EPPA 4716 KAJIAN KES INTEGRASI

NURUL HUDA NOR SUHAILA

(GA02761) (GA02749)

NUR ATIKAH
(GA02809)

ASZMIRA
(GA02782)

NORHAFIZAH
(GA02746)
 CONTENT

INTRODUCTION
MARKET SHARE
TARGET MARKET
KEY ISSUES
STARBUCKS COMPETITION
ANALYSIS

 SWOT
 COMPETITIVE PROFILE MATRIX (CPM)
 BLUE OCEAN
RECOMMENDATION
CONCLUSION
INTRODUCTION
 CEO
An American Coffee -Kevin Johnson
company and coffee The name, inspired by
house chain & founded in Moby Dick
Seattle, Washington.

Logo is inspired by the

sea featuring a twin-
Mission tailed siren from Greek
one person, one cup mythology.
and one
neighbourhood at a
time

Offers espresso menu items,

refreshments and pastries,
merchandise, brewing
accessories, gifts and books.
SLOGAN
I’m Lovin’ It

MISSION
“To be our customer’s favourite place and way to eat.”

BRAND PROMISE
“To provide Simple Easy Enjoyment to every customer at
every visit.”

SEVEN CORE VALUES

1. We place the customer experience at the core of all we do
2. We committed to our people
3. We believe in the McDonald’s® System
4. We operate our business ethically
5. We give back to our communities
6. We grow our business profitably
7. We strive continually to improve

The story of Dunkin’ Donuts
began in 1948 with a donut
and coffee chain in Quincy,
Massachusetts, USA called
“Open Kettle”.
Dunkin’ Donuts licensed the
first of many franchises in
1955. Since then, the brand
has grown into the world’s
leading baked goods and
coffee chain with more than
12,500 restaurants worldwide,
located in 46 countries.
Founder William Rosenberg
served donuts for five cents
and premium cups of coffee
for ten cents. Rosenberg
renamed his restaurant to
“Dunkin’ Donuts” in 1950,
with the goal to “make and
serve the freshest, most
delicious coffee and donuts
quickly and courteously in
modern, well-merchandised
stores,” a philosophy which
still holds true today.
TARGET MARKET
 PRICE
How Starbucks can
retain their customers
during recession times

MARKET
How Starbucks can
expand in foreign market
more than competitors?

ADVERTISING
How Starbucks can
increase advertising
campaign of product to
attract more customers?
SUSTAINABLE ECONOMIC
How Starbucks can maintain How Starbucks can face
its competitive edge & the tough economic in
diversify its product line? the country?
Starbucks Competition
- McDonald's

• Launched McCafe campaign in which it

sells premium specialty coffee
beverages at a slight discount to
Starbucks’.

• McDonalds has an excellent platform

from which to compete as it already has
so many stores in prominent locations
with drive-thru windows.
Starbucks Competition
Dunkin' Donuts

• Uses its donuts and the

rest of its menu as the
draw.
• The customer can choose
between a coffee or a
coffee and a donut.
 List of the largest fast food restaurant chains
by their locations in the world (2015)

--
 1. Strong Brand Image.
2. Customer satisfaction is top
priority.
3. Excellent management.
4. High quality product and
service.
1. Rising prices of coffee beans and
dairy products.
2. Competition with low cost coffee
seller.
3. Economic condition might
decreasecustomer spending.
4. New health studies on impact of
sugar.
1. High price.
2.Response time to competitor
promotions and advertising.
3. International expansion compared
tocompetitors (Opening new store in
new location).
4. Diversification of services and
products (Primary product very
1. Introducing new products.
2. Expansion in developing markets.
(Asia, South America, and local
based places).
3. Business diversification and
productsspecifications.
 Displays the basis of an
Will identifies a firm’s
organization’s strategy
major competitors and
and is a useful
its particular strengths
instrument to
and weaknesses in
communicate those
relation to its
strategic attributes to all
competitors.
in the organization.

Tool that compares the

firm and its competitors Consists of a mix of both
and reveals their internal and external
relative strengths and
weaknesses.
Competitive factors

Profile
Matrix
(CPM)
 The above CPM analysis reveals that Mc Donald's is the strongest player in the industry with relative
strengths .

 On the other hand, Starbucks are weak in advertising, product variety, and global expansion, so they
need to create their strategies according to their strength and weakness and improve their rating in the
most significant areas to compete with their rivals.
BLUE OCEAN - CURRENT STRATEGY CANVAS
NO Value Element STARBUCKS MC DONALD'S DUNKIN DONUTS
1 Underperforming Stores 4 2 3
2 Plastic Straws 5 5 5
3 Quipment merchandise (coffee & espresso makers) 5 0 0
4 Pricing 9 5 6
5 Calories in certain specialty drinks 5 5 5
6 Advertising 5 9 5
7 Size of Store 6 8 6
8 Global Expansion 5 7 7
9 Home Delivery Services 3 9 2
10 Product Variety 4 9 5
COFFEE INDUSTRY STRATEGY CANVAS
10
9
8
7
6
5
4
3
2
1
0

Advertising

Home Delivery
Underperforming

Plastic Straws

Global Expansion
Calories in certain

Size of Store
Pricing

Product Variety
merchandise (coffee
& espresso makers)

specialty drinks

Services
Quipment
Stores

1 2 3 4 5 6 7 8 9 10

STARBUCKS MC DONALD'S DUNKIN DONUTS

 BLUE OCEAN- 4 ACTION FRAMEWORK

The Four Action

Framework is used
to reconstruct buyer
ELIMINATE RAISE CREATE REDUCE value elements in
• Underperforming • Advertising crafting a new value
• Product Variety • Pricing
Store • Size of Store curve or strategic
• Calories in profile.
• Equipment • Global Expansion
Merchandise
certain specialty
• Home Delivery drinks
(Coffee & Espresso Services
maker) • Plastic Straws
BLUE OCEAN - AFTER STRATEGY CANVAS
NO Value Element STARBUCKS MC DONALD'S DUNKIN DONUTS
1 Underperforming Stores 0 2 3
2 Plastic Straws 3 5 5
3 Quipment merchandise (coffee & espresso makers) 0 0 0
4 Pricing 7 5 6
5 Calories in certain specialty drinks 3 5 5
6 Advertising 9 9 5
7 Size of Store 7 8 6
8 Global Expansion 8 7 7
9 Home Delivery Services 8 9 2
10 Product Variety 8 9 5

COFFEE INDUSTRY CANVAS

10
9
8
7
6
5
4
3
2
1
0

Advertising
Underperforming

Plastic Straws

Home Delivery
Global Expansion
Calories in certain

Size of Store
(coffee & espresso

Pricing

Product Variety
specialty drinks
merchandise

Services
Quipment

makers)
Stores

1 2 3 4 5 6 7 8 9 10

STARBUCKS MC DONALD'S DUNKIN DONUTS

 RECOMMENDATION

Strategy Strategies Strategy to

increase cost Strategy to keep Strategy for
retain customer Starbucks brand sustained during
efficiency loyalty promotion & economic crisis
out of competition marketing
 • Currently Starbucks has high operational cost regarding their human capital cost, resources cost and
expansionary cost.
• Cost efficiency will let them to increase the sales and productivity.
Strategy • The greater the importance of the product’s quality or services to the customers, as is the case with coffees,
increase the there is little extent to the buyers’ price sensitivity. Therefore, it’s good for Starbucks to maintain its prevailing
cost efficiency high-end coffee prices

• To get customer feedback to improve marketing strategies and build a good relationship to customer
Strategies will lead to customer loyalty that can give a good benefit towards the company
retain • Rewards customer with loyalty program with mobile application or by social media
customer
loyalty

• To convince people that Starbucks coffee is superior to other coffees and beverages. These
competing firms are a threat to Starbucks as they strive to provide “premium coffee” comparable to
Strategy to keep Starbucks but at a lower price. (McCafe).
Starbucks brand
out of
• Renewal of SB Brand name will play a huge part in making Starbucks Coffee Company a success.
competition
 • Starbucks can participate in or support local events, helping education in developing
countries or community activities so that it can enhance its public relationship with
those international markets
Strategy for • Sometime Asian are totally different when it comes to culture, value, religion, tastes
promotion & etc. Many Asians prefer for tea. Starbucks should set different strategies and
approaches for each market to make Starbucks’s experience to be part of the culture.
marketing

• Starbucks can increase market share of the non-coffee drinker if they have begun by
introducing an extension of a product line targeted to this segment.
• Focus on quality of products and their service. In addition to this Starbucks could better
Strategy to succeed as a company is by diversifying its product base and offering more economical
pricing for customers.
sustained • Starbucks needs to communicate with its customers now to create new customers and
during new markets to prevent the saturation of its current market segment.
economic crisis
 CONCLUSION
 Starbucks is about the passion for the soul of people, quality product, excellent
customer service and the experience and understanding of the culture of coffee.

 It is no doubt that Starbucks is one of the most successful company in the world.
They used a simply strategy, “connecting links between treating employees with
dignity and respect and producing a good product and services.” The major
factors that differentiate Starbucks from others & bring the successful to
Starbucks.

 Starbucks is defending a competitive position requires firmly built strategies

based on its unique, valuable and leading capabilities and resources, rather than
the products and services themselves, proactively responding to ever changing
internal and eternal environment to keep fending off its competitors