Starbucks

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Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington.
Stock price: SBUX (NASDAQ)US$ 79.50-1.05 (-1.30%)
4 Dec 4:00 pm EST - Disclaimer
Founded: March 30, 1971, Pike Place Market, Seattle, Washington, United States
Headquarters: Seattle, WA, United States of America
CEO: Howard Schultz
Founders: Gordon Bowker, Jerry Baldwin, Zev Siegl

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Starbucks

  1. 1. STARBUCKS Aswin Abraham Thomas P13170
  2. 2. PRESENTATION OUTLINE            Introduction Logo Mission Statement Principles Corporate Strategy Chain of Supply Channel Of Distribution Competitors Advertisement SWOT Starbucks Still Shine!  SBUX India  CSR
  3. 3. INTRODUCTION  Type Public Company  Industry Restaurants Retail coffee and tea Retail beverages Entertainment  Founded Pike Place Market in Seattle, Washington  Founder(s) Jerry Baldwin, Gordon Bowker, Zev Seigl  Headquarters Seattle, Washington, U.S  No. Of Locations 20,891 in 62 Countries  Key People Howard Schultz (Chairman, President & CEO)
  4. 4. INTRODUCTION Products 1. 2. 3. 4. 5. Coffee Tea Pastries Frappuccino Beverages Smoothies Revenue $13.29 billion Employees 1,49,000 Subsidaries 1. 2. 3. 4. 5. 6. 7. 8. 9. Starbucks Coffee Company Ethos Water Evolution Fresh Hear Music La Boulange Bakery Seattle’s Best Coffee Tazo Teavana Torrefazione Italia
  5. 5. 70’s • 1971- Opens first store in Seattle’s Pike Place Market. 80’s 90’s • 1982- Howard Schultz joins Starbucks as director of retail operations and marketing. • 1987- Sold to Howard Schultz, Rebranded Il Giornale Coffee Outlets as Starbucks • 1989- Expanded to 55 Stores across the Northwest and Midwest • 1995- Beginning of the Frappes- total stores 677 • 1997- Establishes Starbucks Foundation • 1998- Tazo tea company is aquired • 1998- Launches Starbucks.com • 1999- China, Kuwait, Lebanon and South Korea
  6. 6. 2000’s Present Day 2000- Howard Schultz transitions to chairman and chief global strategist 2010- Expands digital offerings for customers with free unlimited Wi‐Fi, Starbucks Digital Network in U.S. stores 2001- Introduces the Starbucks Card, an innovative stored‐value card for customers to use and reload. 2002- Starts selling Fair trade certified coffee in the countries where Starbucks does business. 2002- Establishes Starbucks Coffee Trading Company (SCTC) 2000’s cont. 2003- Seattle’s Best Coffee and Torrefazione Italia coffee brands are aquired 16,858 Stores 2012- Becomes the world’s largest buyer of Fair Trade coffee
  7. 7. Logo Original brown logo, used from 1971–1987. Green logo used from 1992–2011, still being used as a secondary logo. Redesigned logo used from 2011–present.
  8. 8. Mission Statement  To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time  Environmental Mission Statement: Starbucks is committed to a role of environmental leadership in all facets of our business.
  9. 9. PRINCIPLES  Coffee: Apply highest standards of excellence in purchasing, roasting and fresh delivery of coffee  Partners: Provide a great work experience and treat each other with respect and dignity  Customers: Develop enthusiastically satisfied customers all the time  Neighbourhood: Positive contribution to communities and environment
  10. 10. Corporate Strategy      Maximise market penetration Provide a relaxing, attractive social atmosphere Offer high quality products Create a great working environment Achieve Profitability
  11. 11. Chain of Supply Planning Sourcing Delivering Manufacturing
  12. 12. Channels of Distribution Retail Locations Kiosks within different Store Online Media
  13. 13. COMPETITORS  Dunkin’ Donuts  McDonalds  Caribou Coffee
  14. 14. Advertising  Word-of-mouth advertising through “third home”  Providing quality products and services  Viral marketing
  15. 15. SWOT Analysis • • • • • Strengths: biggest and best in the business Focuses on consistency in delivering positive consumer experience Engaging in smart joint ventures with the right companies Spends less than 1% of its annual revenues on advertising Quality • • • • • • • Weakness: Entire business rests on the coffee industry High price Opportunities: New Market Opportunities Internationally New Products Form partnerships with other coffee companies Threats: The threat from new entry Smaller coffee housesPrivately owned.
  16. 16. Reasons Why Starbucks Still Shines             A Place For Everyone Ambiance According to Forbes Consistently Convenient Starbucks can churn through 220 customers/hour* "From the moment a customer walks through the door, we want to get them through in 3 minutes," a longtime Starbucks manager tells us. "Or 3-5 minutes if it's busy.“ Employees know the difference between a cappuccino and a latte Never serves coffee that has been sitting for longer than 30 minutes Baristas undergo over 30 hours of training on everything from Frappuccino technique to the origins of coffee beans Swiss-made Mastrena, designed to make "the highest-quality, consistent shot of espresso that will be second to none“ Baristas who work at least 20 hours/week are eligible for health insurance. Customers can pay with their iPhone and Blackberrys Starbucks provides free WiFi, and there's no restriction on laptop use
  17. 17. www.Starbucks.in     January 2011, 50:50 joint venture with Tata Coffee 19th, October 2012- Opens first store in India in Mumbai Presently, 15 outlets in India – 7 in Delhi, 8 in Mumbai International Products + Indian style product offerings such as Tandoori Paneer Roll, Elaichi Mawa Croissant, Murg Tikka Panini and Chai Tea Latte to suit Indian customers  Competitors in India Include: Café Coffee Day, Barista and Costa Coffee
  18. 18. Pricing In India
  19. 19. Revenue- Split Up Revenue = $ 14.02 Billion
  20. 20. Corporate Social Responsibility 1. Commitment to Environment  Building greener Stores  Recycling and Reducing waste  Cups and Materials  Climate Change 2. Commitment to Communities through Star Bucks Foundation  Community Service  Youth Leadership  Farming Communities  Access to Get Clean Water  Fostering Education in China

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