starbucks overview

7/27/2019 Starbucks overview

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Case Study:

StarbucksPresented By:Group 3

Harish Rajendran (40)

Shashank Pawar (59)Dinesh Shinde (66)

Hitesh Khadse (27)

Mahesh Surnar (73)

Pratik Wasnik (84)

Prof. K. Ravindran


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Introduction to Starbucks

Company started in 1971 in Seattle,Washington

Grew from 55 stores in 1989 to over 20,891

stores today Products sold include:

- beverages - pastries

- whole coffee beans - coffee-related retail items


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Mission Statement

Establish Starbucks as the premier purveyor of the

finest coffee in the world while maintaining our

uncompromising principles while we grow


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Guiding Principles

Provide a great work environment and treat each other with

respect and dignity

Embrace diversity as an essential component in the way we

do business

Apply the highest standards of excellence to the purchasing,

roasting, and fresh delivery of our coffee

Develop enthusiastically satisfied customers all of the time

Contribute positively to our communities and ourenvironment

Recognize that profitability is essential to our future success


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Coffee: Some Facts

First consumed in East Africa during the 11th

century

Quality of beans Robusta & Arabica

Produced in 70 countries

Global coffee production 134.2 mn bags

More than $70 bn retail sales globally


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Industry Definition

Specialty Eatery Industry

Food and beverages

Steady growth in the 90s leading to increased

competition

Demand for specialty food services has increased

in recent years


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SWOT Analysis

Strengths Never experienced a strike or work stoppage

Good relationships with coffee suppliers

Value employees

Located in high traffic areas

They dont move into new markets until they dominate

the ones they expand into


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Weaknesses Excessive focus

Increasing shareholders dilutes their interest

They have expanded too quickly, and have alreadysaturated the US market

They do not allow smoking in their stores, alienating

some of their customers

SWOT Analysis


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Opportunities Expansion into European and Latin American markets

Distribution agreements, such as hotels, airlines, and

office coffee suppliers Use supermarkets as a way of expanding into

international markets

Improve on perception of instant and decaffeinated

coffee to expand that market share

SWOT Analysis


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Threats The coffee market is saturated

Cost of coffee beans is expected to rise in the near future

High competition from competitors

Consumers trend toward more healthful fare

SWOT Analysis


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Competitors

International

Dunkin Donuts

Mc Donalds ( Mc Cafe )

Domestic

Barista

Caf Coffee Day

Costa Coffee

Qwikys


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0.00

2000.00

4000.00

6000.00

8000.00

10000.00

12000.00

2000 2001 2002 2003 2004 2005 2006 2007 2008

Yearly Sales Data of Starbucks

Years

85%

12%

2% 1%

Percentage Share of different

countries in Number of Starbucks

Stores

UNITED STATES

ASIA-PACIFIC

EUROPE-AFRICA

NORTH-SOUTH AMERICA


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Starbucks Strategy

Rapid store expansion strategy

Domestic store expansion

A three-year expansion strategy Starbucks everywhere approach

International store expansion

Company-owned and company-operated stores or licensing

Created a new subsidiary, Starbucks Coffee International

Expanded its consumer products channel in South Pacific region


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Starbucks Strategy

Employee Training and Recognition

Systems to recruit, hire and train baristas and store managers

screening

training programs

awards for partners

Real Estate, Store Design, Planning, and Construction

A broad range of store formats (the right image and character)

A stores of the future project team High-traffic, high-visibility store locations

Control of average store opening costs

Wi-Fi availability at stores


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Starbucks Strategy

Store ambience

The concept of everything matters

Assessment of standards


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Starbucks Strategy

Product Line

Wide range of products choices

Special product promotion

Selling music CDs

Joint ventures

PepsiCo

Dreyers Grand Ice Cream

Jim Beam BrandsAcquisitions

Hear Music

Ethos Water

Starbucks Cards

Partnership with Bank One


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Industry and Competitive

Analysis

Focused differentiation

Serve niche buyers better than rivals

Buyers have distinctive preferences, special requirements, or unique

needs

Have unique capabilities to serve needs of target buyer segment

Big enough to be profitable and offers good growth potential

Costly or difficult for multi-segment competitorsto meet specialized needs of niche members

Starbucks has resources and capabilities

to effectively serve an attractive niche

Few other rivals are specializing in same niche


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Product Differentiation

Products: Coffee, beans, pastries, equipment, mugs,

containers, accessories, music CDs

Everything matters store ambience

Retention of coffee aroma

City specific mugs and t-shirts

Season special coffees, rare exotic coffees,

handcrafted beverages etc Custom drinks and customer attention


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Customer Willingness to Pay

Starbucks charged coffee

at slightly higher rates

Location

Ambience (Everything

matters), seating,

comfort and

convenience

COFFEE centered theme

Wi-Fi more value,

more time, more

business

Why go to Starbucks?

A place to think and Imagine

A place to gather and talk

A Third Place beyond Work and Home

Leather Chairs Newspapers Couches

The Authentic Coffee Experience: the

artistry of espresso making

Fast Service and Quiet Moments

Stores Designed on 4 stages of coffee

making: growing, roasting, brewing and

aroma

Mails, Music, Work


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New Products and Places

Music CDs

The Starbucks card

The Duetto Visa card

Wifi internet Starbucks coffee in supermarkets (in Flavorlock packaging)

Airports, Universities, airlines, equipment in hotel rooms,

business offices

Mail order sales


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Thank You.!!!

starbucks overview

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