAdaptationWhy in France ?Conclusion