Retail Managemnt

1. Around the world
50 Countries
16000 Locations
One Name
Let the experience begin……..

2. Now Serving

3. Introduction
• Name : Starbuck (Inspired from Moby-Dick Novel)
• Founders: Jerry Baldwin , Zev Siegl , Gordan Bowker
• Founded:1971, Pike place market in Settle
,Washington
• Industry :Restaurant, Retail , Entertainment
• Key person: Howard Schultz (Chairman, President ,
CEO)
• Employed :1.6 Lac partners
• Achievement:
 2005:Second Best Company to work with (fortune
survey)
 2010: World Most Ethical Company

4. Photo Gallery
“We aren’t in the coffee business, serving people.
We are in the people business, serving coffee.”
Starbuck PartnerProducts

5. History
• 1971: Starbucks opens first store in Seattle’s
Pike Place Market.
• 1982:Howard Schultz joins Starbucks as
director of retail operations and marketing.
• 1983: Howard travels to Italy and impressed
with espresso bars in Milan.
• 1984: Starbucks to test the coffeehouse
concept in downtown Seattle, where the first
Starbucks® Caffè Latte was served.

6. History
• 1986: Howard Schultz left Starbuck and opened
IL Giornale (coffee Bar)
• 1987: Starbuck was sold to Howard Schultz for
$ 3.8 million
• 1992: First IPO turned to be most successful IPOs
of the year
• 1996: Entered into Tokyo market
• 1998: Acquired UK Seattle Coffee Company
• 2009: Becomes the world’s largest buyer of Fair
Trade Certified™ coffee

7. Mission
• "To inspire and nurture the human spirit -
One person, One cup, and One
Neighbourhood at a time."

8. Vision
• “To establish Starbucks as the most
recognized and respected brand in the world”

9. Starbuck Logo
•
1) Image of Twin Tail Serene is chosen
because of psychological relation
between lure of fresh roasted coffee,
tea, spices and mythological enchanting
character
2) IL Giornale logo and Starbuck logo was
merged to designed new stylish
Starbuck logo
3) Current logo is cropped and Zoomed
version of the serene

10. Products
• Coffee- More than 30 blends and single-origin premium
Arabica coffees
• Handcrafted Beverages- Fresh -brewed coffee, hot and
iced espresso beverages, coffee and non-coffee blended
beverages, Vivanno™ smoothies and Tazo ® teas, ice creams
• Merchandise- Home espresso machines, coffee brewers
and grinders, coffee mugs and accessories, packaged goods,
music, books and gift items
• Fresh Food- Baked pastries, sandwiches, salads, oatmeal,
yogurt parfaits and fruit cups

11. Products
• Consumer Products- VIA™ Ready Brew coffee,
bottled Starbucks Frappuccino® beverages, Starbucks
Discoveries® chilled cup coffee (in Japan, Taiwan and
Korea) , Starbucks Double Shot® espresso drinks,
Starbucks® Iced Coffee, whole bean coffee and Tazo®
teas at grocery and a line of super-premium ice
creams
• Brand Portfolio- Tazo tea, Ethos water, Seattle’s Best
Coffee and Torrefazione Italia Coffee

12. HR Policy
• Motto “To have right people hiring the right people”
• Starbuck –Second best company to work with
• It strongly believes that motivated and committed
workforce are key to retail business
• Employee friendly policies and supportive work culture
• Starbucks hired people for qualities like adaptability,
dependability and the ability to work in a team.
• Frontline staff at store are not allowed to use perfumes
as it may mask the fragrance of fresh coffee

13. HR Policy
The Starbucks Total Pay package is called “Your Special Blend” because it’s
just for you which includes:
• Competitive pay
• Insurance: medical, prescription drug, dental, vision, life, disability
• Bonuses
• Paid time off
• Retirement savings plan
• Stock options and discounted stock purchase plan
• Adoption assistance
• Domestic partner benefits
• Emergency financial aid
• Referral and support resources for child and eldercare
• A free pound of coffee each week

14. Training
• For retails Job -24 hr training program in the first 2-4
weeks
• Training includes classes on
- Coffee History
- Drink Preparation
- Coffee knowledge (4 hr)
- Customer Service (4 hr)
- Retails Skills
-Brewing the Perfect Cup (4hr )

15. Training
• Other Training program
- Using the cash register
- Weighing the coffee beans
- Opening and holding the Coffee bean bag
- Affixing label on the package
- Cleaning the espresso machine
• New staffs are hired 8-10 weeks before the opening
of new store and are trained at Starbuck coffee
school in San Francisco

16. Wake up and smell the coffee --
Starbucks is everywhere

17. Starbucks’ Retail Mix
• Location
• Merchandise assortment
• Pricing
• Advertising and promotion
• Store design and visual merchandising
• Customer service
• Personal selling.

18. Starbucks’ retail strategy
• Starbuck’s retail strategy is designed primarily to maintain
loyalty and repeat business among its target market (upscale
coffee drinkers) encompasses hiring and training
knowledgeable counter servers, called baristas (Italian for
bartenders), to educate customers about Starbucks’ specialty
coffee drinks and associated products, and to provide
customers with an opportunity to take a break from their
busy lives in a relaxing atmosphere.
• The company has also entered some creative partnerships to
put its cafes in Nordstrom and Barnes & Noble stores and
serve its coffee on United Airlines. Licensing the brand name
for other food products such as ice cream and soft drinks also
increases its brand awareness.

19. Specialty Operations
• Starbucks specialty operations strive to develop the
Starbucks brand outside the Company-operated
retail store environment through a number of
channels.
– Retail store licensing agreements
– Wholesale accounts
– Grocery channel licensing agreements
– Joint ventures
– Direct-to-consumer marketing channels

21. SWOT Analysis of Starbucks
Strengths Weaknesses
1. Brand name recognition
2. Quality Products
3. Potential Internal Strengths
4. Good Marketing Skills
Well Developed Corporate strategy
5. Location
6. Visionary leader
7. Distribution
8. Manufacturing competencies
9. Exclusive marketing rights
1. Non-pioneer in global market
2. Narrow Product line
3. Complicated Products
Opportunities Threats
1. Expand into Foreign Markets
2. Widen Product Range
3. Diversify into new Growth Businesses
4. Apply brand name capital in new areas
1. Change in consumer tastes
2. City regulations
3. Increase in domestic competition
4. Changes in economic factors
5. Downturn in economy

22. Competitors of Starbucks
• US: Pea's Coffee & Tea, Seattle's Best Coffee
etc.
• France has sidewalk cafes,
• Vienna has grand coffee houses,
• Italy's high-octane espresso bars
• British have long been heavy tea drinkers
• The Pacific Rim, including Singapore and Japan

23. Starbucks plans for India
• India is one of the five countries that Starbucks is focusing on
for international expansion.
• In 2006, Starbucks planned to enter into Indian market with
the help of a franchisee Indonesia’s V.P. Sharma, an NRI.
• It was a 51:49 JV between Starbucks’s franchisee V.P. Sharma
and Future group CEO Kishore Biyani called “New Horizons”.
• FIBP didn’t approve this JV. They said Starbucks can have 51%
direct investment with an local Indian partner.
• Starbucks joined hands with PVR theater to sell Starbucks
merchandise.

24. Starbucks plans for India
• Starbucks wants to enter the Indian market with a franchisee
because it does not have to risk its own capital.
• Starbucks is in talks with Jubilant group controlled by Shyam
and Hari Bhartia. It’s the Indian franchisee for Domino’s Pizza.
• In India Starbucks will face strong competition from CCD,
Barista, Costa Café, Lavazza.
• Many other Coffee houses like Australian Café BB’s & Coffee
Club, UK based Coffee Republic, Italian Café Nero & German
Cup Cino are looking for franchisee to enter India.

25. Grand Strategy Options
• “Market Development”
– Grow international sales volume by offering Starbucks products in
grocery stores, business and other wholesale accounts
– Offering bottled Frappuccino coffee drinks, Starbucks DoubleShot
coffee drink and line of super premium ice creams in the international
markets
– Starbucks brand awareness to grow and develop new distribution
channels with their international partners.
– Starbucks currently has a joint agreement with Alaska Air to serve
Starbucks coffee on every flight
– Increased brand awareness will increase sales and their local retail
sector will benefit, development of new distribution channels.

26. Grand Strategy Options
• "Product Development“
– Starbucks needs to work with its international partners to
identify local cuisine that would be sold in the Starbucks
stores to bring in the local crowds
– Starbucks Hong Kong sells curry puffs, sausage rolls and
seasonal products such as Starbucks' moon cakes
– Starbucks needs to expand the music CD's that they sell to
include local music and cultural tastes (Starbucks will help
to promote that local community appeal of their stores)
– The Starbucks store becomes a local community gathering
place not just another American corporation taking money
from the economy and not giving anything back

27. Grand Strategy Options
• "Conglomerate Diversification“
– Starbucks partner with local phone companies and
internet providers to setup internet access at their
international stores
– Internet cafe's are very popular. The internet cafe's are
much more popular overseas than they are in the US. This
is because many people in international countries do not
have home computers, so they have to go to the local
internet cafe in order to send and receive email

28. Grand Strategy Options
• The chief global strategist of Starbucks, Howard Schultz's
primary goal is to make the company's green-and-white
mermaid join the ranks of the most recognized global brands
such, as Coke and McDonalds
• In order to accomplish this, Schultz must manage the global
expansion on a daily basis by finding the right mix of company
owned stores, partnerships and licenses
• Starbucks must be willing to act quickly to any changes in the
international business climate

29. Promotional Strategies
• Membership Cards
1. Corporate Cards
2. Regular Cards
• Internet / Wi-Fi facility
• Social Networking sites
1. Facebook
2. Twitter

30. Membership Cards (Regular)

31. Membership Cards(Corporate)

32. Conclusion
“At Starbucks its not just an exchange
of coffee over the counter from one
hand to another, its making a
connection, creating a relation and
giving an experience.”

33. Project source
• www.warrington.ufl.edu.starbuck case study
• www.mhhe.com.business management
case/starbucks
• "Case Study Starbucks" Oakland, Daniel Class
Syllabus. UOP. 2003. Tice, Carol
• Bumps abroad: Starbucks chief sees overseas profit
(From: Business Journal http://www.bizjournal.com)
• www.economictimes.com
• www.telegraph.com

34. Thank You