Name: wisam Course: DICT

Date: 27/3/2013

ID number: IIC120801987

Contents
Introduction

of Starbucks Starbucks Malaysia SWOT Analysis 4 Ps Strategy

About Starbucks
Overview Starbucks Starbucks Starbucks

Malaysia Vision

Mission Statements

Starbucks Overview

Specialty Eatery in the QuickService Restaurant sector Established in 1971 in Seattle, Washington Known for its quality coffee and store ambiance Over 14,000 locations in 40 countries

Starbucks Overview (Cont)

1971 First Starbucks coffee shop opened in Seattle USA 1985 Howard Schultz became CEO 1987 Changes name to Starbucks Corporation 1992 listed as a public entity with trading symbol SBUX 1996 Starbucks Coffee International went international in Japan and Singapore

Starbucks Overview (Cont)

1999 Acquires Tazo Tea company and Hear Music company. 2003 Acquires Seattles Best Coffee. 2005 Introduces Starbucks Coffee Liqueur; Acquires Ethos Water.

Starbucks Malaysia
The first Starbucks opened 17th of December 1998 in KL Plaza, Kuala Lumpur, Malaysia Berjaya Starbucks Coffee Company Sdn Bhd is jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. The company operates Starbucks retail locations throughout peninsular Malaysia. To date, the company has 100 outlets in Malaysia.

Starbucks Stores in Malaysia

Starbucks Stores in Malaysia Klang Valley 2 1 2 3 1 3 Penang Johor Bahru Pahang Malacca Negeri Sembilan 11 58 Perak Kedah Sabah Saraw ak Genting Highlands

2 1 4

Starbucks Vision

Create one of the worlds greatest brands. Maintain an uncompromising commitment to coffee quality.

Create a great work environment and believe in the power of

our people. Lead with integrity, courage and passion. Maintain our commitment to our communities and the environment.

Mission Statement

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow

Guiding Principles

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

S.W.O.T Analysis

Strengths Weaknesses

Opportunities
Threats

S.W.O.T Analysis

Strengths

Starbucks is the Most Trusted Brand . Global presence, as of July 2007 the company had over 14000 outlets in 40 countries. Socially responsible reputation committed to socially responsible coffee buying practices Employee Satisfaction focuses on maintaining employee happiness Starbucks annual revenue growth in Malaysia is 30%. The Starbucks logo is recognized by most, which also helps to retain customers that travel internationally, allowing them to get the same Starbucks coffee in the same Starbucks cup that they enjoy back home. Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. Starbucks Holds 45% of the gourmet coffee market share. Starbucks Corporation is a very profitable organization, earning $600 million and generating revenue of $5 billion in 2007.

S.W.O.T Analysis

Weaknesses

Reliance on in house selling. Starbucks has a reputation for new product development and creativity. However, they are dependant on a main competitive advantage, the retail of coffee.

Overcrowding the Market: If Starbucks has two stores close to each other, they potentially take business away from each other.

S.W.O.T Analysis

Threats
Stiff

competition in the gourmet coffee market. Intense competition from local coffee specialists as well as fast food operators like McDonalds and Dunkin Donuts

S.W.O.T Analysis

Threats
One

wow move form international players like Coffee Beans can pose a big threat. Volatility of coffee prices in the international market. Premium brand higher expectations

S.W.O.T Analysis

Opportunities
Expansion in Asia, specifically in Asia Pacific and China Increasing popularity of gourmet coffee-drinking in developing countries Opportunity to extend further its distribution and product range

Four Ps Analysis

Products
DoubleShot is delicious intensity of rich espresso, mellowed by a touch of cream. DoubleShot Light is the delicious intensity of rich espresso, mellowed by a touch of cream with half calories.

Four Ps Analysis

Price

The Price of Starbucks Double Shot Per Unit is Rm 3.50. The price for 6 pack of cans Rm 20.

Locations
Starbucks Ready to Drink coffee will be available in the big retail stores like Carrefour, Jusco, Tesco, Giant, Metrojaya and other retail chains stores in Malaysia.

Promotions
Now you can feel Starbucks anywhere, anytime. (Starbucks always be with you)

Television Advertisement. Print Media Billboard Event Sponsor (Akademi Fantasia)

Marketing Objectives
Strengthening

Brand image aiming to be the leading coffee retailer in each market Enhance Malaysian market leadership even in the ready to Drink coffee segment To achieve 25% market share in ready to drink coffee segment in the first year. To achieve sales target 17,500,000

Target market
Referring

to rate card provided by the company, the age group of 20-35 contribute the largest portion (68%) of the total population in Malaysia. As such, the age group of 20-35 definitely will be our target.

Positioning

We want to position DoubleShot as a premium brand in the Ready to Drink coffee market in Malaysia. Distinguished from traditional to Ready to Drink coffee available in the market.

Strategy

Our strategy is to establish as the most recognize and respected brand in the region, specifically in Malaysia. To achieve this, selectively pursue opportunities through the introduction of the new products and development of new distribution channel

Strategy Implementation
Introduction of Double Shot will help company to penetrate the other bigger segment Joint venture with Coco-cola for production and distribution of Double Shot in the Malaysian market.

Starbucks Financial Performance (2007 FY)

Financial Ratios Profit Margin Starbucks 6.88%

Return on Equity
Return on Assests Current Ratios Quick Ratios Net working Capital Price Earning Ratios Earning Per Share Market Capital

28.80%
11.89% 0.771 0.332 1.46 Billon US$ 19.52 0.89 13.32 Billon US$

Thank You