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StarbucksDeborah | Claudia | Jaime | JoanneMarianne | Weiguang

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Industry Overview

(Singapore)Retail sales by cafs -$1069 million in

2009Number of cafsincreased by 3% in

2009Market Leaders -Starbucks Coffee andCoffee Bean & Tea Leaf

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Brief OverviewWorlds leading coffeeretailer

64 outlets in Singapore

Beverages make up77% of revenue

Target segment -affluent, well-educatedyoung professionalsbetween the ages

25-44

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SWOT AnalysisS t r e n g t h s

Strong Brand Equit yProduct Innovation & Variety

Intimate ServiceStore Ambience

High Quality CoffeeConvenience

W e a k n e s s e sIneff icient Staff ing Plan

Limited Lounging SeatsCannibalization

O p p o r t u n i t i e sPricing Promotions

Increasing Appreciation for Coffee

T h r e a t sDilution to Brand ImageIncreased Compet ition

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Marketing Problem

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The Big Question.

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Our Aim

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Gen Y Patrons

Impression of Starbucks

ConvenientChill

ComfortableCosy

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Current Efforts

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Why do students

study at Starbucks?Data & Findings

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Research Methodology

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Demographics

82%

15%

Age of Students

< 1314-1617-1920-25> 25

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Demographics

47%

29%

5%

19%

How Long They Have Studied in Starbucks

< 6 months6 months-1 year1-2 years> 2 years

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Findings

Drink

Eat

Study

Relaxation

Socialize with friends

Take away

Others 3%

30%

62%

34%

62%

27%

89%

What do you do in Starbucks?

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Demographics

6%

69%

25%

Most of the time, I usual ly go to Starbucks (with)...

Alone2-4 people> 4 people

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Analysis & Interpretation

of Findings

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Findings

38%

62%

Do you study during peak hours?

Yes No

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Findings

The crowds do not distract me.

I do not fee l there is pressure to leave.

I am a paying customer!

Others 5

31

21

18

If yes, why do you continue studying during peak hours?

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Analysis & Interpretation

of Findings

Approach-avoidance conf lict

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Starbucks Habits

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Gen Y Patrons

Impression of Starbucks

ConvenientChill

ComfortableCosy

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Students Impression of

StarbucksComfortable

Convenient

Young Crowd

Friendly StaffConducive

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Reasons for Studying

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What Students Want

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Comfort

8.5 average

Most comfortable to study

Most comfortable

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Comfort

Seats studentswant

Will you study if

these seats areused throughout?

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Should Starbucks

Welcome Studying?

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Gen Y patrons say: No!67% strongly against

Makes Starbucks look cheap

Fast food restaurantsStarbucks becomessynonymous with studying

Assume that all outlets arepacked with students

54% end up leaving/order to-go

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Other Thoughts

Seat-hoggers areinconsiderate

Spoil the image

Disturb ambience

Starbucks is not a placefor studying

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Recommendations2-Pronged Approach

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Refreshing ExistingAssociations

Upscale

For Lounging

For Relaxation

White Collar Workers

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Weaken Link betweenStarbucks & Studying

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Strategies

Environmental Factors

PackagingMarketing Communications

Distribution

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Scenario One

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Scenario Two

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Comparison

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SchemaDisplay purposes

Starbucks menu

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Environmental

Magazines

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Environment: Table

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Before After

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EnvironmentalFurniture

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EnvironmentalPowerpoints

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Sensory Adaptationreduced sensiti vity to st imulation that results from

repeated presentations of that stimulation

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Environmental

Music

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Environmental

Aromas

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Change? Yes we can!

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Packaging

B i B k

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Bring Back

Personalization

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Vintage SleevesMugs with Est 1971

Vintage Posters

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MarketingCommunications

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MarComms Efforts

Back to BeansCampaign

Revisecommunicators

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Distribution

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Distribution

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Conclusion

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Q&A.