The first Starbucks store opened in 1971 in Seattle's Pike Place Market. The company grew rapidly and went public in 1992. By 1997, Starbucks had locations around the US, Japan, and Singapore. Today, Starbucks has over 27,000 stores worldwide in 75 countries, serving coffee, tea, food items and merchandise. Starbucks focuses on recruiting and developing motivated employees to deliver superior customer service, which has been key to its success.

2. Overview
 First Starbucks store opened in Seattle’s Pike Place Market in 1971
 The company grew to be the largest roaster in Washington with multiple
locations until the early 1980’s
 In 1981, Howard Schultz, recognized a great opportunity and began working
with the founder Jerry Baldwin.
 Schultz wanted to bring the Italian café culture to the United States. Selling
espresso by the cup was the first test.
 Schultz left Baldwin to open his own and raised money from investors to
purchase the Italian Coffee House Giornale.
 Jerry and Gordon sold Starbucks and Giornale acquired it making Howard
Schultz the CEO and the name changed to Starbucks Corporation.
 The company experienced rapid growth going public in 1992, and growing
tenfold by 1997, with locations around the United States, Japan and
Singapore.

3. Overview
 It offers blends of coffee, handcrafted beverages, merchandise, and food
items, ready-made drinks, and Starbucks ice cream.
 It also markets some products under brands such as Tazo Tea, Seattle’s Best
Coffee, Starbucks VIA, Torrefazione, Italia Coffee, and Evolution Fresh.
 The company-owned and licensed stores operates across Asia-Pacific, the
Middle East, Africa, Europe and the Americas.
 Over 27,000 stores worldwide in 75 countries. China–nearly 3,000 stores, US-
7,559 Starbucks owned stores.
 Starbucks market share of the U.S coffee chain industry: 39.8%
 Starbucks revenue worldwide (2016): 21.32bn USD

4. Overview
 Number of employees: 300,000+
 Number of employees in the US: 157,000
 Number of stores opened in Financial Year 2015: 1,677
 Number of Starbucks Rewards loyalty Program members: 13.3 million

5. Mission
 “To inspire and nurture the human spirit one person, one cup, and one
neighborhood at a time.”
 Ethically sources the finest coffee beans.
 Embraces diversity.
 Provides a human connection with employees.
 Creates stores where customers feel comfortable.
 Takes responsibility in each community.

6. SWOT analysis
 STRENGTH
• Innovation
• Global Presence
• Strong Financials
• Brand Identity
• Store Ambience
 WEAKNESSES
• High employee turnover
• Over dependence on US market
• Small product mix
• Higher prices
• Too many products
 OPPORTUNITIES
• International markets
• Customization
• Inorganic growth
• New product mix
• Localization
 THREATS
• Intense competition
• Government regulations
• Uncertain suppliers
• Target of terrorism
• Saturated US market

7. Success Formula
 Motivated employees and superior customer service is the key success factor of
Satrbucks.
 Starbucks focuses on recruiting and developing right people.
 Attractive compensation policies.

8. Share Price

9. Product mix Revenue graph

11. Marketing
SEGMENT:
 Every age group.
 Tech savvy individuals
 Men and Women
 High disposable income
 Brand focused
 Savvy and avid coffee lovers who enjoy the
“Starbukcs Experience”.
TARGET CUSTOMER:
 Starbucks targets commuters and captive
consumers.
 Commuters consist of people heading to or
from work or people on their lunch break.
 Captive consumers consist of those who are
stuck in a campus environment.
Eg: High school and college students,
corporate campuses.

12. POSITIONING:
 Starbucks has positioned itself as an upscale
brand which provides rich experience.
 It is obvious from the mission statement that
they are trying to make it the best for
socializing.
 Starbucks is trying to reposition itself as a
“third place” for its customers.
PRODUCT:
 Coffee: more than 30 blended and premium
coffees.
 Handcrafted Beverages: Fresh-brewed coffee,
hot and iced espresso beverages,
Frappuccino®, coffee and non-coffee blended
beverages, smoothies and Tazo® teas.
 Fresh Food: Baked pastries, sandwiches,
salads, oatmeal, yogurt parfaits and fruit
cups.
 Merchandise: Coffee and tea-brewing
equipment, mugs and accessories, packaged
goods, music, books and gifts.

13. PRICE:
 Starbucks offers all of its
products at a premium price.
 Prices are higher than any other
retailer.
 In case of foods, Starbucks is
more expensive when compared
to quick-service restaurants.
PLACE:
 Distributed directly to customers
through own retail stores and
retail partners.
 Located in high-traffic, high-
visibility locations, focusing on
pedestrian customers.
 Company also focus on drive-thru
retail stores for the convenience
of non-pedestrian consumers.

14. PROMOTION:
 Advertising: Starbucks spends under 3% of revenue on ads. But spends
more on ensuring customer satisfaction to increase word of mouth.
 Personal Selling: Passionate employees, customer satisfaction.
 Public Relations: Events, public performances, green initiatives
philanthropic endeavors.
 Sales Promotions: Store decoration, viral videos, sample vans,
billboards, newspaper, magazines and social media.

15. FIVE FACTS
1. STARBUCKS has added an average 15 stores on a daily basis since
1987.
2. The average Starbucks customer visits the store 6 times per month
while loyal 20% of customers visit 16 times.
3. There are over 87000 drink combinations at Starbucks.
4. The Starbucks cinnamon chip scone has more calories than a
McDonald’s quarter pounder with 480 calories.
5. Starbucks uses 93 million gallons of milk and 2.3 billion paper cups per
year.

16. THANK YOU