STARBUCKS

SUBMITTED TO: Mr. Sachin Jain

SUBMITTED BY : Aanchal Jain

ABOUT

STARBUCKS

• Starbucks Corporation, doing business

as Starbucks Coffee, is an American global coffee

company and coffeehouse chain based

in Seattle, Washington.

• Starbucks is the largest coffeehouse company in

the world ahead of UK rival Costa Coffee

• Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks.

• Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such as mugs and tumblers.

• Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm.

• Through the Starbucks Entertainment division

and Hear Music brand, the company also markets

books, music, and film.

• Many of the company's products are seasonal or

specific to the locality of the store. Starbucks-

brand ice cream and coffee are also offered

at grocery stores.

FOUNDING

• The first Starbucks opened in Seattle,

Washington, on March 30, 1971, by three

partners who met while they were students

at the University of San Francisco

• English teacher Jerry Baldwin,

• History teacher Zev Siegl, and

• Writer Gordon Bowker

BALDWIN – BOWKER – SIEGL

HOWARD SCHULTZ

CEO OF STARBUCKS“Starbucks may become another

soulless big chain”

Co-authored: “Pour Your Heart Into It”

58 years old

Graduated in Business & Marketing

Started his own coffeehouse: Il Giornale Coffee in 1985

Purchased Starbucks Coffee (6 stores) in 1987

Renamed Il Giornale Coffee with the Starbucks name

Expanded aggressively first across the United States and

then around the world

STARBUCKS

STORY

• The Starbucks Story began in 1971. Back then

they were a roaster and retailer of whole bean and

ground coffee, tea and spices with a single store in

Seattle’s Pike Place Market.

• Today, they are connected with millions of

customers every day with exceptional products

and more than 21,000 retail stores in 68 countries

FOLKLORE

• Starbucks is named after the first mate in Herman

Melville’s Moby Dick.

• The logo is also inspired by the sea – featuring a

twin-tailed siren from Greek mythology.

STARBUCKS MISSION

“ To inspire and nurture the human spirit –

one person, one cup and one neighbourhood

at a time. “

STARBUCKS COFFEE

• Starbucks has always believed in serving the best coffee possible.

• The goal for all of Starbucks coffee is to be grown under the highest standards of quality, using ethical sourcing practices.

• The coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality beans.

STORES

“ Our stores are a neighbourhood gathering place for meeting friends and family “

Total stores: 21,878*

(as of December 28, 2014)

STARBUCKS ‘PARTNERS’

“ Our employees, who we call partners, are at the heart of the Starbucks Experience. We believe in treating our partners with respect and dignity “

STARBUCKS

COMPANY

PROFILE

• Coffee: More than 30 blends and single-origin premium

coffees.

• Handcrafted Beverages: Fresh-brewed coffee, hot and iced

espresso beverages, Frappuccino® coffee and noncoffee

blended beverages, Starbucks Refreshers™, smoothies and

teas.

• Merchandise: Coffee- and tea-brewing equipment, mugs

and accessories, packaged goods, music, books and gifts.

• Fresh Food: Baked pastries, sandwiches, salads, salad and

grain bowls, oatmeal, yogurt parfaits and fruit cups.

TIMELINE

• 1971 : Starbucks opens first store in Seattle’s Pike Place Market.

• 1985 : Howard found IlGiornale

• 1987 : IlGiornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation.

• 1994 : Total stores:425

• 1996 : Opens stores in: Japan(first store outside of NorthAmerica) and Singapore.

Total stores: 1,015

• 1997 : Establishes The Starbucks Foundation

• 1998 : Acquires Tazo, a tea company based in Portland,Ore.

Opens stores in: Malaysia, NewZealand, Taiwan,Thailand and U.K.

Total stores:1,886

• 2001 : Introduces the Starbucks Card, an innovative stored‐value card for customers to use and reload.

Opens stores in: Austria and Switzerland.

Total stores:4,709

• 2004 : Opens stores in France.

Total stores:8,569

• 2005 : Jim Donald becomes president and chief executive officer

AcquiresEthosWater

• 2006 : Launches the industry’s first paper

beverage cup containing post‐consumer

recycled fiber, saving more than 75,000 trees

each year.

• 2007 : Eliminates all artificial trans fat

EVOLUTION OF

LOGO

STARBUCKS LOGO (1971-1987) Il GIORNALE LOGO (1986-1987)

A logo based on an old sixteenth-century

Norse woodcut: a two-tailed mermaid, or

siren, encircled by the store’s original

name, Starbucks Coffee, Tea, and Spice.

Logo reflected the emphasis on

speed. The Il Giornale name was

inscribed in a green circle that

surrounded a head of Mercury,

the swift messenger god.”

STARBUCKS LOGO

(1987-1992)

“To symbolize the melding of the two companies [Il

Giornarle and Starbucks] and two cultures, Terry

[Heckler] came up with a design that merged the two

logos.

STARBUCKS LOGO (1992-2011) 2011 – and beyond

“This new evolution of the logo

… embraces and respects our

heritage and at the same time,

evolves us to a point where we

will feel it’s more suitable for

the future”

MENU

DRINKS• Starbucks Refreshers Beverages

• Evolution fresh

• Iced Tea

• Bottled Drinks

• Freshly Brewed Coffee

• Chocolate Beverages

• Espresso Beverages

• Frappuccino Blended Beverages

• Kids’ Drinks and Others

• Smoothies

• Fizzio Handcrafted Sodas

• Iced Coffee

FOOD

• Bakery (Muffins, scones & more were made to go

with coffee)

• Starbucks Petites (Petite-sized treats)

• Bistro Boxes ( lunch )

• Evolution Harvest

• Hot Breakfast

• Sandwiches, Paninis & Salads

• Yogurt and Fruit

LOCATION

The company's headquarters is located

in Seattle, Washington, United States, where

3,500 people worked as of January 2015.

AUTOMATED LOCATIONS

Starbucks has automated systems in some

areas. These machines have 280 possible

drink combinations to choose from. They

have touch screens and customers can play

a game while they wait for their order.

Most stores are located in high trafficked, high

visibility areas, such as :

1. Office Buildings

2. Downtown and suburban retail centres

3. Airport Terminals

4. University Campuses

5. Busy neighbourhood shopping areas convenient

to pedestrian traffic

FACILITIES

• Free Wi-Fi Internet access varies in different regions.

• Customers with a Starbucks Card are able to log-on to the Wi-Fi in-store for free with their card details.

• In October 2012, Starbucks and Duracell Powermat announced a pilot program to install Powermat charging surfaces in the tabletops in selected Starbucks stores in the Boston area

• Further more, Starbucks announced that it would soon create a real-world ecosystem of wireless power, by creating a universal standard for wireless charging, and to help the customers to recharge their smart phones.

STORE DESIGN

• Believe that coffeehouse should be a place to find connection.

• Each new and renovated store uses one of four design concepts :

• Heritage coffeehouses

• Artisan stores

• Regional Modern

• Concept stores

SEGMENTING

MARKETS

Starbucks uses demographic segmentation

(markets by age, gender, income, ethnic

background , and family life cycle)

as well as geographic segmentation ( markets by

region of a country or the world, market size,

market density or climate).

TARGET

CUSTOMER

Starbucks’ primary target market is men and women aged 25 to 40.

They account for almost half (49 percent) of its total business . Customers tend to be urbanites with relatively high income, professional careers and a focus on social welfare. This target audience grows at a rate of 3 percent annually.

Young adults, aged 18 to 24 :

Starbucks positions itself as a place college

students can hang out, study, write term

papers and meet people. Starbucks appeals to

this consumer directly through introducing

technology as soon as it comes available,

focusing on social networking and actively

cultivating a “cool” image. The young adult

audience grows 4.6 percent each year.

MARKET

POSITIONING

• Starbucks has positioned itself as a highly

respected brand.

• The Starbucks Company has positioned

itself in a way that it can distinguish their

products from competition , which gives

them an advantage

MARKETING

STRATEGIES

• “Perfect cup of coffee”- Their coffee, even if priced

slightly more expensive than expected, is famous

for satisfying customers with rich , delicious taste

and aroma.

• “Customer Satisfaction” – From entrance to the

store to the very last drop of the coffee, it is a must

that customers feel the uniqueness of enjoying

their Starbucks coffee experience.

• “Creating Starbucks Community” – Starbucks

started a community website, My Starbucks

Idea,designed to collect suggestions and feedback

from customers.

• “Innovation” – They’ve added different flavours to their coffee, more food on their menu, free weekly songs or app download from iTunes, free Wi-fiInternet usage, free birthday drink etc.

• “Just say yes “ policy in order to keep the customers happy

• “My Starbucks Reward Program” allows members to earn a free drink after every 15 purchases at participating Starbucks stores

• Starbucks Card – It is a stored value card for customers to use and reload.

• “Adding Value” - That little bit of extra value

beyond the fare of coffees and cakes keeps the

customers going back again and again.

• “Getting personal with Customers” - the staff

always ask your name – which they write on your

cup.

• “Cluster of coffee shops” - Part of Starbucks’

marketing strategy is to hit a new territory hard

and open a few coffee shops there – often in very

relatively close proximity to one another.

• “Third Place” – From the very beginning, the Starbucks marketing

strategy has focused on creating the “third place” for everyone to go

to between home and work. Creating this unique and relaxing

“experience” and “atmosphere” for people has been very important

for the company as they have realized that this is one of the

strongest concepts attached to the company, to which customers

have been strongly attracted.

SOCIAL MEDIA

Their social media strategy is built around

their company web site and 6 additional

social platforms, including Twitter,

Facebook, Pinterest, G+, Youtube, and My

Starbucks Ideas.

STARBUCKS

IN

INDIA

• Starbucks had entered the Indian market in

October 2012

• Tata Starbucks Limited is the 50:50 joint venture

between Starbucks Coffee Company and Tata

Gold Beverages Ltd.

• The outlets are branded Starbucks "A Tata

Alliance".

PRODUCTS

Apart from the usual products offered

internationally, Starbucks in India has some

Indian style product offerings such as

Tandoori Paneer Roll, Elaichi Mawa

Croissant and Murg Tikka Panini to suit

Indian customers.

• As of March 2015, Starbucks operates 67 outlets in 7 cities of India.

• Delhi including NCR region – 20

• Mumbai – 24

• Pune - 7

• Bangalore – 10

• Chennai – 2

• Hyderabad - 4

SWASTHA

• Starbucks and Tata share common values of responsible business ethics and a commitment to community.

• Tata Coffee Limited has been working to improve the lives of coffee growing communities in the State of Karnataka.

• Through an initial financial commitment, Starbucks will work with Tata to support the expansion of 'Swastha,' a school for children with special needs and aim to increase its capacity and outreach into the rural communities in the coffee growing region of Karnataka.

CHAI PROJECT

• Community, Health and Advancement Initiative (CHAI)—a collaboration between the Starbucks Foundation, Tazo® Tea, Mercy Corps, Indian tea companies and origin communities in India and Guatemala.

• In India, Starbucks has contributed to tea growing communities for many years. Since 2003, Starbucks has collaborated with Mercy Corps on the CHAI Project in Darjeeling and Assam to help improve the quality of life for 190 tea and botanical communities in a sustainable way.

Today, CHAI is helping people in origin

communities to:

• Improve access to water and sanitation

• Help young people succeed in school and become

leaders in their communities

• Learn the skills to get a job or start a business

ENVIRONMENTAL

STEWARDSHIP

Starbucks believe in the importance of caring for our planet and working with and encouraging others to do the same. As a company that relies on an agricultural product, it makes good business sense.

• Recycling

• Energy

• Water

• Green Building

• Climate Change

MY STARBUCKS

REWARDS

• Earn 1 Star every time you spend INR 300 with your registered Starbucks Card at any of our stores in India. The more Stars you earn, the greater the rewards you receive.

• As you collect Stars, you move up to bigger benefits. There are three reward levels.

• WELCOME

• GREEN

• GOLD

AWARDS

• “No. 1 Best Coffee,” Fast Food and Quick Refreshment categories Zagat’s Survey of National Chain Restaurants – 2009‐2011

• “No. 1 Most Popular Quick Refreshment Chain” Zagat’s Survey of National Chain Restaurants – 2009‐2011

• One of“The 100 Best Companies to Work For” Fortune – 1998–2000, 2002–2012

• One of the “Most Admired Companies in America” Fortune –2003–2012

• One of the “World’s 50 Most Innovative Companies” Fast Company – 2012

• One of the “World’s Most Ethical Companies” Ethisphere

– 2007‐2012

• One of the “100 Best Corporate Citizens” Corporate

Responsibility/Business Ethics – 2000‐2012

• “Sustainability Design Award” Global Green USA – 2011

• “Most Ethical Company, European Coffee Industry”

Allegra Strategies – 2009‐2011

• “Business Person of the Year,” Howard Schultz, Starbucks

chairman, president and chief executive officer Fortune –

2011

SWOT

ANALYSIS

STRENGTHS

Product diversification

Established logo, developed brand,

copyrights, trademarks, website and patents

Company operated retail stores

International presence

Valued and motivated employees, good

working environment

Good relationships with suppliers

Industry market leader

Customer loyalty

Wide spread and consistent

Knowledge based

Strong Board

Trendy brand image

Strong financial foundation

WEAKNESSES

Cross functional management

Product pricing is high

THREATS

Competition (restaurants, street carts,

supermarkets, other coffee shops, other

caffeine based products)

Coffee price volatility in developing

countries

Negative publicity from poorly treated

farmers in supplying countries

Consumer trends toward more healthy ways

and away from sweet coffee beverages and

cakes

Cultural and Political issues in foreign

countries

OPPORTUNITIES

Expansion into

retail operations

Technological

advances

New distribution

channels (delivery)

New products

Brand extension

Emerging

international

markets

NEW CAMPAIGN

• Starbucks Launches First Brand Campaign, 'Meet Me at Starbucks‘

• It isn't focusing on products like it normally does in its ads. Rather, it's focusing on the brand by chronicling a day in the life of Starbucks through a mini-documentary, shot in 59 different stores in 28 countries, using 39 local filmmakers, 10 local photographers and one director coordinating it all at 72 and Sunny, the agency responsible for the work.

• Cities the project was filmed in include New York, Rio de Janeiro, Bogota, Singapore, Beijing, Mumbai, Toronto, Paris and Berlin.

THANK YOU