1 / 12

Starbucks’ ‘ Venti ’ Problem

Starbucks’ ‘ Venti ’ Problem. By: Daniel Gross. Ian George, Jennifer Hartwell, and Jessica Thornton. Starbucks Expands Too Rapidly. 1,000 to 13,000 stores in 10 years Losing the “Starbucks Experience”

darena
Download Presentation

Starbucks’ ‘ Venti ’ Problem

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Starbucks’ ‘Venti’ Problem By: Daniel Gross Ian George, Jennifer Hartwell, and Jessica Thornton

  2. Starbucks Expands Too Rapidly • 1,000 to 13,000 stores in 10 years • Losing the “Starbucks Experience” • People complain that “the stores are sterile, cookie cutter, and no longer reflecting the passion of coffee”

  3. Expansion Is Not Always A Good Thing • Starbucks had to sacrifice several things: • Flavor-Locked Packaging • Stores lost their distinctive aroma • Automatic Espresso Machines • No longer the “small coffee shop” experience or feel • Chain – Like Feeling • The neighborhood store feeling was gone

  4. Starbucks Update • Closing 600 underperforming stores • 70% of those closing have only been open since October 2005 • 12,000 employees jobless • Less than 350 stores plan to open in new fiscal year starting October 2008 • 100 store-development employees laid off

  5. KrispyKreme • Doughnuts originally made fresh on the premises • Customers would wait hours for a fresh doughnut • After going public and expanding, they started making doughnuts in central locations and distributing them • Sales plummeted, the stock collapsed

  6. KrispyKreme Update • Hot Doughnuts Now sign ~ Make fresh doughnuts at certain times of the day • Still manufacture some doughnuts used for fundraisers • Coffee • The company reported a $5.9 million net loss for the quarter ended November 2, 2008 while revenues dropped 9% to $94.3 million.

  7. Snapple • Originally liked for its funky flavors and offbeat advertising • After purchased by Quaker Oats Co., they decided the suddenly big brand needed advertising that was more professional and high concept • Sales plummeted, Quaker Oats Co. sold Snapple at a huge loss

  8. Snapple Update • Brought back original ad campaign • New bottle design • Snapple facts • New Products • Antioxidant water

  9. California Pizza Kitchen • Pros: • Gourmet pizzeria • Different pizza experience • Wood ovens with unique flavor • Considered a “destination” • Cons: • No longer exclusive to certain areas of California • People of that area are no longer considering it “their own”

  10. Trader Joe’s • Pros: • Offers a variety of foods that others do not (organic, hard to find) • Has a different marketing technique, “funky” • Low prices • Been able to expand without losing its “flare” • Cons: • Can stand to expand more since it has been able to do this successfully

  11. In-N-Out Burger • Pros: • Old school hamburger joint feel • “Not turning burgers into industrial process” • Fresh made in front of you • Has not given up its exclusiveness • Cons: • People are becoming more health aware

  12. References • www. Googleimages.com • http://seattlepi.nwsource.com/business/369152_starbucks02.html • http://seattletimes.nwsource.com/html/businesstechnology/2008028854_starbucks02.html

More Related