Starbucks Coffee_Around the world


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  • Serve coffee with music
  • SCAA –specialty coffee association of America
  • SCAA –specialty coffee association of America
  • SCAA –specialty coffee association of America
  • SCAA –specialty coffee association of America
  • SCAA –specialty coffee association of America
  • SCAA –specialty coffee association of America
    Gobal consumer products are
  • SCAA –specialty coffee association of America
    Gobal consumer products are
  • SCAA –specialty coffee association of America
    Gobal consumer products are
  • SCAA –specialty coffee association of America
    Gobal consumer products are
  • SCAA –specialty coffee association of America
    Gobal consumer products are
  • Starbucks’ Retail Mix
    Location: With regard to location, individual sites are selected in the most highly visible places possible, and centralized cities serve as hubs or regional centers (clustering) for rollout expansion into nearby markets. [high traffic areas which generated higher revenues]
    Merchandise assortment: Its merchandise assortment based on sales distribution is composed of coffee beverages (58 percent), whole bean coffee by the pound (17 percent), food items (16 percent), and coffee-related equipment (9 percent). Coffee beverages are standardized across outlets, but food offerings vary from store to store
    Pricing: Its product pricing is premium, which is due to the company’s commitment to quality products and a high level of customer service
    Advertising and promotion: minimal
    Store design and visual merchandising: Stores, which are spacious so that customers can wander around the store, drinking their coffee and considering the purchase of coffee paraphernalia ranging from coffee to preparation equipment, are typically designed around a planned mix of organic and manufactured components.
    Customer service & Personal selling.: promoted by training new hires to deal with product related customer complaints on the spot without having to check with a manager. They are also trained to customize each espresso drink and to explain the origins of different coffees
  • Starbuck’s retail strategy
    Target market
    how does it try to develop an advantage over its competition?
  • Starbucks receives license fees and royalties and sells coffee and related products for resale in the licensed locations. Employees working in the licensed locations must follow Starbucks detailed store-operating procedures and attend training classes similar to those given to Starbucks store managers and employees
    In 1998, Starbucks entered into a long-term licensing agreement with Kraft Foods, Inc. to accelerate the growth of the Starbucks brand into the grocery channel in the United States.
    Kraft manages all distribution, marketing, advertising and promotions for Starbucks whole bean and ground coffee in grocery, warehouse club and mass merchandise stores
    Starbucks also sells whole bean and ground coffees to several types of wholesale accounts, including office coffee distributors and institutional foodservice management companies that service business, industry, education and healthcare accounts, and hotels, airlines and restaurants
    Stores outside of North America, UK, Thailand and Australia operated through a number of joint venture and licensing arrangements with prominent retailers
    The North American Coffee Partnership, a joint venture with the Pepsi-Cola Company, a division of PepsiCo, Inc. , was formed in fiscal 1994 to develop and distribute ready-to-drink coffee-based products. By the end of fiscal 2000, the joint venture was distributing bottled Frappuccino coffee drink to approximately 250,000 supermarkets, convenience and drug stores and other locations throughout the United States and Canada.
    The Company formed a joint venture with Dreyer's Grand Ice Cream, Inc. in fiscal 1996 to develop and distribute Starbucks premium coffee ice creams. By the end of fiscal 2000, the joint venture was distributing a variety of ice cream and novelty products to over 21,000 supermarkets throughout the United States.
    fresh Starbucks coffee and coffee-related products conveniently available via mail order and on-line. Starbucks publishes and distributes a mail order catalog that offers its coffees, certain food items and select coffee-making equipment and accessories, and the Company maintains a web site at www.starbucks. com with an on-line store that allows customers to browse for and purchase coffee, gifts and other items via the Internet. The Company believes that its direct-to-consumer operations support its retail store expansion into new markets and reinforce brand recognition in existing markets
  • Other countries are Russia china Egypt and Brazil.
  • Starbucks Coffee_Around the world

    1. 1. Around the world 50 Countries 16000 Locations One Name Let the experience begin……..
    2. 2. Now Serving
    3. 3. Introduction • Name : Starbuck (Inspired from Moby-Dick Novel) • Founders: Jerry Baldwin , Zev Siegl , Gordan Bowker • Founded:1971, Pike place market in Settle ,Washington • Industry :Restaurant, Retail , Entertainment • Key person: Howard Schultz (Chairman, President , CEO) • Employed :1.6 Lac partners • Achievement:  2005:Second Best Company to work with (fortune survey)  2010: World Most Ethical Company
    4. 4. Photo Gallery “We aren’t in the coffee business, serving people. We are in the people business, serving coffee.” Starbuck PartnerProducts
    5. 5. History • 1971: Starbucks opens first store in Seattle’s Pike Place Market. • 1982:Howard Schultz joins Starbucks as director of retail operations and marketing. • 1983: Howard travels to Italy and impressed with espresso bars in Milan. • 1984: Starbucks to test the coffeehouse concept in downtown Seattle, where the first Starbucks® Caffè Latte was served.
    6. 6. History • 1986: Howard Schultz left Starbuck and opened IL Giornale (coffee Bar) • 1987: Starbuck was sold to Howard Schultz for $ 3.8 million • 1992: First IPO turned to be most successful IPOs of the year • 1996: Entered into Tokyo market • 1998: Acquired UK Seattle Coffee Company • 2009: Becomes the world’s largest buyer of Fair Trade Certified™ coffee
    7. 7. Mission • "To inspire and nurture the human spirit - One person, One cup, and One Neighbourhood at a time."
    8. 8. Vision • “To establish Starbucks as the most recognized and respected brand in the world”
    9. 9. Starbuck Logo • 1) Image of Twin Tail Serene is chosen because of psychological relation between lure of fresh roasted coffee, tea, spices and mythological enchanting character 2) IL Giornale logo and Starbuck logo was merged to designed new stylish Starbuck logo 3) Current logo is cropped and Zoomed version of the serene
    10. 10. Products • Coffee- More than 30 blends and single-origin premium Arabica coffees • Handcrafted Beverages- Fresh -brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno™ smoothies and Tazo ® teas, ice creams • Merchandise- Home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books and gift items • Fresh Food- Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups
    11. 11. Products • Consumer Products- VIA™ Ready Brew coffee, bottled Starbucks Frappuccino® beverages, Starbucks Discoveries® chilled cup coffee (in Japan, Taiwan and Korea) , Starbucks Double Shot® espresso drinks, Starbucks® Iced Coffee, whole bean coffee and Tazo® teas at grocery and a line of super-premium ice creams • Brand Portfolio- Tazo tea, Ethos water, Seattle’s Best Coffee and Torrefazione Italia Coffee
    12. 12. HR Policy • Motto “To have right people hiring the right people” • Starbuck –Second best company to work with • It strongly believes that motivated and committed workforce are key to retail business • Employee friendly policies and supportive work culture • Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. • Frontline staff at store are not allowed to use perfumes as it may mask the fragrance of fresh coffee
    13. 13. HR Policy The Starbucks Total Pay package is called “Your Special Blend” because it’s just for you which includes: • Competitive pay • Insurance: medical, prescription drug, dental, vision, life, disability • Bonuses • Paid time off • Retirement savings plan • Stock options and discounted stock purchase plan • Adoption assistance • Domestic partner benefits • Emergency financial aid • Referral and support resources for child and eldercare • A free pound of coffee each week
    14. 14. Training • For retails Job -24 hr training program in the first 2-4 weeks • Training includes classes on - Coffee History - Drink Preparation - Coffee knowledge (4 hr) - Customer Service (4 hr) - Retails Skills -Brewing the Perfect Cup (4hr )
    15. 15. Training • Other Training program - Using the cash register - Weighing the coffee beans - Opening and holding the Coffee bean bag - Affixing label on the package - Cleaning the espresso machine • New staffs are hired 8-10 weeks before the opening of new store and are trained at Starbuck coffee school in San Francisco
    16. 16. Wake up and smell the coffee -- Starbucks is everywhere
    17. 17. Starbucks’ Retail Mix • Location • Merchandise assortment • Pricing • Advertising and promotion • Store design and visual merchandising • Customer service • Personal selling.
    18. 18. Starbucks’ retail strategy • Starbuck’s retail strategy is designed primarily to maintain loyalty and repeat business among its target market (upscale coffee drinkers) encompasses hiring and training knowledgeable counter servers, called baristas (Italian for bartenders), to educate customers about Starbucks’ specialty coffee drinks and associated products, and to provide customers with an opportunity to take a break from their busy lives in a relaxing atmosphere. • The company has also entered some creative partnerships to put its cafes in Nordstrom and Barnes & Noble stores and serve its coffee on United Airlines. Licensing the brand name for other food products such as ice cream and soft drinks also increases its brand awareness.
    19. 19. Specialty Operations • Starbucks specialty operations strive to develop the Starbucks brand outside the Company-operated retail store environment through a number of channels. – Retail store licensing agreements – Wholesale accounts – Grocery channel licensing agreements – Joint ventures – Direct-to-consumer marketing channels
    20. 20. SWOT Analysis of Starbucks Strengths Weaknesses 1. Brand name recognition 2. Quality Products 3. Potential Internal Strengths 4. Good Marketing Skills Well Developed Corporate strategy 5. Location 6. Visionary leader 7. Distribution 8. Manufacturing competencies 9. Exclusive marketing rights 1. Non-pioneer in global market 2. Narrow Product line 3. Complicated Products Opportunities Threats 1. Expand into Foreign Markets 2. Widen Product Range 3. Diversify into new Growth Businesses 4. Apply brand name capital in new areas 1. Change in consumer tastes 2. City regulations 3. Increase in domestic competition 4. Changes in economic factors 5. Downturn in economy
    21. 21. Competitors of Starbucks • US: Pea's Coffee & Tea, Seattle's Best Coffee etc. • France has sidewalk cafes, • Vienna has grand coffee houses, • Italy's high-octane espresso bars • British have long been heavy tea drinkers • The Pacific Rim, including Singapore and Japan
    22. 22. Starbucks plans for India • India is one of the five countries that Starbucks is focusing on for international expansion. • In 2006, Starbucks planned to enter into Indian market with the help of a franchisee Indonesia’s V.P. Sharma, an NRI. • It was a 51:49 JV between Starbucks’s franchisee V.P. Sharma and Future group CEO Kishore Biyani called “New Horizons”. • FIBP didn’t approve this JV. They said Starbucks can have 51% direct investment with an local Indian partner. • Starbucks joined hands with PVR theater to sell Starbucks merchandise.
    23. 23. Starbucks plans for India • Starbucks wants to enter the Indian market with a franchisee because it does not have to risk its own capital. • Starbucks is in talks with Jubilant group controlled by Shyam and Hari Bhartia. It’s the Indian franchisee for Domino’s Pizza. • In India Starbucks will face strong competition from CCD, Barista, Costa Café, Lavazza. • Many other Coffee houses like Australian Café BB’s & Coffee Club, UK based Coffee Republic, Italian Café Nero & German Cup Cino are looking for franchisee to enter India.
    24. 24. Grand Strategy Options • “Market Development” – Grow international sales volume by offering Starbucks products in grocery stores, business and other wholesale accounts – Offering bottled Frappuccino coffee drinks, Starbucks DoubleShot coffee drink and line of super premium ice creams in the international markets – Starbucks brand awareness to grow and develop new distribution channels with their international partners. – Starbucks currently has a joint agreement with Alaska Air to serve Starbucks coffee on every flight – Increased brand awareness will increase sales and their local retail sector will benefit, development of new distribution channels.
    25. 25. Grand Strategy Options • "Product Development“ – Starbucks needs to work with its international partners to identify local cuisine that would be sold in the Starbucks stores to bring in the local crowds – Starbucks Hong Kong sells curry puffs, sausage rolls and seasonal products such as Starbucks' moon cakes – Starbucks needs to expand the music CD's that they sell to include local music and cultural tastes (Starbucks will help to promote that local community appeal of their stores) – The Starbucks store becomes a local community gathering place not just another American corporation taking money from the economy and not giving anything back
    26. 26. Grand Strategy Options • "Conglomerate Diversification“ – Starbucks partner with local phone companies and internet providers to setup internet access at their international stores – Internet cafe's are very popular. The internet cafe's are much more popular overseas than they are in the US. This is because many people in international countries do not have home computers, so they have to go to the local internet cafe in order to send and receive email
    27. 27. Grand Strategy Options • The chief global strategist of Starbucks, Howard Schultz's primary goal is to make the company's green-and-white mermaid join the ranks of the most recognized global brands such, as Coke and McDonalds • In order to accomplish this, Schultz must manage the global expansion on a daily basis by finding the right mix of company owned stores, partnerships and licenses • Starbucks must be willing to act quickly to any changes in the international business climate
    28. 28. Promotional Strategies • Membership Cards 1. Corporate Cards 2. Regular Cards • Internet / Wi-Fi facility • Social Networking sites 1. Facebook 2. Twitter
    29. 29. Membership Cards (Regular)
    30. 30. Membership Cards(Corporate)
    31. 31. Conclusion “At Starbucks its not just an exchange of coffee over the counter from one hand to another, its making a connection, creating a relation and giving an experience.”
    32. 32. Project source • case study • management case/starbucks • "Case Study Starbucks" Oakland, Daniel Class Syllabus. UOP. 2003. Tice, Carol • Bumps abroad: Starbucks chief sees overseas profit (From: Business Journal • •
    33. 33. Thank You