Rationale Became profitable in the 1980s and hasnt stopped ever since
It is the 5th largest name in the fast-food industry according to Forbes, 2014.
With more than 26,000 stores in 72 countries
5000 stores to more than 15,000 stores in a span of 10 years
Studying a brand this vast is a fascinating opportunity.
Brand Profile Starbucks Corporation - an American global coffee company based in Seattle, Washington
Found in 1971, was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattles Pike Place Market.
President and CEO - Kevin Johnson
Today, connect with millions of customers every day with exceptional products and more than 24,000 retail stores in 70 countries.
1971Starbucks opens first store in Seattles Pike Place Market.
1982Howard Schultz joins Starbucks as director of retailoperations& marketing
1987Il Giornale acquires Starbucks and changes its name to Starbucks Corporation
1991Becomes the first privately owned U.S. company to offer a stock option program
Begins serving Frappuccino blended beverages.
Launches Starbucks VIA Instant
201724,000 retail stores in 70 countries.1987
MISSIONTo inspire and nurture the human spirit one person, one cup and one neighbourhood at a time.
Key components:Inspire and nurture the human spiritOne person, one cup and one neighbour at a time
With more than 24,000 stores in 70 countriesSource: Starbucks.com
As of April 2016, Starbucks operates 84 outlets in 7 cities of IndiaState/RegionCityNo. of OutletsFirst outletDelhiNew Delhi1824 January 2013Delhi NCRGurgaon610 July 2013MaharashtraMumbai2619 October 2012Pune98 September 2013KarnatakaBangalore1022 November 2013Tamil NaduChennai58 July 2014TelanganaHyderabad51 October 2014
Organizational StructureStarbucks has a matrix organizational structure.
Hybrid mixture of different features from the basic types of organizational structure.
Main features of Starbucks organizational structure:Functional structureGeographic divisionsProduct-based divisionsTeams
Types of merchandise DrinksCappuccinoEspressoNon coffeeFrappussino
Variety of products
PricingStarbucks uses Value based pricing strategy. They increase 1% price, which raises the profits by an average of 11%.
Service offeredPerforms as a hybrid organization Both- a consumer service provider as well as a tangible finished goods manufacturer.Range of service offered:
Clean storeCustomized coffeeConvenient locationTreated as valuable customerFriendly staffCoffee taste/ flavorHighest quality coffeeFast service
Appropriate pricesFreshest coffeePleasant ambienceKnowledgeable staffPlace to relax, meet friendsInvolved in the communityWide selection of non coffee beveragesNew, innovative beveragesGood selection of merchandise
Size of the storeThe average size of a stand alone and mall outlet of Starbucks can vary from 3000-3500 sq ft.
However, there are smaller formats around the world like drive throughs and airport cafes with area aorund 1000-2000 sq ft.
Size of the store (INTERNATIONAL)The average Starbucks store size varies depending on urban versus suburban location.
Biggest Starbucks Store: The Willy Wonka Factory Of Coffee, Seattle(15,000-square-foot)
Smallest Starbucks Store: Espresso shot, New York City(500 square feet)
Store DesignSustainable design and build methodologies are part of our DNA.Each store uses one of four design concepts:Heritage ArtisanRegional Modern Concept
Visual MerchandisingDim lighting, focus lights close to tables and product displays, brighter lighting behind the counter.
Separate column for the brand merchandise.
One big fixture has food displays, payment area and the delivery area, rest of the store for sitting.not very consistent with the themes
Connaught place store has a very rusty and wooden feel whereas the pacific mall outlet feels like a proper restaurant.
Choice of locationStarbucks, finds locations where there is enough traffic to support running the business.
Sophisticated off-the-shelf tools, find traffic patterns, income in the area, all sorts of demographic and psychographic information.
In India,Found in High Streets and Malls for upper section of society, due to their relatively high prices.
BasisStarbucks GK1,MblockStarbucks Pacific MallLocationHigh StreetMallSquare Feet Area1500 Sq ft3700 Sq ftNumber of Employees10 overall5 OnDuty14 Overall8 On DutyVariety Of Merchandise Starbucks offer a rage of products like Coffee, Handcrafted Beverages, Merchandise and Fresh Food . Starbucks offer a rage of products like Coffee, Handcrafte dBeverages,Merchandise and Fresh Food.Timing9am- 12am10 am -10pmPricingThe Menu of Starbucks is same all over India hence the pricing is sameThe Menu of Starbucks is same all over India hence the pricing is sameStore LayoutFree FlowFree FlowCustomer ServiceThe service was fast .Friendly Employees and the customers were completely satisfiedEmployees were humble and fast. Every customer was attended to carefullyVisual Merchandisingstore was like other high street outlets i.e simple and Modern .The windows were big and a lot of sunlight was coming in .The Siting had Sofas , chairs and tall chairs . set up like a restaurant than a to-go coffee place. The windows were big and there was a lot of sunlight coming in The walls, lamps and stools gave a very wooden-earthy feel to the outlet.
Comparison of stores
Advertising StrategiesModes of Advertising:
Radio TV Billboards Parties Big, Juicy Paintings Nationwide Coffee BreakPublic Performances Charitable Contributions Green initiatives
Starbucks in Movies(Above the line)
Devil wears Prada(2006)Fight club(1999)Sex and the city (2008)
Social networking sites(on the line)37.32million Facebook likes6.56 million Twitter followers2.98 million Instagram fans2.86 million Google+ followers160K Pinterest followers32K YouTube subscribers
Print media and TV commercials(Below the line)
Campaigns(Above the line)
Howard Schultzlaunched My Starbucks Idea in 2008 to help increase the companys focus on the customer and what they want.
In 208, Starbucks Coffee Company and (RED)TM announced a multi-year partnership, a portion of the proceeds from STARBUCKS (PRODUCT)RED products will go to the Global Fund to help save lives in Africa.
In 2011, As part of its long-term dedication to the relief and recovery efforts following the devastating earthquake and tsunami that struck Japan
Sales PromotionLoyalty cards
Customization of outlets for comfort.
Local touch to caf like copper in Pune, handcrafted fabric in Delhi.
Regular addition and subtraction to menu.
Digital connect with consumers.
Personal sellingFree sampling of new products to customersSending of newletters
EventsStarbucks brings mobile payment to India with the launch of the mobile app. 15 March 2017
Starbucks unveils a modern tea experience with the debut of Starbucks teavana in India. 18 January 2017.
Tata Starbucks announces five-day work schedule. 2 May2016
Tata Starbucks Leadership changes. 17 December2016
Tata Starbucks hosts thefirst coffee championship in India. 27 August2015
The Tata group and Starbucks coffee company strengthen global partnership with multiple new commitments. 27 June2016
Public RelationsStarbucks took the advantage in the social network craziness by positioning itself in Facebook and Twitter.
-Starbucks has penetrated the smart phone industry by being part of Blackberry, iPhone and Android applications.
-To stimulate the interest of its customers, Starbucks initiate My Starbucks Idea (www.starbucksidea.com) for customers to share their ideas and Flickr to share pictures.
The campaign #MyMood#MyStarbucks asks consumers to share their mood and what beverage suits their mood best to receive two free customizations on their next visit.
My Starbucks Rewards, customer loyalty program is an effective tool to implement most sales promotion initiatives in practice.
Starbucks totally involves themselveson Facebook, Twitter, mobile application, online partnerships
DIRECT SELLINGEmployees are well trained in providing advice and information about the products. They also know how to build a relationship to each customer in a individual way.Samples of new drinks launched are distributed to try the flavour .
Starbucks keeps on updating their loyalty customers with emails ,messages and letters
INTEGRATED MARKETING COMMUNICATIONPLEASE REFER TO THE RETAIL MIX FOR DETAILED INFORMATION OF THE ELEMENTS OF IMC.
High Quality Coffee Low Quality Coffee Good Environment of the StoreBad Environment of the Store
Brand identity prism
Physique:Green&White logoWide range of coffeePersonalised coffeeNames on the cups
Culture:Socially Responsible Commitment Focus on Traditions& Relationships PassionReflection:Well Connected Finest Coffee Experie