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  1. 1. Wana have a cuppa Coffee?? Arun singh Surendra singh
  2. 2. Recreating Starbucks
  3. 3. Company Timeline (Some Key Events) <ul><li>1971 Starbucks opens its first location in Seattle's Pike Place Market. </li></ul><ul><li>1992 Completes initial public offering with Common Stock being traded on the NASDAQ National Market under the trading symbol &quot;SBUX.“ </li></ul><ul><li>1998 Launches </li></ul><ul><li>2005 Locations total = 8,337 </li></ul>
  4. 4. Key Figures Howard Schultz Chairman and Chief Global Strategist James Donald Pres., Chief Executive Officer Michael Casey Chief Financial Officer, VP, Chief Admin James Alling Pres. Starbucks Coffee US Martin Coles Pres Starbucks Coffee International
  5. 5. Wake Up and Smell the Coffee. <ul><li>World's #1 specialty coffee retailer </li></ul><ul><li>Operates and licenses more than 4293 coffee shops in united states. </li></ul><ul><li>The shops offer </li></ul><ul><ul><ul><li>coffee drinks </li></ul></ul></ul><ul><ul><ul><li>food items </li></ul></ul></ul><ul><ul><ul><li>beans </li></ul></ul></ul><ul><ul><ul><li>coffee accessories </li></ul></ul></ul><ul><ul><ul><li>tea </li></ul></ul></ul><ul><ul><ul><li>CDs </li></ul></ul></ul>
  6. 6. Current Scenario <ul><li>More than 14,396 stores spread across 40 countries </li></ul><ul><li>Revenue: $2.01 billion. </li></ul><ul><li>Accounts for 73% market share of U.S. coffeehouse sales. </li></ul>
  7. 7. Six Principles of Starbucks <ul><li>Provide a great work environment and treat each other with respect and dignity. </li></ul><ul><li>Embrace diversity as an essential component in the way we do business. </li></ul><ul><li>Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. </li></ul><ul><li>Develop enthusiastically satisfied customers all of the time. </li></ul><ul><li>Contribute positively to our communities and our environment. </li></ul><ul><li>Recognize that profitability is essential to our future success. </li></ul>
  8. 8. Creating Starbucks Experience !!!
  9. 9. Product <ul><li>Perfect cup of coffee. </li></ul><ul><li>“Cupping”. </li></ul><ul><li>Out of the stores. </li></ul><ul><li>Starbucks “Discoveries”. </li></ul>
  10. 10. Place <ul><li>Pedestrian & vehicular traffic. </li></ul><ul><li>Culturally sensitive. </li></ul><ul><li>Across the road. </li></ul><ul><li>Café section. </li></ul>
  11. 11. People <ul><li>Stock option. </li></ul><ul><li>Partners. </li></ul><ul><li>Building trust. </li></ul>
  12. 12. Marketing Strategy <ul><li>Work, travel, shop, and dine. </li></ul><ul><li>Less of traditional advertising; relying on image advertising, movie and television placement. </li></ul><ul><li>Quality and experience, rather than price. </li></ul><ul><li>Plenty of comfortable seating. </li></ul><ul><li>Environmental Friendly </li></ul>
  13. 13. Ansoff’s Matrix Current Products New Products Current Markets New Markets <ul><li>4)Diversification </li></ul><ul><li>Grocery Stores </li></ul><ul><li>Bottled Drink </li></ul><ul><li>Ice cream </li></ul>2)Market Development Presence in 1000 cities. 3)Product Development In store merchandise CD’s, Dutteo Visa Cards 1)Market Penetration Gourmet coffee
  14. 14. Indian Perspective <ul><li>Yet to get the taste </li></ul><ul><li>Rejected by FIPB </li></ul><ul><li>Decided to file a new proposal </li></ul>
  15. 15. Indian Domestic Market <ul><li>Rs.8 billion ($17 million). </li></ul><ul><li>Potential 3,000 Outlets </li></ul><ul><li>Coffee consumption is 75,000 tones – 1/10th the consumption of tea. </li></ul>
  16. 16. Indian Domestic Market <ul><li>Growth from 2002 and 2005—about 20,000-25,000 tones. </li></ul><ul><li>Growing at 25%-30%. </li></ul><ul><li>Non-carbonated beverages market around Rs 8,000-Rs 10,000 crore. </li></ul>
  17. 17. Top Indian players
  18. 18. <ul><li>Was started in 1996 </li></ul><ul><li>430 cafés </li></ul><ul><li>Austria and Pakistan. </li></ul><ul><li>Turnover was Rs 400 crore. </li></ul>
  19. 19. Marketing Strategy <ul><li>Meeting place for 15-29 year olds </li></ul><ul><li>Youth-oriented brands </li></ul><ul><li>Affordability </li></ul><ul><li>Respectable, yet informal </li></ul>
  20. 20. <ul><li>Started in 1999 </li></ul><ul><li>Tata’s buy a stake of Barista </li></ul><ul><li>Sterling InfoTech take over in 2004 </li></ul><ul><li>Lavazza take over in 2007 </li></ul><ul><li>Over 160 outlets. </li></ul><ul><li>Revenue: Rs 45 crore. </li></ul>
  21. 21. Marketing Strategy <ul><li>Italian espresso bar. </li></ul><ul><li>Has newspapers, magazines, guitars, board games. </li></ul><ul><li>Priced at a premium. </li></ul><ul><li>In 2002, </li></ul><ul><ul><ul><li>Barista 85 outlets </li></ul></ul></ul><ul><ul><ul><li>CCD’s 35. outlets </li></ul></ul></ul>
  22. 22. Tried to be everything to everybody and ended being nothing to anybody.
  23. 23. Starbucks Road map to India <ul><li>Affordability. </li></ul><ul><li>Focus on Coffee and Non-coffee Beverages. </li></ul><ul><li>Take Away </li></ul><ul><li>Target youth & middle class. </li></ul><ul><li>Tie up with existing established brands. </li></ul>
  24. 24. Porter’s Five Forces Model Suppliers Industry Competitors Buyers Substitutes Potential Entrants
  25. 25. New growth opportunity <ul><li>Fast food </li></ul><ul><li>Gaming zones. </li></ul>
  26. 26. Bibliography <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>Retailing management by Sapna Pradhan. </li></ul><ul><li>Business line, articles. </li></ul>
  27. 27. We aren’t in to coffee business serving people. We are into people business serving coffee.