Starbucks

"We aren't in the coffee business, serving people.

STARBUCKS

Background

• Market Entry Options
• Past Expansion
• Primary and Secondary Data Collection

Exporting

• low risk
• no investment
• least expensive
• company culture
• multiple countries

Licensing

• low risk
• low investment
• brand image & misrepresentation
• training costs
• less control

Joint Venture

• high financial investment
• more brand control
• risk of trade secrets divuged

Equity/Owning

• high risk
• high cost
• extensive market research
• higher control over brand image

Positioning & Marketing

• Education on coffee culture
• Meeting place vs. to go
• Selling brand, not coffee

Customers

• My Starbucks Idea
• All ages
• Integration into neighborhood
• Rich person's coffee

Innovation

• VIA
• Clover brewed
• Frappuccino

Primary Perpectives

Italy

• Most likely would not be successful
• Market saturated with corner coffee shops
• Italian preferences for coffee
• Preconceptions about American coffee
• Recommend not enter Italian market

VIA and Value Breakfast

• China example
• More choices
• Does not dilute brand
• Innovative
• Recommend to continue developing

McDonald's

• Brand image
• Copy cat products
• Different cusotmer base
• Recommend not a threat

Questions?