Starbucks Corporation Ppt Ashok Lahoty

8/8/2019 Starbucks Corporation Ppt Ashok Lahoty

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tarbuckstarbucksCorporationorporationPresented by :Ashok Lahoty

Sec: D


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PresentationOutline

Introduction of Starbucks The company background

Market competition

The Growth segment

Starbucks Experience

Bean stock plan

Leveraging the brand

Expansion into ASIAN CountriesEntry into JAPAN


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Introduction to Starbucks

Company started in 1971 in seattle,Washington

Grew from 55 stores in 1989 to over 2200

stores today

Products sold include:

- Beverages - Pastries

- Whole coffee - Coffee-relatedretail items

- beans


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he Companyhe CompanyBackgroundackground


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In 1971 three Seattle entrepreneursJerry Baldwin,Zev Siegl, and Gordon Bowkerstarted sellingwhole-bean coffee in Seattle's Pike Place Market.

In 1982 Howard Schultz has joined Starbucks asmanager of retail sales and marketing.

For a history of the coffeehouse, There are 200,000coffee bars in Italy, and about 1500 in Milanalone.

In 1989 to 1990 company lost $1.2 million asoverhead expansion.

In 1996 company employs 16600individuals,include 15000 in retail and regionalofices.

in 1991, net revenues increased at a compoundedannual growth rate of 61 percent as $696 million.


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Market Competition


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Germany and Japan are best coffee

consumer.

Starbucks has started explore the strategyin asian countries.

In 1962 on an average consumption 3.1coffee per day.

Which was in 1980 bottoming out at anaverage consumption of 1.8 cups per day.


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he Growthhe GrowthSegmentegment


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SCCA predicts in 1999 that coffee will capture

about 30% of the market of retail sales of $5Billion.

The numbers of Bars Grow 10000 up in 1999 from4500 in 1994 and 1000 in 1989.

Retail sales volume Grew from 1969 as $45 millionto $ 2.0 Billion in 1969.

There are app. 35 million coffee drinkers in US only.

Some analysts attribute the explosive growth inspecialty coffees to the poor economy.


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growth: Year 1992 1993 1994 19951996 1997

Total stores 165 272 425 676 10061381

Total stores 65% 56% 59% 49% 37%change

Revenue 103K176K 284K465K696K

966K

Revenue change 71% 61% 64% 50% 39%


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tarbuckstarbucksExperiancexperiance


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According to Schultz, "We're not just selling acup of coffee, we are providing anexperience.

people who prepare the coffee are referred toas "baristas, now they referred to starbucks.

The stores range from 200 to 4,000 squarefeet,with new units tending to range from

1,500 to 1,700 square feet.In 1995, the average cost of opening a new

unit was about $377,000. The firm employs astaff of over 100 people for plan, design and

build the unique interiors.The company manage customer service has

seven hrs daily.

Company also provide their employee to healthcare service around $150 per month.


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ean stock planean stock plan


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Employee turnover is also discouraged by

Starbucks' stock option plan known as theBean Stock Plan.

It is implemented in angust 1991 by starbucksto offer stock option unilaterally to allemployees.

This plan gettting an exemption from thesecurity commission.

In 1995 company demonstrated employeewelfare so human group of coffee pickers canreceive less than $3 a day.

Starbucks became the first agriculturalcommodity importer to implement a code forminimal working conditions and pay for


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everaging theeveraging theBrandrand


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Besides coffee bars starbucks has set up

cafes and carts in hospitals, banks, officebuildings, supermarkets and shoppingcenters.

In 1992 company deal with nordstrom toserve coffee in all stores.It operate 62

restaurants and 48 espresso bars.In 1995 company also sign another deal

with UA to provide coffee to 75 millionpassengers in a year.

They also launched a line of packaged teasin response to growing demand of tea.

An agreement with pepsico brought bottle

version of starbucks coffee.


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xpansion into asianxpansion into asiancountriesountries


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After getting growth policy in theinternational expansion as 307

stores in 1996 and 2000 in 2000,in new markets in North Americaincluding Phoenix, Arizona, and

Miami, Florida.company planinvested in asian marketcompare of Europe.

Company invested $1.5 millionfor international subsdiary of 12managers developing various

attribute.


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ntry into JAPANntry into JAPAN


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In October 1995, Starbucks entered into a

joint venture with a Tokyo-based Sazaby .

Japan is worlds 3rd

largest coffee consumerhaving 115143 coffee shops.

Pronto Corp., is Japans second largestcoffee-bar chain opened in 1987 .

Company opened 12 stores in japan in endof 1997 as 250 million yen in capitalizationin equally shares.

With sazaby assistance firm opened 2stores in Tokyo for japanese customerattraction which offer beverages snacksetc.


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Starbucks Corporation Ppt Ashok Lahoty

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