Starbucks owns nearly one-third of America’s coffee bars. Almost all of Starbucks’ locations in North America are company-owned stores located in high-traffic, high-visibility settings such as retail centres, office buildings, and university campuses. He  also sold products through non-company-operated retail stores such as hotels, airlines, and restaurants. Starbucks formed joint ventures to distribute a bottled Frappuccino thru Pepsi-Cola and an ice cream thru Dreyer’s Grand Ice Cream

1. STARBUCKS

2. 2
What factors accounted for the extra-ordinary
success of Starbucks in the early 1990s?
• Starbucks owns nearly one-third of America’s coffee bars.
• Almost all of Starbucks’ locations in North America are company-owned
stores located in high-traffic, high-visibility settings such as retail centres,
office buildings, and university campuses.
• He also sold products through non-company-operated retail stores such as
hotels, airlines, and restaurants.
• Starbucks formed joint ventures to distribute a bottled Frappuccino thru
Pepsi-Cola and an ice cream thru Dreyer’s Grand Ice Cream

3. Starbucks’ brand to be recognized not only in freestanding Starbucks stores,
but also throughout other channels as well increasing their brand awareness.
Its worked very had to expand the number of retail stores as well as product
innovations and service innovations.
The store-value card (SVC) was also introduced which led to reduced
transaction times. Due to the innovations and brand equity Starbucks had
built Starbucks was able to achieve extra-ordinary success.
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4. • Focus was on BRAND STRATEGY
• Brand strategy best captured by phrase “Live Coffee”
• Phrase reflected importance of keeping national coffee culture
alive
• Retail perspective – Creating an experience for their customers
• There were three components to their branding strategy
What was so good about the
Starbucks value proposition?
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5. •Highest-quality coffee in the
world
•Controlled much of the
supply chain
•Worked directly with growers
to purchase green coffee
beans
•Controlled distribution to
retail stores around the world
•Also referred to as
“customer intimacy”
•This included simple things
such as remembering
someone’s name or drink
order
•Starbucks stated that
people came for the coffee
but stayed for the
atmosphere
•Therefore it was important
to provide a comfortable
atmosphere that allowed a
sense of community among
the customers
Coffee Service Atmosphere
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6. What brand image
did Starbucks
develop during
this period?
• The brand image that Starbucks developed during this period was
not necessarily the best.
• Starbucks was known for being widely available, their specialty
coffee, and being trendy.
• Customers also though that the stores were clean and overall
satisfied with the Starbucks product.
• However, the market research team discovered that Starbucks’
brand image was declining.
• The number of respondents that agreed with the statement,
“Starbucks cares primarily about making money,” was up from
53%to 61%.
• The number of respondents that agreed with the statement,
“Starbucks cares primarily about building more stores,” was up
from 48% to 55%.
• Starbucks brand image was becoming more about the growth
plans of Starbucks rather than the value they wanted to provide to
their customers.

7. The ideal Starbucks customer from a
profitability standpoint
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• High-income business- woman, who has more disposable income for high-quality
coffee.
• The customer that visits a Starbuck’s at least eight times a month.
• In terms or rural and urban areas, both of these markets present the same customer
patterns.
• customers who visit only one to two times per month only generate a measly11% of
all Starbucks transactions

8. Clean
environment
Convenience
CUSTOMER SATISFACTION
Location
Service

9. T
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GROUP 8:
ANISH JAIN
BIPIN JAISWAL
MATHEWS JOSEPH
RIYA ASEEF
VANSH RANA