STARBUCKS: Increase STARBUCKS: Increase Shareholder ValueShareholder Value

Transforming the Transforming the Starbucks ExperienceStarbucks Experience

BY: Jessica SettleBY: Jessica Settle

The CompanyThe Company

Starbucks purchases and roasts high-quality whole bean Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily and coffee-related accessories and equipment -- primarily through its company-operated retail stores. through its company-operated retail stores.

The Company's objective is to establish The Company's objective is to establish Starbucks as the most recognized and respected Starbucks as the most recognized and respected

brand in the world.brand in the world. continue to rapidly expand continue to rapidly expand

its retail operations its retail operations grow its specialty sales and grow its specialty sales and

other operations other operations selectively pursue selectively pursue

opportunities to leverage the opportunities to leverage the Starbucks brand through the Starbucks brand through the introduction of new introduction of new products and the products and the development of new development of new distribution channels distribution channels

Is Starbucks losing steam? Investors Is Starbucks losing steam? Investors are worried… are worried…

Starbucks Announces Strategic Starbucks Announces Strategic Initiatives to Increase Shareholder Initiatives to Increase Shareholder Value; Chairman Howard Schultz Value; Chairman Howard Schultz

Returns as CEO Returns as CEO

UNCLE HOWIE

The Campaign: Transforming The Campaign: Transforming Starbucks for the FutureStarbucks for the Future

Introducing new products, revitalizing old Introducing new products, revitalizing old onesones

Campaign GOALCampaign GOAL To increase shareholder value by refocusing the To increase shareholder value by refocusing the

Company on providing customers with the distinctive Company on providing customers with the distinctive Starbucks ExperienceStarbucks Experience

ObjectivesObjectives To improve the current state of the U.S. To improve the current state of the U.S.

businessbusiness To re-ignite the Starbucks experience through To re-ignite the Starbucks experience through

driving improvement and change in all areas driving improvement and change in all areas that “touch the customer”that “touch the customer”

To build for the long termTo build for the long term

a) to realign our organization and streamline the management of a) to realign our organization and streamline the management of the the organization to support customer focused initiativesorganization to support customer focused initiatives

b) to accelerate our International success story and growth even b) to accelerate our International success story and growth even furtherfurther

Revitalizing old products by Revitalizing old products by introducing new onesintroducing new ones

Revitalizing old brandsRevitalizing old brands Introducing new Introducing new

products when there is products when there is no advertising newsno advertising news

Making packaging news Making packaging news when there is no when there is no product newsproduct news

Create marketplace Create marketplace excitementexcitement

Bringing a brand to lifeBringing a brand to life

Strategies & TacticsStrategies & Tactics

Media campaignMedia campaign Face-to-Face Face-to-Face

interactions with interactions with consumersconsumers

AD/Internet campaignAD/Internet campaign

=MPR campaign=MPR campaign

TACTICSTACTICS

New products and store design elementsNew products and store design elements New training tools for partners (employees)New training tools for partners (employees) Slowing Company’s pace of US storesSlowing Company’s pace of US stores Renew focus on store-level unitRenew focus on store-level unit Re-igniting emotional attachment (Our Re-igniting emotional attachment (Our

Promise)Promise) Billboards and Radio advertisementsBillboards and Radio advertisements Blogging for customers & partnersBlogging for customers & partners

MPR TacticsMPR Tactics Created leadership teamCreated leadership team New training toolsNew training tools Slowing the Company’s pace of store growthSlowing the Company’s pace of store growth Renovating customer relationshipsRenovating customer relationships

Lessons LearnedLessons Learned Involve the customer with the productInvolve the customer with the product Think BIG, think GloballyThink BIG, think Globally Always keep the message simpleAlways keep the message simple Keep product top of mindKeep product top of mind Make it an on-going storyMake it an on-going story Generate word-of-mouthGenerate word-of-mouth Add a cause related element to campaignAdd a cause related element to campaign Create an incentive program and offer product as Create an incentive program and offer product as

rewardsrewards Giving your customers a ‘test-drive’ is always Giving your customers a ‘test-drive’ is always

worthwhile worthwhile

EvaluationEvaluation

VERY INNOVATIVE, CONSISTENT AND WILL BE VERY SUCCESSFUL!