SWOT Analysis
Strengths
1. Starbucks is the leading retailer and roaster for brand specialty coffee in the world.2. Strong brand image with the motto 'The Starbucks Experience'.3. Starbucks is a global organization with more than 16,000 retails in 48 countries in the entire world.4. One of the strongest franchises in the world with more than 6500 licenses and shops in the world.5. Starbucks is known for Providing superior products and services.6. Starbucks Offered Both functional and emotional benefits.7. Starbucks is number 7 on Fortune Magazine's "100 Best Companies to Work For" for 2008.8. Have loyal customers in all of Starbucks' existing countries.9. High quality control in all Starbucks' retails.10. Have a consistent high quality of service.11. Sophisticated atmosphere typical of the Italian coffee houses, music, interior design and artwork.12. Outlets positioned in high street locations, malls, other businesses within areas like offices building.13. Wi-Fi Internet service in all of Starbucks retails.14. Fast coffee serving.15. The Process of Preparing the product does not need highly sophisticated technology.16. Have a lot of flavors variation.17. Limited number of strong competitors.18. High market share and market growth.19. Always aim to help support environment, ex: by using recyclable tissue.20. Always treat the employees as a partner not just as employees.21. Welcome all questions, comments and feedback where customers Could send it by email, SMS or just inform it in. Starbucks retails.22. Have a Starbucks Workers Union the which helps employees to inform Their thoughts to management.
Weaknesses
1. High cost of not pricing the which all kind of markets Could buy Starbucks' products.2. Starbucks Considered 'American Global' the which cost a sentimental issue for customers in some countries.3. Too focused on U.S. domestic market.4. Starbucks refuses to guarantee That milk, beverages, chocolate, ice cream, and baked goods sold in the company's stores are free of genetically-modified ingredients.5. Because of its perfectness of service employees, some employees complaints about the management the which Push Them to always be perfect. That is why They Make Starbucks Workers Union.
1. The potential employees are educated people the which make it Easier to train Them. 2. Customer is not price sensitive. 3. Could be Able to change the negative image of the coffee into a positive one. 4. High consumerism in Indonesia. 5. Easier to penetrate the market Because what it sells is the fulfillment of self esteem and need to be love or to belong to community the which is the major reason why peoples buy a product. 6. Strong financial support. 7. High growth of economy and market in Indonesia, ESPECIALLY in urban areas. 8. The democratic economy policies in Indonesia make it Easier for Starbucks to Expand Their Business. 9. Peoples in Indonesia Starbucks places positioned as one of the best meeting point. 10. Could Their diverse product not only in coffee. 11. Many of Starbucks coffee beans are organic using. 12. Some of Starbucks beans are harvested in Indonesia island of Sumatra and Sulawesi. Starbucks purchasing high quality beans in these islands at premium prices to help the Farmers to Support Their families and to invest in a sustainable production. Starbucks paid an average price of $ 1.20 per pound against the commodity average price of $ 0:40 to 0:50 per pound
Threats
1. Global financial crisis not the which the make peoples growing niche to Spend too much money. 2. Low income in Indonesia makes it hard for Starbucks to penetrate more market segmentation. 3. Sentimental issue to the bad effects of coffee from society. 4. Some people believes That Starbucks is turning the world into a generic corporate giant mess. 5. Critics said it exploits That farm workers in third countries. 6. It said driving small Domination That Starbucks cafes out of business. 7. Issues Stated That Starbucks Their exploits workers by paying a very minimum wage with a very high standard of work They need to fulfill. 8. Threats of substitute products and services include items Such as drink other colas, teas or juices That are sold in retails.
Strategy and Tactics for Starbucks
Strategy
Strategy for Starbucks in Indonesia for the next 1 year is That We proposed Called to Make a Starbucks campaign for health. Will this campaign focus on the health benefits peoples That Will get from drinking a cup of Starbucks. We will change people perception about the coffee into a positive one and cooperate with other companies in Indonesia to show our support to people health. The fact Is that coffee Actually one of the healthiest beverages billions of people consume regularly.
The average of 300mg of coffee with exercise increase of energy by 20% and Decrease fatigue levels while burning fat Increased 107% Greater Than without caffeine. This can be Happened Because coffee contains hydroxycitric acid and chromium That can increase of up to 30% in metabolic rate. It Might guard against gout, diabetes and Alzheimer's disease. Studies has shown positive results with diabetic That compare consumption rates, including reports suggest That People who drink two cups a day were the resource persons 50 percent less Likely to develop diabetes and also has been proven by doctors. The trouble comes Pls people start adding sugar and cream to Their coffee, or even worse, buying thick, blended drinks with whipped cream on top.
Pls coffee consumed in excess can be very addictive, stimulate, and a mood charger. A large amount of coffee or caffeine consumed all at once can have a negative effect on blood. Too much coffee over time can stain people's health. We believe That this negative perception of coffee Could be a threat to Starbucks. But We also see this as an opportunity Actually When We can change behavior of people in Indonesia to consume healthy coffee and make it as part of Their Life.
Tactics Product: We will create a new flavor of Dark Coffee with Fruits toppings. This coffee can also be added with skim milk. Dark coffee is the best coffee for health Considered it has not been mixed with full cream milk, whipped cream, etc. Fruits toppings in this product is a real fruit, not blended with the coffee but just a complementary to add more vitamins while drinking the coffee. For People who want to add milk in it, We Will just add skim milk Because it contains low fat rather than full cream milk fat for the which contains the body.
This Product Will Provide a free one fruit topping. But if people want to add more than one topping, add They Could by Rp 5,000, - for each coffee. The size of the product is the usual size of Starbucks cups where a white cup for hot drinks and a transparent cup for cold drinks. Will this tactic be launch and develop for one year and continue to be one of the Starbucks flavors for years after.
Price:
The price for this product is Rp 29,500, - for tall size, Rp 34,500, - for grande size and Rp 39,500, - for venti size.
Place:
To support Starbucks for Health Campaign, more places Will be a 24 hours Starbucks retails where Starbucks Will also open 10 retails per year. Will this be a convenience to customers where They can Decide what time They would like to drink a hot or cold Starbucks coffee. Places That Will be open for 24 hours are Starbucks Kemang Village, Citywalk, Rest area in Karawaci Freeway and Summarecon Serpong. Will this support 24 hours some of the Starbucks store in the EX and Sarinah. This tactic will from the start IMMEDIATELY and finish in 2 months.
Promotion:
To Communicate the message of healthy coffee We Will use:
1. Advertising Advertising for Starbucks Will be done by advertising in magazines and newspapers. Will this be conduct by one advertising per month. Another kind of advertising is by creating roll banner in retails. The message of the advertising is to Communicate the benefits of drinking a cup of coffee in daily life. The Banner Will not be displayed for the first 3 months and there Will be a change in design and displayed for another 3 months and continuously for one year.
2. Sales Promotion That Will be sales promotion conduct is a buy one get one Starbucks Dark Coffee with toppings by using BCA Credit Card. This Will be Implemented for one year. Other tactic is cooperating with GNC, companies That Produce vitamins for health. When customers buy Starbucks for Rp 500,000, - by combining recipients in one month starting from the first recipient, Will They get 10% discount buying Pls GNC product in any amount. Will this be conduct for the first 6 months.
For the next six months, Starbucks Will cooperate with Fitness First. If Starbucks customers will buy a total of Rp 100,000, - in one transaction, Will They get a free trial voucher to any Fitness First. Will this tactic be Implemented in 6 months after cooperating with GNC tactic.
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