TECHNOLOGY COLLEGE SARAWAK

1.0 INTRODUCTION

1.1 Starbuck is a coffee Shop and a largest coffee shop in the worlds based in Seattle, Washington, USA. Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. Starbucks is the leading specialty coffee retailer in the nation, with over 5,000 locations in 22 international markets. The Starbucks ensuring the extraordinary potential of coffee is discovered , revealed and delivered- helping to bring great pleasure to millions of people each day.

1.2Old Town White Coffee, founded in 1999, made history when the company became the first, the pioneer white coffee producer to manufacture and launch the famous Malaysia Ipoh White coffee as a 3in1 instant Blend. Old town White Coffee 3in1 classic together with the original recipe from 1958 spearheaded a breakthrough in the coffee industry. The company single-handedly captured the original authentic taste of an otherwise localized white coffee, turning in into a mobile commodity a fast moving consumer good (FMCG), capturing the South East Asia market.

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2.0 STARBUCK
2.1 LOGO, VISION & MISSION

Starbucks logo designed by Terry Heckler of Heckler Associates .New Starbucks logo will be displayed on the product starting in March, predominantly green logo of Starbucks and showed pictures of women, a symbol of the seducer in ancient mythology that made the sailors were killed. Starbuck's new logo is removing the words "Starbucks Coffee" is circular.

VISION
The companys vision is to establish Starbucks as the most recognized and respected brand in the world.

MISSION
The mission of Starbucks is to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow Starbucks is committed to a role of environmental leadership in all facets of our business.

TECHNOLOGY COLLEGE SARAWAK Provide a great work environment and treat each other with respect and dignity. Recognize that profitability is essential to our future success. Apply the highest standards of excellence to the purchasing roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time.

2.2

SWOT ANALYSIS

STRENGTHS
organization, earning in excess of $600 million product more than $5000 million in the same year.

WEAKNESS
development and creativity.

- Starbucks Corporation is a very profitable - Starbucks has a reputation for new in 2004.The company generated revenue of However, they remain vulnerable to the possibility that their innovation may falter - It is a global coffee brand built upon a over time. reputation for fine products and services. It has - The organization has a strong presence almost 9000 cafes in almost 40 countries. Companies to Work For in 2005. The company workforce. in the United States of America with located in the home market. It is often portfolio of countries, in order to spread - Starbucks was one of the Fortune Top 100 more than three quarters of their cafes is a respected employer that values its argued that they need to look for a - The organization has strong ethical values business risk. and an ethical mission statement as follows, - The organization is dependent on a 'Starbucks business.' is committed to a role of main competitive advantage, the retail of diversify into other sectors should the need arise. environmental leadership in all facets of our coffee. This could make them slow to

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OPPORTUNITIES

THREATS

- Starbucks are very good at taking advantage - Who knows if the market for coffee will of opportunities. In 2004 the company created a grow and stay in favour with CD-burning service in their Santa Monica customers, or whether another (California USA) cafe with Hewlett Packard, where customers create their own music CD. - New products and services that can be retailed in their cafes, such as Fair Trade products. - The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. type of beverage or leisure activity will replace coffee in the future. - Starbucks are exposed to rises in the cost of coffee and dairy products. - Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.

2.3

STRATEGY

2.3.1 BUSINESS STRATEGY

Every business can learn from another especially if a particular business is one that has displayed tremendous success over the years. The Starbucks corporation and its successful marketing strategies are definitely something that anyone interested in business can learn about. The best strategies of Starbucks company is Smart partnership, Starbucks coffee company has been known to create strategic partnerships that demonstrate the fact that another way to grow your business is to partner smart, over the years the Starbucks corporation has greatly increased sales just by using this strategy. Customer satisfaction is a very important issue with Starbuck, from entrance to the store to the very last drop to their coffee, it is a must that customers feel the uniqueness of enjoying their Starbuck coffee experience. Innovation. To think up creative and innovative ideas to add to their product or services. They have added different flavours to their coffee, more food on their menu and even became one of the first to offer internet capability in their stores. Third Place From the very beginning, the Starbucks marketing strategy has focused on creating the third place for everyone to go to between home and work. Creating this 4

TECHNOLOGY COLLEGE SARAWAK unique and relaxing experience and atmosphere for people has been very important for the company as they have realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted.

2.3.2 COMPETITIVE STRATEGY

Provide a perfect Cup of Coffee Starbucks history has shown that they place a huge emphasis on product quality. Their coffee, even if priced slightly more expensive than expected, is notorious for satisfying customers with its rich, delicious taste and aroma. Creating a Starbucks Community. Expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to personally join in the discussions. Brand marketing. Always focused on word-of-mouth advertising and letting the high quality of their products and services speak for themselves. For years, this has been uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a success. Starbucks should not flood new markets to drive out threats of smaller competition. If cannibalization occurs, and Starbucks is forced to close some of its operations, this could seriously damage their reputation. Starbucks' image is too important an asset in the company's international expansion efforts to let reputation tarnish it. Starbucks' should continue to locate their operations in high traffic areas, high visibility areas. The company should continue to take excellent care in picking locations. It is extremely important that Starbucks' international stores reflect a uniqueness in their location and layout. Having locations in a variety of locations will ensure large market exposure.

TECHNOLOGY COLLEGE SARAWAK The main point is Starbucks reputation precedes itself. It has shown to be successful in every new market penetration, and to move into smaller city markets would be no different.

2.3.3 OPERATION STRATEGY RESEARCH AND DEVELOPMENT Starbucks's organizational culture is one of innovation and creativity. This is evident through the continuous developments of new and exciting products. Whether it's the new 4-cup thermal coffeemaker recently introduced to the market, or the Starbucks 'Double Shot' Espresso beverage, Starbucks seems to be the market leader when it comes to new products and ideas. In November 2001, the Company introduced the 'Starbucks Card', which is a stored-value card that can be loaded and re-loaded in denominations up to $500. The Starbucks Card is a wonderful convenience tool for customers that can serve as great gifts, and reduces time spent at the cash register. This contributes to the overall enhancement of the customer's experience. Starbucks is extremely pleased with the ongoing positive customer response to the Starbucks Card. It is through the introduction of new products and the development of new distribution channels that Starbucks focuses on their Company's goal of becoming the most recognized and respected brand in the world. PRICING Starbucks has been able to accomplish with its pricing strategy focus on profit, not on sale and low pricing would erode the perception of quality. attractive. 6 Starbucks represents an attractive combination of price features, high quality, good service and other attributes customers find

TECHNOLOGY COLLEGE SARAWAK PROMOTION Starbucks usually picks one or two charities or event that reach the community it serves. For example is Free tall cup of brewed coffee to anyone who votes on election day. FIRM INFASTRUCTURE Starbucks has proved to be a leader in identifying market trends and positioning themselves accordingly. For example, before the recent economic slowdown, management noticed a decrease in traffic. Rather than pull back from their expansion strategy, Starbucks launched a series of small adjustments to improve efficiency, and continue with their plans.

CUSTOMER SERVICE One of Starbuck's primary objectives is to provide a superior level of customer service. One of their guiding principles in their mission statement states, "Develop enthusiastically satisfied customers all of the time". In building customer loyalty, not only does Starbucks offer high levels of customer service, but they also strive to educate customers about coffee quality. There is an information section in each store that provides customers a good resource for becoming more knowledgeable about the world of coffee. Starbucks also publishes and distributes a mail order catalog and a catalog of business gifts that offer coffees, certain food items and select coffee-making equipment and accessories. The company has several other initiatives to enhance the customers' experience at Starbucks retail stores.

MARKETING Starbucks is the leading specialty coffee retailer in the nation, with over 5,000 locations in 22 international markets. Starbucks positions their products on a relatively simple plane. They focus on quality and experience, rather than price. A comparison of specialty drinks with its competitors reveals very minor differences. Starbucks' image is one of the key elements to their success. The company has realized that people don't only come for the coffee; they come for the atmosphere. People socialize, read, study, or just enjoy the music while drinking their coffee. Knowing this, Coffee shops try to make their stores unique in some way or another that will create an appealing atmosphere. Starbucks has less of a distinct setting 7

TECHNOLOGY COLLEGE SARAWAK for their locations; instead, they focus on having plenty of comfortable seating so that people feel welcome to stay longer than they might have planned. Starbucks also positions each store individually according to the specific location it is in. This flexibility has attributed to the great success of the Company in the past decade. Another important part of Starbucks' positioning is that they are environmentally friendly. While other retailers position themselves in similar ways, no one focuses to the extent that Starbucks has.

3.0 OLD TOWN WHITE COFFEE

3.1 LOGO, VISION & MISSION

The Old Town White Coffee goal is to let everyone enjoy every sip authentic Malaysian Ipoh white coffee anytime and anywhere.

VISION
To be Asian Pacifics Leading White coffee producer providing high quality products to customers globally.

MISSION
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TECHNOLOGY COLLEGE SARAWAK To promote our unique Malaysian taste- the authentic Ipoh White Coffee and continue White Coffee Legacy the rough continuous improvement and innovation that exceeds customer expectations. By setting precedence Old Town White Coffee have made a standard that equals excellence, pushing other brands to do the same. Strive for continuous improvement, incorporate innovations and technology in our commitment to create customer value in our both product services. These continuing efforts maintain and reinforce our market leader status and more us forward to become a leading White coffee producer in Asia pacific.

3.2 SWOT ANALYSIS

STRENGTHS

WEAKNESS

-The profits obtained by Old Town is quite -Old town coffee also depends an the coffee high compared to other coffee shop in and makes them difficult to diversify their Malaysia. -Offer other foods, such as heavy food Singapore and Hong Kong. product. -Innovation is slow because depend on one

-Has many branches throughout Malaysia, product only.

OPPORTUNITIES
-Able to expend its operation to the global market to be introduction throughout ASEAN. -Able to re-brands and to compete with other company using the same material.

THREATS -Consequences from increasing of price of

materials which they have use will be make the price product is also increase. -Product imitation is a very higher because they are using coffee which is very common.

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3.3 STRATEGY
3.3.1 BUSINESS STRATEGY
All the store of Old Town Coffee White were located at high traffic, high visible location in each Asia market. That the market entry strategies have found to be used by Old Town White Coffee in managing their foreign franchisees when expanding into Asia include master franchising and company owner-stores. The marketing approach is essential to gain a competitive advantage for Old Town White Coffee in the foreign market the construct included market entry, site location, and market positioning. Reason for Old Town White Coffee to choose master franchise as its from of franchising is because of that the master franchising was the most popular made of entry into distant and cultural dissimilar market Asia.

3.3.2 COMPETITIVE STRATEGY

Targeting Old Town white coffee: While evaluating their consumer market the conclusion was that the ideal consumers economic profile will be Upper Middle Class, privileged Class. While the age demographics will be Students and Youngsters, Professionals, families, Mature Consumers. Gender and Ethnic or Religious Background was researched to have minimal or no effect on the choices concerning coffee made by consumers and their patronage of coffee houses. To maximize on brand name (signature) Costa signifies luxury, excellence in Coffee, all over the world, along with the theme of Costa.

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TECHNOLOGY COLLEGE SARAWAK The marketing communication strategy for Old Town White Coffee is raising

awareness of your product in your target market is where sales begin, and this is where marketing communications activities begin the selling process. With today's multiple channels for content to reach potential customers, the art and science of marketing communications has become increasingly important. However, no company can be sure they are using the most efficient media mix without creating a marcom strategy that is aligned with their overall strategic marketing direction.

3.3.3 OPERATION STRATEGY

RESEARCH AND DEVELOPMENT In 2005, it expanded vertically into the food services sector by opening a chain of caf outlets based on the traditional Ipoh coffee shop setting and ambience under the OldTown White Coffee brand name. Since the opening of its first caf outlet in Ipoh in 2005, its chain of caf outlets has expanded to around 160 caf outlets in Malaysia and Singapore. This includes fully and partially owned, and franchised caf outlets. The management has successfully mixed tradition with modern conveniences, revamped and revived the traditional caf concept into a successful working model with outlets conveniently located and easily accessible to customers.

PRICING Price does affect customers choice on products or services. Customers are willing today more because they higher price means higher quality one brand offers. In brand competition, the best price any brand can offer is important yet they have to be careful not to create bad consequences for long-term. BRANDING The Malaysian coffee culture also being improvises by re-branding to enhance experience and increasing sales by multiple transactions from regular customer. From small spaces and only selling few selections of foods, Malaysian coffee culture has expanded by upgrading services, more variety in food and beverage, and creating nostalgia as well as being chic 11

TECHNOLOGY COLLEGE SARAWAK and contemporary. The role of branding in local coffee culture not only providing space but might be escapism for consumer and local society from different hierarchy, not to mention that this is kind of lifestyle and culture that they embrace. As a new life style and trend, Malaysian coffee culture is very popular for all public audience. It has grown along with social change needs and demand.

4.0

CONCLUTION

The Starbuck should make a variety of coffee flavour and diversify such as selling others food to attract the more people. Beside that, Starbuck give discount price for the regular costumers, this can make more people to attract going in Starbuck. Starbuck also should create new flavour of coffee every year.

Old Town White Coffee must be diversify use of coffee product that mention does not too slow. Because of Old Town White Coffee is one coffee shop famous in Malaysia, they should open branches throughout they country to compete with other company. In other way Old Town White Coffee should provide a various service such as shipping orders to customers house.

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TECHNOLOGY COLLEGE SARAWAK

0.5 REFERENCE

1. Starbuck Corporation, Retrieved 20 August, on the World Wide Web: http://www.starbucks.com. 2. http://marketingteacher.com/swot/starbucks-swot.html 3. http://www.voteforus.com/starbucksmarketingstrategy.html 4. Starbucks International, http://www.slideshare.net/sk_prince/starbucks-internationalmarketing-strategy. 5. http://www.malaysiaco.com/search/old+town+white+coffee 6. http://www.oldtownwhitecoffee.com/

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