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2. Table of Contents
4. World’s leading retailer for purchasing, roasting and selling whole bean coffees and specialty coffee.
Starbucks Coffee Company was founded in 1971. It opened its first store in Seattle’s Pike Place Market
8500 retail locations across 32 countries worldwide. (statistics as of May 2005)
The company is headquartered in Seattle, Washington and employs about 74,000 people.
The company recorded revenues of $5294.2 million during the fiscal year ended
5. CEO Howard Schultz
The man who made Starbucks the number one specialty coffee brand.
6. Starbucks Mission Statement Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.
25. We allocate the marketing investment budget, which is 5 million dollar, as follows:
Advertising costs are 3.5 million:
Website: 1.75 million (50%)
Testing: 1.05 million (30%)
Magazine: 0.7 million (20%)
R&D costs are 0.5 million.
Marketing research costs are 1 million.
26. Break even point (BEP) for the Frappuccino line
Sales: 191.74 million units.
Revenue: 709.43 million dollars
Return on marketing investment (ROMI)
ROMI = 2.594 times (259.4%)
27. Methods of monitoring
Sales check (by monthly)
Customer Survey (post-purchase)
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