Starbucks Business Plan

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2.6 Channels

Major distribution channels of Starbucks are Starbucks coffee shops, the wholesale and direct sales. Others than that, Starbucks also has distribute through airlines.

2.7 Customer segments

The market is divided into four different segments which are teenagers, middle aged to senior citizens, young urban adults and tourist. Starbucks focus on young urban adults-educated as they earned high income.

- Business History, Background and Objective

Starbucks in Malaysia is operated by Berjaya Starbucks Coffee Company Sdn Bhd, a licensee of Starbucks Coffee International. Berjaya Starbucks Coffee Company Sdn. Bhd. is formed and jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. From our first store opening in Kuala Lumpur on 17 December 1998, we have expanded to Sabah and Sarawak and surpassed the 190 stores milestone in March 2015. Now into our 16th year of operation, Starbucks has grown not only to become the favourite coffee place for Malaysians but also a productive member of communities across the country.

Starbucks Coffee Malaysia opened its first store on 17th December 1998 at KL Plaza in Jalan Bukit Bintang, Kuala Lumpur. The business of Starbucks Coffee Malaysia basically are selling of espresso and coffee beverages, non- espresso and coffee beverages, coffee-related accessories and equipment, gift and merchandise, souvenirs, pastries and confections. To date, in Malaysia itself, they have expanded to Sabah and Sarawak and surpassed the 190 stores milestone in March 2015. Now into their 16th year of operation, Starbucks has grown not only to become the favourite coffee place for Malaysians but also a productive member of communities across the country.

3.1 Short-term Objective for Next 12 Months

Our short-term objective for Starbucks is to open up another Starbucks store in Kelantan for next 12 months.

3.2 Long- term Objective in Next 12 Months

To become a top retailer and coffee brand in Kelantan of our target markets by selling the first quality coffees and other related products. In addition, Starbucks also builds a high level of customer loyalty by providing a superior level of customer service.

- Business Environment

There are the four key areas in which to consider how current and future change can affect the business of Starbucks Coffee.

Firstly political, where company need to keep up to date with political changes that are occurring not only in the country in which they are operating but also across the world, because these will affect the work of the company in one way or another. For example, the tax imposed on every cup sold by Starbucks Coffee. Starbucks Coffee imports most of their stock (ingredients, materials) which is later taxed by the Malaysian government.

Secondly is economical. Level of disposable income greatly influence demand on consumers, if disposable income falls, consumer will continue to buy but will reduce in spending on luxuries necessity. The increase in raw materials actually brings a drastic change to their sales, with the decrease in the rate of income results in lesser buying power. Although petrol price increased but income remains the same which lessen customer's spending rate in Starbucks Coffee. People will think twice before overspending in Starbucks Coffee due to the hike in other goods.

"Social factors include the demographic and cultural aspects of the external environment. Companies need to have a clear understanding of the society and the population to which their products and services are directed" (Hannagan, 2005). Although there is no categorization of which type of customers that often visits Starbucks Coffee, the range can be from young, the educated and coffee connoisseurs. "Among the things that Starbucks adapt to customers is probably the use of lower calorie ingredients in their products such as the choice of low fat milk in their beverages and the Frappucino Light. This is their lighter version of their ice blended beverages which contain low calories" (The Sun, 17th November 2005). In Malaysia, all Borders book shops have Starbucks Coffee. This allowed readers in the book store to obtain the Starbucks experience.

Lastly technological; "Technological changes have a major impact on most company and can have an effect on the competitive edge of a company and make it more or less cost-effective compared to its competitors" (Hannagan, 2005). Technological factors lower barriers to entry which increases efficient production levels. Technologies allow Starbucks to offer the higher standard quality products; its computerized roasters allow the company to create unique computerized curves in roasting coffee beans. The company invests in research to obtain even better quality of roasting and various blending. Starbucks Coffee Malaysia also provides wireless Internet connection to most stores. The connection is provided by TIME NET (Time Zone). Starbucks customers can enjoy the benefits of broadband connection in Starbucks. They just need to bring their laptop, and connection is ready.

5.0 Products or Services

Starbucks have so many list of product to pleasant and appreciate their customer in hope the customer will purchase again in the future. Starbucks offering so many products consists of drinks, foods and others (mugs, instant coffee, Starbucks book and etc.). For the drinks, it’s started from 1971 and keep innovate until now in order to satisfy of the customer. Starbucks also offering so many flavours of coffee such as Bottle Drinks, Freshly Brewed Coffee, Ice Coffee, Evolution Fresh, Chocolate Beverages, Espresso Beverages, Frappuccino Blended Beverages, Kids Drinks, Smoothies, Fizzio Handcrafted Sodas, Starbucks Refreshes Beverages, Tea and Cold Brew Coffee. But, for the Malaysian store Starbucks has offering Brewed Coffee, Espresso Beverages, Chocolate Beverages, Frappuccino Blended Coffee, Frappuccino Blended Crème, Frappuccino Blended Juice Drinks, Brewed Tea, Brewed tea.

5.1 Drinks

- Brewed coffee

- Beverage of coffee is handcrafted customized.

- Espresso Beverages

- Smoothed coffee and stretched layer of thick foam and top it off with sweetened whipped cream. For example: Asian Dolce Latte,