Starbucks aims to create an experience, not just sell coffee. They have over 8000 stores globally serving specialty coffee and focus on high-quality beans. The founders started in 1971 and Howard Schultz joined in 1982, later acquiring the company. Starbucks creates its experience through carefully sourced products, specially designed store locations, and an emphasis on employee satisfaction. They have expanded globally while maintaining rigorous standards for coffee selection and store design.

1. STARBUCKS: Recreating The
Experience

2. “We aren’t in the coffee business, serving people.
We are in the people business, serving coffee”.
- Howard Schultz, Starbucks Chairman
and Chief Global Strategist.

3. General Information
• More than 8000 stores in almost 40
countries.
• Discovering Coffee:
– Discovered coffee at the Horn of Africa, Over
1000 years old.
– Coffee was developed first in 11th Century.

4. Formation of Starbucks
• Partners: Jerry Baldwin, Zev Sigel and Gordon
Bowker.
• Logo was evolved in the sixteen century: Two
tailed mermaid or siren encircled by store’s name
STARBUCKS COFFEE, Tea and Spice.
• Schultz joined Starbucks as director of operations
and marketing 1982.
• Schultz separated in 1985 and acquired Starbucks
in the next 5 years.
• Mission Statement:
– Provide a great word environment and treat each other with pride and Dignity
– Embrace diversity as an essential component in the way we do business.

5. Creating the Starbucks Experience
• It is a combination of product, place or the
location and people
• 1970’s: Started serving customer by email.
• 1988’s: Developed first catalogue and
expanded mail orders.
• 1990: Toll free number for customer
interaction

6. The Product
• Finding the beans across the world, step
which differentiates them from others.
• The team evaluates over thousand samples of
beans every year and the coffee buyers
spends around 18 weeks per year travelling to
the country of origin.
• Division of these samples into batches and
tasting them is a process called “Cupping”.
• 1994: Company invented “Frappuccino”

7. The Place
• Starbucks employs 200 store designers, along with
contractors, property managers, financial managers,
operations staff, developers and half-dozen law firms
of the concerned country.
• Desired location parameters are laid down by
company with respect to store size and profile of
target audience, demographics and psychographics
• Eg. Saudi Arabia
• 5-7 weeks to build a store, in 6 weeks store is handed
over to operations and 4 days later coffee will be
served.

8. The People
• Schultz aimed at creating a company culture
that cared about employees.
• Provided stock option to all the employees
working for more than 20 hours
• The Baristas(bartenders) work in different
shifts

9. Indian Coffee Market
• Predominantly a tea consuming nation
• Domination of Nestle and HUL in the instant
coffee segment, approx. 95% captured.
• Key Players:
– Barista
– Café Coffee Day
– Bru