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1
SCM PRESENTATION
Presented by:
1. Lai Si Qi (Leader)
2. Delcine Ng
3. Nageswary
4. Melvin Teo
5. Yang Ming
- Starbucks Delivering Customer Services
2
Starbucks Corporation (Starbucks or 'the company') is a premier roaster, marketer and retailer
of
specialty coffee. The company operates in 68 countries across North America, Asia Pacific, the
Europe,
Middle East and Africa (EMEA), and Latin America. The company recorded revenues of
$19,162.7 million in the financial year ended September 2015.
STARBUCKS COFFEE ©
3
Branding Strategies
HEAD QUARTER: SEATTLE,
WASHINGTON, USA
REVENUE: $19,162.7 MILLION (FY2015)
EMPLOYEE: 238,000 (FY2015)
KEY FACTS
INTERNATIONAL RECOGNIZED
Highest quality coffee in the world, sourcing from
Africa, Central, south America and Asia pacific
region.
BEST ATMOSPHERE
Customers come for the coffee as well the
ambience - designed to provide an upscale yet
inviting environment.
OFFERING BEST SERVICES
POSSIBLE
Partners undergo two types of training. First
type is “hard skills” and second type is “soft
skills”. And “say yes policy” even beyond
company’s rules.STANDARD OF COFFEE
Starbucks work directly with growers in various
countries, oversee roasting process and
controlling distribution to retail stores around the
world.
4
SWOT Analysis
S
W
T
O
Strengths
Weaknesses
Opportunities
Threats
1) Building strong customer connect through value-added services
2) Leveraging technology to build a robust distribution channel
strategy
3) Strong financial position
1) Product recalls
2) Involvement in legal proceedings
1) Positive outlook for health and wellness foods in the US
2) Growing presence in key Asian markets
3) The growing coffee marketplace
1) Intense competition
2) Compliance costs associated with government regulations
3) Increase in raw materials costs
5
Delivery on Services
SOFT SKILLS
• Teaches them how to
connect with customers.
• Eye contact, smile and try to
remember names and
orders.
• Create conversation with
customer.
HARD SKILLS
• Learn to use cash register.
• Learn to mix drinks.
• Most starbucks drink are
handcrafted to ensure
product quality associated
with each drinks.
6
Measuring Service Performance
SERVICE
Did the register partner verbally
greet the customer? Did the
barista and
register partner make eye
contact with the customer? Say
thank you
CLEANINESS
Was the store, counters,
tables, restrooms clean?
PRODUCT
QUALITY
Was the order filled
accurately? Was the
temperature of the drink
within range? Was the
beverage properly presented?
SPEED OF SERVICE
How long did the customer have to
wait. Starbucks’s goal is to serve
within 3 minutes, from back-of-the-
line, to
drink-in-hand
Starbucks Awesome Customer Services
Starbucks offers free, instant and unlimited Wi-Fi connectivity at all its company-owned stores across the
world. The customers, who come for a drink or a snack, are
encouraged to spend more time inside the store through free access to internet.
7
• Caribou Coffee more than 200
stores in nine states.
• Peet’s Coffee and tea operated
about 70 stores in five states.
Small-scale specialty coffee
chains
• Offered wide range of food and
beverages and entertainments.
Independent specialty coffee
shops
• Dunkin Donuts operated over
3700 stores in 38 states.
• They offer wide range of coffee
beverages.
Donut and bagel chains
Competition
8
Caffeinating the World
Objective
To establish Starbucks as the “most
recognized and respected brand in the
world.
RETAIL EXPANSION
Starbucks’ goal is to have
operate 15,000 international
stores. And improving financial
performances help in expansion
activities.
PRODUCT
INNOVATION
Starbucks has been registering
increasing instance of product
recalls. New product
development process on a 12-18
month cycle.
SERVICE
INNOVATION
Starbucks launched SVC in
November 2001. Through this
services, the Starbucks members
can make fast, seamless and
convenient purchases.
9
Market Research (Marketing Department)
03
01
02
Market research group (gather and
analyse market data)
Category group (develop new
products and managed menu and
margins)
Marketing group (develop quarterly
promotional plans)
10
1. Everywhere – the trend
2. Good quality of coffee on the run
3. Place to meet and move on
4. Convenience oriented
5. Accessible and consistent
Starbucks Coffee Chains
1. Social and inclusive
2. Diverse and intellectual
3. Artsy and funky
4. Liberal and free-spirited
5. Lingering encouraged
6. Particularly appealing to younger customers
7. Somewhat intimidating to older, more
mainstream coffeehouse customers
Other Coffee Chains
Branding Meaning
11
Customer Behavior
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of Total Starbucks
Customer Base
% of All Starbucks
Transactions
42%
11%
37%
27%
21%
62%
Customer Visit Frequency
Customer visits 8+ times/ month
Customer visits 3-7 times/ month
Customer visits 1-2 times/ month
With respect to customer behavior, the
market research team discovered that,
regardless of the market
12
Rediscovering Starbucks Customer
$21 Billion $21.5 Billion $22 Billion
2000 2002 2005
Starbucks Share of
Specialty Coffee Market
38%
Starbucks Share of
Specialty Coffee Market
42% (Estimated)
Starbucks Share of
Specialty Coffee Market
50% (Estimated)
Traditional
Coffee 73%
Specialty
Coffee…
Traditional
Coffee 69%
Specialty
Coffee…
Traditional
Coffee 59%
Specialty
Coffee…
13
END OF PRESENTATION
Presented by:
1. Lai Si Qi (Leader)
2. Delcine Ng
3. Nageswary
4. Melvin Teo
5. Yang Ming
- Starbucks Delivering Customer Services

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Supply Chain Management - Starbucks

  • 1. 1 SCM PRESENTATION Presented by: 1. Lai Si Qi (Leader) 2. Delcine Ng 3. Nageswary 4. Melvin Teo 5. Yang Ming - Starbucks Delivering Customer Services
  • 2. 2 Starbucks Corporation (Starbucks or 'the company') is a premier roaster, marketer and retailer of specialty coffee. The company operates in 68 countries across North America, Asia Pacific, the Europe, Middle East and Africa (EMEA), and Latin America. The company recorded revenues of $19,162.7 million in the financial year ended September 2015. STARBUCKS COFFEE ©
  • 3. 3 Branding Strategies HEAD QUARTER: SEATTLE, WASHINGTON, USA REVENUE: $19,162.7 MILLION (FY2015) EMPLOYEE: 238,000 (FY2015) KEY FACTS INTERNATIONAL RECOGNIZED Highest quality coffee in the world, sourcing from Africa, Central, south America and Asia pacific region. BEST ATMOSPHERE Customers come for the coffee as well the ambience - designed to provide an upscale yet inviting environment. OFFERING BEST SERVICES POSSIBLE Partners undergo two types of training. First type is “hard skills” and second type is “soft skills”. And “say yes policy” even beyond company’s rules.STANDARD OF COFFEE Starbucks work directly with growers in various countries, oversee roasting process and controlling distribution to retail stores around the world.
  • 4. 4 SWOT Analysis S W T O Strengths Weaknesses Opportunities Threats 1) Building strong customer connect through value-added services 2) Leveraging technology to build a robust distribution channel strategy 3) Strong financial position 1) Product recalls 2) Involvement in legal proceedings 1) Positive outlook for health and wellness foods in the US 2) Growing presence in key Asian markets 3) The growing coffee marketplace 1) Intense competition 2) Compliance costs associated with government regulations 3) Increase in raw materials costs
  • 5. 5 Delivery on Services SOFT SKILLS • Teaches them how to connect with customers. • Eye contact, smile and try to remember names and orders. • Create conversation with customer. HARD SKILLS • Learn to use cash register. • Learn to mix drinks. • Most starbucks drink are handcrafted to ensure product quality associated with each drinks.
  • 6. 6 Measuring Service Performance SERVICE Did the register partner verbally greet the customer? Did the barista and register partner make eye contact with the customer? Say thank you CLEANINESS Was the store, counters, tables, restrooms clean? PRODUCT QUALITY Was the order filled accurately? Was the temperature of the drink within range? Was the beverage properly presented? SPEED OF SERVICE How long did the customer have to wait. Starbucks’s goal is to serve within 3 minutes, from back-of-the- line, to drink-in-hand Starbucks Awesome Customer Services Starbucks offers free, instant and unlimited Wi-Fi connectivity at all its company-owned stores across the world. The customers, who come for a drink or a snack, are encouraged to spend more time inside the store through free access to internet.
  • 7. 7 • Caribou Coffee more than 200 stores in nine states. • Peet’s Coffee and tea operated about 70 stores in five states. Small-scale specialty coffee chains • Offered wide range of food and beverages and entertainments. Independent specialty coffee shops • Dunkin Donuts operated over 3700 stores in 38 states. • They offer wide range of coffee beverages. Donut and bagel chains Competition
  • 8. 8 Caffeinating the World Objective To establish Starbucks as the “most recognized and respected brand in the world. RETAIL EXPANSION Starbucks’ goal is to have operate 15,000 international stores. And improving financial performances help in expansion activities. PRODUCT INNOVATION Starbucks has been registering increasing instance of product recalls. New product development process on a 12-18 month cycle. SERVICE INNOVATION Starbucks launched SVC in November 2001. Through this services, the Starbucks members can make fast, seamless and convenient purchases.
  • 9. 9 Market Research (Marketing Department) 03 01 02 Market research group (gather and analyse market data) Category group (develop new products and managed menu and margins) Marketing group (develop quarterly promotional plans)
  • 10. 10 1. Everywhere – the trend 2. Good quality of coffee on the run 3. Place to meet and move on 4. Convenience oriented 5. Accessible and consistent Starbucks Coffee Chains 1. Social and inclusive 2. Diverse and intellectual 3. Artsy and funky 4. Liberal and free-spirited 5. Lingering encouraged 6. Particularly appealing to younger customers 7. Somewhat intimidating to older, more mainstream coffeehouse customers Other Coffee Chains Branding Meaning
  • 11. 11 Customer Behavior 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Total Starbucks Customer Base % of All Starbucks Transactions 42% 11% 37% 27% 21% 62% Customer Visit Frequency Customer visits 8+ times/ month Customer visits 3-7 times/ month Customer visits 1-2 times/ month With respect to customer behavior, the market research team discovered that, regardless of the market
  • 12. 12 Rediscovering Starbucks Customer $21 Billion $21.5 Billion $22 Billion 2000 2002 2005 Starbucks Share of Specialty Coffee Market 38% Starbucks Share of Specialty Coffee Market 42% (Estimated) Starbucks Share of Specialty Coffee Market 50% (Estimated) Traditional Coffee 73% Specialty Coffee… Traditional Coffee 69% Specialty Coffee… Traditional Coffee 59% Specialty Coffee…
  • 13. 13 END OF PRESENTATION Presented by: 1. Lai Si Qi (Leader) 2. Delcine Ng 3. Nageswary 4. Melvin Teo 5. Yang Ming - Starbucks Delivering Customer Services