. It is known for its good quality, pleasant service, and free Wi-Fi. The brand has customer loyalty which is rewarded through different rewards programs and ways to make the experience easier and quicker for those in a hurry. Its many locations are picked to be easily spotted by many people; which is also the reason many people choose Starbucks to meet with friends and colleagues. Because of its brand, Starbucks has an advantage over its competition. People know what to expect, it is easily recognizable and fits a variety of needs, like getting a bite to eat or having a quiet place to work. Due to its high customer loyalty, its sales keep growing and they keep expanding their number of stores and locations like their recent opening of a store in Panama

1. - SUDIP MITRA

2. INTRODUCTION
 Starbucks is the largest coffee house company in the world
 It started in 1971 in Seattle in Washington US
 It is leading retailer, roaster and brand of specialty coffee in the
world
 It has 20,891 stores in 62 countries,
 It serve brewed coffee, expresso-based hot drinks, snacks, mugs
and coffee beans

3. Competitors Analysis :
Major Competitors
Dunkin' Donuts
McDonald’s
Caribou Coffee

4. Store Locator
• Has 12,500
coffee shops
in the United
States
McDonald’s McCafé
Starbucks Dunkin’
Donuts
• 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 4

5. “In the last few years, Starbucks…has entered into a
battle”
 Dunkin Donuts in the last decade and a half has been focusing on expanding
their coffee options.

6.  McDonalds on the other hand, has a large, varied menu and generated a
higher income last year than either Dunkin Donuts or Starbucks and has been
expanding their selection of drinks, particularly coffees, since the mid 2000’s.

7. Analysis of visitor demographics reveals that Caribou Coffee could possibly
have more online success if they pull-in some of the same types of online
visitors as Starbucks does.
While Caribou Coffee attracts a respectable amount of young adults (32%
between the ages of 18 and 34), this does not compare to the 42% that
Starbucks attracts.

8. STARBUCKS MARKET ANALYSIS IN SRI LANKA 08
Global recognition
Quality products
Profitable organisation
Strong financial foundation
Visionary leader
High price
Importing roasted coffee
Known only for coffee
Launching new products
Skilled Labour market
More tourist attraction
Use of social media network
Cultural & Political issues
Real State cost and laws in Sri Lanka
Economic down turns
Health cautious customers
SWOT analysis

9. STARBUCKS MARKET ANALYSIS IN SRI LANKA 09
Five force analysis

10. STARBUCKS MARKETING STRATEGY 10
48%
40%
4% 8%
Adults age 25 - 40
Young adults age 18 - 24
Children age 13 - 17
Age above 40
Market segmentation
Geographics
Main Cities
Demographics
Age Children (13-17)
Young Adults (18-24)
Adults (25-40)
Matured (Above 40)
Gender Male
Female
Income Low Income (Below Rs.25,000)
Middle Income (Rs.25,000 – Rs.40,000)
Higher Income (Above Rs.40,000)
Source: ColomboPage News Desk, Sri Lanka.

11. STARBUCKS MARKETING STRATEGY 11
Starbucks target market
Age group: 18 – 40
Lifecycle: Young and adults
Gender: Male and female
Occupation: College students, persons in managerial, executive, and
professional positions
Income: Middle and higher income earners
Location Main cities (Colombo, Kandy, Hikkaduwa, Galle) commercial
areas
Targeting

12. STARBUCKS MARKETING STRATEGY 12
Price high
Price low
Low perceived quality High perceived quality
Positioning

13. STARBUCKS MARKETING STRATEGY 13
PRICE
Higher than others (Rs.390 for tall,
Rs.540 for grande and Rs.740 for venti)
PLACE
Accessibility, availability
PROMOTION
Social media, Free samples, Credit card
discounts
PROCESS
Quick service, customized cups with
name, collect suggestions and feedback
from customers
PEOPLE
Social, positive attitude, active, skilled
staff, training, customer service
PRODUCT
Customized coffee (However you want)
PHYSICAL
Modern furniture, uniform, sign boards,
none smoking, kids play area, music
Marketing mix – 7P’s

14. Starbucks Coffee’s Generic and
Intensive Growth Strategies
• Starbucks Coffee’s Generic Strategy (Porter’s Model)
“specialty coffee products”
• Starbucks Coffee’s Intensive Strategies (Intensive Growth Strategies)
-Market Penetration
-Market Development
-Product Development

15. Strategic Analysis and Recommendation for
Starbucks Coffee
• A challenge in applying the generic strategy is that Starbucks must always
innovate
• Starbucks can use its intensive growth strategy of market development to
grow in Africa and the Middle East
• Also, the intensive growth strategy of product development can be used to
offer products that suit the consumers in Africa and the Middle East.

16. Poster and leaflet
ADVERTISING 16
Promotional email newsletter
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