Business strategy starbucks

1. 1
SHEET NO
SIGN
ASSIGNMENT TOPIC :
CASE STUDY OF A SUCCESSFUL
COMPANY/BRAND IN MARKET
STARBUCKS
FOUNDATION COURSE
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR

2. 2
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
INTRODUCTION
HISTORY:
FOUNDATION COURSE
• Starbucks Corporation is an American
multinational chain of coffeehouses and roastery
reserves headquartered in Seattle, Washington
• The first Starbucks opened in 1971 in Seattle’s Pike
Place Market.
• The name, inspired by Moby Dick, evoked the
romance of the high seas and the seafaring
tradition of the early coffee traders.
• In 1981, Howard Schultz, CEO of Starbucks had
first walked into a Starbucks store.
• Howard was drawn into Starbucks and joined a
year later.
• Currently the world' largest coffeehouse chain.
• As of November 2022, the company had 35,711
stores in 80 countries, 15,873 of which were
located in the United States. Of Starbucks' U.S.-
based stores, over 8,900 are company-operated,
while the remainder are licensed.
Fig 1 – First Starbucks coffee house
https://www.theguardian.com/cities/2015/may/14
/the-first-starbucks-coffee-shop-seattle-a-history-
of-cities-in-50-buildings-day-36
STARBUCKS -
INTRODUCTION

3. 3
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
“ To inspire and nurture the
human spirit — one person, one
cup, and one neighborhood at a
time.”
MISSION AND VALUES
MISSION STATEMENT:
“To establish Starbucks as the
premier purveyour of the finest
coffee in the world, while
maintaining our
uncompromising principles
while we grow”
VISION STATEMENT:
STARBUCKS VALUES:
• Creating a culture of warmth and belonging, where everyone is
welcome;
• Acting with courage, challenging the status quo, and finding new
ways to grow our company and each other;
• Being present, connecting with transparency, dignity, and respect;
• Delivering our very best in all we do, holding ourselves accountable
for results.
HOW TO CATER TO ITS
TARGET AUDIENCE:
Its all in the experience. How
one place makes you feel.
STARBUCKS – MISSION AND
VALUES

4. • Regular and
decaffeinated coffee
drinks
• Espresso brews
• Icy mixed drinks
DRINKS (60% )
• Baked meals
• Oatmeals and salads
• Breakfast and lunch
sandwiches
FOOD (18%)
• Ready brew solvable
coffees
• Starbucks coffee and
tazo
• Starbucks refreshers
TM drinks
CONSUMER
PACKAGED
GOODS (8%)
• Travel mugs
• Hot cup thermos
• Reusable cold mugs
• Water bottles
• Coffee machines
• Teapots and kettles
MERCHANDISE
(14%)
4
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
VALUES
PRODUCTS OFFERED:
• Innovation: Starbucks constantly designs innovative products for its
customers;
• Quality: It uses only high-quality beans and trained roasters to work on them;
• Convenience: Customers can order products through Starbucks’ app, avoiding
lines at the stores;
• Variety: It offers 30 blends of coffee and a wide range of sandwiches, pastries,
tea, smoothies, salads, etc.;
• Brand: Starbucks has a powerful and awarded brand, seen as a synonym of
quality.
STARBUCKS’ VALUE PROPOSITIONS
STARBUCKS – PRODUCTS
AND VALUES

5. 5
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
MARKETING STRATEGY AND BRANDING
1. CONSISTENCY IN BRANDING:
• Over the course of 47 years, the
Starbucks logo alone has gone
through four different redesigns to
create the iconic symbol that graces
your coffee cup today.
• By operating in 55 different
countries, they needed a brand
design that would appeal to a broad
audience base.
• That clean, modern design
philosophy extends to everything
they create.
• Key to bringing them back to your
organization and creating brand
advocates out of your customers.
• The experience one have with
Starbucks always feels constant
2. TECHNOLOGY:
• After identifying the smartphone
revolution early on, the company
launched its first mobile app in
2009.
• Then, in 2011, rolled out its
beloved in-app payment feature.
But by 2014, the game changed:
Starbucks created mobile order
ahead, prepay, and pickup
• No queue, no wait time.
• People adored the effortless
convenience.
KEY TAKEAWAYS:
STARBUCKS – MARKETING
AND BRANDING

6. 6
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
MARKETING STRATEGY AND BRANDING
3. REBRANDING DUE TO LOW
SALES:
• While transactions increased,
the “third place,” the very notion
behind Starbucks’ existence, began
to slip
• In 2019 alone, to-go orders
represented 80% of transactions,
mobile orders contributed 31 % of
total orders.
• Leading into 2020, company
executives hinted at plans to
“reinvent” or “reimagine”
the “third place” concept.
• Starbucks was in an identity crisis.
• Starbucks hoped to use digital
technology to augment the feeling
of connection.
• The app began collecting data about
individual customer preferences and
purchasing behaviors to craft unique
discount offers later. Additionally,
when a customer picks up a mobile
order, the app highlights the music
playing in the store.
THE KEY TO ANY EFFECTIVE CUSTOMER EXPERIENCE?
• These seemingly small
personalized touches make for
a holistic brand interaction that
bridges the online and physical
experience
KEY TAKEAWAYS:
THE THIRD PLACE CONCEPT
• Creating this unique & relaxing
“experience” & “atmosphere” for
people to go between home & work.
Very important for the company.
• Connects with the customers very
strongly.
STARBUCKS – MARKETING
AND BRANDING

7. 7
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
SOCIAL MEDIA IMPACT
• The photo is bright, modern,
clean, and reflective of the
Starbucks brand. The
language in the post
describes their new espresso
shot in the same way that
they would if they were
chatting with a customer in
the store, short, sweet, and
to the point.
INSTAGRAM WEB PAGE
• Here one can fine why
Starbucks has brought
particular product and
their detais.
• They also help cater to
their audience and
show different recipes
that their customers
can order to try the
new shot.
• Once again, imagery,
colors, and even language
match the same style and
tone as the Instagram
post that we started with.
• When you enter the
store, you’ll also see it
branded to promote their
new coffee:
YOUTUBE STORE BRANDING
• Consistent messaging,
imagery, and branding is
key to delivering a lasting
message to your
customers.
• From first touch to final
purchase, the experience
is consistent.
STARBUCKS – SOCIAL
MEDIA

8. 8
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
THE FOUR ‘P’ OF MARKETING
• High quality product to
get their target
audience to justify
buying it.
• Paying for premium
coffee which means it
needs to taste better
than the same iced
macchiato that you
could get at a
McDonald’s drive-
through for less.
• barista promise, that if
you don’t like your
drink, they’ll fix it.
• Starbucks sells their
coffee at a premium
price, or at least 25%
higher than value
brands.
• In 1990, only three
percent of the coffee
sold in the United
States was sold at
premium prices. By
2000, that number rose
to 40% in what
the Harvard Business
Review calls, “The
Starbucks Effect.”
• Read anything about
Starbucks, and they’ll
probably mention the
idea of “the third
place.”
• Their efforts to create a
space where people
want to come and hang
out and relax. They do
this by creating a
similar environment in
every Starbucks
location.
• Starbucks uses a large
variety of channels to
market their product
from social media
to TV spots and ads.
• It’s their mix of
marketing media that
makes their brand
recognizable, and it’s
the consistent
message that comes
across every time that
makes them stand out.
1. PRODUCT 2. PRICE 3. PROMOTION 4. PLACE
STARBUCKS – MARKETING
STRATEGY

9. • Unique logo
• Drink size names
• Brewing equipment
• Music CDs
• Merchandising
PRODUCT
BRANDING
• High service quality
• Environment/attitude
• Brochure
• Education
SERVICE QUALITY
• Committed to catering
the communities it
serves.
• Mindful of the
environment.
• Investment in farmers.
CORPORATE
SOCIAL
RESPONSIBILITIES
9
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
WHAT STARBUCKS IS DOING DIFFERENT
• Gift cards
• Reward cards
• Birthday rewards
• Iphone and android
apps
STAYING MODERN
• Helping people connect
• Free WIFI
• In-store music
• Sociable atmosphere
• Large tables to
accommodate groups
STAYING ON TOP
• Pay with app.
• Barista education
• 87000 drink
combinations
• 30 minutes delivery
• 220 customers/hour
STANDING OUT
STARBUCKS – MARKETING
STRATEGY

10. 10
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
STARBUCKS SWOT ANALYSIS
UNIQUE STRATEGY ADOPTED BY STARBUCKS
To capture key locations and open stores in close
proximity to each other is unique strategy for
Starbucks
 Ensure that licensed store that don’t meet set
achievements are closed down.
 Clustering its stores in one area helped Starbucks
quickly achieve market dominance. With over 20
million regular customer per week.
 Spends less than 1% of its annual revenues on
advertising. Starbucks strategy relied on word of
mouth advertising.
 Engaging in smart joint ventures with the right
companies such as - Pepsi – Cola Co and
introducting new food and beverages products
with them.
At the end of the day, Starbucks isn’t just a coffee
shop—it’s an empire. Sure, it has its challenges and
weaknesses, and there’s always room for
improvement. But Starbucks has brewed its way to
the top and effectively left many competitors in its
wake over the years. It’s a masterclass in market
domination.
STARBUCKS – SWOT
ANALYSIS

11. 11
AR. BARKHA KASHILANI
3 rd SEM,
M.ARCH(LANDSCAPE)
SESSION – 2023-2024
P.I.A.D.S, NAGPUR
SHEET NO
SIGN
FOUNDATION COURSE
STARBUCKS MARKET SHARE
MARKET SHARE IN INDIA BY 2023
60
100
150
155
200
248
321
350
572
0 100 200 300 400 500 600 700
Blue Tokai
Costa Coffee
Third Wave Coffee
Hatti Kappi
Slay
McCafe
Starbucks
Barista
Café Coffee Day
No.of stores
STARBUCKS – MARKET
SHARE