STARBUCKS

Ha ng Thanh Trc Phm Minh c on Nam Phc Dng Trn Trung Hiu Nguyn Hong K T

Vietnam Market size

Food & beverage market size is developing rapidly $13.3 billion in 2011 and growth rate is 4.2% for next 2 years Retail sector was $33.7 billion for 2011, annual growth is 18.9% Sales of beverage products are expected to increase between 6.3% 7.2% per year

Markets SWOT analysis

Strength
Developing economic
GDP of $106.4 billion for 2011 and it is increasing GDP per capita was $1150 in 2011 Demanding for both non-alcohol and alcohol beverage is high and increasing

Strength
High and young population 90 million people 65.5% is young population

Weakness
Vietnam economy is unstable Unemployment in Vietnam is rising rapidly
171,639 people to lose their jobs in the first four months of 2012

Price of raw material is high

Opportunities
Accession to the WTO > remove market barriers and trade restrictions set to increase competition. Vietnam's large domestic market, growing export opportunities and low labor costs offer further investment opportunities. Rising income levels and changing lifestyles, particularly in urban areas, are increasing consumer demand luxury food and drinks. A growing tourism sector with significant amount of foreign visitors > potential customers.

Threats
Vietnamese consumers taste. Competitors market share. Easily to be counterfeit in Vietnam.

Starbuckss Competitors Highland Coffee

Strength
o o o o First high class coffee in Vietnam (2002) High quality coffee bean (import from famous suppliers) Huge store system Store design

Weakness
o Long service time

Competitors Competitor

Trung Nguyen Coffee

Strength
o Biggest coffee company in Vietnam o High quality coffee bean (cycle of production) o Price lower than other competitors

Weakness
o Ability to control the massive franchise system in VN (branding style & store design)

Starbucks overview

International coffeehouse chain The largest coffeehouse company in the world 16,635 stores in 50 countries Change logo 4 times Product lie: Beverages Coffee, Tazo Tea, Soda, Juices Pastries Whole coffee beans Merchandise Mugs, CDs

Starbucks overview
20% revenue at foreign market Many of companys products are seasonal or specific to the locality of the store in various countries In 1987: Starbucks had led a coffee revolution in the United Sates Three largest overseas markets are Japan, England, China and Taiwan.

Market target
Adult Young adult 2% Kid and teen Other

9%

49% 40%

Financial Review

Financial Review

Starbuckss Marketing Mix

Marketing Mix
Products
Brewed coffees Espresso beverages Cold blended beverages Food items, teas, pastries other coffee-related items

Prices
A little bit higher than other competitors
40,000-100,000VND

Marketing Mix
Place
Broad range of store format High traffic, high visibility store location Wi-Fi availability

Marketing Mix
Promotion
Advertising
Internet, word-of-mouth

Public relation Sales promotion

Starbuckss Strategies

Customer Satisfaction
Understanding customers behavior Different countries, different culture needs different products Studying about customers needs Innovation Creating new products

Excellence Customer Service

Your drink should be perfect, every time. If not, let us know

and well make it right

Well trained employers and employees

Employers: 8-12 weeks Baristas: 56 hours Waiters: 25 hours

Never serves coffee that has been sitting for longer than 30 minutes Baristas have to regular customers names and their favorite drinks

Building Brand Name

Word-of-mouth High quality of products and services Premium pricing strategy Creating a perception of fashionable and stylish