Starbucks

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Starbucks

  1. 1. Presented by: ASHISH KHATTER ROLL NO A 10 JULY 2012-2014 BATCH
  2. 2. COMPANY OVERVIEW  Starbucks is an international coffeehouse chain based in the United States.  Starbucks is the largest coffeehouse company in the world with13279 stores located in the US and 20891 stores in 62 countries.
  3. 3. Company History  1971-The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners Gordon Bowker, Jerry Baldwin, and Zev Siegl.  1987- In 1987, the original owners sold the Starbucks chain to former employee Howard Schultz who rebranded his Il Giornale coffee outlets as Starbucks and became the CEO of the company.  1992- Company went public and Initial public offer issued in the stock market in June 1992.  2002-Fourtune magazine named Starbucks as one of the “100 Best Companies to Work for”.
  4. 4. Financial Results for 2012 Revenue US$ 13.29 billion  Operating income US$ 1.99 billion  Net income US$ 1.38 billion  Total assets US$ 8.21 billion  Total equity US$ 5.10 billion  Employees149,000 (2011) 
  5. 5. MISSION STATEMENT  In the beginning “ Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.  Now “ To inspire and nurture the human spirit - One person, One cup, and One Neighborhood at a time."
  6. 6. Competitors McDonald‟s (McCafe)  Dunkin‟ Donuts  Specialty coffees sold at retail through supermarkets (Nestle)  Kraft General Foods 
  7. 7. Products  Coffee – mocha , lattes  Coffee-related accessories and equipment including thermoses, mugs, packaged ground coffee and hot chocolate, are also products sold at Starbucks.  Tea- Tazo brand in tea.  Pastries  Frappuccino beverages  Smoothies  Cookies/Baked goods  Breakfast Sandwiches
  8. 8. MARKETING STRATEGIES 1 “Perfect Cup of Coffee” – Their coffee, even if priced slightly more expensive than expected, is famous for satisfying customers with its rich, delicious taste and aroma. 2 “Customer Satisfaction” –. From entrance to the store to the very last drop of their coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience. 3 “Creating a Starbucks Community” – Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers.
  9. 9. MARKETING STRATEGIES 4 “Innovation” – They’ve added different flavors to their coffee, more food on their menu, free weekly song or app download from iTunes, free Wi-Fi internet usage, free birthday drink. 5 “Brand Marketing” – The Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. 6 “Monopolistic”-Some of the methods Starbucks has used to expand and maintain their dominant market position, includes buying out competitors' leases, intentionally operating at a loss, and clustering several locations in a small geographical area for saturating the market.
  10. 10. MARKETING STRATEGIES 7 Just Say Yes” policy in order to keep the customer happy. • Example: Always compensate dissatisfied customers with a Starbucks coupon entitling them to a free drink • Example: Give a customer a free refill if he/she spills their drink. 8 My Starbucks reward program allows members to earn a free drink after every 15 purchases at participating Starbucks stores. 9 Starbucks Card – It is a stored-value card for customers to use and reload.
  11. 11. Place Most stores are located in high-trafficked, high-visibility areas, such as: 1ƒ Office buildings 2ƒ Downtown and suburban retail centers 3ƒ Airport terminals 4ƒ University campuses 5ƒ Busy neighborhood shopping areas convenient to pedestrian traffic
  12. 12. Price  Usually price and quality determines the value of the product. Starbucks always tried to deliver high value to the consumers by buying quality beans, assuring that their staff got effective & efficient training, and mostly, creating an environment to enjoy coffee. For this, Starbucks’s customer had to pay more; it was expensive.  To keep the competitive edge, the company also began to implement other value added services like, introducing $3.95 "breakfast pairings," which includes breakfast items along with a coffee (2010). This is to target the price conscious customers.
  13. 13. STARBUCKS IN INDIA  Starbucks had entered the Indian market in October 2012 and currently operates five stores in Mumbai and four outlets in New Delhi.  Tata Starbucks Ltd, the 50:50 joint venture between Starbucks Coffee Company and Tata Global Beverages Ltd. launched the latest outlet at Select City Walk Mall.  Tata Global Beverages vice chairman R K Krishna Kumar had announced plans to open 50 cafes in the country in 2012, entailing an investment of Rs 400 crore.
  14. 14. LOGOS 1971-1992 1992-2011 2011-Present
  15. 15. Segmenting and Targeting 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)
  16. 16. Demographic Segmentation  Starbucks„ main target market is men and women between the ages of 25-44, which accounts for almost half (49%) of its total business.  Young adults, aged 18-24, are the next large group that Starbucks targets. They bring in about 40% of Starbucks' sales.
  17. 17. Geographic Segmentation  Starbucks also uses geographic segmentation. Starbucks is located all around, specifically in upscale locations, near offices, and near many college campuses.
  18. 18. Target Marketing for young adults (aged 18-24 )  Starbucks target this group through the growth of technology and innovative ideas.  Starbucks positions itself as a place college students can hang out, study, write papers, and meet people.
  19. 19. Target Marketing for Men and Women (aged 25-44)  Starbucks targets this group by offering certain drinks that appeal to them.  Starbucks targets this group creating the “third place” to go to between home and work by creating this unique and relaxing “experience” and “atmosphere” as customers within this range tend to have high income and professional careers
  20. 20. Market Positioning  Starbucks has positioned themselves 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.
  21. 21. Positioning Strategy  Their positioning strategy is customer based, which allows them to give the best customer service.  Starbucks hold onto their sustainable competitive advantage in terms of their customer satisfaction as well as their employee satisfaction.
  22. 22. Conclusion  Starbucks marketing strategies even though unusual has been very successful since last 40 years.  As long as Starbucks fulfills its customer’s wants and needs, Starbucks will continue to be a leading force in the market.
  23. 23. THANK YOU

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