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STARBUCKS
Aswin Abraham Thomas
P13170
PRESENTATION OUTLINE
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




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Introduction
Logo
Mission Statement
Principles
Corporate Strategy
Chain of Supply
Channel Of Distribution
Competitors
Advertisement
SWOT
Starbucks Still Shine!

 SBUX India
 CSR
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)
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
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
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
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.
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.
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
Corporate Strategy






Maximise market penetration
Provide a relaxing, attractive social atmosphere
Offer high quality products
Create a great working environment
Achieve Profitability
Chain of Supply

Planning

Sourcing

Delivering

Manufacturing
Channels of Distribution

Retail Locations

Kiosks within different Store

Online Media
COMPETITORS
 Dunkin’ Donuts
 McDonalds
 Caribou Coffee
Advertising
 Word-of-mouth advertising through “third home”
 Providing quality products and services
 Viral marketing
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.
Reasons Why Starbucks Still Shines
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
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






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
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
Pricing In India
Revenue- Split Up
Revenue = $ 14.02 Billion
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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Starbucks

  • 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. 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. 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. 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. 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. 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. 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. 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. Corporate Strategy      Maximise market penetration Provide a relaxing, attractive social atmosphere Offer high quality products Create a great working environment Achieve Profitability
  • 12. Channels of Distribution Retail Locations Kiosks within different Store Online Media
  • 13. COMPETITORS  Dunkin’ Donuts  McDonalds  Caribou Coffee
  • 14. Advertising  Word-of-mouth advertising through “third home”  Providing quality products and services  Viral marketing
  • 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. 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. 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
  • 19. Revenue- Split Up Revenue = $ 14.02 Billion
  • 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