STARBUCK S Aswin Abraham Thoma P13170
Jan 20, 2015
STARBUCKS
Aswin Abraham ThomasP13170
PRESENTATION OUTLINE Introduction Logo Mission Statement Principles Corporate Strategy Chain of Supply Channel Of Distribution Competitors Advertisement SWOT Starbucks Still Shine!
SBUX India CSR
INTRODUCTION Type Public Company
Industry RestaurantsRetail coffee and teaRetail beveragesEntertainment
Founded Pike Place Market in Seattle, Washington
Founder(s) Jerry Baldwin, Gordon Bowker, Zev Seigl
Headquarters Seattle, Washington, U.S
No. Of Locations 20,891 in 62 Countries
Key People Howard Schultz (Chairman, President & CEO)
INTRODUCTIONProducts 1. Coffee
2. Tea3. Pastries4. Frappuccino Beverages5. Smoothies
Revenue $13.29 billion
Employees 1,49,000
Subsidaries 1. Starbucks Coffee Company2. Ethos Water3. Evolution Fresh4. Hear Music5. La Boulange Bakery6. Seattle’s Best Coffee7. Tazo8. Teavana9. Torrefazione Italia
70’s• 1971- Opens
first store in Seattle’s Pike Place Market.
80’s• 1982- Howard Schultz joins
Starbucks as director of retail operations and marketing.
• 1987- Sold to Howard Schultz, Rebranded Il Giornale Coffee Outlets as Starbucks
• 1989- Expanded to 55 Stores across the Northwest and Midwest
90’s• 1995- Beginning of the
Frappes- total stores 677• 1997- Establishes
Starbucks Foundation• 1998- Tazo tea company is
aquired• 1998- Launches
Starbucks.com• 1999- China, Kuwait,
Lebanon and South Korea
2000’s2000- Howard Schultz transitions to chairman and chief global strategist2001- Introduces the Starbucks Card, an innovative stored value ‐card for customers to use and reload. 2002- Starts selling Fair trade certified coffee in the countries where Starbucks does business.2002- Establishes Starbucks Coffee Trading Company (SCTC)
2000’s cont.2003- Seattle’s Best Coffee and Torrefazione Italia coffee brands are aquired
Present Day2010- Expands digital offerings for customers with free unlimited Wi Fi, ‐Starbucks Digital Network in U.S. stores16,858 Stores2012- Becomes the world’s largest buyer of Fair Trade coffee
Logo
Original brown logo,used from 1971–1987.
Green logo used from 1992–2011,still being used as a secondary logo.
Redesigned logo used from 2011–present.
Mission Statement To inspire and nurture the human spirit – one person, one cup an
d one neighbourhood at a time
Environmental Mission Statement: Starbucks is committed to a role of environmental leadership in all facets of our business.
PRINCIPLES Coffee: Apply highest standards of excellence in purchasing, roasting
and fresh delivery of coffee Partners: Provide a great work experience and treat each other with
respect and dignity Customers: Develop enthusiastically satisfied customers all the time Neighbourhood: Positive contribution to communities and environment
Corporate Strategy Maximise market penetration Provide a relaxing, attractive social atmosphere Offer high quality products Create a great working environment Achieve Profitability
Chain of Supply
Planning Sourcing
Manufacturing
Delivering
Channels of Distribution
Retail Locations Kiosks within different Store
Online Media
COMPETITORS Dunkin’ Donuts McDonalds Caribou Coffee
Advertising Word-of-mouth advertising through “third home” Providing quality products and services Viral marketing
SWOT AnalysisStrengths:
• biggest and best in the business
• Focuses on consistency in delivering positive consumer experience
• Engaging in smart joint ventures with the right companies
• Spends less than 1% of its annual revenues on advertising
• Quality
Weakness:• Entire business rests on the
coffee industry• High price
Opportunities:• New Market Opportunities
Internationally• New Products• Form partnerships with other
coffee companiesThreats:
• The threat from new entry• Smaller coffee houses-
Privately owned.
Reasons Why Starbucks Still Shines
A Place For Everyone Ambiance According to Forbes Consistently Convenient Starbucks can churn through 220 customers/hour* "From the moment a customer walks through the door, we want to get them through in
3 minutes," a longtime Starbucks manager tells us. "Or 3-5 minutes if it's busy.“ Employees know the difference between a cappuccino and a latte Never serves coffee that has been sitting for longer than 30 minutes Baristas undergo over 30 hours of training on everything from Frappuccino technique to
the origins of coffee beans Swiss-made Mastrena, designed to make "the highest-quality, consistent shot of
espresso that will be second to none“ Baristas who work at least 20 hours/week are eligible for health insurance. Customers can pay with their iPhone and Blackberrys Starbucks provides free WiFi, and there's no restriction on laptop use
www.Starbucks.in January 2011, 50:50 joint venture with Tata Coffee 19th, October 2012- Opens first store in India in Mumbai Presently, 15 outlets in India – 7 in Delhi, 8 in Mumbai International Products + Indian style product offerings such as Tandoori Paneer Roll,
Elaichi Mawa Croissant, Murg Tikka Panini and Chai Tea Latte to suit Indian customers Competitors in India Include: Café Coffee Day, Barista and Costa Coffee
Pricing In India
Revenue- Split UpRevenue = $ 14.02 Billion
Corporate Social Responsibility1. Commitment to Environment Building greener Stores Recycling and Reducing waste Cups and Materials Climate Change
2. Commitment to Communities through Star Bucks Foundation Community Service Youth Leadership Farming Communities Access to Get Clean Water Fostering Education in China