Управление международными рекламными кампаниями

    Overall, the aim of becoming a worldwide global brand seems to be working in favor of the company and is helping it to attract the attention of many major companies who would like to share a partnership. This is all positive news for the company because it provides a strong basis for future development of international markets, which further strengthens the mission to become one of the leading specialty coffee retailers in the world. In addition to the fact that Starbucks has already successfully opened around 3,500 stores, the 'push' to achieve their goal is proved more than ever by the aim to open at least 650 stores just in Europe by the year 2003. It's these types of goals which prove the potential of this brand to become so popular and well known, that it would be as recognizable as major names such as McDonalds and Coca-Cola.

    Vision

    As stated on the website, the company's vision is to 'establish Starbucks as the most recognized and respected brand in the world.' 

    This is a fitting vision because it is a broad comprehensive picture of what the company wants Starbucks to become. We will examine the vision using four components. First the vision is built on a foundation of the organizations core values. Starbucks only uses the finest coffee beans when brewing its variety of blends and therefore wants to be looked at with the respect of a company that uses and provides the best. Secondly, the company desires a top of the mind recognition. Starbucks not only wants consumers to remember who it is, but think about Starbucks first, having a shining image. Third is a summary of what the organization does. Starbucks is lacking in this component because it fails to provide a statement announcing what exactly what business Starbucks is in. It assumes that as a recognized brand it does not need to specify what business the company is in. The mission statement in the next section provides a much better description of this component. Finally, the vision states broad goals of what the company could be. Starbucks wants to be the most recognized and most respected brand in the world. The most recognized and the most respected are the two broad areas of this statement. Ideally the two mean number one, or above all others, but there is no numeric goal, or timeline for this objective. 

    The overall company operations are based around purchasing and roasting high-quality whole bean coffees and selling them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, coffee-related accessories and equipment. This is achieved through the huge number of company operated retail stores, a specialty sales group, supermarkets, a direct response business and also on the World Wide Web at the Starbucks.com website. The attainment of this goal is boosted by the rapid expansion of new retail stores, in addition to the development of many new opportunities in terms of products and distribution channels. 

    Mission 

    The mission of Starbucks is to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. None of this success would have been possible without a set of goals that the company aimed to achieve and a set of principles, which governed the decision making process. 

    Starbucks has a clear set of guidelines which has to be followed and uses these as a direction tool for the future of the business. Traditionally, the guidelines would more appropriately be connected to the vision, however the company has set them with the mission statement. 

    The six principles of Starbucks are stated as: 

• 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.

    Application of these principles can be used as a guideline for all employees from managers to workers to aim to achieve the company's goals, while maintaining a certain type of standard. This mission statement along with the set of guidelines provides a focus for employees as they make strategic decisions. It not only supports the employees, but supports the customers as well, making a note that they should satisfied all of the time. The mission shows alignment with the vision by stating how the company plans to reach the broad goals set by the vision statement. Another supporting sentence in the mission statement is that the company apply the highest standards of excellence to the purchasing, roasting and fresh delivery of its coffee. This statement supports the idea that Starbucks uses the best available resources to give it a recognized and respected name. 

 

    2.1.2 Timeline 

 

    It will take the company timeline and strategic decisions portion in two main sections. The first is when Starbucks was a Private Company, from its inception in 1971, to it's initial public offering in 1992. Then it will discuss some of the major actions of the publicly held company from 1992 to present. Starbucks believes that there since the beginning, its strategy has been one of growth. It have demonstrated all dimensions of a growth strategy: Internationalization in expanding into new countries and the global market. It has shown concentration in being creative and relying on it's core competency of making high quality coffee and coffee equipment to develop new products and markets. Horizontal Integration has been evident in the many strategic acquisitions, partnerships, and joint ventures. Vertical Integration has been another key success factor as Starbucks Corporation has integrated backwards in opening coffee roasting plants, and forwards in controlling the distribution of it's many products. This growth has taken it from a single store in Pikes Place Market in Seattle, to a worldwide company with sales of over $2.1 Billion and operations in almost thirty countries, in just 21 short year. 

    Private Company 

    1971: Starbucks began when three friends-English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker—opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle (Thompson). The three original partners each invested about $6,350 in the store, and believed they build a client base in the Seattle area. This was a strategic decision because each they saw an opportunity in the fine coffee market, as they saw another similar store have success in the San Francisco Bay area. (Thompson) The store sold coffee beans, and high quality coffee making equipment. The owners prided themselves on their knowledge of coffee bean and of educating customers about the benefits of dark roasting coffee. (Thompson) 1972: after the success of the first store, a second Starbucks was opened in Seattle (Thompson).

 

 September 1982: Howard Schultz, current chairman of Starbucks, was hired to manage retail sales and marketing (Business & Company, 2002). After meeting with the owners early in 1982, Schultz was taken in by Starbucks commitment to quality and of educating customers of the benefits of slow roasting dark coffee beans. By this time Starbucks had expanded to operating five stores, and a small coffee bean toasting facility. (Business & Company, 2002) 

    1983: After visiting Milan, and seeing that the vast quantity of coffee and expresso bars, Schutlz realizes that Starbucks should be selling expresso, cappuccino, and fresh brewed coffee, as well as selling coffee beans and high quality coffee equipment (Thompson). He was met with resistance as the owners did not want Starbucks to sell beverages (Business & Company). 

    April 1984: Schultz finally convinced the owners to open a sixth "test" store in Seattle area. It was an Expresso Bar that was designed to sell coffee, expresso, and capuccinno, and the store had immediate success (Thompson). 

    April 1986: Schultz left Starbucks to fulfill his idea of building expresso bars around the Seattle area and opens II Giornale. (Thompson) In a year and half two more II Giornale expresso bars would be opened, all serving Starbucks coffee. March 1987: II Giornale, and Howard Schultz acquired Starbucks for $3.84 million. (Thompson) They acquired the Starbucks name, roasting plant, stores, etc. The new name of the company would be Starbucks Corporation, and Howard Schultz was the new CEO. Schultz has a strategic vision of Starbucks becoming a national company. His goal was to open 125 stores in the next five years. Schultz had already demonstrated his corporate vision and growth strategy with II Giornale, now he was horizontally integrating in the Seattle market by acquiring Starbucks. This would be the first major acquisition in Starbucks history. 

    Between 1987 through 1990 Starbucks entered new markets, and continued to grow. Schultz announced a five-year growth plan to build 125 new stores. (Thompson) At the end of 1987, there were 17 Starbucks locations, and by 1990 there were 84During this four year growth phase Starbucks entered the markets of Chicago, Vancouver, and Portland. In 1988 the company started a mail order catalog for it's fine dark roasted coffee beans and high quality coffee equipment (Business & Company, 2002). 

    1991: Schultz makes Starbucks, "the first privately held company to establish an employee stock option program that included part-timers." (Business & Company, 2002). Schultz had a business strategy to retain high quality employees by making Starbucks a great place to work. He referred to every employee as a "partner" in the company (Thompson). 

    1991 - Starbucks Company entered next big market, California. Management believed this would be a favorable market because of it's "trendy" nature (Thompson). 1992 - Starbucks had opened 150 new stores between the five-year period of 1987-1992, 25 more than the original plan (Thompson). This was a tribute to the high sales and success that Starbucks was having throughout it's markets. People were associating Starbucks with high quality coffee and it was becoming a very social atmospheres. 

    Public Company 

    June 1992 - Starbucks Company was very successful after its initial public offering on the NASDAQ exchange (Thompson). 1993 - during this year Starbucks opened in the Washington, D.C. market, opened its second roasting plant, and began it's long-term relationship with Barnes & Noble, Inc. to sell coffee products at its bookstores (Business & Company, 2002). 

    1994-1995 - these years represent more growth and partnerships, including an acquisition of The Coffee Connection, Inc. for $23 million (Business & Company, 2002). During these years Starbucks penetrated the approximately 15 more markets (cities) in the United States. It also formed a strategic alliance with PepsiCo, the North American Coffee Partnership, to manufacture and distribute coffee drinks. This strategic decision turned out very lucrative as Frappuccino®, an iced coffee drink, has had an incredible amount of success in grocery and convenience stores. Starbucks also opened two more major accounts; Sheraton Hotels, and United Airlines.

    1996 - Starbucks Coffee International, a subsidiary of Starbucks Corporation, formed a joint venture with SAZABY Inc., a Japanese corporation, to bring Starbucks into Japan in 1995 and in 1996 it opened it's first international location in Tokyo, Japan. This marked the beginning of its International growth, which would see locations in Singapore at the end of 1996; Taiwan, Thailand, New Zealand and Malaysia by 1998; China, Lebanon, and South Korea by 1999; and Spain, Puerto Rico, and San Juan by end of 2002 (Business Wire). By 2002, Starbucks had locations in almost thirty countries. Also in 1996 Starbucks formed an alliance with Dreyers Ice Cream to introduce coffee ice cream products, which, according to starbucks.com, became the "number one brand of coffee ice cream in the United States." By 1996 there were 1,015 Starbucks locations in 1998 - Starbuck acquired the Seattle Coffee Company, located in the United Kingdom and comprised of 56 locations, for over US$60 million (BBC News Online, 1998). This is the beginning of Starbuck's president's goal of opening 500 stores in Europe by 2003. (BBC News Online, 1998) 

    1999 - There were two major events during 1999. The first was the acquisition of Tazo®, a tea company. (Business & Company, 2002) The second was a long-term contract with Albertson's supermarkets (Albertson's,1999). In this deal more than 100 Starbucks Coffee bars would be opened in Albertson's grocery stores in the U.S. This was also a strategy by Starbucks to introduce Frappuccino®, Tazo® tea, and other merchandise to new markets across the Midwest, where Albertson's is centralized (Albertson's, 1999). 

    2000- During 2000, approximately 1,865 Starbucks locations were opened in the United States and abroad. In addition, Starbucks entered into a contract with Host Marriott International, as this continued their growth into the hotel industry. 

    2001- This year represented another year of substantial location growth, with over 1,400 new locations, bringing the total amount to 4,709. In addition Starbucks Japan, Ltd, ("Starbucks Japan") saw the opening of it's 300th Japanese location after winning immense popularity in Japan and financial success after it's Initial Public Offering on Nasdaq Japan September of 2001 (Business Wire). 

    2002- This year Starbucks continues to break through into new markets in new countries. In March of 2002 Starbucks celebrated it's first store opening in Spain, and announced plans to open hundreds of new stores internationally (Puget, 2002).

 

    2.1.3 Basic features

 

    Starbucks Size. 

    Starbucks is a global corporation with 4,709 total locations in the United States and worldwide. With operations in almost thirty countries, such as the United States, Australia, Germany, United Kingdom, and Qatar, to name a few, they reported revenues of over $2.64 Billion in 2001 (Starbucks Corporation). The company reported total assets of $1.851 billion in 2001. Starbucks continues to grow at a rapid pace, with plans to open over 600 locations in Europe alone by 2003. Starbucks has quickly become well established in the United States having locations in every major city. Starbucks employed over 59,000 people during 2001, with a employment growth rate of 24%. 

    Starbucks Scope 

    Starbucks Corporation competes in the global arena. As previously mentioned in this case study, it has operations in almost thirty countries, most prominently in the United States. Starbucks has used high quality coffee as it's core competency, and is currently in many different markets. These include ice cream, supermarket coffee beans, restaurants, coffee bars, coffee brewing equipment, coffee flavored drinks, tea's, and also books and compact discs. Starbucks sells its product through many avenues, including Starbucks Coffee locations, mail-order catalogs, and its website starbucks.com.

    Starbucks Financial Performance

    During the fiscal year ending September, 2001, reported revenues were $2.649 Billion. This was over $500 million higher than the previous year. Reported gross profit increased over $100million from 2000 to $581 million. Starbucks reported 2001 Operating Income of $252.5million, and Total Net Income $181.2 million, both figures increasing substantially from the previous year (Starbucks Corporation). 

    Starbucks Corporation has quite a few very strong financial ratios, which we will now look at. The P/E ratio (profit/earnings) in 2001 was 49.08, which is far superior to the Industry average of 27.58 (Ratio, 2002). Starbucks EPS, earnings per share, of 81.79 is over five times higher than the industry average of 12.67 (Ratio, 2002). The quick ratio, which relates total current liabilities to cash, marketable securities, and receivables of 1.48 is a strong figure. Starbucks Corporation's Current Ratio of 0.91 is stronger than the industry average of 0.56. As the Current Ratio is the company's current assets / current liabilities, this indicates that Starbucks Corporation has the ability to satisfy it's current liabilities with it's current assets, and with the ratio of 0.91 it is a signal of financial strength. Some other ratios found from Multex.com include a Return on Assets of 11.31, a Return on Investment of 14.52, and a Return on Equity of 14.86. Starbucks ROA, and ROI are both stronger the industry average, but the ROE is slightly weaker than the industry average of 17.80. Inventory Turnover ratio is 11.48, which indicates that Starbucks Corporations inventory is highly liquid, and its operating cycles are very healthy (Ratio, 2002). This ratio is one more strong measure that Starbucks is a corporation that has exhibited strong financial performance. 

    Starbucks Nonfinancial Performance 

    Starbucks Corporation was voted by Fortune Magazine as one of the Top 100 Best Companies to Work For in 2002, ranked number 58 to be exact. As of 12/1/2001 Starbucks Coffee has 51,914 employees in the United States, and 7,627 employees outside of the U.S. Starbucks Corporation created 12,650 new jobs in 2001 from a pool of over 720,000 applicants, with a 24% Job Growth Rate. 26% of it's workforce is made up of minorities (non-Caucasion), and 60% of it is made up of women. Starbucks Corporation chairman Howard Schultz believes that Starbucks should be a great place to work, and should treat every one of their employees as partners. Some examples of his good faith have been employee stock options plans, and health coverage that allow any employee, part-time or full-time, to benefit from. The plans have succeeded in having a low voluntary employee turnover rate in 2000 of 23%. 

    Product Usage Rate 

    Usage Rate: The usage rate varies according to each type of product. In terms of coffee, the average usage rate for coffee drinkers is around three cups per day. It should be mentioned that every person has their own personal amount of coffee needed each day and so, it is hard to base this fact as a general description but on average, regular coffee drinkers would consume about two-three cups a day. In terms of the other food & beverage products, it would be fair to base the usage rate on the number of coffees that are consumed during the day. Once again, it is important to state that each person has their own personal amounts but usually those that purchase a drink of coffee would probably purchase a biscuit or chocolate. Other products such as coffee related equipment would only be purchased once in a while or when they were needed. Music would be purchased on a personal basis depending on if the consumers like the music available.

    Performance / Need Analysis 

    Consumers, especially those who are working, have the need to go straight into the store and straight out as quickly as possible. This is a major objective because the quicker the service is, the more satisfied customers will be. This is proved by the take-away nature of Starbucks and its catering facilities for the working class. 

    In terms of actual coffee products, consumers are in need of having high quality coffee variations made up from high quality coffee beans. Consumers are appealed to by those companies who deal with the roasting and brewing of high quality coffees. Starbucks proves this point because it only purchases and roasts high quality whole coffee beans as well as adapting them into a number of different coffee variations. 

    Consumers in addition to high quality coffee want to be able to taste many types of coffee variations. It is vitally important that those more popular coffee products are available to consumers while other variations are introduced on an occasional basis. Within in this, it is necessary to make sure that the coffees are made of high quality beans and meet the requirements of consumers. These requirements include thick, uniform cream at the top of Espressos, strong flavor that is maintained and that the freshness of the beverage stays longer while undesirable flavors are minimized. Basically, the less these requirements are met, the less appealing coffee will be to consumers. Starbucks meets these requirements through providing many variations of coffee in order to satisfy as many people as possible. Examples include the walnut flavor of Colombia Narino Supremo, the creamy sweet Cafй Verona and the smooth, buttery Sulawesi. The fact that Starbucks is mainly associated with coffee, some consumers who don't drink coffee will be less attracted by the store. Many consumers who don't drink coffee usually drink something similar like tea. With Starbucks, the acquirement of the Portland (USA) based Tazo® Tea Company has allowed the product offerings to be expanded even further. Tazo® Tea provides a number of premium teas as well as herbal teas, in addition to tea accessories and gift packs. This was a useful acquisition by Starbucks because it allowed them to better meet the requirements of even more consumers and therefore, expanded the attractiveness of the store on a whole new level. 

    Through the selling of coffee-related products such as brewing equipment and accessories, many consumers can enjoy high quality coffee at home rather than traveling out of their way. The equipment available includes Expresso machines, stainless steel coffee filters, and Starbucks cleaner and canisters. This is another example of how Starbucks is meeting the needs of current customers as well as increasing its attractiveness to potential customers. In addition to meeting those beverage needs of consumers, sometimes there is the need to have an assortment of small foods that are quick to consume and easy to carry. This is sometimes the case when people are looking for a quick snack to have along with their drink. Starbucks has met this requirement through providing a number of chocolate variations like gift boxes and chocolate bars while also offering sweets such as after-coffee mints and lollipops. The benefits of this are further increased by the fact that sometimes these chocolates can complement a coffee and therefore, when one is bought, the other one also has a greater chance of being purchased.