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Starbucks Coffee France SAS Best in France Case Study

Starbucks Coffee France SAS Best in France Case Study. Alexandre Borsari Damien Hammouchi Stéphanie Jaccaz. The Company. Why in France ?. A label. Constraints. Adaptation. Conclusion. Key numbers : Annual Sales Turnover in billions of US dollars :. The Starbucks company (1/2).

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Starbucks Coffee France SAS Best in France Case Study

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  1. Starbucks Coffee France SAS Best in France Case Study Alexandre Borsari Damien Hammouchi Stéphanie Jaccaz May 19, 2004

  2. The Company Why in France ? A label Constraints Adaptation Conclusion • Key numbers : • Annual Sales Turnover in billions of USdollars : The Starbucks company(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. May 19, 2004

  3. The Company Why in France ? A label Constraints Adaptation Conclusion • 3 stores opened in Paris (Opéra, Montparnasse and La Défense) • Around 10 stores expected in Paris before the end of the year Starbucks France SAS (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. • About 100 persons employed May 19, 2004

  4. 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 May 19, 2004

  5. 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 May 19, 2004

  6. 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

  7. 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” May 19, 2004

  8. 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, ccochy@starbucks.fr Emilie Cassignac, Marketing and Communication of Starbucks Coffee France SAS, ecassignac@starbucks.fr May 19, 2004

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