HISTORY• Starbucks Corporation - an American global coffee

company based in Seattle, Washington, started in march 1987

• Largest coffee-house company in the world with 20,891 stores in 62 countries.

• President and CEO - Howard Schultz.

• Places high value on ethical behaviour and company-wide diversity.

• Offers espresso menu items, refreshments and pastries, merchandise, brewing accessories, gifts and books.

OBJECTIVESStarbucks primary goal is to provide:

• total customer satisfaction by ensuring

their coffee is available in all varieties

• reasonably affordable prices

• meeting and exceeding customer

expectations.

• Providing perfectly made coffee

taste,richness and image of “premium

coffee”

• “Establish starbucks as the

premier provider of the finest

coffee in the world while

maintaining their

uncompromising principle while

growing at the same time”.

STARBUCKS USP

• Starbucks tried to position themselves as

a premium product in the coffee industry

by creating a high standard, introducing

innovative products and providing

excellent service.

• Inspiring and nurturing the human spirit-

“one person, one cup, and one

neighborhood at a time”

MARKETING STRATEGIES• Giving personal touch to customers.

• Great word of mouth.

• Clusters of coffee shops.

• Adding value

• Great offers

MOBISTAR• Starbucks ads not only expand to full screen of

cell phones, but also incorporate feature of swipe, tap and shake for users to engage for brand.

• Consumers receive an image featuring images of animals holding frappuccino of their own.

• It’s no surprise that Starbucks was named Mobile Marketer of the Year twice in the past three years payment volume has seen a 73% increase year-over-year, according to Business Insider.

YEAR 2010 2011 2012 2013 2014

SALES/REVENUE

10.71B 11.7B 13.3B 14,89B 16.45B

The flow chart shows the increasing revenue trend of starbucks

PLAN-STRATEGY SOURCE-DEFINE ITMAKE-THE BEST COFFEE DELIVER-BEST

DISTRIBUTION CHANNELS

• Uses multiple channels of distribution;utilises

more than one distribution design.

• Sell products through direct retail system in

company owned stores.

• Also sells in supermarkets and shopping

centers.

• Distribution agreement with office coffee

supplier,hotels&airlines.

• Reach wider market& glorify brand name.

OPERATIONAL

COST

RISING

SALES

DECLINING

3 STEP PLAN

PLAN FOR

RECOVERY

3 STEP EVALUATION:

1. Recognizing supply chain organization;

simplifying structure.

2. Focus on reducing costs; improving supply

chain execution.

3. Lay foundation for supply chain capability for

the future.

SINGLE GLOBAL LOGISTICS SYSTEM

1. Brings coffee from Latin

america,africa,asia,us and Europe in ocean

countries.

2. Unroasted beans sent to 6 storage cities.

3. Transported to several distribution

centers(DC’s)..

4. 5 DC’s in US,2 company owned,3PL’s(third

party logistics)

5. 33 CDCs in US,7 in Asia,5 in canada,3 in

Europe.

WHEN SALES FELL SHORT

• On sep.28,2014 starbucks reported its

sales revenue at $4.18 billion; fell

short of $4.24 billion.

• Due to this, share price went down

4% at $74.04.

• So, what was it that they followed

and applied their backup plan.

WHAT THEY DID?• The sales force started working with their

targets for online delivery of starbucks

products.

• Moreover, they launched Fizzio soda drinks

and tea variants to increase their sales.

• To boost sales they started revamping their

sandwiches and added a variant like grilled

sandwich and the sales team made sure to

work according to the new target in 2015.

GARIMASUMIT

IRAMHARPREET