starbuck
TRANSCRIPT
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Presentation By: Yogesh kumar
Pinkki Singh
HQ: Seattle, Washington, U.S.
CEO: Howard Schultz
Founders: Jerry Baldwin,
Gordon Bowker
Zev Siegl
Founded In: March 30,1971 in Seattle
Stores: 20,891 stores in 62 countries
(march 2013)
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Global Presence of Starbuck3
*Revenue Chart
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Quality 1st Priority
Premium European Coffee
experience in USA
Being Green
Investing in Innovation
Employees as “PARTNERS”
& the most important assets
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Rapid Expansion
Product line
Coffee Purchasing Strategy
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20,891 stores in 62
countries
Aggressive Expansion
Is Starbuck there?
Ans: No
Result: Open a Starbuck there
Predatory strategy
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*Coffee
*Tea
*Juice/ Drinks
*Milkshakes
* Ice creams
*Hot/Cold Sandwiches
*Pastries
*Cakes/Muffins
*Salads
*Yoghurts
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*Building Relationship With
Growers & exporters
*Checking on agricultural
conditions and yields
*Searching varieties & sources
*Secure adequate supply of quality
green coffee beans & to limit it
exposure to fluctuating coffee
prices in upcoming periods.
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Starbuck
Wide Presence
Product Mix
Partners
Ambiance- Comfortable stores
Environmental reputation
Value Added Services; Wi-Fi, TV, cards
Starbuck Express.
Automatic Espresso machine
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*Customization of drinks
caused tension between Product Quality and customer focus
Increased Menu Size
*Lacking of a strategic Marketing Group
*Little product differentiation
*Higher Price then main competitors
*Rapid Expansion
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*Increased customer satisfaction
*Increased the no. of stores:
Domestically & internationally
*Create the new product and services
*Advertisement through internet
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Competitors
Dunkin Donut & McDonalds
Small scale specialty coffee chains
Economy Slowdown
Copy cat Brands
Health Conscious Trend
Unsatisfied customer
Cultural challenges
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Key problem; Maintaining a customer
focused brand image while continuing
Expansion.
Customer Satisfaction
Lost Sight of the consumer
Lost connection between customer &
growing Business
Employees Burnout
Service gap due to unhappy employees
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Controllable elements
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Price
Product
Promotion
Channel of Distribution
Uncontrollable elements
Political/ Legal Forces
Competitive Structure
Cultural Forces
*Best Coffee
*Best Environment
*Customer Satisfaction
*Selling of experience not just coffee
*Projection as 3rd Place ; other than
Home & workplace.
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*Need to sustain its exclusivity.
*Too many Starbucks around, Question Arises Quality vsVolume
*Choose Location After checking Feasibility.
*Need to refocus on product differentiation strategyrather than expansion.
*Market penetration will not be a problem if starbuck creates proper infrastructure.
*Look after Employee Satisfaction.
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