кейси для індивідуальної роботи 2014 н.р. / STARBUCKS CORP IN CONSUMER FOODSERVICE

SCOPE OF THE REPORT

Scope

All values expressed in this report are in US dollar terms, using a fixed exchange rate (2010).

2010 figures are based on part-year estimates.

All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account.

Consumer Foodservice

Specialist Coffee Shops

Disclaimer

Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors.

Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised.

Starbucks has firmly returned to positive growth, with a strong performance in 2010 that continued through 2011, driven by a return to its focus on the customer experience and increased efforts to improve customer loyalty. The company now has ambitious growth plans, aiming to establish itself as a global consumer goods brand that covers consumer foodservice as well as grocery channels, with the ultimate aim to reach consumers “wherever and whenever they want great coffee”.

KEY FINDINGS

Key company facts

Starbucks leads the global specialist coffee shops category, with a value share of 44% in 2010, significantly ahead of second-ranking McCafé (3%) and Costa Coffee (3%).

Starbucks’ largest presence is in the US, with nearly 70% of its total outlets in the country in 2010. However, the company has also established a strong and growing international presence. Starbucks leads specialist coffee shop sales in 20 out of 52 countries researched by Euromonitor International.

Starbucks is keen to establish itself as a global consumer goods brand, moving beyond consumer foodservice to grow its presence across the grocery channel, with a particular focus on instant coffee and coffee pods. The company’s ultimate aim is to reach consumers “wherever and whenever they want great coffee”.

Starbuck bounced back from a poor performance in 2009, recording an impressive 10% increase in revenues. Comparable store sales increased by 7% in 2010 following a 6% decline in the previous year. The strong performance was aided by a renewed focus on the customer experience and efforts to increase customer loyalty.

Top-line growth in combination with operating efficiencies had a positive impact on margins, which reached 13.3% in 2010, compared to 5.7% in the previous year.

KEY FINDINGS

SWOT

STRENGTHS

First-mover advantage

 The company has been the first chained specialist coffee shop operator in many markets and continues to benefit from its firstmover advantage.

OPPORTUNITIES

China

 China presents a major opportunity for Starbucks as a coffeedrinking culture is still undeveloped. Indeed, Starbucks expects China to become its second “home market” in future.

Strong digital presence

 Starbucks has embraced social and digital media where it has established a strong presence, which enables it to connect with its key young customer base and strengthen brand loyalty.

Moving beyond CFS

 Beyond CFS, a major opportunity for Starbucks is to expand its presence in the grocery channel, which in turn could help strengthen loyalty to the Starbucks brand overall.

Renewed focus on the customer experience

 Starbucks was built on providing an experience for customers and the recession has encouraged the company to re-evaluate this again. Improving the customer experience became a core focus once again with special attention being paid to service, beverage quality and the store appearance. Starbucks has redefined its place as a coffee specialist, with an improved focus on bringing highquality coffee to market.

International expansion

International expansion is a top objective for Starbucks. Starbucks is particularly focusing on China where it hopes to benefit from the large youth population and rising disposable incomes. Starbucks aims to triple the number of stores in China by 2015.

Starbucks also aims to accelerate growth in other key emerging markets (Brazil, India, Russia), certain European markets (France, Germany) as well as in established markets (Canada, Japan).

Social and digital media - the “fourth place”

The “third place positioning”, a place between home and work/school, has always been a key part of Starbucks’ strategy, and the company is now extending this to a “fourth place”, ie digital and social media.

Starbucks has embraced social media where it has established a strong presence, allowing it to strengthen emotional ties with its key young customer base, and thus strengthen brand loyalty.

Looking for growth beyond stores

 Beyond CFS, packaged goods have also become an integral part of the company’s growth strategy.

Starbucks aims to become a global consumer goods brand, significantly widening its reach within the grocery channel with a particular focus on instant coffee (Starbucks VIA) and coffee pods (Starbucks K-Cups). Starbucks is also extending itself internationally through its packaged goods business.

KEY FINDINGS

Operating structure

At global level, over half of Starbucks outlets are company-owned, allowing Starbucks to maintain its operational control but also leaving it more vulnerable to same-store sales declines.

For international markets, licensed stores are expected to continue to make up the majority in an effort to take advantage of strong local operating partnerships, although the company at times also takes back full ownership of operations, in particular in markets that are of great strategic importance.

In China, Starbucks intends to acquire full ownership of its stores from joint venture partner Maxim’s

Caterers, which will allow the company to absorb more of the profits generated in this key market; part of its strategy to turn China into its second “home market”.

Starbucks furthermore acquired 100% ownership of its French and Brazilian operations in fiscal 2010 and of its Swiss and Austrian operations in 2011.

Over 2008-2010, licensed stores drove overall outlet growth, in particular in international markets. Domestically, Starbucks radically reduced the number of company-operated stores in order to turn around a poorly performing US business that was hit by the economic downturn.

Starbucks Outlet Breakdown 2010

US company-operated

US licensed

International company-operated

International licensed

Starbucks Company-Owned vs

Licensed Outlets 2008-2010

3,000

2,000

1,000

0

KEY FINDINGS

Moving beyond CFS

Consumer packaged goods are becoming an integral part of the company’s growth strategy as it moves beyond coffee shops to become a global consumer brand.

In order to have more influence over its consumer goods business, Starbucks terminated its partnership with Kraft (which had been responsible for the distribution of Starbucks products to the grocery channel) in 2011 to take own responsibility for the distribution of its products.

The company is particularly keen to make its mark in the single-serve coffee segment. Following the successful launch of its instant coffee brand VIA in 2009, Starbucks entered the coffee pod segment with Starbucks Coffee K- Cups (for Keurig coffee machines) that were introduced to the grocery channel in November 2011.

Starbucks is present in the retail channel in 10 markets but this is likely to increase over the years to come, with consumer goods set to play a more important role also in the company’s international growth strategy. Indeed, in some markets, entry into the grocery channel may be ahead of the company’s entry into consumer foodservice.

For example, the company introduced its Starbucks Discoveries RTD beverages into the grocery channel in Norway and Finland in 2011 before setting up coffee shops in these countries.

Starbucks Revenue Mix 2010

US retail

International retail

Consumer packaged goods

Other

New Starbucks CPG Products 2010-2011