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