Starbucks has experienced tremendous growth since 1987 through strategies like aggressive store expansion nationwide and internationally, developing new coffee-related products through partnerships, and prioritizing social and environmental responsibility. The company pioneered the premium coffee shop model in the US and has established itself as the dominant leader in the retail coffee market, despite facing competition from chains like Dunkin' Donuts and McDonald's. Starbucks focuses on creating a dense network of stores, opening new locations around the world, and selling coffee at a premium price to drive profits.

1. Case on
Starbucks Accomplishment

2. Company Background
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3. Howard Schultz Enters the Picture
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4. Schultz's Growing Frustration
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5. Starbucks as a Private Company:
1987–92
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6. Expansion into Markets Outside the
Pacific Northwest
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7. Schultz’s a Great Place to Work
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Values and Principles

8. STORE EXPANSION STRATEGY
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9. STORE DEVELOPMENT
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10. PRODUCT LINE
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11. Employee Training
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12. Product Supply
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13. Roasting Coffee Beans
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14. Bonding with Customer
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15. Mail Order Sales
 Mail-order catalog distributed 6 times a year
 It offered coffee, candies and pastries, and select coffee-making
equipment and accessories
 Starbucks management believed that its direct-response
marketing effort helped pave the way for retail expansion into
new markets and reinforced brand recognition in existing
markets
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16. Joint Venture
 In 1994, after months of meetings and experimentation, PepsiCo and
Starbucks entered into a joint venture arrangement to create new coffee-related
products for mass distribution through Pepsi channels, including
cold coffee drinks in a bottle or can.
 The joint venture's first new product, Mazagran, a lightly flavored
carbonated coffee drink, was a failure; when test- marketed in southern
California, some consumers liked it and some hated it.
 . Despite the clash of cultures and the different motivations of the two
partners, the partnership held together because of the good working
relationship that evolved between Howard Schultz and Pepsi's senior
executives
 After months of experimentation, the joint venture product research team
came up with a shelf-stable version of Frappuccino that tasted quite good.
Sales of Frappuccino reached $125 million in 1997 and achieved national
supermarket penetration of 80 percent
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17. 17

18. International Expansion
 In markets outside the continental United States (including
Hawaii), Starbucks' strategy was to license a reputable and
capable local company with retailing know-how in the target host
country to develop and operate new Starbucks stores.
 Starbucks created a new subsidiary, Starbucks Coffee
International (SCI), to orchestrate overseas expansion and begin
to build the Starbucks brand name globally via licensees;
Howard Behar was president of SCI.
 Going into 1998, SCI had 12 retail stores in Tokyo, 7 in Hawaii, 6
in Singapore, and 1 in the Philippines. Agreements had been
signed with licensees to begin opening stores in Taiwan and
Korea in 1998. 18

19. Corporate Responsibility
 Starbucks was the largest corporate contributor in North
America to CARE, a worldwide relief and development
organization that sponsored health, education, and humanitarian
aid programs in most of the Third World countries where
Starbucks purchased its coffee supplies; Starbucks began making
annual corporate contributions to CARE when it became
profitable in 1991.
 In 1995 Starbucks began a program to improve the conditions of
workers in coffee-growing countries, establishing a code of
conduct for its growers and providing financial assistance for
agricultural improvement projects.
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20.  In 1997, Starbucks formed an alliance with Appropriate
Technology International to help poor, small-scale coffee growers
in Guatemala increase their income by improving the quality of
their crops and their market access.
 Starbucks had an Environmental Committee that looked for
ways to reduce, reuse, and recycle waste, as well as contribute to
local community environmental efforts. There was also a Green
Team, consisting of store managers from all regions
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21. Starbucks key terms
 Starbucks Corporation has been the most successful coffee
chain in the past few years using their aggressive expansion
strategies to push out much of its competition.
 Starbucks has focused on creating a dense network of
stores all around America, while also opening up new
locations all around the world.
 They are currently leading the retail coffee market with
selling their coffee for a premium price to increase their
profitability.
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22. Competitors of Starbucks
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 Dunkin’Dounts,
 Caribou Coffee,
 Mc Donald’s
 Coffee manufacturing like Kraft, Nestle which distribute
coffee to supermarket.

23. Store Locator
Starbucks Dunkin’ Donuts
 Has 12,500 coffee
shops in the
United States
McDonald’s McCafé
 Has 6,700 coffee
shops in the
United States
Caribou Coffee
 Has over 31,000
restaurants World
Wide.
 Has 415 coffee
shops in 16 States in
the United States
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24. Price Quality Brand Convenience Location Variety Reputation Customization Online user
High
Low