PPT Module

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Analysis of

Development and Success Strategy

Lecturer: Professor

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StarbucksA global coffeehouse chain based in Seattlethe largest coffeehouse company in the worldThe first Cafe opened in Seattle on Mar.30, 197

In the mid-1990s,opened first Café abroad

Is It Something

Main products in china

drip brewed coffee espresso-based hot drinks coffee beans, salads hot and cold sandwiches and

panini sweet pastries Snacks Traditional green tea drinks Chinese traditional snacks

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12 Years’ Development In China

In 1999, First Café in China Mainland

In 2012, will open 300 new stores in China

By 2015, Total store numbers in 70 Chinese cities will increase to 1,500.

China will become its abroad largest outside the United States

In the future, plan to open more than 10,000 coffee stores in China

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Developing stages and Mode Change

1999-2003

Trial operation

Concentrate on several largest

cities

Indirect control

Sole proprietorshipJoint VentureFranchise

2003-2006

Sharply Increase share stake in joint ventures

Expand to medium size cities

Build up long term expansion plan

After 2006

Purchase back franchise right,

purchase all share stake of joint

venture

Realize direct control

Huge market potential and excellent store profit stimulate quick expansion

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1999-2003Indirect operation through three franchised companies

In 1999, the first Starbucks cafe opened in china capital city Beijing by franchise. (In North china)

In 2000, enter into Shanghai market by franchising a new joint venture(5% shares ownership)

In 2002, open southern China market by franchising a joint venture(5% shares ownership )

Developed rather rapidly, huge profit margin (Hong Kong Store realize profit in the first month)

Reasons to chose franchise:

1. small investment as a trial operation, don’t want to take too much risk in a strange market environment

2. know little about this oriental country’s coffee market potential which has a long history of drinking tea and a prevailing traditional tea culture

3. considering local government policy risk , confined by local policy restrictions about foreign investment, obscure political perspective

4. take advantage of the fund and management support of local cooperators.

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2003-2006Increase investment, strengthen control by joint ventures

Increase share stakes in 3 joint ventures’ to 50-51%

sharply increase investment in China market

build up long term expansion plan

seek maximize long term profit and market potential

local government deepened opening-up economic policy, foreign company gained more freedom in investing and operating

Huge market potential and excellent profit of local outlets push Starbucks to consider long term development and expansion in china market. The company decided to directly control the market.

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Since 2006, purchase back all share stakes in joint venturesdirectly control all operation in China market

After 2006, begin to expand rapidly into medium and small sized cities

Localize all food supply chain and build up local coffee plant

Localize menu, adjust to appeal local consumer’s taste, try to combine different cuisine culture to create new drinks and snacks

Localize management team which fully understand the culture and market

Q2 China/Asia Pacific VS Total company’s earnings data

(In millions $)

Apr.1,2012 Apr.1,2011 Change

Revenues $174.6 / $ 3195.9 $131.8/ $2785.7 32% / 15%

Operating income

$69.5 / $430.4 $43.7/ $376.1 59% / 14%

Operating margin

39.8% / 13.5% 33.2% / 13.5% 660 bps / 0

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Q3 China/Asia Pacific VS Total company’s earnings data

(In millions $)

Jul.1,2012 Jul.1,2011 Change

Revenues $181.8 / $ 3303.6 $138.6/ $2932.2 31% / 13%

Operating income

$61.4 / $430.4 $44.9/ $376.1 59% / 22%

Operating margin

33.8% / 14.9% 32.4% / 13.7% 140 bps/ 120bps

In Q2, China segment recorded 7th consecutive quarter of over 20% sales growth

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Successful Brand Strategy

Succeeded in building up high profile brand image Succeeded in building up high profile brand image …

brand strategy

pricing strategy

no advertising strategy

localizing strategy

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Success strategy analysis

Successful Brand strategy

。

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使用规范说明

图表应用

强调

背景文本和线条阴影标题文本填充强调超链接已访超链接

标准配色

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目录页面

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加拿大

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