Transcript Starbucks Coffee 2004

Starbucks Coffee France SAS
Best in France Case Study
Alexandre Borsari
Damien Hammouchi
Stéphanie Jaccaz
May 19, 2004
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The Company
Why in France ?
A label
Constraints
Adaptation
The Starbucks company
Conclusion
(1/2)
• World leader in coffee retail with more than 7,500 locations in 34
countries.
• Born in 1971 in Seattle, first came in Europe (UK) in 1998 and arrived
the 16th of January 2004 in Paris, France.
• Its business : « From the bean to the cup of coffee » :
Purchases directly to producers  Roasts whole bean coffees in 4 plants
located in North America and Europe  Sells 15 different types of coffee,
30 beverages, pastries and coffee-related accessories in retail stores.
• Key numbers :
Annual Sales Turnover in billions of US dollars :
May 19, 2004
2
The Company
Why in France ?
A label
Constraints
Adaptation
Starbucks France SAS
Conclusion
(2/2)
• Born from a joint-venture between Starbucks Coffee
Company and Grupo Vips, one of the Spanish leader in
restoration and retail. This group provides financial and
logistic help.
• 3 stores opened in Paris (Opéra, Montparnasse and
La Défense)
• Around 10 stores expected in Paris before the end of
the year
• About 100 persons employed
May 19, 2004
3
The Company
Why in France ?
A label
Constraints
Adaptation
Conclusion
Why it came to France
France was a key market for them because of 2 main reasons :
• France is an emblem in the world of gastronomy and especially in the
café society : accreditation
• It is a very profitable market
It was also a challenging project due to the French reserves against the
American and their doubts about their ability to make good coffee.
First settlement in Paris
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4
The Company
Why in France ?
A label
Constraints
Adaptation
Conclusion
Starbucks : a label
• Respect of employees
• Image
• Respect of clients
• Creativity
• Respect local traditions
• Quality of products
• Stores : non-smoking, music, cosy
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5
The Company
Why in France ?
A label
Constraints
Adaptation
Conclusion
Constraints in France
• Communication :
Really sensible point, need to introduce themselves with discretion and
humility.
 No advert budget, their best advertising is their good location and the
word-of-mouth influence !
• Costs :
High prices of real estate / High social security contributions / Heavy
system of working hours (35 hours/week)
• Constraining specific laws (ex: purchasing lease)
• Need to apply the same price on comparable products (4 references)
May 19, 2004
6
The Company
Why in France ?
A label
Constraints
Adaptation
Conclusion
Adaptation to France
As in every country, they adapt the menu to the local tastes and values.
In France :
• « croissant » and « pains au chocolat »
• no large sizes of beverages
• improved the espresso menu
• ceramic mugs
• different prices between Paris and “Province”
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The Company
Why in France ?
A label
Constraints
Adaptation
Conclusion
We thank
Camille Cochy de Moncan, Responsible of marketing and
communication
of
Starbucks
Coffee
France
SAS,
[email protected]
Emilie Cassignac, Marketing and Communication
Starbucks Coffee France SAS, [email protected]
May 19, 2004
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