Brand Management StarbucksContents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Product 3.Target Market 4.Key success factors 5.Recommendation and conclusionContents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Product 3.Target Market 4.Key success factors 5.Recommendation and conclusionBrief Starbucks Timeline 1971 Starbucks opens its first store in Seattle ’ s Pike Place Market. 1982 Howard Schultz joins Starbucks as director of retail operations and marketing. 1988 Starbucks offers full health benefits to full and part-time employees. 1997 Starbucks Foundation established, benefiting local literacy programs in communities where Starbucks has coffeehouses. Original Starbucks logo Company BackgroundCompany---Role in Industry Starbucks is recognized around the world. Here are just a few of the awards and recognition that they have received: Among “The 100 Best Companies to Work For .” 1998-2000, 2002-2007 Placed second in 2007 as “Best Ethical Stcial employee productivity Narrow product mix Weak compliance function Corporate image High price points OPPORTUNITIES: Growth in new international markets Expansion of new flavors and styles of coffee beverages The “ Hear Music ” label Diversify into new Growth Businesses sales in supermarkets THREATS: Intense competition Unstable coffee markets Controversies and criticism Possible over-saturation of the market Downturn in economy Change in consumer tastes AnalysisContents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Product 3.Target Market 4.Key success factors 5.Recommendation and conclusionconsumers The consumers of Starbucks are: 1.The people who enjoy well tasted premium coffee 2. The people who prefer good drinking environment and comfortable atmosphere. 3.The people who make an appointment with someone. 4.The people who want to use internet and take a rest alone. 5. Students who want to study together.Contents 3Cs Analyze (1)The company (2)The consumers (3)T a research report by Deutsche Bank stated that McD's current revenue from specialty coffee is around $490m, about 6-6.5% of Starbuck's coffee sales. The company's overall coffee business - brewed coffee and specialty coffee - is about 11% the size of Starbucks. Deutsche estimated that sales could reach $1.4b in 2009, nearer to 25% of Starbuck's sales . Price - the price of a medium McD's specialty coffee (latte or cappucino) is $2.79.6 According to Deutsche's report, the price point is an 18% discount on Starbucks's . Hughlett, Mike. McDonald's Coffee's Strength Stirs Questions. Chicago Tribune 23 May 2008. 17 June 2008 http://www.chicagotribune.com/business/chi-fri-mcdonalds-coffee-may23,0,2599927.story . Lukovitz, Karlene. “ Analysts: McDonald ’ s Coffee Onslaught Making Starbucks Jittery. ” MediaPost ’ s Marketing Daily 2 June 2008. 18 June 2008 http://publications.mediapost.com/index.cfm?fuseaction= Articles.showArticle art_aid=83727 . Market AnalyzeCompetition analysis --- Starbuits unique culture characteristic. They think they do not need to this kind of promotion like McDnoald’s. Sponsor Cultural Activity will be a better choice.Contents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Products 3.Coffee Market 4.Key success factors 5.Recommendation and conclusionStarbucks Products Products: 1.High quality ,well tasted Premium coffee. 2.Tea 3.Starbuck tea cups 4.Breads,Cookies 5.Good servicesContents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Products 3.Target Market 4.Key success factors 5.Recommendation and conclusion1. Rich People 2. People with high Education background People With the age between 25~44 years old White collar class Target market Target market of StarbucksContents 3Cs Analyze (1)The company (2)The consumers (3)The competition 2.Product 3.Target Market 4.Key success factors 5.Recommendation and conclusionA well-trained and flexible Workforce Having well-located flexible Facilities Having Market and Finon in 2006 → $3.6billion by 2010 Although Instant Coffee account for 1~2 % in US, it makes up biggest chunk of china`s coffee industry (Major Player in CN : Nestle`s Nescaf, Kraft`s Maxwell house) Enrich its product line up Launch a new line up to integrate more chinese elements e.g. Black Sesame Green tea Launch Chinese Tea Selection To give customers more reaseon to come to Starbucks *Location Not just coffee selling in china, but 20 minutes` of personal Space Expand outlet from costal regions to inland cities Expand business into India and ChinaAs your advertise, ‘ It ’ s not just coffee. It ’ s Starbucks ’ Expand business in where McDonalds is doing business - McDonalds could introduce people to drink coffee - The customers will understand and pay for the value 2. Give a niche market to not only McDonalds, but also Dunkin, Takeout shops, convenient stores brands.. - The strategy of cost leadership is easily duplicated by another 3. Keep creating new value through a cup of coffee -how}