Starbucks is an American global coffee company and coffeehouse chain. It became profitable in the 1980s and has expanded rapidly since, growing to over 26,000 stores in 72 countries. Starbucks has a matrix organizational structure with functional, geographic, and product-based divisions. It uses a value-based pricing strategy and offers a wide range of coffee drinks, food, and accessories. Starbucks aims to provide an exceptional customer experience in its stores through high quality products and friendly service. The company uses an integrated marketing communications approach including advertising, social media, loyalty programs, and partnerships to promote its brand.
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Starbucks A brand study college project
1.
2. Rationale
• Became profitable in the 1980s and
hasn’t 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.
3. 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 Seattle’s 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.
Source: Starbucks.com
4. TIMELINE
1971 Present
1971
Starbucks opens first
store in Seattle’s
Pike Place Market.
1982
Howard Schultz
joins Starbucks as
director of
retail operations &
marketing
1987Il Giornale acquires
Starbucks and
changes its name to
Starbucks
Corporation
1991
Becomes the first
privately owned
U.S. company to
offer a stock
option program
1995
Begins serving
Frappuccino®
blended
beverages.
Launches
Starbucks VIA®
Instant
2009 2017
24,000 retail
stores in 70
countries.
1987 20111971 1992
Source: Starbucks.com
5. MISSION
To inspire and nurture the human spirit – one person,
one cup and one neighbourhood at a time.
Key components:
1. Inspire and nurture the human spirit
2. One person, one cup and one neighbour at a time
Source: Starbucks.com
7. As of April 2016, Starbucks operates 84 outlets in 7 cities of India
State/Region City
No. of
Outlets
First outlet
Delhi New Delhi 18 24 January 2013
Delhi NCR Gurgaon 6 10 July 2013
Maharashtra
Mumbai 26 19 October 2012
Pune 9 8 September 2013
Karnataka Bangalore 10 22 November 2013
Tamil Nadu Chennai 5 8 July 2014
Telangana Hyderabad 5 1 October 2014
8. Organizational Structure
• Starbucks has a matrix organizational
structure.
• Hybrid mixture of different features from the
basic types of organizational structure.
• Main features of Starbucks’ organizational
structure:
1. Functional structure
2. Geographic divisions
3. Product-based divisions
4. Teams
panmore.com
13. Pricing
Starbucks uses Value based pricing strategy.
They increase 1% price, which raises the
profits by an average of 11%.
14.
15. Service offered
• Performs as a hybrid organization
• Both- a consumer service provider as well as a
tangible finished goods manufacturer.
• Range of service offered:
o Clean store
o Customized coffee
o Convenient location
o Treated as valuable customer
o Friendly staff
o Coffee taste/ flavor
o Highest quality coffee
o Fast service
o Appropriate prices
o Freshest coffee
o Pleasant ambience
o Knowledgeable staff
o Place to relax, meet friends
o Involved in the community
o Wide selection of non coffee beverages
o New, innovative beverages
o Good selection of merchandise
16. Size of the store
• The 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.
17. 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)
18. Store Design
“Sustainable design and build
methodologies are part of our DNA.”
Each store uses one of four design concepts:
1. Heritage
2. Artisan
3. Regional Modern
4. Concept
19. Visual Merchandising
• Dim 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.
20. Choice of location
• Starbucks, 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.
21. Basis
Starbucks
GK1,Mblock
Starbucks
Pacific Mall
Location High Street Mall
Square Feet Area 1500 Sq ft 3700 Sq ft
Number of Employees
10 overall
5 OnDuty
14 Overall
8 On Duty
Variety 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.
Timing 9am- 12am 10 am -10pm
Pricing
The Menu of Starbucks is same all over India
hence the pricing is same
The Menu of Starbucks is same all over
India hence the pricing is same
Store Layout Free Flow Free Flow
Customer Service
The service was fast .Friendly Employees and
the customers were completely satisfied
Employees were humble and fast. Every
customer was attended to carefully
Visual Merchandising
store 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
22. Advertising Strategies
Modes of Advertising:
• Radio
• TV
• Billboards
• Parties
• Big, Juicy Paintings
• Nationwide Coffee Break
• Public Performances
• Charitable Contributions
• Green initiatives
24. Social networking sites
(on the line)
• 37.32 million Facebook likes
• 6.56 million Twitter followers
• 2.98 million Instagram fans
• 2.86 million Google+ followers
• 160K Pinterest followers
• 32K YouTube subscribers
26. Campaigns
(Above the line)
Howard Schultz launched My Starbucks
Idea in 2008 to help increase the
company’s 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
27. Sales Promotion
• Loyalty cards
• Customization of outlets for comfort.
• Local touch to café like copper in Pune,
handcrafted fabric in Delhi.
• Regular addition and subtraction to menu.
• Digital connect with consumers.
29. Events
1. Starbucks brings mobile payment to India with the
launch of the mobile app. 15 March 2017
2. Starbucks unveils a modern tea experience with the
debut of Starbucks teavana in India. 18 January 2017.
3. Tata Starbucks announces five-day work schedule. 2
May 2016
4. Tata Starbucks Leadership changes. 17 December 2016
5. Tata Starbucks hosts the first coffee championship in
India. 27 August 2015
6. The Tata group and Starbucks coffee company
strengthen global partnership with multiple new
commitments. 27 June 2016
30. Public Relations
• Starbucks 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.
31. ADVERTISING
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.
SALES PROMOTION
My Starbucks Rewards,
customer loyalty program is an
effective tool to implement most
sales promotion initiatives in
practice.
PUBLIC RELATION
Starbucks totally involves
themselves
on Facebook, Twitter, mobile
application, online partnerships
DIRECT SELLING
Employees 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 .
PERSONAL SELLING
Starbucks keeps on updating
their loyalty customers with
emails ,messages and letters INTEGRATED
MARKETING
COMMUNICATION
PLEASE REFER TO THE RETAIL MIX FOR DETAILED INFORMATION OF THE ELEMENTS OF IMC.
33. Brand identity prism
Physique:
• Green&White logo
• Wide range of coffee
• Personalised coffee
• Names on the cups
Relationship:
• Loyalty
• Adaptive
• Proximity
• Friendly
Personality:
• Quality Oriented
• Traditional
Culture:
• Socially Responsible
• Commitment
• Focus on Traditions&
Relationships
• Passion
Reflection:
• Well Connected
• Finest Coffee Experience
• Productive
Self Image:
• Empowered Individual
• Passionate
• Traditional
• Wealthy
Picture of Sender
Picture of Receiver
Externalisation
Internalisation
34. 4 P’s
Products
• TATA will supply premium Arabica and Robusta
coffee to all stores.
• Starbucks exclusive, innovative packaging will be
used to keep the coffee hot for a longer time.
• They have a variety of flavours in hot and cold
coffee.
• They also offer customization of the coffee as
per the customers
• There is also a variety of tea available along with
a number of eatables like cake and bagels.
35. Price
• The prices are relatively higher as
compared to competitors.
• The premium pricing aims at creating a
rich brand image.
Place
• With 73 stores in almost 5 years
• Most of the stores have been located in malls and
airports
• Their main criteria for store locations is footfall
or highly
• trafficked streets
36. Promotion
• The brand is not as big when it comes to promotion.
They are not seen on the big screens or television.
• They engage more with their customers
• They also focus on digital media
• My Starbucks Reward Program is a loyalty program that allows customers
to redeem points that they earn from buying their products
• Website of Starbucks Coffee Company has a lot of visitors and customers
can get information easily.
• Facebook page of starbucks india has more than 8 lacs likes and is very
responsive to their followers.
• Twitter handle of Starbucks India more than 55K followers and people
are constantly engaging with the twitter handle
37. • “Starbucks Experience” is a phrase they use to
market themselves. They promise to offer a delightful
experience with high quality coffee. The phrase
markets itself through word of mouth mostly by the loyal
customers
• Innovative LED display:
• Before opening their first store in Delhi, starbucks placed a big screen
outside the store’s space. The screen flashed tweets by people who truly
love coffee and starbucks in real time.
• Partnership with Truly Madly
• Starbucks partnered with Truly Madly, a dating app and hosted an event on
the 13th of february, right before Valentine’s Day. they offered pre-loaded
gift cards to winners of a competition from the event.
