Wana havea cuppaCoffee??

Arun singh

Surendra singh

RecreatinRecreating g

StarbucksStarbucks

Company Company Timeline Timeline

(Some Key Events)(Some Key Events)

1971 1971 Starbucks opens its first location in Seattle's Pike Place Starbucks opens its first location in Seattle's Pike Place Market.Market.1992 1992 Completes initial public offering with Common Stock being Completes initial public offering with Common Stock being traded on the NASDAQ National Market under the trading symbol traded on the NASDAQ National Market under the trading symbol "SBUX.“"SBUX.“19981998 Launches Starbucks.com. Launches Starbucks.com.20052005 Locations total = 8,337 Locations total = 8,337

Howard SchultzChairman and Chief Global Strategist

James DonaldPres., Chief Executive Officer

Michael CaseyChief Financial Officer, VP, Chief Admin

James AllingPres. Starbucks Coffee US

Martin ColesPres Starbucks Coffee International

Key Figures

Wake Up and Wake Up and Smell the Coffee.Smell the Coffee.World's #1 specialty World's #1 specialty coffee retailercoffee retailer

Operates and licenses Operates and licenses more than 4293 coffee more than 4293 coffee shops in united states.shops in united states.

The shops offerThe shops offer coffee drinks coffee drinks food itemsfood itemsbeansbeanscoffee accessoriescoffee accessories teatea CDsCDs

Current ScenarioCurrent Scenario More than 14,396 stores spread across 40 countries

Revenue: $2.01 billion.

Accounts for 73% market share of U.S. coffeehouse sales.

Six Principles of Six Principles of StarbucksStarbucks

1.1. Provide a great work environment and treat Provide a great work environment and treat each other with respect and dignity.each other with respect and dignity.

2.2. Embrace diversity as an essential Embrace diversity as an essential component in the way we do business.component in the way we do business.

3.3. Apply the highest standards of excellence to Apply the highest standards of excellence to the purchasing, roasting and fresh delivery the purchasing, roasting and fresh delivery of our coffee.of our coffee.

4.4. Develop enthusiastically satisfied customers Develop enthusiastically satisfied customers all of the time.all of the time.

5.5. Contribute positively to our communities Contribute positively to our communities and our environment.and our environment.

6.6. Recognize that profitability is essential to Recognize that profitability is essential to our future success.our future success.

Creating Creating Starbucks Starbucks Experience Experience

!!!!!!

ProductProduct

Perfect cup of coffee.Perfect cup of coffee.

““Cupping”.Cupping”.

Out of the stores.Out of the stores.

Starbucks “Discoveries”.Starbucks “Discoveries”.

PlacePlace

Pedestrian & vehicular traffic.Pedestrian & vehicular traffic.

Culturally sensitive.Culturally sensitive.

Across the road.Across the road.

Café section.Café section.

PeoplePeople

Stock option.Stock option.

Partners.Partners.

Building trust.Building trust.

MarketingMarketing StrategyStrategy

Work, travel, shop, and dine.Work, travel, shop, and dine.

Less of traditional advertising; relying on Less of traditional advertising; relying on image advertising, movie and television image advertising, movie and television placement.placement.

Quality and experience, rather than price.Quality and experience, rather than price.

Plenty of comfortable seating.Plenty of comfortable seating.

Environmental FriendlyEnvironmental Friendly

Ansoff’sAnsoff’s MatrixMatrix

1)Market 1)Market PenetrationPenetration

Gourmet coffeeGourmet coffee

3)Product 3)Product DevelopmentDevelopment

In store merchandise In store merchandise CD’s, Dutteo Visa CD’s, Dutteo Visa CardsCards

2)Market 2)Market DevelopmentDevelopment

Presence in 1000 Presence in 1000 cities.cities.

4)Diversification4)Diversification

Grocery StoresGrocery Stores

Bottled DrinkBottled Drink

Ice creamIce cream

Current Products New Products

Current

Markets

New Markets

Indian PerspectiveYet to get the taste

Rejected by FIPB

Decided to file a new proposal

IndianIndian Domestic Domestic MarketMarket

Rs.8 billion ($17 million).Rs.8 billion ($17 million).

Potential 3,000 OutletsPotential 3,000 Outlets

Coffee consumption is 75,000 Coffee consumption is 75,000 tones – 1/10th the consumption tones – 1/10th the consumption of tea.of tea.

IndianIndian Domestic Domestic MarketMarket

Growth from 2002 and 2005Growth from 2002 and 2005—about 20,000-25,000 tones.—about 20,000-25,000 tones.

Growing at 25%-30%.Growing at 25%-30%.

Non-carbonated beverages Non-carbonated beverages market around Rs 8,000-Rs market around Rs 8,000-Rs 10,000 crore.10,000 crore.

Top Indian playersTop Indian players

Was started in 1996Was started in 1996

430 cafés430 cafés

Austria and Pakistan.Austria and Pakistan.

Turnover was Rs 400 crore.Turnover was Rs 400 crore.

Marketing Strategy

Meeting place for 15-29 year olds

Youth-oriented brands

Affordability

Respectable, yet informal

Started in 1999Started in 1999

Tata’s buy a stake of BaristaTata’s buy a stake of Barista

Sterling InfoTech take over in 2004Sterling InfoTech take over in 2004

Lavazza take over in 2007Lavazza take over in 2007

Over 160 outlets.Over 160 outlets.

Revenue: Rs 45 crore.Revenue: Rs 45 crore.

Marketing Strategy

Italian espresso bar.

Has newspapers, magazines, guitars, board games.

Priced at a premium.

In 2002, Barista 85 outlets CCD’s 35. outlets

Tried to be Tried to be everything to everything to

everybody and everybody and ended being ended being

nothingnothingto anybody.to anybody.

Starbucks Starbucks Road map to IndiaRoad map to India

Affordability.Affordability.

Focus on Coffee and Non-coffee Beverages.Focus on Coffee and Non-coffee Beverages.

Take AwayTake Away

Target youth & middle class.Target youth & middle class.

Tie up with existing established brands.Tie up with existing established brands.

Porter’s Five Porter’s Five Forces ModelForces Model

SuppliersIndustry

Competitors Buyers

Substitutes

PotentialEntrants

New growth New growth opportunityopportunity

Fast foodFast food

Gaming zones.Gaming zones.

BibliographyBibliography

www.starbucks.comwww.starbucks.com

www.cafecoffeeday.comwww.cafecoffeeday.com

www.coffeeorg.comwww.coffeeorg.com

www.indiancoffee.orgwww.indiancoffee.org

Retailing management by Sapna Pradhan.Retailing management by Sapna Pradhan.

Business line, articles.Business line, articles.

We aren’t in to coffee We aren’t in to coffee business serving business serving

people.people.We are into people We are into people business serving business serving

coffee.coffee.