Starbucks Coffee_Around the world

Around the world 50 Countries 16000 Locations One Name Let the experience begin……..

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Introduction
Name : Starbuck (Inspired from Moby-Dick Novel)
Founders: Jerry Baldwin , Zev Siegl , Gordan Bowker
Founded: 1971, Pike place market in Settle ,Washington
Industry : Restaurant, Retail , Entertainment
Key person: Howard Schultz (Chairman, President , CEO)
Employed :1.6 Lac partners
Achievement:
2005:Second Best Company to work with (fortune survey)
2010: World Most Ethical Company

Photo Gallery “ We aren’t in the coffee business, serving people. We are in the people business, serving coffee.” Starbuck Partner Products

History
1971: Starbucks opens first store in Seattle’s Pike Place Market.
1982: Howard Schultz joins Starbucks as director of retail operations and marketing.
1983: Howard travels to Italy and impressed with espresso bars in Milan.
1984: Starbucks to test the coffeehouse concept in downtown Seattle, where the first Starbucks® Caffè Latte was served.

History
1986: Howard Schultz left Starbuck and opened IL Giornale (coffee Bar)
1987: Starbuck was sold to Howard Schultz for $ 3.8 million
1992: First IPO turned to be most successful IPOs of the year
1996: Entered into Tokyo market
1998: Acquired UK Seattle Coffee Company
2009: Becomes the world’s largest buyer of Fair Trade Certified™ coffee

Mission
"To inspire and nurture the human spirit - One person, One cup, and One Neighbourhood at a time."

Vision
“ To establish Starbucks as the most recognized and respected brand in the world”

Starbuck Logo
Image of Twin Tail Serene is chosen because of psychological relation between lure of fresh roasted coffee, tea, spices and mythological enchanting character
IL Giornale logo and Starbuck logo was merged to designed new stylish Starbuck logo
Current logo is cropped and Zoomed version of the serene

Products
Coffee - More than 30 blends and single-origin premium Arabica coffees
Handcrafted Beverages - Fresh -brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno™ smoothies and Tazo ® teas, ice creams
Merchandise- Home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books and gift items
Fresh Food- Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups

Products
Consumer Products- VIA™ Ready Brew coffee, bottled Starbucks Frappuccino® beverages, Starbucks Discoveries® chilled cup coffee (in Japan, Taiwan and Korea) , Starbucks Double Shot® espresso drinks, Starbucks® Iced Coffee, whole bean coffee and Tazo® teas at grocery and a line of super-premium ice creams
Brand Portfolio- Tazo tea, Ethos water, Seattle’s Best Coffee and Torrefazione Italia Coffee

HR Policy
Motto “To have right people hiring the right people”
Starbuck –Second best company to work with
It strongly believes that motivated and committed workforce are key to retail business
Employee friendly policies and supportive work culture
Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team.
Frontline staff at store are not allowed to use perfumes as it may mask the fragrance of fresh coffee

HR Policy
The Starbucks Total Pay package is called “Your Special Blend” because it’s just for you which includes:
Competitive pay
Insurance: medical, prescription drug, dental, vision, life, disability
Bonuses
Paid time off
Retirement savings plan
Stock options and discounted stock purchase plan
Adoption assistance
Domestic partner benefits
Emergency financial aid
Referral and support resources for child and eldercare
A free pound of coffee each week

Training
For retails Job -24 hr training program in the first 2-4 weeks
Training includes classes on
- Coffee History
- Drink Preparation
- Coffee knowledge (4 hr)
- Customer Service (4 hr)
- Retails Skills
-Brewing the Perfect Cup (4hr )

Training
Other Training program
- Using the cash register
- Weighing the coffee beans
- Opening and holding the Coffee bean bag
- Affixing label on the package
- Cleaning the espresso machine
New staffs are hired 8-10 weeks before the opening of new store and are trained at Starbuck coffee school in San Francisco

Wake up and smell the coffee -- Starbucks is everywhere

Starbucks’ Retail Mix
Location
Merchandise assortment
Pricing
Advertising and promotion
Store design and visual merchandising
Customer service
Personal selling.

Starbucks’ retail strategy
Starbuck’s retail strategy is designed primarily to maintain loyalty and repeat business among its target market (upscale coffee drinkers) encompasses hiring and training knowledgeable counter servers, called baristas (Italian for bartenders), to educate customers about Starbucks’ specialty coffee drinks and associated products, and to provide customers with an opportunity to take a break from their busy lives in a relaxing atmosphere.
The company has also entered some creative partnerships to put its cafes in Nordstrom and Barnes & Noble stores and serve its coffee on United Airlines. Licensing the brand name for other food products such as ice cream and soft drinks also increases its brand awareness.

Specialty Operations
Starbucks specialty operations strive to develop the Starbucks brand outside the Company-operated retail store environment through a number of channels.
Retail store licensing agreements
Wholesale accounts
Grocery channel licensing agreements
Joint ventures
Direct-to-consumer marketing channels

SWOT Analysis of Starbucks Strengths Weaknesses
Brand name recognition
Quality Products
Potential Internal Strengths
Good Marketing Skills Well Developed Corporate strategy
Location
Visionary leader
Distribution
Manufacturing competencies
Exclusive marketing rights
Non-pioneer in global market
Narrow Product line
Complicated Products
Opportunities Threats
Expand into Foreign Markets
Widen Product Range
Diversify into new Growth Businesses
Apply brand name capital in new areas
Change in consumer tastes
City regulations
Increase in domestic competition
Changes in economic factors
Downturn in economy

Competitors of Starbucks
US: Pea's Coffee & Tea, Seattle's Best Coffee etc.
France has sidewalk cafes,
Vienna has grand coffee houses,
Italy's high-octane espresso bars
British have long been heavy tea drinkers
The Pacific Rim, including Singapore and Japan

Starbucks plans for India
India is one of the five countries that Starbucks is focusing on for international expansion.
In 2006, Starbucks planned to enter into Indian market with the help of a franchisee Indonesia’s V.P. Sharma, an NRI.
It was a 51:49 JV between Starbucks’s franchisee V.P. Sharma and Future group CEO Kishore Biyani called “New Horizons” .
FIBP didn’t approve this JV. They said Starbucks can have 51% direct investment with an local Indian partner.
Starbucks joined hands with PVR theater to sell Starbucks merchandise.

Starbucks plans for India
Starbucks wants to enter the Indian market with a franchisee because it does not have to risk its own capital.
Starbucks is in talks with Jubilant group controlled by Shyam and Hari Bhartia. It’s the Indian franchisee for Domino’s Pizza.
In India Starbucks will face strong competition from CCD, Barista, Costa Café, Lavazza.
Many other Coffee houses like Australian Café BB’s & Coffee Club, UK based Coffee Republic, Italian Café Nero & German Cup Cino are looking for franchisee to enter India.

Grand Strategy Options
“ Market Development”
Grow international sales volume by offering Starbucks products in grocery stores, business and other wholesale accounts
Offering bottled Frappuccino coffee drinks, Starbucks DoubleShot coffee drink and line of super premium ice creams in the international markets
Starbucks brand awareness to grow and develop new distribution channels with their international partners.
Starbucks currently has a joint agreement with Alaska Air to serve Starbucks coffee on every flight
Increased brand awareness will increase sales and their local retail sector will benefit, development of new distribution channels.

"Product Development“
Starbucks needs to work with its international partners to identify local cuisine that would be sold in the Starbucks stores to bring in the local crowds
Starbucks Hong Kong sells curry puffs, sausage rolls and seasonal products such as Starbucks' moon cakes
Starbucks needs to expand the music CD's that they sell to include local music and cultural tastes (Starbucks will help to promote that local community appeal of their stores)
The Starbucks store becomes a local community gathering place not just another American corporation taking money from the economy and not giving anything back

"Conglomerate Diversification“
Starbucks partner with local phone companies and internet providers to setup internet access at their international stores
Internet cafe's are very popular. The internet cafe's are much more popular overseas than they are in the US. This is because many people in international countries do not have home computers, so they have to go to the local internet cafe in order to send and receive email

The chief global strategist of Starbucks, Howard Schultz's primary goal is to make the company's green-and-white mermaid join the ranks of the most recognized global brands such, as Coke and McDonalds
In order to accomplish this, Schultz must manage the global expansion on a daily basis by finding the right mix of company owned stores, partnerships and licenses
Starbucks must be willing to act quickly to any changes in the international business climate

Promotional Strategies
Membership Cards
Corporate Cards
Regular Cards
Internet / Wi-Fi facility
Social Networking sites
Facebook
Twitter

Membership Cards (Regular)

Membership Cards(Corporate)

Conclusion
“ At Starbucks its not just an exchange of coffee over the counter from one hand to another, its making a connection, creating a relation and giving an experience.”

Project source
www.warrington.ufl.edu.starbuck case study
www.mhhe.com.business management case/starbucks
"Case Study Starbucks" Oakland, Daniel Class Syllabus. UOP. 2003. Tice, Carol
Bumps abroad: Starbucks chief sees overseas profit (From: Business Journal http://www.bizjournal.com )
www.economictimes.com
www.telegraph.com

Thank You

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Starbucks Coffee_Around the world

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