10 Social Media Branding Strategies

Photo of the author, Dominique Jackson

Social media can be used for a variety of purposes. Whether its social selling, content marketing orcustomer support, social media gives you the perfect opportunityto reach your target audienceand buildyour brand.

However, with so many different platforms available and heavy competition on all of them, it can be difficult to set your brand apart and carve out your place on Twitter, Instagram andFacebook.

Is your brand being represented the way you want it to on social media? If the answer is no, follow these10 social media branding strategies toamplify your results:

If youre not gaining any traction on some of the social media platforms youre active on, it may not entirely be your fault. With hundreds of social media apps out there, and new ones popping up every day, its tempting to jump into all of them. However, every social network might not be the right fit for your company. Your job is to find the networksthat align with your brands image and goals. Otherwise, youll struggle to make progress.

For instance, if your company is a steel manufacturer, then Tumblrprobably isnt the best option for you. Tumblrs primary demographic is teens and people in their early twenties. A better option would be LinkedIn since its a B2B network that attracts business owners.

If youre struggling to find out which social networks your target audience is most active on, take a look at thesesocial media demographicsto get the perfect starting point.

Visuals play an important part in social media branding. If each of your profiles looks like theyre owned by a different company, it creates a disconnect for your users. You want your branding to be consistent across all channels. This will help people immediately recognize your company no matter which site or app theyre using.

One brand that does this very well is Coca-Cola. When you look at the companys Facebook, Twitter and Instagram profiles, youll notice the consistency in color and design:

Here are some tips to take away from Coca-Colas use of visual branding on social media:

Choose a color palette:Coca-Cola uses its classic red and white color schemeacross all social media channels. It doesnt just stop at the logo. When you look at the posts the company shares, youll rarely find visuals that dont include the color red. The easiest way to develop your color palette is to take a look at your logo. You want to get to a point where people associate those colors with your brand.Keep in mind that different colorscan impact the waypeople perceive your brand.

Use the same logo/avatar:You should try to use the same avatar for every social network. To keep things simple and consistent, use your logo or a symbol that represents your company. People should see your avatar and immediately associate it with your brand. Think about the Nike swoosh or the golden arches of McDonalds. As soon as you see them, you immediately think of their brands.

Filter carefully:Whenever you share images on Instagram or other visual channels, keep your filters consistent. Whether that means using no filters at all orMayfair, choose one or two and stick to it. Using a different filter for every image you share makes your postslook unorganized and inconsistent. Heres a coolInstagram hackto help you out. You can reorder and prioritize your Instagram filters based on the ones you use the most.

Create templates:If you have a team handling yoursocial media marketingefforts, it can be helpful to createtemplates for any graphics you share on social media. That way, your fonts, colors and designs will always be consistent. You can do this through Photoshop or use a free tool likeCanva. Check out our article onhow to create a social media style guidefor more tips to keep your brand consistent across all your social channels.

Your brands personality should be reflected in your social media posts. That means developing asocial media voice. This is the way your brand communicates in Tweets, Facebook posts and Snaps. Finding your voice can take some time, but youll settle into it eventually. To find your social media voice, consider these three main elements:

1. Your company culture:What is the culture like at your company? Your culture is what you stand for, what your company is about and what makes you special. For example, Under Armours culture is all about performing to the highest level and being innovative.The use of hashtags like IWILL in social media posts shows that the companys social media voice is a direct reflection of its culture.

Hoist it. Brian McCann ging home the hardware.

Under Armour (@UnderArmour)November 2, 2017

2. You audience:Speaking in a way that your audience connects withis very important.That could include using certain lingo and references that are popular in your target market. Taco Bell is constantly in tune with whats popular with its audience (a younger demographic) and crafts its social media posts to fit that voice.

A post shared byTaco Bell(@tacobell) onSep 22, 2017 at 10:01pm PDT

3. Authenticity:Whatever your social media voice develops into, make sure its authentic to your brand. Trying to sound a certain way just to fit in can backfire. According toone of our recent surveys, honesty is the number one trait consumers want from brands on social.

Taco Bells posts resonate with its audience because the company has been consistent and it feels authentic. Another example is WeWork. If you look at theWeWork Twitter account, youll find plenty of Tweets that speak directly to the companys main demographic, which is entrepreneurs pursuing their passions.Theirsocial media voiceis genuine and authentic to the brand.

Dream big, work hard and make it happen.TGIM

WeWork (@WeWork)October 30, 2017

Sites like Twitter, Facebook and LinkedIn are very good forcontent curation. Curating is a great way to help youbuildauthority in your industry as well as provide a steady flow of social media posts that arent self-promotional. Finding blog posts, videos and other content to share with your audience sounds simple enough. However, many businesses go into it blindly without creating a strategy or guidelines for what topics to share.

As a result, your Twitter Timeline can become filled with a random mix of Tweets about five or six completely different topics. Avoid that mistake by streamlining your efforts.

Pick a few topics that are closely related to your industry.For instance,the popular career site Tweets articles about employee satisfaction, career advice and workplace culture. All of these are directly related to itsbrand. If Monster started adding Tweets about investing and personal finance, it would seem out of place. But by focusing on its main areas of expertise, Monsters brand has becomea go-to account for peoples interest in career related content on Twitter.

Youre graduating soon, but have no idea what jobs are right for you. Where do you go from here?

Monster (@Monster)October 29, 2017

Nothing will kill social media branding efforts more than irregular posting. If you only Tweet once every few days or upload one new Instagram picture a month, youre going to be forgotten. Shortened attention spans combined with rapidly growing social networks have made publishingmore important than ever.

How frequently you post is going to depend on your audience. It will take some trial and error to find out what works best for your brand. One of the best ways to determine how often you should post is to use Sprout Socialssocial media publishingandanalyticstools.

The publishing tools will allow you to schedule your posts to be sent out when your followers are most active.

The analytics tools let you gauge which posts are gaining the most engagement. You might find that your Tweets get more engagement on the days that you post 10 times as opposed to five. Always trackandreviewyour social media efforts.

When companies like Nike and Starbucks post a new image on Instagram, they geta lot of engagement. Thats because theyre both established brands with millions of followers. If youre just starting out or dont have a huge audience, your contentwont get the same amount of attention since youre relatively unknown.

A good way to achievefaster results and amplify your social media branding efforts is to build relationships with fluencer marketingallows you to piggyback off the audience that established people in your industry have already built. Since the influencer has already earnedthe trust and respect of their followers, getting a co-sign or mention from them carries a lot of weight.

Keep in mind that just having a lot of followers doesnt qualify someone as an influencer. They should also possess these traits:

Dont go into your marketing and social branding efforts alone. Start building relationships right away.

Far too many brands make the mistake of letting their bio or profile section go to waste on social media. When youre in the process of building your brand, letting people know who you are and what your company does is vital. Brands like Nike can have justdoit in their profile because theyre well-established and people already know what they do. Most companies dont have that luxury.

Dont fill your profile up with random hashtags or motivational quotes. Treat your bio like an elevator pitch. If you had to describe what your business does in one or two sentences at the most, what would you say? Here are a few examples of companies that use their bio sections effectively.

Pinterestclearly describes what the network is used for and mentions some of its most popular categories to give users an idea of the type of content people share on the site.

Office Shoes uses selling words like leading and biggest to convey that its the best in the industry.

Sprout Socials profile spells out what Sprout is, who its for and even works as a lead generation tool byoffering a free trial.

Take some time to go back and look over your profiles and bios across all of your social media channels. Are you making the best use out of them for your brand?

One challenge that a lot of businesses have with social media branding is building initial traction. Getting your first few followers can seem impossible when you dont even know where to start. However, if youve been in business for a while or have other Web properties (website, blog or other social media accounts) then you should start there.

Unless you tell your current customers, colleagues and network that you have a Snapchat or Instagram account, how will they know? Never make the mistake of just assuming everyone knows about all your social media channels, even within your own company.

This might seem like an obvious tip, but many businesses take a passive approach to social media branding and wait for the results to happen. It simply doesnt work that way. Promote your social media profiles whenever and wherever possible. Print it on your flyers and brochures, link to them from your website and cross-promote on your other social media channels. Get the word out.

A good way to promote you social efforts internally is with an employee engagement tool likeBambu(a product from the Sprout team). For instance, if you just created an Instagram account and want to get some initial followers, send out a message on Bambu to your entire company and encourage them to follow you. Or you can create a pre-written Facebook post or Tweet for them to share with their own network to promote your new account.

If the only time you post on social media is to share content, its like having a conversation with yourself. As we alluded to earlier, in the beginning stages, your brand will be unknown. You can start building awareness for your brand on social media by engaging and interacting with other users. Its as simple as replying to Tweets and commenting on Facebook and Instagram posts.

Some companies feel weird about replying from a company account. Dont worry, its perfectly acceptable for companies to reply to each other on social media. For instance, Wendys isnt shy at all about going back and forth with the competition on Twitter. Earlier this year, Wendys and Wingstop had an epic Twitter rap battle.

Trying to cop that mixtape, better get in line

Grabbed a couple wings now youre trying to fly

But nothing gets em dipping like a Frosty and fry

Wendys (@Wendys)October 2, 2017

Wingstop flavor bringin all the cravers!

They eat us now and save you for later.

Wingstop (@wingstop)October 2, 2017

The lesson here is that you shouldnt be afraid to interact with other companies on social media, even if theyre your competitors. Itll put you on their audiences radar as well as theirs. Just make sure you keep it playful and respectful like Wendys and Wing Stop.Our data showed that67% of consumers find it annoying when brands make fun of competitors.

Trying to be active on eight or nine social media sites isnt a good idea unless you have asocial media teammanaging it all for you. Its better to be excellent on two or three platforms than mediocre on seven. However, just because youre only going to be active on a few doesnt mean you cant setup profiles on others.

By claiming your company name on major social media platforms, youre securing them in the event that you ever decide to use them. This is also beneficial for SEO. When people Google your company name, some of the results on the first page may be from sites like Facebook, Twitter and other social networks.

For instance, when you search for SpotHero, the second search result is a feed of the brands latest Tweets.

If someone else has claimed the Twitter handle for your company name and is actively using it, it could confuse your audience if they Google you and another brands Twitter account pops up.

You can use a tool likeKnowEmorNamechkto do a search for your company name across popular social networks and see if the username is available.

On a similar note, keep your usernames consistent. You may run into a situation where your company name is taken on a social network. When that happens, create a variation that you can use across any other social network that doesnt have your company name available. Having a different username on each platform creates inconsistency, which hurts your branding efforts.

As social media marketers, its easy to focus on the content you share and growing your number of followers. But take a second to think about the connection between social media and your brand first. Prioritizing social media branding will help you connect with your target audience, be more strategic with your efforts and get better results.

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Dominique Jackson: Dominique Jackson is a pro blogger, inbound marketing specialist and Twitter addict. You can follow all his .

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Hear Music

From Wikipedia, the free encyclopedia

reads likea press releaseora news article

is largely based onroutine coverage

Pleaseexpand this articlewithproperly sourced contentto meet Wikipediasquality standardsevent notability guideline, orencyclopedic content policy.

Hear Musicis a record label that was founded in 2007 in a partnership between Concord Music Group and Starbucks. Hear Music began as a catalog company in Cambridge, Massachusetts, in 1990 before being purchased by Starbucks in 1999.

The Hear Music brand has four components: the music that each location plays; in-store CD sales, including Starbucks exclusives; branded retail stores, which opened shortly after the catalog was formed, and a label distributing their recordings.

As of December 2006, there are fourStarbucksHear Music Coffeehouses: Santa Monica, California, on theThird Street Promenade; San Antonio, Texas, on theRiver Walk; Miami, Florida, on theLincoln Roadshopping promenade; and Bellevue, Washington, inBellevue Square.[1]The original, now-defunct Hear Music Store was located inBerkeley, California. Ten Starbucks locations also have Hear Music media bars, a service which uses tablet PCs to allow customers to create their own mix CDs. The media bars are located in Seattle and in Austin, Texas. The music section in Canadian bookstore chainChapterswas at one time licensed version of the Hear Music concept; however, the company no longer uses the brand name.

Its biggest seller wasRay CharlesGrammy-winningGenius Loves Company, with sales of 2.86 million records; 25% of those were sold at Starbucks locations.

In 2005, Starbucks announced a partnership with singer/songwriterAlanis Morissette. In a six-week deal, Morissette sold an acoustic version ofJagged Little Pillin Starbucks stores only. The acoustic version was released on June 13, 2005 to mark the albums tenth anniversary. This limited availability led to a dispute betweenMaverick RecordsandHMV Canada, who retaliated by removing Morissettes other albums from store shelves for the duration of Starbucks exclusive sale.

In April 2008, Starbucks announced that it was refining its entertainment strategy and turning over the day-to-day management of Hear Music toConcord.[2]

At the same time that Starbucks closed 600 coffeehouses in July 2008, it was announced that the Hear Music label would be shutting down.[2]One of the four Hear Music stores, in Santa Monica, California, has indicated that its music operation will be permanently closed approximately September 20, 2008. Another Hear Music store in Bellevue, Washington has been converted to a regular Starbucks. The Lincoln Road Miami Beach location has since been downgraded as well, since November 2008.

On March 12, 2007 Starbucks andConcord Music Grouplaunched the Hear Music record label.[3][4]The companys first artist signing wasPaul McCartney, leaving his long-time labelEMIon March 21, 2007.[5]

In July 2007, the label signedJoni Mitchelland announced that her first album of new material in nearly ten years,Shine, would be released on September 25, 2007.[6]

In March 2008, it was announced thatCarly Simonhad signed with the label and would be releasing a new album entitledThis Kind of Lovein late April 2008, her first collection of original songs since 2000sThe Bedroom Tapes[7]She blamed poor sales on Hear Musics failure to promote the album. She sued the company and lost.[8]

Harris, Craig (2006-11-24).Starbucks opens Hear Music shop in Bellevue. Seattle Post-Intelligencer

Starbucks Newsroom: Starbucks Redefines Its Entertainment Strategy

Archived copy. Archived fromthe originalon 2013-01-16

Starbucks Launches Hear Music Record Label(Press release).Business Wire. 2007-03-12

Cohen, Jonathan (2007-07-25).Joni Mitchell Joins McCartney On Hear Music Roster.

Rolling Stone: Carly Simon Signs With Starbucks Hear Music

Kornhaber, Spencer (25 February 2015).Starbucks Stops Selling CDs, Because CDs Are Finally Over.

Defunct record labels of the United States

Articles with a promotional tone from July 2016

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Green members in Starbucks Rewards™ get:

When a Green member collects 300 Stars in 12 months, they reach Gold Status. Gold members collect Stars towards free rewards, called Rewards. Redeem 125 Stars for a Reward and enjoy anything on the menu for free.

Gold members in Starbucks Rewards™ get:

Youll reach Gold Status when you collect 300 Stars within a 12 month period.

If you do, well send you a confirmation email. Youll also notice a change in your Starbucks®app when you reach Gold Status, as your Stars will turn from green to gold and youll begin to collect Stars towards Rewards (redeem 125 Stars for a Reward and get anything on the menu).

Youll need to earn at least 1 Star a year to be eligible for Green member benefits.

Monthly Double-Star Days are a special benefit for Gold members. Once a month, Gold members will collect 4 Stars for every $1 spent on all eligible purchases when paying with their Starbucks app or registered card at participating Starbucks®, Teavana®or Evolution Fresh stores.

Every month, well surprise Gold members with a different day to earn double Stars, so be sure to opt-in to email to make sure you know when your day is coming.

A Starbucks®card may be a physical Starbucks®, Teavana®, or Evolution Fresh card, a digital card on your Starbucks®app, or an eGift card.

When you sign up for email, well send you personalized offers and promotions, Starbucks®news and more. Bonus Star offers may help you reach Gold Status or Rewards faster.

To make sure youre signed up to receive offers from us, or to change your contact preferences, clickhere- opens in a new window. After signing in, youll be taken to your contact preferences page.

If that doesnt work, try following these steps:

and log in if you havent already done so.

In the My Contact Preferences section, make sure the box for Yes, please sign me up for Starbucks email newsletters and promotions is selected.

Will my barista know I am a member?

Not necessarilybaristas will not automatically know whos a member of Starbucks Rewards™ and who isnt. To collect Stars as a member of Starbucks Rewards™, youll need to use your registered Starbucks®card every time you visit Starbucks. The barista cant do this for you.

No. Sorry, memberships and Rewards are non-transferable and cant be shared with family members, friends or others.

Yes, you can register more than one Starbucks®card to your Starbucks®account and earn Stars for every purchase you make using both of the registered Starbucks®cards.

No, if you received Starbucks®store credit cards or Teavana®store credit cards, theyre not the same as Starbucks®cards and Teavana®cards. Starbucks®store credit cards and Teavana®store credit cards are issued after a return was made, and money is refunded onto these cards. Youll get to keep the Stars you originally earned with these purchases on your Starbucks®card. However, you wont be able to earn any more Stars by using these Starbucks®store credit cards or Teavana®store credit cards, and these cards cant be registered or reloaded for additional value.

We would love to hear from you. Please share your feedback with us onMy Starbucks Idea- opens in a new window.

Youll earn 2 Stars for every $1 you spend on coffee, food, drinks, merchandise and more when you pay with your Starbucks®app or a registered card at participating Starbucks®, Teavana®and Evolution Fresh stores.

The Stars you collect as a Green member will expire after 12 months from the day you join the program if you do not reach Gold Status, and your Star balance will be reset to zero.

As a Gold member, the Stars you collect towards Rewards will expire after 6 months. Starbucks will always apply the oldest Stars towards your Reward (redeemed with 125 Stars).

For example, if you earn 10 Stars on June 16 and 15 Stars on June 24, your total Star balance for the month25 Starswill expire on January 1.

Yes, your change counts towards partial Stars. Well keep track of all your partial Stars and apply them to your total Stars.

For example, if you spend $6.20 (not including tax, tips, alcohol or other exceptions), youll earn 12.40 Stars.

The .40 is not always visible (we like to keep things simple), but you can always view your Stars and purchase history atstarbucks.com/account/signin- opens in a new windowor in the mobile app.

Yes, when you shop online with a registered Starbucks®card or Teavana®card, youll earn 2 Stars per $1 spent, just as you do in store.

Yes, members receive Bonus Star offers in the Starbucks®app.

No, members do not earn Stars for loading or reloading their registered Starbucks®card.

Periodically, you may have the opportunity to earn Bonus Stars, generally through member-exclusive offers. Starbucks Rewards™ offers are often specific to our members preferences so you may see offers with details that are tailored just for you.

For many offers, the Bonus Stars will appear in your account within 24 hours. However, there are some offers in which the Stars are not awarded until a later date. In addition, you may receive a Star Code by email that you have to redeem. Remember to check your email and spam filters to make sure youre receiving all of your emails from Starbucks. To redeem a Star Code,see here- opens in a new windowfor more information.

Didnt receive a Bonus Star you were expecting? For possible reasons,click here- opens in a new window.

While you can earnStars- opens in a new windowat nearly all Starbucks®locations, there are certain benefits that we can only offer at participating stores. This means most of ourBonus Star- opens in a new windowpromotions can only be awarded for purchases made at participating locations. Specifically, most Starbucks®stores can provide Bonus Stars while Starbucks®store locations or kiosks within grocery, book stores or airports may be unable to extend this benefit.

You can earn Stars at over 7,000 participating Starbucks®stores, as well as at our partner storesEvolution Fresh and Teavana®, or online atstore.starbucks.com- opens in a new window. This includes most Starbucks®locations or kiosks within grocery stores or airports.

You can also earn Stars when you purchase specially marked Starbucks®coffee in grocery aisles. Specially marked packages of Starbucks®products will have a sticker on the front of the package or an insert inside the box with a Star Code. If you received a star code, go to- opens in a new windowto enter your Star Code and sign in to your Starbucks Rewards™ account, or create a new account to join.  You may also earn Stars on non-marked, qualifying Starbucks products available in select grocery stores by saving your receipt and visiting- opens in a new windowFor a list of qualifying products and their associated Star values, visit- opens in a new window

You cant earn Stars on card-to-card transactions with your Starbucks®card (such as activations, reloads, transfers or any other card-to-card transactions). In most stores, alcohol, taxes, tips, donations and fees are also excluded and ineligible for Star accrual.

Gold members will earn 2 Stars for every $1 spent at participating Starbucks®stores. Once they collect 125 Stars, they can redeem them for a Reward (any eligible food or drink at participating Starbucks®, Teavana®and Evolution Fresh stores).See items eligible for Rewards- opens in a new window.

No Reward coupon will be issued. Just let your barista know and present your Starbucks®app or registered card when youre ready to redeem it.

Gold members can redeem their Rewards for any eligible food or drink at participating Starbucks®, Teavana®and Evolution Fresh stores.See items eligible for Rewards- opens in a new window.

Yes. Birthday Rewards expire the day after your birthday. If youre a Gold member, the Stars you collect will expire 6 months after the month in which they were collectedso be sure to use them when you have enough for a Reward (125 Stars).

After you collect 125 Stars, you can choose to redeem them for a free food or drink item (excluding alcoholic beverages and multi-serve items) at any time before they expireeither choose to redeem your Reward in the Starbucks®app when using Mobile Order & Pay, or ask your barista when youre paying at a participating Starbucks®store.

Once your Reward is redeemed, 125 Stars will be removed from your Star balance. Youll continue to earn a Reward for every 125 Stars you accumulate. For example, if you have 250 Stars, youre eligible to redeem two Rewards.

Currently, Rewards can be redeemed at all Starbucks®company-operated locations in the U.S. and Canada. Some licensed store locations, such as kiosks in grocery stores and other retailers, are not able to redeem Rewards at this time. Were working with our licensed stores to allow redemption.

If you use your Starbucks®app or registered card to purchase a beverage and then present that same payment method for a refill, you can get a free refill on any hot or iced brewed coffee or tea during the same store visit at participating Starbucks®stores.

Once you leave the store, your visit has ended and any subsequent coffee or tea refill thereafter would be considered a new purchase.

Yes. During the same store visit youll have to present your Starbucks®app or registered card to the barista for your free refill. Additionally, were excited to include free refills at Teavana®stores (some restrictions apply).

As a Gold member, youre eligible for a Reward every 125 Stars you collect, but you dont have to redeem it right away and can continue to accumulate beyond 125 Stars.

For example, you can have 250 Stars in your account and redeem two Rewards at the same time.

Note that your Stars do expire, however, so be sure to redeem your Stars for Rewards before that happens.See Star expiration info- opens in a new window.

Watch out for an email notification, check your Rewards status online atstarbucks.com/account- opens in a new window, or your Starbucks®app to track your Stars.

Green members dont collect Stars towards Rewards. Green members collect Stars towards Gold Status. When a Green member collects 300 Stars, they achieve Gold Status and begin to collect Stars towards Rewards.

Gold members can redeem a Reward after they collect 125 Stars. As a Gold member, youll choose when to redeem 125 Stars for a Reward.

No, you can add any registered Starbucks®card to your account, or to the Starbucks®app to earn Stars for your purchases and receive Gold-member benefits.

No. Sorry, memberships and Rewards are non-transferable and cant be shared with family members, friends or others.

Mobile Order & Pay is a feature in the Starbucks®app for iPhone®and Android™ that allows you to place your order ahead of time at participating stores. Simply tap Order in the Starbucks®app to get started.

You can change the Starbucks®app location service settings at any point on your mobile device by going to your device settings. For greater control, iOS customers also have the option of selecting Never, When in Use or Always.

The Starbucks®app will show you the Starbucks®store offering Mobile Order & Pay that is closest to your current location. Once you begin your order, you can change stores by tapping the store name and searching on the map that appears, or by swiping right through the store names on the bottom of the screen. You may also change your store while browsing the menu to see what products are available in that store.

To access the Order feature, make sure youve enabled location services for the Starbucks®app.

Go to Settings Privacy Location Services

In the list of apps, scroll to the Starbucks

app and select either While Using or Always

You can add your Starbucks®card to Apple Wallet (formerly known as Passbook) right from your Starbucks®app for iPhone®. Tap Pay, choose which card youd like to add, then tap Manage and Add to Wallet.

Removing your Starbucks®card from Apple Wallet is simple. Launch your Wallet app and find the card you want to remove. Tap the I icon in the lower right-hand corner of the screen to flip your pass for additional options. Removing the card can be done from the back of the pass. Deleting a pass from Apple Wallet can only be done through the Wallet app.

Your balance will automatically refresh every 4 hours. If youd like to manually refresh it, view your Starbucks®card in Apple Wallet and use the pull-to-refresh gesture.

Tap Pay, select the card you want to make your primary card, tap Manage and select Primary Card.

Some restrictions apply. Rewards may be redeemed at participating stores only and exclude alcoholic beverages and multi-serve food and beverage items. Birthday Reward expires one day after your birthday. Stars (including partial Stars) earned toward free food and drink Rewards expire 6 months after they are earned. Stars may not be earned on purchases of alcohol and Starbucks Cards. Taxes, tips, donations, and fees (such as delivery fees, shipping and handling fees, gift wrapping fees and bag fees) may also be excluded. Free refills on brewed coffee and tea available in store during same visit. Must opt-in to receive promotional email from Starbucks to receive special email offers. Personalized Gold Card is gold-colored only, it is not gold metal. Mobile Order & Pay may not be available at all locations.

Starbucks Rewards™ has updated the Terms of Use. Please clickhere- opens in a new windowto view them.

At participating Starbucks®stores. Some restrictions apply. SeeStarbucks.com/terms- opens in a new windowfor details.

For questions related to Starbucks Rewards visit- opens in a new window

Starbucks and the Starbucks logo are registered trademarks of Starbucks Corporation. All rights reserved.

Chase credit cards are issued by Chase Bank USA, N.A.

Deposit products are provided by JPMorgan Chase Bank, N.A. Member FDIC.


SEATTLE / OAKLAND, Calif.; April 10, 2000 Starbucks Coffee Company (Nasdaq:SBUX) and TransFair USA have formed an innovative alliance in which Starbucks will market Fair Trade Certified coffee in over 2,000 retail locations across the United States and through the website. Starbucks purchases of Fair Trade Certified coffee will be from certified importers who have paid the farmers a fair price (as defined by internationally accepted Fair Trade standards for coffee), which will be a premium over the prevailing market price.

Under the agreement, Starbucks will develop marketing, promotional and educational materials about Fair Trade Certified coffee and display TransFair USAs Fair Trade Certified label on coffee that has been grown, processed, traded and marketed in accordance with international Fair Trade criteria. Under the terms of the agreement, Starbucks will source, roast and sell Fair Trade coffee to meet growing consumer demand. After one year from the date the Fair Trade Certified coffee is introduced into the stores, Starbucks and TransFair will evaluate the success of the initiative and define ongoing collaboration based on consumer demand.

This is a breakthrough for Fair Trade Certified coffee in the United States, said Paul Rice, Executive Director, TransFair USA. At a time when international coffee prices continue to fall, farming families around the world depend on the US coffee industry to share the success of the coffee boom. Starbucks extensive network of stores provides an excellent forum to educate customers about Fair Trade. We believe that Fair Trade is the most powerful and direct way for customers to help improve the lives of coffee farmers and their families around the world.

We are very excited about the opportunity to bring Fair Trade coffee certified by TransFair USA to our customers, said Dave Olsen, Starbucks senior vice president, Corporate Social Responsibility. This program will provide an additional opportunity for Starbucks to have a meaningful impact on the working and living conditions faced by many who grow, harvest and process coffee throughout the world.

Starbucks has already purchased and will roast and sell Fair Trade Certified coffees initially from both Guatemala and Nicaragua in calendar year 2000.

Starbucks considers promoting Fair Trade Certified coffee as one of several promising approaches to improving the lives of coffee farmers and their families. Starbucks will continue its efforts with organizations that are helping coffee farmers and their families through support of CARE, Conservation International and other similar organizations.

As part of Starbucks comprehensive strategy to support sustainable coffee production, the company also will expand its purchases of shade grown and organic coffees. Starbucks is committed to its goal of sourcing coffees of the highest quality that support a sustainable social, ecological and economic model for the production and trade of coffee. Starbucks believes that continued and growing participation with these organizations demonstrates our commitment to coffee producers and their families, communities and natural environment.

TransFair USA, a non-profit agency, is the only organization providing independent, third-party certification of Fair Trade products in the US. TransFair promotes mutually-beneficial relationships between farmers and coffee companies, and educates consumers about international trade and economic development. Through regular visits to Fair Trade farmer cooperatives, and partnerships with participating coffee companies in the US, TransFair guarantees that farmers who produce Fair Trade Certified products have received a decent living wage. By monitoring trade from crop to cup, TransFair guarantees that Fair Trade Certified products were grown and traded responsibly.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, the United Kingdom, the Pacific Rim, and the Middle East, Starbucks sells whole bean coffees through its specialty sales group, direct response business, supermarkets and online at m. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company

Starbucks Australian Experience

click on the button below, and select the case from the list of available cases:

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Business Strategy Short Case Studies

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

This case is about the Australia endeavor of Starbucks Coffee International, one of the largest specialty coffee chains of the world. In July 2008, the company closed down the majority of its stores in the island continent citing non-performance triggered by the economic melt-down as a key reason behind the closures. The company said that the closures were a part of the transformation strategy being undertaken by its founder Howard Schultz to revive the companys performance. It also clarified that such a step was unique to Australia and that it would continue to enhance its presence in other international locations.

Starbucks entered the Australian market in July 2000 with its first store being set up in Sydneys business area. Australia was a market with a sophisticated coffee culture and had numerous local cafs catering to its demand for premium coffee. Although the lack of ready acceptance and the presence of various competitors hindered its progress, Starbucks expanded quickly by opening company-owned stores in various towns and cities of Australia. This it did without much customization of its product, process, or promotional strategies. Experts felt that Starbucks failed in the Australian market largely due to its inability to understand the Australian consumer and culture.

The case discusses the circumstances leading to the closure of the majority of Starbucks stores in Australia in 2008. The decision to close down these stores came right after the company had recorded a consolidated net loss for the quarter ended June 29, 2008. It aims at portraying the reasons behind Starbucksfailure to allure the Australian coffee drinker. It also attempts to understand the companys objective and rationale behind partially withdrawing from a coffee-drinking market while it continued to operate in European and other international markets.

Examine reasons for Sainsburys growth and its subsequent slide in the 1990s and early 2000s.

Analyze the reasons for the recovery efforts taken under various CEOs including Peter Davis that did not yield the desired results.

Analyze Justin Kings Making Sainsburys Great Again plan.

Ascertain the challenges the company is likely to face in the future and explore future strategies that the retailer can adopt.

Globalization, Entry, Expansion, Competition, Location, Culture, Australian culture, Commoditization, Standardization, Cannibalization, Gourmet coffee industry, The Starbucks experience, Australian caf market, Experiential marketing

Case Studies in Business Strategy Volume VI

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Starbucks Corporation 1


For the fiscal year ended September28, 2003


incorporation or organization)(IRS Employer

(Registrants Telephone Number, including Area Code): (206)447-1575

Securities Registered Pursuant to Section12(b) of the Act: None

Securities Registered Pursuant to Section12(g) of the Act:Common Stock, $0.001 Par Value Per Share

Indicate by check mark whether the Registrant: (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12months (or for such shorter period that the Registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90days.YesNo

Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of Regulation of S-K is not contained herein, and will not be contained, to the best of the Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form10-K or any amendment to this Form10-K.

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule12b-2 of the Exchange Act):YesNo

The aggregate market value of the voting stock held by non-affiliates of the Registrant, based upon the closing sale price of the Registrants Common Stock on March30, 2003 as reported on the National Market tier of The NASDAQ Stock Market, Inc. was $9,058,001,760.

As of December17, 2003, there were 393,891,489 shares of the Registrants Common Stock outstanding.

Portions of the Registrants Annual Report to Shareholders for the fiscal year ended September28, 2003, have been incorporated by reference into Part II of this Annual Report on Form10-K. Portions of the definitive Proxy Statement for the Registrants Annual Meeting of Shareholders to be held on March30, 2004 have been incorporated by reference into Part III of this Annual Report on Form10-K.

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Market for the Registrants Common Equity and Related Shareholder Matters

Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

Item 8. Financial Statements and Supplementary Data

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 10. Directors and Executive Officers of the Registrant

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 13. Certain Relationships and Related Transactions

Item 14. Principal Accountant Fees and Services

Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K

FORM10-KFor the Fiscal Year Ended September28, 2003

Submission of Matters to a Vote of Security Holders

Market for the Registrants Common Equity and Related Shareholder Matters

Managements Discussion and Analysis of Financial Condition and Results of Operations

Quantitative and Qualitative Disclosures About Market Risk

Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Directors and Executive Officers of the Registrant

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Certain Relationships and Related Transactions

Principal Accountant Fees and Services

Exhibits, Financial Statement Schedules and Reports on Form8-K


Certain statements herein, including anticipated store openings, comparable store sales expectations, trends in or expectations regarding Starbucks Corporations revenue growth, operating expenses, capital expenditures, effective tax rate and net earnings and earnings per share results, all constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, coffee, dairy and other raw materials prices and availability, successful execution of internal performance and expansion plans, fluctuations in United States and international economies, ramifications from the war on terrorism, or other international events or developments, the impact of competitors initiatives, the effect of legal proceedings, and other risks detailed herein and in Starbucks Corporations other filings with the Securities and Exchange Commission.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Users should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. The Company is under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Starbucks Corporation, which was formed in 1985 as a Washington corporation, (together with its subsidiaries, Starbucks or the Company) purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, coffee-related accessories and equipment, a selection of premium teas and a line of compact discs, primarily through Company-operated retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity investees, Starbucks also produces and sells bottled Frappuccino and Starbucks DoubleShotTMcoffee drinks and a line of premium ice creams. These non-retail channels are collectively known as Specialty Operations. The Companys objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the Company plans to continue rapid expansion of its retail operations, to grow its Specialty Operations and to selectively pursue other opportunities to leverage the Starbucks brand through the introduction of new products and the development of new channels of distribution.

The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations.

The Companys retail goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing superior customer service, thereby building a high degree of customer loyalty. Starbucks strategy for expanding its retail business is to increase its market share in existing markets primarily by opening additional stores and to open stores in new markets where the opportunity exists to become the leading specialty coffee retailer. In support of this strategy, Starbucks opened 602 new Company-operated stores during the fiscal year ended September28, 2003 (fiscal 2003). In July 2003, through its acquisition of Seattle Coffee Company (SCC) from AFCEnterprises, Inc., Starbucks acquired 70Company-operated Seattles Best Coffee (SBC) and Torrefazione Italia (TI) stores. At fiscal year end, Starbucks had 3,779Company-operated stores in the United States, 373in the United Kingdom, 316in Canada, 40in Australia and 38in Thailand. Company-operated retail stores accounted for approximately 85% of total net revenues during fiscal 2003.

Starbucks retail stores are typically located in high-traffic, high-visibility locations. Because the Company can vary the size and format, its stores are located in a variety of settings, including downtown and suburban retail centers, office buildings and university campuses. While the Company selectively locates stores in suburban malls, it focuses on stores that have convenient access for pedestrians and drivers.

All Starbucks stores offer a choice of regular and decaffeinated coffee beverages, a broad selection of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages and a selection of teas and distinctively packaged roasted whole bean coffees. Starbucks stores also offer a selection of fresh pastries and other food items, sodas, juices, coffee-making equipment and accessories, a selection of compact discs, games and seasonal novelty items. Each Starbucks store varies its product mix depending upon the size of the store and its location. Larger stores carry a broad selection of the Companys whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee and espresso-making equipment and accessories such as coffee grinders, coffeemakers, coffee filters, storage containers, travel tumblers and mugs. Smaller Starbucks stores and kiosks typically sell a full line of coffee beverages, a limited selection of whole bean coffees and a few accessories such as travel tumblers and logo mugs. Approximately 1,200 stores carry a selection of grab and go sandwiches and salads. During fiscal 2003, the Companys retail sales mix by product type was comprised of approximately 78% beverages, 12% food items, 5% whole bean coffees and 5% coffee-making equipment and accessories.

Starbucks Specialty Operations strive to develop the Starbucks brand outside the Company-operated retail store environment through a number of channels. Starbucks strategy is to reach customers where they work, travel, shop and dine by establishing relationships with prominent third parties that share the Companys values and commitment to quality. These relationships take various forms including licensing arrangements, foodservice accounts and other initiatives related to the Companys core businesses. In certain situations, Starbucks has an equity ownership interest in licensee operations. During fiscal 2003, specialty revenues (which include royalties and fees from licensees as well as product sales derived from Specialty Operations) accounted for approximately 15% of total net revenues.

Although the Company does not generally relinquish operational control of its retail stores in the United States, in situations in which a master concessionaire or another company controls or can provide improved access to desirable retail space, the Company licenses its operations. As part of these arrangements, Starbucks receives license fees and royalties and sells coffee and related products for resale in licensed locations. Employees working in licensed locations must follow Starbucks detailed store operating procedures and attend training classes similar to those given to Starbucks Company-operated store managers and employees.

During fiscal 2003, Starbucks opened 315licensed retail stores in the United States. In addition, Starbucks obtained 76franchised SBC retail stores through the acquisition of SCC in July 2003. As of September28, 2003, the Company had 1,422licensed or franchised stores in the United States. Product sales to and royalty and license fees from these stores accounted for approximately 22% of specialty revenues in fiscal 2003.

The Companys international licensed retail stores are operated through a number of licensing arrangements with prominent retailers. During fiscal 2003, Starbucks expanded its international presence by opening 284 new international licensed stores, including the first stores in Chile, Peru and Turkey. At fiscal year end

Product sales to and royalty and license fee revenues from international licensed retail stores accounted for approximately 17% of specialty revenues in fiscal 2003. In total, worldwide retail store licensing accounted for approximately 39% of specialty revenues in fiscal 2003.

Starbucks has a licensing agreement with Kraft Foods, Inc. (Kraft) to market and distribute Starbucks whole bean and ground coffees to grocery stores as well as in warehouse club stores. Pursuant to that agreement, Kraft manages all distribution, marketing, advertising and promotions for Starbucks whole bean and ground coffee in grocery and mass merchandise stores and pays a royalty to Starbucks based on a percentage of total net sales. Additionally, Kraft distributes Starbucks products to warehouse club stores, for which the Company pays a distribution fee. By the end of fiscal 2003, the Companys whole bean and ground coffees were available throughout the United States in approximately 19,500 grocery and warehouse club accounts. Revenues from grocery and warehouse club accounts comprised approximately 25% of specialty revenues in fiscal 2003.

The Company has licensed the rights to produce and distribute Starbucks branded products to two partnerships in which the Company holds a 50% equity interest: The North American Coffee Partnership with the Pepsi-Cola Company develops and distributes bottled Frappuccino and Starbucks DoubleShot

coffee drinks; and the Starbucks Ice Cream Partnership with Dreyers Grand Ice Cream, Inc. develops and distributes premium ice creams. The associated revenues from these equity investees accounted for approximately 1% of specialty revenues in fiscal 2003.

The Company sells whole bean and ground coffees, including the Starbucks, Seattles Best Coffee and Torrefazione Italia brands, to institutional foodservice companies that service business, industry, education and healthcare accounts, office coffee distributors, hotels, restaurants, airlines and other retailers. In fiscal 2003, Starbucks became the only premium national brand coffee actively promoted by SYSCO Corporations national broadline distribution network. The Company is currently in the process of transitioning the majority of its foodservice accounts to the broadline distribution network as well as aligning its current foodservice sales, service and support resources with SYSCO Corporation. This alliance is expected to improve service levels to current customers and generate new foodservice accounts over the next several years. In fiscal 2003, the Company had approximately 12,800 foodservice accounts, and revenues from these accounts comprised approximately 27% of specialty revenues.

The Company has several other initiatives designed to enhance its core business. For example, the Company has marketed a selection of premium tea products since the acquisition of Tazo, L.L.C. in 1999. The Company maintains a website at through which customers may purchase, register or reload a Starbucks stored value card, as well as apply for the Starbucks Card DuettoTMVisa (the Duetto Card), issued through the Companys agreement with BankOne Corporation and Visa. The Duetto card is a first-of-its-kind card combining the functionality of a credit card with the convenience of a reloadable Starbucks card. Additionally, the website contains information about the Companys coffee products, brewing equipment and store locations. The Company also maintains an e-commerce site at m, from which customers may purchase coffee, coffee flavorings and gift items online. Collectively, these operations accounted for approximately 8% of specialty revenues in fiscal 2003.

Information about the Companys total net revenues, earnings before income taxes, depreciation and amortization, income from equity investees and identifiable assets by segment is included in Note18 of the Companys consolidated financial statements included in Exhibit13 to this report.

Starbucks is committed to selling only the finest whole bean coffees and coffee beverages. To ensure compliance with its rigorous coffee standards, Starbucks controls its coffee purchasing, roasting and packaging, and the distribution of coffee to its retail stores. The Company purchases green coffee beans from coffee-producing regions around the world and custom roasts them to its exacting standards for its many blends and single origin coffees.

The supply and price of coffee are subject to significant volatility. Although most coffee trades in the commodity market, coffee of the quality sought by the Company tends to trade on a negotiated basis at a substantial premium above commodity coffee prices, depending upon the supply and demand at the time of purchase. Supply and price can be affected by multiple factors in the producing countries, including weather, political and economic conditions. In addition, green coffee prices have been affected in the past, and may be affected in the future, by the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements establishing export quotas or restricting coffee supplies.

The Company depends upon its relationships with coffee producers, outside trading companies and exporters for its supply of green coffee. Prices for green coffee of the quality purchased by Starbucks reached historic lows for the Company in 2002 and have gradually increased since then. In an effort to encourage the continuing supply of high quality coffee, the Company negotiates contracts directly with its suppliers and has been successful in securing long-term contracts for the majority of its coffee requirements on this basis. The Company routinely enters into fixed-price purchase commitments for future deliveries of coffee. As of September28, 2003, the Company had $287.2million in fixed-price purchase commitments which, together with existing inventory, are expected to provide an adequate supply of green coffee for calendar 2004. The Company believes, based on relationships established with its suppliers in the past, that the risk of non-delivery on such purchase commitments is low. There can be no assurance that these activities will successfully protect the Company against the risks of higher coffee prices or that such activities will not result in the Company having to pay substantially more for its coffee supply than it would have been required to pay absent such activities.

In addition to coffee, the Company also purchases significant amounts of dairy products to support the needs of its Company-operated retail stores. Fluid milk is purchased from multiple suppliers who have processing facilities near concentrations of Company-operated retail stores. Dairy prices vary throughout the year as supply and demand fluctuate and are subject to additional changes due to government regulations.

The Company also purchases a broad range of paper and plastic products, such as cups, lids, napkins, straws, shopping bags and corrugated paper boxes from several companies to support the needs of its retail

stores as well as its manufacturing and distribution operations. The cost of these materials is somewhat dependent upon commodity paper and plastic resin costs, but the Company believes it mitigates the effect of short-term raw material price fluctuations through strategic relationships with key suppliers.

Products other than whole bean coffees and coffee beverages sold in Starbucks retail stores are obtained through a number of different channels. Beverage ingredients other than coffee and milk are purchased from several specialty manufacturers, usually pursuant to long-term supply contracts. Food products, such as fresh pastries and lunch items, are generally purchased from both regional and local sources. Coffee-making equipment, such as drip and French press coffeemakers, espresso machines and coffee grinders, are generally purchased directly from their manufacturers. Coffee-related accessories, including items bearing the Companys logos and trademarks, are produced and distributed through contracts with a number of different suppliers.

The Companys primary competitors for coffee beverage sales are restaurants, specialty coffee shops and doughnut shops. In almost all markets in which the Company does business, there are numerous competitors in the specialty coffee beverage business, and management expects this situation to continue. Although competition in the beverage market is currently fragmented, a major competitor with substantially greater financial, marketing and operating resources than the Company could enter this market at any time and compete directly against the Company.

The Companys whole bean coffees compete directly against specialty coffees sold through supermarkets, specialty retailers and a growing number of specialty coffee stores. Both the Companys whole bean coffees and its coffee beverages compete indirectly against all other coffees on the market. The Company believes that its customers choose among retailers primarily on the basis of product quality, service and convenience, and, to a lesser extent, on price.

The Company believes that supermarkets are the most competitive distribution channel for specialty whole bean coffee, in part because supermarkets offer customers a variety of choices without having to make a separate trip to a specialty coffee store. A number of nationwide coffee manufacturers are distributing premium coffee products in supermarkets that may serve as substitutes for the Companys coffees. Regional specialty coffee companies also sell whole bean coffees in supermarkets.

In addition to the competition generated by supermarket sales of coffee, Starbucks competes for whole bean coffee sales with franchise operators and independent specialty coffee stores. In virtually every major metropolitan area where Starbucks operates and expects to expand, there are local or regional competitors with substantial market presence in the specialty coffee business. Starbucks Specialty Operations also face significant competition from established wholesale and mail order suppliers, some of whom have greater financial and marketing resources than the Company.

The Company faces intense competition from both restaurants and other specialty retailers for suitable sites for new stores and qualified personnel to operate both new and existing stores. There can be no assurance that Starbucks will be able to continue to secure adequate sites at acceptable rent levels or that the Company will be able to attract a sufficient number of qualified personnel.

Patents, Trademarks, Copyrights and Domain Names

The Company owns and/or has applied to register numerous trademarks and service marks in the United States and in more than 140 additional countries throughout the world. Rights to the trademarks and service marks in the United States are generally held by a wholly-owned subsidiary of the Company and are used by the Company under license. Some of the Companys trademarks, including Starbucks, the Starbucks logo and Frappuccino, as well as other acquired trademarks and trade names such as Seattles Best Coffee and Torrefazione Italia are of material importance to the Company. The duration of trademark registrations varies from country to country. However, trademarks are generally valid and may be renewed indefinitely as

long as they are in use and/or their registrations are properly maintained, and they have not been found to have become generic.

The Company owns numerous copyrights for items such as product packaging, promotional materials, in-store graphics and training materials. The Company also holds patents on certain products, systems and designs. In addition, the Company has registered and maintains numerous Internet domain names, including Starbucks.com and . While valuable, the Company does not view its current copyrights, patents and domain names as material to its business.

The Companys research and development efforts are led by food scientists, engineers, chemists and culinarians in the Research and Development department. This team is responsible for the technical development of food and beverage products and new equipment. Recent development efforts have resulted in successful flavor line extensions for espresso-based beverages, coffee and non-coffee based Frappuccino blended beverages; new items for the Companys morning pastry and lunch lines; and the launch of iced shaken refreshment beverages made with Starbucks brewed coffee or Tazo tea. The Company spent approximately $5.4million during fiscal 2003 on technical research and development activities, in addition to customary product testing and product and process improvements in all areas of its business.

The Companys business is subject to seasonal fluctuations. Significant portions of the Companys net revenues and profits are realized during the first quarter of the fiscal year, which includes the December holiday season. In addition, quarterly results are affected by the timing of the opening of new stores, and the Companys rapid growth may conceal the impact of other seasonal influences. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

As of September28, 2003, the Company employed approximately 74,000people, approximately 68,000 in retail stores and the remainder in the Companys administrative and regional offices, and store development, roasting and warehousing operations. At fiscal year end, employees at 10 of the Companys Canadian stores and a group of nine maintenance mechanics and technicians at one United States roasting plant were represented by unions. The Company believes that its current relations with its employees are good.

Certain Additional Risks and Uncertainties

In fiscal 2004, the Company expects to open approximately 1,300new stores worldwide and expects Company-operated comparable store sales growth to be in the range of 3%-7%, with monthly anomalies. Management expects total net revenue growth of approximately 20% and earnings per share growth of approximately 20-25% per year for the next 3-5years. Managing rapid growth can be challenging, and any failure to execute that growth effectively could adversely impact the Companys business, financial condition and results of operations.

The Companys financial performance is highly dependent upon the retail operations of the United States operating segment. Any substantial, sustained decline in these operations would have a material adverse effect on the Companys business, financial condition and results of operations. Declines in financial performance could arise from, among other things:

failure to identify and secure real estate locations sufficient to meet annual targets for store openings;

shortfalls in comparable store sales growth expectations; and

negative trends in operating expenses.

The Companys International operating segment (excluding Canada) is not currently profitable, and its international stores and licensees may not be successful in their operations or in achieving expected growth. Some factors critical to the success of the Companys international stores and licensees are different than those affecting the United States stores and licensees. The economies of a number of the international markets in which Starbucks and its licensees operate have been weak in recent years. Tastes naturally vary by region, and consumers in the new international markets into which Starbucks and its licensees expand may not embrace products and services to the same extent as consumers in the Companys existing United States markets. Occupancy costs and store operating expenses are sometimes higher internationally than in the United States due to higher rents for prime, inner-city store locations or due to local laws that make it more expensive to retain or terminate employees. The Companys International operations are also subject to the inherent risks of foreign currency fluctuations and changes in economic, social and political conditions. Because the Companys International operations are in an early phase of development and have country-specific regulatory requirements, they require a more comprehensive field organization, compared to the United States, to provide resources and respond to the business needs in each region.

Future operating results for the Company may fluctuate, perhaps significantly, depending upon a number of factors which include, but are not limited to, the following:

the Companys ability to continue to increase net revenues and operating income in the United States operating segment;

the Companys ability to grow operating income in the International operating segment;

the impact of recording the cost of future stock option grants as an expense in the consolidated statements of earnings; and

general economic conditions in the markets in which the Company operates.

Market expectations for the Companys financial performance are high, and Starbucks stock often trades at a significant multiple to expected earnings per share. Failure to meet these market expectations could cause the price of the Companys common stock to drop rapidly and sharply. Investing in Starbucks common stock entails assuming the risk that the Company may not meet the markets high expectations.

The Companys annual reports on Form10-K, along with all other reports and amendments filed with or furnished to the Securities and Exchange Commission are publicly available free of charge on the investor relations section of the Companys website at as soon as reasonably practicable after the Company files such materials with, or furnishes it to, the Securities and Exchange Commission. The Companys corporate governance policies, ethics code and Board of

Vision Ingenuity Guts Its how you climb to theop and stayhere

Teenage entrepreneurs. A makeshift garage office. Barely a trace of seed money. From nothing, childhood friends, Jay Deutsch and Eric Bensussen, built an industry-leading global company, a first-of-its-kind Merchandise Agency. And to this day, pulling off the impossible is still what separates BDA.

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This is my brand! This is who I am!

on the inside? Youve come to the right place. Well help ignite your brand community with tangible results.

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Generating awareness, increasing revenue and creating brand loyalists.

Supply chain visibility, quality assurance and on-time delivery, every time.

Generating awareness, increasing revenue and creating brand loyalists.

Supply chain visibility, quality assurance and on-time delivery, every time.

How? For starters, by doing the work ourselves. When you trust us with your brand, its really us.

Our sourcing pros ensure you realize unbeatable hard and soft cost savings. Weve assembled a diverse network of preferred suppliers and manufacturers, with an expectation that each performs as a valued partner, not simply a provider of goods.

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Even the most ingenious, spot-on product is a failure if it isnt delivered on time. Our promise is perfect product, superior customer service and on-time delivery every time. And our clients love us for it.

Between our offices in North America, the Philippines, China, and the UK, procurement is a 24/7 enterprise. Our network of extensively vetted, best-in-class suppliers and manufacturers spans the globe, allowing for versatile and cost-efficient solutions.

Behind the products and process, its our people who ultimately set us apart. We are invested and engaged in your business and it shows in our agency-wide commitment to providing customer service that leaves a lasting impression.

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Its easy to call yourself a global agency. Whats difficult is to deliver like one.

We welcome the chance to measure our global reach against anyone. Today, we call North America, the Philippines, China, and the UK home. Tomorrow? Stay tuned. Plans are always in motion to further expand our footprint and take your brand to places its never been. The international demand for branded merchandise is exploding and our local market expertise opens up a world of possibilities. Well see you abroad.

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Most companies claim to have the best people. We say to them, Keep dreaming. Our people are second to none. They set us apart with their entrepreneurial spirit, ambition and borderline unhealthy obsession with Halloween. (Have you seen the pictures?) They come to us from the likes of Amazon, Microsoft, Nordstrom, Starbucks and the sports world, bringing energy, bold ideas and a willingness to dive into the unfamiliar. Its our people that make BDA one of Seattles 100 Best Companies to Work for. From account management to design to operations, our people have a genuine passion for this business that shines through in everything we do.

What campaign is making headlines? Whos talking about us? Read on.

As Baseball Playoffs Begin, a Question Looms: Are There Enough Red Towels? In the News

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