starbucks coffee
TRANSCRIPT
IndexSr.No Topic Slide No.1 Introduction and even in India 32 Corporate governance 53 Organizational structure 64 Vision 75 Mission 86 Objectives 98 Strategies 109 Aida model of Starbucks 2010 Bcg matrix of Starbucks 21
11 Product market growth matrix of Starbucks 22
12 PLC 23
13 SWOC 24
14 Five force analysis 25
IntroductionType PublicStarbucks headquarters
2401 Utah Avenue South, Seattle, Washington, U.S.
Industry Coffee shopFounded March 30, 1971; 45
years agoFounder •Jerry Baldwin
•Zev Siegl•Gordon Bowker
Number of locations
23,768
Products Coffee beverages,smoothiesTea,baked goods,sandwiches
Number of employees
191,000
Revenue US$ 16.447 billion
Operating income US$ 3.081 billion
Total assets US$ 10.752 billion
Total equity US$ 5.272 billion
Subsidiaries Starbucks Coffee CompanyEthos waterEvolution FreshHear Music
•The first Starbucks location opened in 1971.
•Starbucks original location in Seattle Washington.
•Starbucks has 20,400+ stores in 61 countries. •Starbucks has 50-50 joint venture with TATA alliances.
Starbucks In India
Corporate governance
• January 2015, the chief operating officer of Starbucks was Troy Alstead.
• Subsequently, Kevin Johnson was appointed to succeed Alstead as president and COO.
• In October 2015, Starbucks hired its first Chief Technology Officer, Gerri Martin-Flickinger , to lead their technology team.
• Starbucks maintains control of production processes by communicating with farmers to secure beans, roasting its own beans, and managing distribution to all retail locations. Additionally, Starbucks’ Coffee and Farmer Equity Practices require suppliers to inform Starbucks what portion of wholesale prices paid reaches farmers
Vision• Starbucks Coffee does not readily present
its vision statement. However, a careful reading of the company’s website reveals that its vision statement.
• “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”
Mission
“ To inspire and nurture the human spirit - One person, One cup, and One Neighborhood at a time”.
• Inspire and nurture the human spirit• One person, one cup and one neighbor
at a time
Objectives• To maintain it’s standing as one of the
most recognized and respected brands in the world.
• To continue to offer costumers new coffee products in a variety of forms, across new categories, and through diverse channels.
• Tactical objectives are to increase their market share in disciplined manner, by selectively opening additional stores in new and existing markets as well as increasing sales in existing stores, to support their long- term strategic objectives and aims
Strategies• Rapid store expansion strategy
• Domestic store expansion• International store expansion• Employee Training and Recognition• Real Estate, Store Design, Planning, and
Construction• Store ambience
• Marketing strategies.
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.
Rapid store expansion strategy (conti)
• 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
Marketing strategies
SWOTMarket segmentation
Market Targeting Competitive strategy of Starbucks
Market Positioning Marketing Mix
MARKET SEGMENTING
Demographic segmentation(markets by age, gender, income, ethnic background, and family life cycle) .
Geographic segmentation (markets by region of a country or the world, market size, market density, or climate)
Psychographic segmentation, targeting customers based on their lifestyle and attitudes about ‘fairtrade' food.
Behavioural segmentation , Occassion , loyalty program and rewards , benefit sought with offers [ by using starbucks card ]
Targeting
Starbucks target market
• Age group:18 – 40• Lifecycle: Young and adults• Gender: Male and female• Occupation: College students, persons in
managerial, executive, and professional positions• Income: Middle and higher income earners• Location: Main cities (Colombo, Kandy, Galle)
commercial areas
Marketing Mix
PRODUCT• Customized coffee (However you want)PRICE• Higher than others (Rs.390 -740)PLACE• Accessibility, availabilityPROMOTION• Social media, Free samples, Credit card discounts
Marketing Mix (conti)PHYSICAL• Modern furniture, uniform, sign boards,
none smoking, kids play area, musicPROCESS• Quick service, customized cups with
name, collect suggestions and feedback from customers
PEOPLE• Social, positive attitude, active, skilled
staff, training, customer service
Aida model of Starbucks
Cognitive stage
Affective stage
Behavior stage
attention
interestdesire
action
Stages Aida model Hierarchy of effects model
awarenessknowledge
liking
preference
conviction
purchase
Bcg matrix of Starbucks
• International brand• Joint venture with
Tata alliance
• Customer loyalty• Brand loyalty
•Less stores are currently present• Huge number of competitor
RELATIVE MARKET SHARE
MA
RK
ET
GR
OW
TH
RAT
E
• Newly enter in the India
STAR
COW DOG
?
Market Penetration
strategy
Market Development
strategydiversification
strategy
Productdevelopment
strategy
Existingmarkets
Newmarket
Existing product New product
In India
In Settled Market
Product market growth matrix of Starbucks
SWOT analysis
Global recognitionQuality productsProfitable organizationStrong financial foundationVisionary leader
High priceImporting roasted
coffeeKnown only for coffee
Launching new productsSkilled Labour marketMore tourist attractionUse of social media network
Cultural & Political issues Real State cost and laws in India
Economic down turnsHealth cautious customers
Competitor Quality Price Service Awareness
Starbucks Excellent High Very good Poor
Barista Good High Very good Very good
Coco Veranda Good High Average Average
Coffee bean & Tea Leaf Good High Average Very good
McDonald's Average Low Average Average
Choco luv Average Average Poor Average
The Commons Coffee House Average High Average Poor
Bread Talk Good High Very good Average
Competitor analysis
