Customer Relations Management Case Study

Customer Rela-ons Management of 3 Global Companies

(Opera-ng Income of $500 million+ within 5 years, 2008-‐2013)

Analy-cal. Fast. Social.

John Cao

2 Starbucks Marke-ng & Sales Strategy

3 Broadcom Corpora-on Marke-ng and Sales Strategy

4 Green Mountain Coffee Roasters, Inc. Marke-ng and Sales Strategy

5 Capabili-es

6 Customer Rela-ons Management PlaUorms

Content Page

1 Financial Performance (SBUX, BRCM, GMCR)

$0.50

$0.56

$1.42

$1.73

$2.00

$0.17

$0.06

$0.08

$0.95

$0.68

$0.04

$0.10

$0.14

$0.37

$0.57

2008

2009

2010

2011

2012

GMCR BRCM SBUX

Financial Performance

$1.50

$0.51 $0.53

SBUX BRCM GMCR

All 3 Companies exceeds a change of $500 mil. of opera9ng income within 5 years (from 2008-‐2012, in billions)

These global companies are CNN’s top 100 Fastest growing companies in 2012 (in billions)

Starbucks Corpora-on (NASDAQ: SBUX)

– Specialty eateries

Broadcom Corpora-on (NASDAQ: BRCM)

– Wireless communica-ons component manufacturing

Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) – Coffee & tea manufacturing

Source: CNN – Fortune’s Fastest Growing Companies, 2012

Sales Strategy

Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, opera-ng in 60 countries.

Segments *Americas includes the US, Canada, and La-n America **EMEA includes Europe, Middle East, and Africa ***CAP includes China and Asia Pacific Channel Development includes Global Consumer Product Group

Product

① High-‐quality purchased and handcraied coffees

② Tea and other beverages ③ Fresh food items

Uniqueness

v  High-‐quality v  Specialty coffees v  Customer experience

Distribu-on Channels

v  Company-‐operated stores v  Licensed stores v  Grocery v  Na-onal foodservice accounts

Source: Wall Street Journal Starbucks Coffee Index (2013)

36% 33% 31%

39% 33% 28%

50% 34% 28%

Company-‐operated stores Licensed stores CPG, foodservice and other

% of Revenue by Year 2012 2011 2010

Break-‐even Revenue = $13,299,500,000 (2012)

Target Revenue = $15,117,150,000 (13.7% increase)

Price of a grande lape

A A A

3 Discounts level from reward card:

Welcome Green Gold

$2.80 $4.89

$9.83

① PR

ODU

CT

② PLAC

E

③ PR

ICE

④ PR

OMOTION

OSLO (highest) Average

NEW DELHI

Countries

*Americas *EMEA, ***CAP, Channel Development

Age

Teens -‐ aged 13-‐17 Young Adults -‐ aged 18-‐24 Adults -‐ aged 25-‐40

Adver-sing (mul-ple channels)

Public Rela-ons Direct Marke-ng

Message: Providing value and living by their ethics

Offers customers many channels for feedbacks

Facebook v 34 million fans Twi]er v 3.6 million followers Pinterest v 81,000+ followers Google+ v 1 million+ in circle

Personal Selling Sales Promo-on

In-‐store employees are encouraged to sell products

Starbucks My Rewards Card

⑤ Ta

rget M

arket

2011 – 2012 % of Revenue increase

= 13.7% increase

Sales Strategy

Broadcom Corpora-on is a global leader and innovator in semiconductor solu-ons for wired and wireless communica-ons.

Product

① Communica-on products in home, office, and mobile

② System-‐on-‐a-‐chip (SoC) ③ Soiware solu-ons

Uniqueness

v  Innova-ve v  Seamless delivery v  Broadest porUolio of

products


v  Company-‐operated stores v  Licensed stores v  Grocery v  Na-onal foodservice accounts

27% 28% 31%

48% 47% 43%

23% 22% 23%

3% 3% 3%

Broadband Mobile & Wireless Infrastructure & Networking All Other




① PR

ODU

CT

② PLAC

E

③ PR

ICE

④ PR

OMOTION

Customer

5 largest customers represent 47.2% of sales in 2012

En--es

Leading wired and wireless communica-ons manufacturers

Adver-sing Public Rela-ons

A combina-on of print and online ads

v Key IT publica-ons and websites v Cole & Weber Red Cell Agency for

marke-ng services


Most selling is done through direct sales forces in designated distribu-on centers

Rebate program targeted for Broadcom client’s customers

⑤ Ta

rget M

arket


= 0.67% increase

Price

v  Suscep-ble to price erosion v  Compe--on and Moore’s Law resulted

in declining average selling prices

Rebate

Rebate to certain customers makes up $722 million or 9.1% of net revenue in 2012

Sales Strategy

Green Mountain Coffee Roasters, Inc. is a leader in the specialty coffee and coffeemaker businesses.

Product

① Coffee Machines ② High Quality Arabica coffees ③ Bean and ground coffee ④ Specialty beverages

Uniqueness

v  Quality v  Convenience v  Choice


①  Home ②  Office ③  Professional loca-ons ④  Restaurants ⑤  Hospitality and specialty

coffee shops

40% 36% 42%

44% 45%

52%

16% 19% 6%

SCBU KBU CBU




① PR

ODU

CT

② PLAC

E

③ PR

ICE

④ PR

OMOTION

Customer

Businesses and consumers

Consumer’s Age

Teens -‐ aged 13-‐17 Young Adults -‐ aged 18-‐24 Adults -‐ aged 25-‐40

Adver-sing Public Rela-ons

Separate selling agencies and different selling strategies per *channel

Mul-ple award recogni-ons each year (ex. Best workplace, best coffee, best company, etc.)


v Websites v Partnerships v Foodservice v Convenience

v Hospitality and business oriented e-‐commerce

v Weekly deals v Savings Club v Gii cards v Email offers

v Businesses – 3 day trail

⑤ Ta

rget M

arket


= 0.46% increase

Price

v 24 K-‐Cup box -‐ $14.49-‐$18.49 v Vue Pack Box (16) -‐ $9.99-‐$13.99 v Brewing systems-‐ $89.95-‐$249.95 v Whole bean & ground coffee -‐ $9.49

Rebate

v “Deal of the Week” – Buy 2 & get free shipping

v Café Express Savings Club – 15% off every order

*Channels SCBU – Specialty Coffee Business Unit KBU – Keurig Business Unit CBU – Canada Business Unit

Technology Plaborms (CRM)

Starbucks Broadcom

Green Mountain Coffee Roasters

Salesforce.com Products: v Sales Cloud v Service Cloud v Marke-ng Cloud v Salesforce PlaUorm v Salesforce Chaper v Salesforce Work.com

SAP Sales 360 Customer Solu-ons: v CRM In-‐Memory (SAP

HANA) v Quick-‐to-‐Deploy CRM

Powered by SAP HANA

v Customer On-‐Demand

v CRM Sales v CRM Marke-ng v CRM Service v Social Collabora-on v Mobile Safe Apps v Mobile Service Apps v Customer Analy-cs

Oracle Siebel Features: v Siebel Sales

Applica-ons v Quote & Order Capture v Siebel Enterprise

Marke-ng v Siebel Contact Center

and Service v Oracle Self-‐Service and

E-‐Billing v Siebel Partner

Rela-onship Management

v Siebel CRM Technology

SAP Marke-ng 360 Customer Solu-ons: v SAP 360 customer v E-‐Marke-ng v Loyalty Management v Social OnDemand v Social Media Analy-cs v SAP Jam v Real-‐Time Offer

Management v Digital Asset Management v Marke-ng for Small and

Medium Enterprises v  Integrated Business MOD v Rapid Deployment v Customer Segmenta-on v Business Suite and

Enhancement v Document Presentment

Technology Plaborms (CRM)

Starbucks Broadcom

Green Mountain Coffee Roasters

Support, Training, and Consul-ng Service: Support Service v 4 Levels of Support Plans Training Service v Training by roles (6) v Online and in person op-on v Cer-fica-on (4) Consul-ng Service v  In-‐house consul-ng service v Expert service -‐ partners v Program Architects

Support, Training, and Consul-ng Service: Support Service v Premier and advance support v Life-me support policy v Product documenta-on Training Service v Train by roles, product, format v Siebel Cer-fica-ons (4) Consul-ng Service v Consult a local Oracle partner

Support, Training, and Consul-ng Service: Support Service v Product Tour: Expert-‐guided v SAP Solu-on Management v SAP Advanced Secure Support Training Service v Live instruc-ons v eLearning v Virtual live classroom v eAcademy v Online Knowledge Products v Mobile training apps v Cer-fica-on (9) Consul-ng Service v Consult a local SAP partner

Technology Plaborm Capabili9es (CRM)

Cloud

Sales

Customer Service

Marke-ng

Mobile

Analy-cs

Manage Partnership

Mobile PlaUorm

Self-‐Service

Execu-on and Opera-on

People

Techno

logy M

anagem

ent

Manage Employees’

Work

Social

Ques-ons & Answer

Analy-cal. Fast. Social.

Email: [email protected] Phone: 267.337.1485

Customer Relations Management Case Study

Technology

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