“In the People Business serving Coffee”

1. “In the People Business serving Coffee”

2. Mission Statement • Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. • 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.

3. Marketing Campaign - The 4 A’s • Acceptability • Consistent Quality • Availability • Ubiquitous – number and location of stores • Affordability • Price for a premium product • Awareness • Branding – high quality items sold under Starbucks brand name

4. Advertising • Mainstream Media • TV commercials for new products • Partnerships • Barnes Noble, Albertsons • Branding • Sells high quality items with Starbucks logo

5. Keys to Starbucks’ Success • Quality • Corporate-Owned and Employees are Shareholders • Innovation • Customer Experience • Starbucks Bingo • Sample a Mocha Frappuccino to a customer working on a laptop • Sample Tazoberry to a customer wearing a red article of clothing • Conversation inspiring blurbs on cups • Efficiency • Process Engineers shave seconds off wait time (floaters, scoops) • Don’t swipe credit card for bills under $25

6. Products • Music • Sells Custom music track compilations • Barista Espresso machines • Warm food • Large variety of specialty beverages

7. Competition – Impact (Need for Speed) • Dunkin’ Donuts • Faster and cheaper coffee • Lower quality • Better donuts • Starbucks • Must continue to innovate • Not alienate customers with cornucopia of growth • Corporate culture • Employee incentive programs • Servant Leadership – shared vision, interdependence, managing with respect, honesty, and empathy

8. Profitability • Starbucks has grown quite rapidly in the last 10 years

9. Future Growth Prospects • Significantly increase number of stores abroad (outside North America) • Currently only 7 % of coffee consumption in North America • Believe that they could have 10,000 stores in the N. America and 15,000 stores outside N. America • Increase marketing scope • Replace coffee at work • Increase the number of times people drink coffee during the day • Increase the number of people drinking coffee

10. Questions