Starbucks

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Starbucks overview

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  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • Starbucks

    1. 1. Case Study:Case Study: StarbucksStarbucks Presented By:Presented By: Group 3Group 3 Harish Rajendran (40)Harish Rajendran (40) Shashank Pawar (59)Shashank Pawar (59) Dinesh Shinde (66)Dinesh Shinde (66) Hitesh Khadse (27)Hitesh Khadse (27) Mahesh Surnar (73)Mahesh Surnar (73) Pratik Wasnik (84)Pratik Wasnik (84) Prof. K. RavindranProf. K. Ravindran
    2. 2. Introduction to StarbucksIntroduction to Starbucks • Company started in 1971 in Seattle, Washington • Grew from 55 stores in 1989 to over 20,891 stores today • Products sold include: - beverages - pastries - whole coffee beans - coffee-related retail items
    3. 3. Mission StatementMission Statement “ Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”
    4. 4. Guiding PrinciplesGuiding Principles • Provide a great work environment and treat each other with respect and dignity • Embrace diversity as an essential component in the way we do business • Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee • Develop enthusiastically satisfied customers all of the time • Contribute positively to our communities and our environment • Recognize that profitability is essential to our future success
    5. 5. Coffee: Some FactsCoffee: Some Facts • First consumed in East Africa during the 11th century • Quality of beans – Robusta & Arabica • Produced in 70 countries • Global coffee production – 134.2 mn bags • More than $70 bn retail sales globally
    6. 6. Industry DefinitionIndustry Definition • Specialty Eatery Industry – Food and beverages – Steady growth in the 90s leading to increased competition – Demand for specialty food services has increased in recent years
    7. 7. SWOT AnalysisSWOT Analysis • Strengths – Never experienced a strike or work stoppage – Good relationships with coffee suppliers – Value employees – Located in high traffic areas – They don’t move into new markets until they dominate the ones they expand into
    8. 8. • Weaknesses – Excessive focus – Increasing shareholders dilutes their interest – They have expanded too quickly, and have already saturated the US market – They do not allow smoking in their stores, alienating some of their customers SWOT AnalysisSWOT Analysis
    9. 9. • Opportunities – Expansion into European and Latin American markets – Distribution agreements, such as hotels, airlines, and office coffee suppliers – Use supermarkets as a way of expanding into international markets – Improve on perception of instant and decaffeinated coffee to expand that market share SWOT AnalysisSWOT Analysis
    10. 10. • Threats – The coffee market is saturated – Cost of coffee beans is expected to rise in the near future – High competition from competitors – Consumers trend toward more healthful fare SWOT AnalysisSWOT Analysis
    11. 11. Competitors International • Dunkin Donuts • Mc Donalds ( Mc Cafe ) Domestic • Barista • Café Coffee Day • Costa Coffee • Qwiky’s
    12. 12. Starbucks’ Strategy Rapid store expansion strategy • Domestic store expansion − A three-year expansion strategy − “Starbucks everywhere” approach • International store expansion − Company-owned and company-operated stores or licensing − Created a new subsidiary, Starbucks Coffee International − Expanded its consumer products channel in South Pacific region
    13. 13. Starbucks’ Strategy • Employee Training and Recognition − Systems to recruit, hire and train baristas and store managers  screening  training programs  awards for partners • Real Estate, Store Design, Planning, and Construction − A broad range of store formats (the right image and character) − A “stores of the future” project team − High-traffic, high-visibility store locations − Control of average store opening costs − Wi-Fi availability at stores
    14. 14. Starbucks’ Strategy • Store ambience − The concept of “everything matters” − Assessment of standards
    15. 15. Starbucks’ Strategy Product Line •Wide range of products choices •Special product promotion •Selling music CDs •Joint ventures PepsiCo Dreyer’s Grand Ice Cream  Jim Beam Brands •Acquisitions  Hear Music  Ethos Water •Starbucks Cards •Partnership with Bank One
    16. 16. Industry and Competitive Analysis Focused differentiation Serve niche buyers better than rivals Buyers have distinctive preferences, special requirements, or unique needs Have unique capabilities to serve needs of target buyer segment Big enough to be profitable and offers good growth potential Costly or difficult for multi-segment competitors to meet specialized needs of niche members Starbucks has resources and capabilities to effectively serve an attractive niche Few other rivals are specializing in same niche
    17. 17. Product DifferentiationProduct Differentiation • Products: Coffee, beans, pastries, equipment, mugs, containers, accessories, music CDs • “Everything matters” store ambience • Retention of coffee aroma • City specific mugs and t-shirts • Season special coffees, rare exotic coffees, handcrafted beverages etc • Custom drinks and customer attention
    18. 18. Customer Willingness to PayCustomer Willingness to Pay • Starbucks charged coffee at slightly higher rates • Location • Ambience (Everything matters), seating, comfort and convenience • COFFEE centered theme • Wi-Fi … more value, more time, more business Why go to Starbucks? A place to think and Imagine A place to gather and talk A Third Place beyond Work and Home Leather Chairs Newspapers Couches The Authentic Coffee Experience: the artistry of espresso making Fast Service and Quiet Moments Stores Designed on 4 stages of coffee making: growing, roasting, brewing and aroma Mails, Music, Work
    19. 19. New Products and PlacesNew Products and Places • Music CDs • The Starbucks card • The Duetto Visa card • Wifi internet • Starbucks coffee in supermarkets (in Flavorlock packaging) • Airports, Universities, airlines, equipment in hotel rooms, business offices • Mail order sales
    20. 20. Thank You….!!! ?

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