starbucks story and marketing strategies
TRANSCRIPT
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STARBUCKS
SUBMITTED TO: Mr. Sachin Jain
SUBMITTED BY : Aanchal Jain
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ABOUT
STARBUCKS
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• Starbucks Corporation, doing business
as Starbucks Coffee, is an American global coffee
company and coffeehouse chain based
in Seattle, Washington.
• Starbucks is the largest coffeehouse company in
the world ahead of UK rival Costa Coffee
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• Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks.
• Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such as mugs and tumblers.
• Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm.
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• Through the Starbucks Entertainment division
and Hear Music brand, the company also markets
books, music, and film.
• Many of the company's products are seasonal or
specific to the locality of the store. Starbucks-
brand ice cream and coffee are also offered
at grocery stores.
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FOUNDING
• The first Starbucks opened in Seattle,
Washington, on March 30, 1971, by three
partners who met while they were students
at the University of San Francisco
• English teacher Jerry Baldwin,
• History teacher Zev Siegl, and
• Writer Gordon Bowker
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BALDWIN – BOWKER – SIEGL
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HOWARD SCHULTZ
CEO OF STARBUCKS“Starbucks may become another
soulless big chain”
Co-authored: “Pour Your Heart Into It”
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58 years old
Graduated in Business & Marketing
Started his own coffeehouse: Il Giornale Coffee in 1985
Purchased Starbucks Coffee (6 stores) in 1987
Renamed Il Giornale Coffee with the Starbucks name
Expanded aggressively first across the United States and
then around the world
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STARBUCKS
STORY
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• The Starbucks Story began in 1971. Back then
they were a roaster and retailer of whole bean and
ground coffee, tea and spices with a single store in
Seattle’s Pike Place Market.
• Today, they are connected with millions of
customers every day with exceptional products
and more than 21,000 retail stores in 68 countries
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FOLKLORE
• Starbucks is named after the first mate in Herman
Melville’s Moby Dick.
• The logo is also inspired by the sea – featuring a
twin-tailed siren from Greek mythology.
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STARBUCKS MISSION
“ To inspire and nurture the human spirit –
one person, one cup and one neighbourhood
at a time. “
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STARBUCKS COFFEE
• Starbucks has always believed in serving the best coffee possible.
• The goal for all of Starbucks coffee is to be grown under the highest standards of quality, using ethical sourcing practices.
• The coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality beans.
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STORES
“ Our stores are a neighbourhood gathering place for meeting friends and family “
Total stores: 21,878*
(as of December 28, 2014)
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STARBUCKS ‘PARTNERS’
“ Our employees, who we call partners, are at the heart of the Starbucks Experience. We believe in treating our partners with respect and dignity “
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STARBUCKS
COMPANY
PROFILE
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• Coffee: More than 30 blends and single-origin premium
coffees.
• Handcrafted Beverages: Fresh-brewed coffee, hot and iced
espresso beverages, Frappuccino® coffee and noncoffee
blended beverages, Starbucks Refreshers™, smoothies and
teas.
• Merchandise: Coffee- and tea-brewing equipment, mugs
and accessories, packaged goods, music, books and gifts.
• Fresh Food: Baked pastries, sandwiches, salads, salad and
grain bowls, oatmeal, yogurt parfaits and fruit cups.
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TIMELINE
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• 1971 : Starbucks opens first store in Seattle’s Pike Place Market.
• 1985 : Howard found IlGiornale
• 1987 : IlGiornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation.
• 1994 : Total stores:425
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• 1996 : Opens stores in: Japan(first store outside of NorthAmerica) and Singapore.
Total stores: 1,015
• 1997 : Establishes The Starbucks Foundation
• 1998 : Acquires Tazo, a tea company based in Portland,Ore.
Opens stores in: Malaysia, NewZealand, Taiwan,Thailand and U.K.
Total stores:1,886
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• 2001 : Introduces the Starbucks Card, an innovative stored‐value card for customers to use and reload.
Opens stores in: Austria and Switzerland.
Total stores:4,709
• 2004 : Opens stores in France.
Total stores:8,569
• 2005 : Jim Donald becomes president and chief executive officer
AcquiresEthosWater
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• 2006 : Launches the industry’s first paper
beverage cup containing post‐consumer
recycled fiber, saving more than 75,000 trees
each year.
• 2007 : Eliminates all artificial trans fat
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EVOLUTION OF
LOGO
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STARBUCKS LOGO (1971-1987) Il GIORNALE LOGO (1986-1987)
A logo based on an old sixteenth-century
Norse woodcut: a two-tailed mermaid, or
siren, encircled by the store’s original
name, Starbucks Coffee, Tea, and Spice.
Logo reflected the emphasis on
speed. The Il Giornale name was
inscribed in a green circle that
surrounded a head of Mercury,
the swift messenger god.”
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STARBUCKS LOGO
(1987-1992)
“To symbolize the melding of the two companies [Il
Giornarle and Starbucks] and two cultures, Terry
[Heckler] came up with a design that merged the two
logos.
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STARBUCKS LOGO (1992-2011) 2011 – and beyond
“This new evolution of the logo
… embraces and respects our
heritage and at the same time,
evolves us to a point where we
will feel it’s more suitable for
the future”
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MENU
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DRINKS• Starbucks Refreshers Beverages
• Evolution fresh
• Iced Tea
• Bottled Drinks
• Freshly Brewed Coffee
• Chocolate Beverages
• Espresso Beverages
• Frappuccino Blended Beverages
• Kids’ Drinks and Others
• Smoothies
• Fizzio Handcrafted Sodas
• Iced Coffee
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FOOD
• Bakery (Muffins, scones & more were made to go
with coffee)
• Starbucks Petites (Petite-sized treats)
• Bistro Boxes ( lunch )
• Evolution Harvest
• Hot Breakfast
• Sandwiches, Paninis & Salads
• Yogurt and Fruit
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LOCATION
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The company's headquarters is located
in Seattle, Washington, United States, where
3,500 people worked as of January 2015.
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AUTOMATED LOCATIONS
Starbucks has automated systems in some
areas. These machines have 280 possible
drink combinations to choose from. They
have touch screens and customers can play
a game while they wait for their order.
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Most stores are located in high trafficked, high
visibility areas, such as :
1. Office Buildings
2. Downtown and suburban retail centres
3. Airport Terminals
4. University Campuses
5. Busy neighbourhood shopping areas convenient
to pedestrian traffic
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FACILITIES
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• Free Wi-Fi Internet access varies in different regions.
• Customers with a Starbucks Card are able to log-on to the Wi-Fi in-store for free with their card details.
• In October 2012, Starbucks and Duracell Powermat announced a pilot program to install Powermat charging surfaces in the tabletops in selected Starbucks stores in the Boston area
• Further more, Starbucks announced that it would soon create a real-world ecosystem of wireless power, by creating a universal standard for wireless charging, and to help the customers to recharge their smart phones.
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STORE DESIGN
• Believe that coffeehouse should be a place to find connection.
• Each new and renovated store uses one of four design concepts :
• Heritage coffeehouses
• Artisan stores
• Regional Modern
• Concept stores
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SEGMENTING
MARKETS
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Starbucks uses demographic segmentation
(markets by age, gender, income, ethnic
background , and family life cycle)
as well as geographic segmentation ( markets by
region of a country or the world, market size,
market density or climate).
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TARGET
CUSTOMER
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Starbucks’ primary target market is men and women aged 25 to 40.
They account for almost half (49 percent) of its total business . Customers tend to be urbanites with relatively high income, professional careers and a focus on social welfare. This target audience grows at a rate of 3 percent annually.
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Young adults, aged 18 to 24 :
Starbucks positions itself as a place college
students can hang out, study, write term
papers and meet people. Starbucks appeals to
this consumer directly through introducing
technology as soon as it comes available,
focusing on social networking and actively
cultivating a “cool” image. The young adult
audience grows 4.6 percent each year.
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MARKET
POSITIONING
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• Starbucks has positioned itself as a highly
respected brand.
• The Starbucks Company has positioned
itself in a way that it can distinguish their
products from competition , which gives
them an advantage
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MARKETING
STRATEGIES
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• “Perfect cup of coffee”- Their coffee, even if priced
slightly more expensive than expected, is famous
for satisfying customers with rich , delicious taste
and aroma.
• “Customer Satisfaction” – From entrance to the
store to the very last drop of the coffee, it is a must
that customers feel the uniqueness of enjoying
their Starbucks coffee experience.
• “Creating Starbucks Community” – Starbucks
started a community website, My Starbucks
Idea,designed to collect suggestions and feedback
from customers.
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• “Innovation” – They’ve added different flavours to their coffee, more food on their menu, free weekly songs or app download from iTunes, free Wi-fiInternet usage, free birthday drink etc.
• “Just say yes “ policy in order to keep the customers happy
• “My Starbucks Reward Program” allows members to earn a free drink after every 15 purchases at participating Starbucks stores
• Starbucks Card – It is a stored value card for customers to use and reload.
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• “Adding Value” - That little bit of extra value
beyond the fare of coffees and cakes keeps the
customers going back again and again.
• “Getting personal with Customers” - the staff
always ask your name – which they write on your
cup.
• “Cluster of coffee shops” - Part of Starbucks’
marketing strategy is to hit a new territory hard
and open a few coffee shops there – often in very
relatively close proximity to one another.
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• “Third Place” – From the very beginning, the Starbucks marketing
strategy has focused on creating the “third place” for everyone to go
to between home and work. Creating this unique and relaxing
“experience” and “atmosphere” for people has been very important
for the company as they have realized that this is one of the
strongest concepts attached to the company, to which customers
have been strongly attracted.
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SOCIAL MEDIA
Their social media strategy is built around
their company web site and 6 additional
social platforms, including Twitter,
Facebook, Pinterest, G+, Youtube, and My
Starbucks Ideas.
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STARBUCKS
IN
INDIA
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• Starbucks had entered the Indian market in
October 2012
• Tata Starbucks Limited is the 50:50 joint venture
between Starbucks Coffee Company and Tata
Gold Beverages Ltd.
• The outlets are branded Starbucks "A Tata
Alliance".
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PRODUCTS
Apart from the usual products offered
internationally, Starbucks in India has some
Indian style product offerings such as
Tandoori Paneer Roll, Elaichi Mawa
Croissant and Murg Tikka Panini to suit
Indian customers.
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• As of March 2015, Starbucks operates 67 outlets in 7 cities of India.
• Delhi including NCR region – 20
• Mumbai – 24
• Pune - 7
• Bangalore – 10
• Chennai – 2
• Hyderabad - 4
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SWASTHA
• Starbucks and Tata share common values of responsible business ethics and a commitment to community.
• Tata Coffee Limited has been working to improve the lives of coffee growing communities in the State of Karnataka.
• Through an initial financial commitment, Starbucks will work with Tata to support the expansion of 'Swastha,' a school for children with special needs and aim to increase its capacity and outreach into the rural communities in the coffee growing region of Karnataka.
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CHAI PROJECT
• Community, Health and Advancement Initiative (CHAI)—a collaboration between the Starbucks Foundation, Tazo® Tea, Mercy Corps, Indian tea companies and origin communities in India and Guatemala.
• In India, Starbucks has contributed to tea growing communities for many years. Since 2003, Starbucks has collaborated with Mercy Corps on the CHAI Project in Darjeeling and Assam to help improve the quality of life for 190 tea and botanical communities in a sustainable way.
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Today, CHAI is helping people in origin
communities to:
• Improve access to water and sanitation
• Help young people succeed in school and become
leaders in their communities
• Learn the skills to get a job or start a business
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ENVIRONMENTAL
STEWARDSHIP
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Starbucks believe in the importance of caring for our planet and working with and encouraging others to do the same. As a company that relies on an agricultural product, it makes good business sense.
• Recycling
• Energy
• Water
• Green Building
• Climate Change
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MY STARBUCKS
REWARDS
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• Earn 1 Star every time you spend INR 300 with your registered Starbucks Card at any of our stores in India. The more Stars you earn, the greater the rewards you receive.
• As you collect Stars, you move up to bigger benefits. There are three reward levels.
• WELCOME
• GREEN
• GOLD
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AWARDS
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• “No. 1 Best Coffee,” Fast Food and Quick Refreshment categories Zagat’s Survey of National Chain Restaurants – 2009‐2011
• “No. 1 Most Popular Quick Refreshment Chain” Zagat’s Survey of National Chain Restaurants – 2009‐2011
• One of“The 100 Best Companies to Work For” Fortune – 1998–2000, 2002–2012
• One of the “Most Admired Companies in America” Fortune –2003–2012
• One of the “World’s 50 Most Innovative Companies” Fast Company – 2012
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• One of the “World’s Most Ethical Companies” Ethisphere
– 2007‐2012
• One of the “100 Best Corporate Citizens” Corporate
Responsibility/Business Ethics – 2000‐2012
• “Sustainability Design Award” Global Green USA – 2011
• “Most Ethical Company, European Coffee Industry”
Allegra Strategies – 2009‐2011
• “Business Person of the Year,” Howard Schultz, Starbucks
chairman, president and chief executive officer Fortune –
2011
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SWOT
ANALYSIS
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STRENGTHS
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Product diversification
Established logo, developed brand,
copyrights, trademarks, website and patents
Company operated retail stores
International presence
Valued and motivated employees, good
working environment
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Good relationships with suppliers
Industry market leader
Customer loyalty
Wide spread and consistent
Knowledge based
Strong Board
Trendy brand image
Strong financial foundation
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WEAKNESSES
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Cross functional management
Product pricing is high
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THREATS
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Competition (restaurants, street carts,
supermarkets, other coffee shops, other
caffeine based products)
Coffee price volatility in developing
countries
Negative publicity from poorly treated
farmers in supplying countries
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Consumer trends toward more healthy ways
and away from sweet coffee beverages and
cakes
Cultural and Political issues in foreign
countries
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OPPORTUNITIES
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Expansion into
retail operations
Technological
advances
New distribution
channels (delivery)
New products
Brand extension
Emerging
international
markets
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NEW CAMPAIGN
• Starbucks Launches First Brand Campaign, 'Meet Me at Starbucks‘
• It isn't focusing on products like it normally does in its ads. Rather, it's focusing on the brand by chronicling a day in the life of Starbucks through a mini-documentary, shot in 59 different stores in 28 countries, using 39 local filmmakers, 10 local photographers and one director coordinating it all at 72 and Sunny, the agency responsible for the work.
• Cities the project was filmed in include New York, Rio de Janeiro, Bogota, Singapore, Beijing, Mumbai, Toronto, Paris and Berlin.
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THANK YOU
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