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Starbuks Egypt
Introduction:
Starbucks Egypt conducted by M.H. Alshaya Co. is a leading international franchise operator for more than 55 years of the world most recognized retail brands also the company include H&M, Mother care, Debenhams, American Eagle and others
Starbucks Egypt branches are the following
Umm el sid hill,Sharm el sheikh
Salient issues
. The process of developing services for foreign markets on the part of a major Service Company and the Starbucks strategy
. Analysis of the company, internal design, atmosphere services offer
Starbucks Egypt that relate to Middle East and North Africa
Starbucks Egypt community connection
The Starbucks Experience is more than a cup of coffee. From the beginning, Starbucks decided to be a different kind of company. Not only celebrated the rich tradition of coffee, but they accomplished also brought a feeling of community, Starbucks considered as a comfortable third place away from the demands of work and home. Also with every cup, Starbucks struggle to bring both their heritage and an exceptional experience to life. The Starbucks Vision “ To establish Starbucks as the most recognized and respected brand in the world ”mission statement is not only one person, or one cup and neighborhood at a time– it’s the philosophy that guides how their treatment in doing business every day. Their mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Also they are committed to doing business in ways that are suitable and good to the earth and to each other. From their treatment and way of buying their coffee, and this for minimize the environmental footprint for them, for being involved in the local societies and communities. , Starbucks is the premier roaster and retailer of the finest coffee. At Starbucks they are focused on delivering the best experience to every client at each of their locations around the world. They are fortunate to have the opportunity to work with so many communities, and they are committed to providing the Starbucks Experience while respecting the local customs and tastes of each country they operate in.
Starbucks in general from the neighborhoods where their stores are located to those where their coffee is grown, they are committed to making their communities stronger.
Bringing people together, inspiring change and differ in people's lives – it's all part of being a good neighbor and the commitment for them in their belief that they able to balance profitability and social conscience
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their commitment to communities extends beyond their stores to include the regions that supply their coffee, tea and cocoa, and other agricultural products.
Starbucks logo consist of twin tail serene and this is chosen because of the psychological relation between lire of fresh roasted coffee, species, tea and mythical or legendary enhancing Character that distinguish Starbucks and this logo merged for designing the new stylish Starbucks logo and this current logo harvest or cropped and also zoomed version of the serene
HR policy is to have right people hiring right people, Starbucks considered as a second best company that work with it strongly believes that motivated and committed workforce are the most important key to retail Business to achieve friendly environment in work and working as team
Starbucks in general invests in programs designed to strengthen economic and social development in local communities, while also caring for the environment. For expanding the impact of their programs, they collaborate with nongovernmental organizations that have experience and at working with farming communities.
In addition to these collaborative relationships and social development investments, they also support communities through farmer loans, growing their farmer support centers and continuously improving and expanding the sourcing program for them, like C.A.F.E. practices In deploying this unique set of strategies, Starbucks improved the flexibility and resilience their supply chain also Starbucks ensuring the high quality coffee and other agriculture goods also building strong farming communities for long-term supply.
Totally Starbucks has invested more than $70 million in collaborative farmer programs and activities – that include practices, farmer support centers, farmer loans and forest carbon projects. All of these integrated programs that have direct support to improve farmer livelihoods and ensuring a long-term supply of high-quality coffee for the industry.
Middle East & North Africa
That is the region that Starbucks Egypt related to it
They are inspiring partners (employees) and customers alike to get involved in their communities through innovative volunteer programs.
Every Starbucks store considered as a part of a community, and it committed to strengthening neighborhoods wherever they do business.
It’s a commitment rooted deep in Starbucks heritage and the belief that together – rather than alone – they can use their scale to be a motive for positive change.
Throughout the year, their partners Lead users and end users (employees) and customers dedicate their time and energy to create positive change in their local neighborhoods. Since the launch of Starbucks Middle East and North Africa's Community Connection program five years ago, Starbucks partners and customers have volunteered more than 10,000 hours to hundreds of community projects across the region.
During our Global Month of Service, Starbucks' commitment to helping communities thrive is exemplified as partners and customers participate in service projects around the world.
Starbucks Community Connection that include Starbucks Egypt
Hundreds of Starbucks partners have volunteered community service hours over the past five years. During 2012 alone, more than 700 Starbucks partners across the region volunteered for community service projects in their cities and neighborhoods.
Community Connection activities over the years have included a wide variety of community projects such as renovating school libraries, summer internship programs for special needs interns, renovating public parks and school gardens, beach and neighborhood cleanups, relief efforts, recycling initiatives, plus a wide range of projects in partnership with local government departments and NGOs. We also bring special focus to our community activities during the holy month of Ramadan, helping to drive activities to care for those in need.
Each year, during the month of Ramadan, Starbucks partners identify and organize community service projects to reach out and provide help to some of those who need it most. 170 Starbucks partners took part in Community Connection activities during the holy Month Ramadan (2013).
n April 2013, Starbucks partners across the world took part in Starbucks Global Month of Service, helping Starbucks to use its scale for good during the month. The Middle East and North Africa region joined the Global Month of Service for the first time in 2013, with 624 partners (employees) from the region contributing 5,360 volunteering hours across 10 countries.
Here is some of the community projects that Starbucks partners in Service: at Starbucks Egypt
Egypt - 22 Starbucks partners and customers contributed 176 hours of volunteer work to support Abu El-Reesh Children Hospital by donating needed materials, planting a garden and painting fences.
(PIC) product innovation charter
Analysis of Strategy: the PIC
Opportunity and Strategy Assessment , Market and technical issues
Guidelines and approaches,marketing mix
Possible trends prevalent in the market, indicate goals and objectives pursued (revenues, profit margins, market share, etc.) platform issues (product, brand, category, distribution network, etc.
Creative template
Pic considered as a target for innovation not solution simply it provide a treatment on how to solve a problems by creative thinking and looking to the problems on a different view
Pic has 4 key elements
1) Statement of the objectives
2) Statement of strategic purpose within product line
3) Guideline and criteria
4) Consensus economic size of the opportunity
While its coffee aroma seems to be waning in its homegrown market on the heels of the US mortgage meltdown, Starbucks is robust on Egyptian market operation
Starbucks Egypt sales revenues, profit margins and market share is very high in comparison of other countries, the operation manager of Starbucks Egypt announced of the average people that enter Starbucks in Egypt is 150,000 monthly
Starbucks has high brand equity, has the ability to satisfied employees and has the best coffee beans in the world and when I speak on Starbucks weakness lies on high prices over dependency on coffee related product
Starbucks has a high opportunity in Egypt because coffee play an important role in the Egyptian citizens life also the Egyptian students used to study outside home so they can’t get a proper place like Starbucks because Starbucks distinguished of special environment that support students that search for a good place for study or discuss issues in team related to education so almost of Starbucks Egypt customers are students
Threats of Starbucks Egypt Boycotting for political reasons (Middle east & Arab) increase in domestic competition also many competitors like costa cafe, cilantro and others also the financial crisis and recession but this all over the world
Promotional mix – advertising-Starbucks 1.4% of revenue (coke spends 11% of revenue)- personal selling, Starbucks employee are very well and professional and they must continue to be the very best and when I speak on public relation considered as a key player in promoting Starbucks Egypt specially for facing the political factors
: -Green initiatives -Philanthropic endeavors Starbucks Charity function at Causeway Bay Change: Run promotions in conjunction with contributions
The sales promotion tools considered as a free sample for un aware customers also provide special offer discounts and coupons for regular customers that achieve loyalty to Starbucks Egypt, also Starbucks give a ways for the customers that will visit new branches of Starbucks Egypt
Starbucks take a part of social activities as I mentioned Starbucks community paragraph
Starbucks believe of increase customer experience is better and more important than advertising, if I talk about Blueprinting and flowcharting Starbucks is a very good example in doing this also Starbucks encourages the promotion of their stores as a “third home” promotional Objectives Awareness with the benefits & create feelings of interest. Message Strategy The Big Idea the unique selling proposition
Starbucks Egypt has a very professional survey online to the customers
Starbucks focus a lot in using questioner to understand well their customer wants, needs, and perception of the Brand image
Starbucks income statement:
Income Statement 2008 2007 2006 Revenue ($ mil.) 10,383.0 9,411.5 7,786.9 Gross Profit ($ mil.) 5,737.7 5,412.4 4,608.2 Operating Income ($ mil.) 512.9 - - Total Net Income ($ mil.) 315.5 672.6 581.5 Diluted EPS (Net Income) 0.43 0,87 0.71
Starbucks' revenue was $10.4 billion in its 2007-2008 fiscal year. Method 1: Percentage of Sales 2008 Total Sales $10.4 billion Sales at 10% $10.4 mil 2009 Promotion Mix Budget $10.4 mil Method 2: Percentage of Unit Cost per cup $5 Unit cost allocated to $1 Promotion mix forecasted sales 500000 cups/per month Promotion mix Budget $ 500000 /per month
Starbucks Egypt Menu
http://www.elmenus.com/cairo/restaurants/starbucks-coffee-3671
Starbucks Egypt Scanned menu
http://www.elmenus.com/cairo/restaurants/starbucks-coffee-3671/scanned-menu#tabs
Starbucks Egypt hasn’t the authority to add or remove any elements from the menu
Because of Starbucks Egypt controlled from the Starbucks middle east that governed by the mother company of Starbucks that control all Starbucks all over the world
Those are the products that Starbucks Add and this considered as a promotional of Starbucks Egypt
HOLIDAY CAMPAIGN
Primary Beverage: Toffee Nut Latte
Secondary Beverage: Toffee Nut Frappuccino
Whole Bean Starbucks® Holiday Blend |
Winter Campaign
Primary Beverage: Caramel Macchiato
Secondary Beverage: Signature Hot Chocolate
Whole Bean House Blend |
Spring Campaign
Primary Beverage: Caramel Mocha
Seconary Beverage: Ice Caramel Mocha
Sumer Campaign
Primary Beverage : Mocha Cookie Crumble Frappuccino
Secondary Beverage: Mocha Frappuccino
The opportunity of Starbucks Egypt lie s on Egyptian people admiring to coffee also the customers that between 15 to 40 years old that seeking to Starbucks service that provided to customers
Starbucks Egypt competencies lies on the main competitor
The creativity templates
Goldenburg and Mazursky identify four specific creativity templates
The templates designs are helping to appear or expose in any product codes embedded in the product itself and in trends observed in its evaluation “that valuable intelligence of any one in the product business”
The creativity templates types:
- The removal template: that mean remove one or more element without adding other element else and in case of menu this mean eliminate element or more from the menu
- The relationship template: Goldenberg and mazursky call this attribute dependency and this mean finding two independent variables
- The redefinition template: identify the component parts and features of an existing product identify components and features of the products use and environment
This mean making new link between a component in the internal environment of the product and the component of its external environment
- The replacement template: replace some element to other element to gain new market segment and also it can be defined as replace value to another value and about Starbucks Egypt on the holy month Ramadan they change their customers sense and trends of western drinks and deserts that they used to received it from Starbucks to be eastern tendency that represent on the Holy month Ramadan traditions sweets but also the westerndesserts and drinks still offered
The services and products that Starbucks Egypt offered in the holy month Ramadan
They provide special features, atmosphere and elements in Holy month Ramadan to meet the Egyptian customers trends and satisfy their wants and needs
Starbucks brews traditional coffees for Ramadan Stores across Middle East will offer exotic flavors and delicacies during the Holy month
In celebration of the Holy month, Starbucks will provide its customers with the perfect ambience of Ramadan across its stores in the Middle East, by featuring its unique ‘Anniversary Blend’ coffee along with the traditional ‘Arabian Mocha Timor’ blend.
Ramadan Pastries Include Fig and coconut, delicious fruity filling of plump figs blended with taste of exotic coconut on shortbread base
Also Starbucks provide a delicious cake called pistachio Delight and this is proper sweet for Ramadan traditions
In Ramadan the featured coffee beverage is the classic iced caramel macchiato
Also provide other elements special for Holy Month Ramadan also launches special Ramadan date Frappuccino for the customers
An array of coffee merchandise including a collection of Anniversary Blend products, Seasonal and Coffee at Home products will also be available across Starbucks stores exclusively during Ramadan.
The process
1) Identifying the component part and features of the current existing product
2) Appling the transformation that recommended by each template
3) Evaluation of the Result, does the new configuration provide or offer any benefit? That resumption to new market
4) Repeat until satisfaction
Starbucks Egypt identifying its existing product features and they conclude that those products are proper and required in all times exception some traditional occasions or festivals in Egypt and this because every nation has its different culture and traditional so they gave recommendation to the mother company to offer some new drinks and desserts in the holy month Ramadan after that, they applying the transformation of the replacement template that they used in their creativity strategy and Product innovation product after that they did evaluate the impact of this to their customers on Egyptian market and how the benefit that Starbucks gained from this finally after the evaluation they repeat this until satisfaction
Also Starbucks offer new elements at HOLIDAY CAMPAIGN that I mentioned above
They used replacement template and also I can say on this area of holiday campaign that Starbucks Egypt also used redefinition template with the replacement template
Because of Starbucks Egypt governed and controlled by specific menu from the mother company of Starbucks so it doesn’t add this promotional elements that provided in Holy month Ramadan or on Holiday campaign in the essential menu just they make flyers and separate broacher of this promotional products and services
Starbucks Egypt platform type is Name that is because of Starbucks egypt is on branch of the many Starbucks all over the world under one name
Conclusion:
Starbucks Egypt is one of the best coffee restaurants in Egypt and their target audience is the customers who search foe special unique environment and atmosphere
The creativity and product innovation in Starbucks Egypt is limited because of it hasn’t the authority to make modifications without permission from mother company of Starbucks but in my opinion Starbucks Egypt is successful to make link between the internal products features and the external environment also Starbucks Egypt is very successful on using the replacement template on its creativity strategies
Lesson learned
Innovation is very important to the companies for being in a good connected with their target audience also any company must be aware of the country culture to provide the products that matching with the customer personalities and to meet the customer needs so on Starbucks Egypt however they governed and controlled from the mother company and they not allow to freely change on its menu but the know well how to do an effective promotion to the Starbucks essential product and they use the replacement creative template for example as I mentioned the services and products that Starbucks Egypt offered in the holy month Ramadan however they not able to add this elements on the menu but they did this on a particular broacher so this reflect how the product innovation charter is essential to any company to achieve its message and to gain customer loyalty
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